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.


Snowflake Analysis

Excellent balance sheet with solid 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

-11.3%

1725

-1.5%

HK Electronic

0.2%

HK Market


1 Year Return

-13.6%

1725

-22.4%

HK Electronic

-22.0%

HK Market

Return vs Industry: 1725 exceeded the Hong Kong Electronic industry which returned -22.4% over the past year.

Return vs Market: 1725 exceeded the Hong Kong Market which returned -22% over the past year.


Shareholder returns

1725IndustryMarket
7 Day-11.3%-1.5%0.2%
30 Day-33.5%-17.5%-12.4%
90 Day-36.7%-25.3%-16.4%
1 Year-13.6%-13.6%-20.1%-22.4%-19.1%-22.0%
3 Yearn/a-22.8%-29.2%-3.7%-13.4%
5 Yearn/a15.2%0.1%-15.2%-28.8%

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?

19.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1725 (HK$1.33) is trading below our estimate of fair value (HK$1.65)

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 (14.3x) compared to the Electronic industry average (8.1x).

PE vs Market: 1725 is poor value based on its PE Ratio (14.3x) compared to the Hong Kong market (9.1x).


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 (1.5x) compared to the HK Electronic industry average (0.8x).


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?

18.5%

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?

5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1725 has high quality earnings.

Growing Profit Margin: 1725's current net profit margins (4.7%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: 1725's earnings have grown by 5.7% per year over the past 5 years.

Accelerating Growth: 1725's earnings growth over the past year (23.6%) exceeds its 5-year average (5.7% per year).

Earnings vs Industry: 1725 earnings growth over the past year (23.6%) exceeded the Electronic industry -10.7%.


Return on Equity

High ROE: 1725's Return on Equity (10.8%) is considered low.


Next Steps

Financial Health

How is Eternity Technology Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1725's short term assets (CN¥359.6M) exceed its short term liabilities (CN¥206.5M).

Long Term Liabilities: 1725's short term assets (CN¥359.6M) exceed its long term liabilities (CN¥1.9M).


Debt to Equity History and Analysis

Debt Level: 1725's debt to equity ratio (7%) 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 (268.8%).

Interest Coverage: 1725's interest payments on its debt are well covered by EBIT (35.1x 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 21.9x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average board tenure


CEO

Fujun Ma (45yo)

no data

Tenure

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 Members

NamePositionTenureCompensationOwnership
Fujun Ma
Chairman of the Board & CEOno datano datano data
Xiaoyuan Chen
Executive Director3.08yrsno datano data
Bin Cheng
Executive Director3.08yrsno datano data
Chung Kik Chan
Independent Non-Executive Director1.75yrsno datano data
Kit Chow
Independent Non-Executive Director1.75yrsno datano data
Chi-luen Wu
Independent Non-Executive Director1.75yrsno datano data

1.8yrs

Average Tenure

43.5yo

Average Age

Experienced Board: 1725's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.4%.


Top Shareholders

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$399.000m
  • Shares outstanding: 300.00m
  • Website: https://www.szeternity.com

Number of Employees


Location

  • Eternity Technology Holdings Limited
  • Block A2
  • Yingzhan Industrial Park
  • 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 Austria. The company provides design enhancement and verification; technical advice and engineering solutions; raw materials selection and procurement; quality control; logistic and delivery; and after-sale services for assembling and production of printed circuit board assemblies and fully-assembled electronic products for banking and finance, telecommunication, and smart device industries. Its fully-assembled electronic products include mobile phones, digital projectors, mobile point-of-sale, photovoltaic inverters, tablets, and street lamp controllers. The company was founded in 2003 and is headquartered in Shenzhen, China. Eternity Technology Holdings Limited is a subsidiary of Rich Blessing Group Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 13:44
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.