SEHK:1725

Stock Analysis Report

Eternity Technology Holdings

Executive Summary

Eternity Technology Holdings Limited, an investment holding company, provides electronics manufacturing services in the People's Republic of China, the United States, Mexico, South Korea, Spain, and Austria.

Rewards

Trading at 9.4% below its fair value

Risk Analysis

Highly volatile share price over past 3 months

Profit margins (3.8%) are lower than last year (6.7%)

Shareholders have been diluted in the past year

Does not have a meaningful market cap (HK$516M)



Snowflake Analysis

Excellent balance sheet with questionable track record.

Share Price & News

How has Eternity Technology Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1725's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

32.1%

1725

6.2%

HK Electronic

0.6%

HK Market


1 Year Return

28.3%

1725

16.8%

HK Electronic

-0.06%

HK Market

Return vs Industry: 1725 exceeded the Hong Kong Electronic industry which returned 16.8% over the past year.

Return vs Market: 1725 exceeded the Hong Kong Market which returned -0.1% over the past year.


Shareholder returns

1725IndustryMarket
7 Day32.1%6.2%0.6%
30 Day27.3%3.1%-3.6%
90 Day51.3%14.1%-0.01%
1 Year28.3%28.3%20.3%16.8%3.5%-0.06%
3 Yearn/a19.7%10.1%19.5%7.4%
5 Yearn/a92.7%67.7%18.4%-1.4%

Price Volatility Vs. Market

How volatile is Eternity Technology Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Eternity Technology Holdings undervalued compared to its fair value and its price relative to the market?

9.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1725 (HK$1.77) is trading below our estimate of fair value (HK$1.95)

Significantly Below Fair Value: 1725 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1725 is poor value based on its PE Ratio (22x) compared to the Electronic industry average (9.3x).

PE vs Market: 1725 is poor value based on its PE Ratio (22x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1725's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1725 is overvalued based on its PB Ratio (2.1x) compared to the HK Electronic industry average (0.9x).


Next Steps

Future Growth

How is Eternity Technology Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

24.5%

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 Eternity Technology Holdings 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 Eternity Technology Holdings performed over the past 5 years?

6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1725 has high quality earnings.

Growing Profit Margin: 1725's current net profit margins (3.8%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: 1725's earnings have grown by 6.7% per year over the past 5 years.

Accelerating Growth: 1725's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1725 had negative earnings growth (-25.8%) over the past year, making it difficult to compare to the Electronic industry average (-8.8%).


Return on Equity

High ROE: 1725's Return on Equity (9.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Eternity Technology Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1725's short term assets (CN¥366.6M) exceed its short term liabilities (CN¥207.9M).

Long Term Liabilities: 1725's short term assets (CN¥366.6M) exceed its long term liabilities (CN¥3.1M).


Debt to Equity History and Analysis

Debt Level: 1725's debt to equity ratio (7.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1725's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1725's debt is well covered by operating cash flow (255.1%).

Interest Coverage: 1725's interest payments on its debt are well covered by EBIT (52.6x coverage).


Balance Sheet

Inventory Level: 1725 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1725's debt is covered by short term assets (assets are 21.2x debt).


Next Steps

Dividend

What is Eternity Technology Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1725's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1725's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1725's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1725's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1725's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Eternity Technology Holdings's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average board tenure


CEO

Fujun Ma (45yo)

0yrs

Tenure

0

Mr. Fujun Ma serves as Chairman of the Board and Chief Executive Officer of Eternity Technology Holdings LImited and has been its Executive Director since February 28, 2018. Mr. Ma founded Eternity Technol ...


Board Age and Tenure

1.4yrs

Average Tenure

43.5yo

Average Age

Experienced Board: 1725's board of directors are not considered experienced ( 1.4 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

BuyCN¥4,388,44031 May 19
Capital VC Limited
EntityCompany
Shares2,800,000
Max PriceCN¥1.57
SellCN¥302,00031 May 19
Capital VC Limited
EntityCompany
Shares200,000
Max PriceCN¥1.51

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 29.2%.


Management Team

  • Jing Xu (42yo)

    Company Secretary

    • Tenure: 1.8yrs
  • Fujun Ma (45yo)

    Chairman of the Board & CEO

    • Tenure: 0yrs
  • Xiaoyuan Chen (45yo)

    Executive Director

    • Tenure: 2.8yrs
  • Bin Cheng (41yo)

    Executive Director

    • Tenure: 2.8yrs
  • Xue Jian (34yo)

    Financial Controller

    • Tenure: 0yrs

Board Members

  • Lewis Chan (46yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
  • Kit Chow (33yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
  • Chi-luen Wu (42yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
  • Fujun Ma (45yo)

    Chairman of the Board & CEO

    • Tenure: 0yrs
  • Xiaoyuan Chen (45yo)

    Executive Director

    • Tenure: 2.8yrs
  • Bin Cheng (41yo)

    Executive Director

    • Tenure: 2.8yrs

Company Information

Eternity Technology Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eternity Technology Holdings Limited
  • Ticker: 1725
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: HK$516.000m
  • Shares outstanding: 300.00m
  • Website: https://www.szeternity.com

Number of Employees


Location

  • Eternity Technology Holdings Limited
  • Longtian Street
  • Block A2
  • Shenzhen
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1725SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 2018

Biography

Eternity Technology Holdings Limited, an investment holding company, provides electronics manufacturing services in the People's Republic of China, the United States, Mexico, South Korea, Spain, and Austri ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 13:05
End of Day Share Price2019/12/09 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.