SEHK:1710

Stock Analysis Report

Trio Industrial Electronics Group

Executive Summary

Trio Industrial Electronics Group Limited, an investment holding company, operates as an electronic manufacturing service provider for industrial electronic components and products in Europe, the People's Republic of China, South East Asia, North America, and internationally.

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Share Price & News

How has Trio Industrial Electronics Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1710 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.8%

1710

-1.0%

HK Electronic

-0.7%

HK Market


1 Year Return

-26.9%

1710

1.9%

HK Electronic

-2.3%

HK Market

Return vs Industry: 1710 underperformed the Hong Kong Electronic industry which returned 1.9% over the past year.

Return vs Market: 1710 underperformed the Hong Kong Market which returned -2.3% over the past year.


Shareholder returns

1710IndustryMarket
7 Day1.8%-1.0%-0.7%
30 Day-1.7%1.8%0.2%
90 Day-17.4%9.4%2.8%
1 Year-21.8%-26.9%4.9%1.9%1.2%-2.3%
3 Yearn/a5.1%-3.2%20.4%8.4%
5 Yearn/a61.0%40.1%16.9%-2.6%

Price Volatility Vs. Market

How volatile is Trio Industrial Electronics Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Trio Industrial Electronics Group undervalued compared to its fair value and its price relative to the market?

6.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1710 (HK$0.29) is trading above our estimate of fair value (HK$0.18)

Significantly Below Fair Value: 1710 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1710 is good value based on its PE Ratio (6.1x) compared to the Electronic industry average (9.3x).

PE vs Market: 1710 is good value based on its PE Ratio (6.1x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1710's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1710 is good value based on its PB Ratio (0.8x) compared to the HK Electronic industry average (0.9x).


Next Steps

Future Growth

How is Trio Industrial Electronics Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.2%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Trio Industrial Electronics Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Trio Industrial Electronics Group performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1710 has high quality earnings.

Growing Profit Margin: 1710's current net profit margins (5.3%) are lower than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: 1710's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: 1710's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1710 had negative earnings growth (-8.5%) over the past year, making it difficult to compare to the Electronic industry average (-10.9%).


Return on Equity

High ROE: 1710's Return on Equity (13.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Trio Industrial Electronics Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1710's short term assets (HK$456.1M) exceeds its short term liabilities (HK$166.8M)

Long Term Liabilities: 1710's short term assets (HK$456.1M) exceeds its long term liabilities (21.9M)


Debt to Equity History and Analysis

Debt Level: 1710's debt to equity ratio (19.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1710's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1710's debt is not well covered by operating cash flow (12.2%).

Interest Coverage: 1710's interest payments on its debt are well covered by EBIT (10x coverage).


Balance Sheet

Inventory Level: 1710 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1710's debt is covered by short term assets (assets are 6.8x debt).


Next Steps

Dividend

What is Trio Industrial Electronics Group's current dividend yield, its reliability and sustainability?

5.61%

Current Dividend Yield


Dividend Yield vs Market

company5.6%marketbottom25%2.2%markettop25%6.4%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1710's dividend (5.61%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 1710's dividend (5.61%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.39%).


Stability and Growth of Payments

Stable Dividend: 1710 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1710 has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.7%), 1710's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Trio Industrial Electronics Group's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average board tenure


CEO

Leung Lam Tai (72yo)

1.5yrs

Tenure

HK$5,860,000

Compensation

Mr. Tai Leung Lam is Chief Executive Officer of Trio Industrial Electronics Group Ltd since May 25, 2018. He has been Executive Director of Trio Industrial Electronics Group Limited since April 15, 2016 an ...


CEO Compensation Analysis

Compensation vs Market: Leung Lam's total compensation ($USD748.69K) is above average for companies of similar size in the Hong Kong market ($USD216.22K).

Compensation vs Earnings: Leung Lam's compensation has been consistent with company performance over the past year.


Board Age and Tenure

2.8yrs

Average Tenure

65yo

Average Age

Experienced Board: 1710's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$11,499,98113 Jun 19
Yiu Wah Lai
EntityIndividual
Role
Chairman of the Board
Chairman
Shares25,000,000
Max PriceHK$0.46
SellHK$22,999,96113 Jun 19
Trio Industrial Electronics Holding Limited
EntityCompany
Shares50,000,000
Max PriceHK$0.46
BuyHK$11,499,98113 Jun 19
Georges Gener
EntityIndividual
Role
Member of the Board of Directors
Chairman of European Operations & Executive Director
Shares25,000,000
Max PriceHK$0.46

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.8%.


Management Team

  • Georges Gener (70yo)

    Chairman of European Operations & Executive Director

    • Tenure: 1yrs
    • Compensation: HK$3.04m
  • Yiu Wah Lai (64yo)

    Chairman

    • Tenure: 1.5yrs
    • Compensation: HK$5.92m
  • Leung Lam Tai (72yo)

    CEO, Director of Manufacturing & Executive Director

    • Tenure: 1.5yrs
    • Compensation: HK$5.86m
  • Joseph Mac Carthy (53yo)

    Director of Marketing & Executive Director

    • Tenure: 3.6yrs
    • Compensation: HK$3.39m
  • Ruby Wan (35yo)

    Company Secretary & Group Financial Controller

    • Tenure: 1.8yrs

Board Members

  • Georges Gener (70yo)

    Chairman of European Operations & Executive Director

    • Tenure: 1yrs
    • Compensation: HK$3.04m
  • Raymond Wong (64yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$240.00k
  • Kin Wing Cheung (65yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$240.00k
  • Yiu Wah Lai (64yo)

    Chairman

    • Tenure: 1.5yrs
    • Compensation: HK$5.92m
  • Leung Lam Tai (72yo)

    CEO, Director of Manufacturing & Executive Director

    • Tenure: 1.5yrs
    • Compensation: HK$5.86m
  • Joseph Mac Carthy (53yo)

    Director of Marketing & Executive Director

    • Tenure: 3.6yrs
    • Compensation: HK$3.39m
  • Chun Chung Fung (76yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$240.00k

Company Information

Trio Industrial Electronics Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Trio Industrial Electronics Group Limited
  • Ticker: 1710
  • Exchange: SEHK
  • Founded: 1983
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: HK$285.000m
  • Shares outstanding: 1.00b
  • Website: https://www.trio-ieg.com

Number of Employees


Location

  • Trio Industrial Electronics Group Limited
  • Kaiser Estate, Phase II
  • 5th Floor
  • Hung Hom
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1710SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2017

Biography

Trio Industrial Electronics Group Limited, an investment holding company, operates as an electronic manufacturing service provider for industrial electronic components and products in Europe, the People's  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 13:00
End of Day Share Price2019/11/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.