SEHK:2038

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Executive Summary

FIH Mobile Limited, an investment holding company, provides integrated manufacturing services for the handset industry worldwide.

Rewards

Trading at 74.2% below our estimate of its fair value

Earnings are forecast to grow 77.87% per year

Risk Analysis

No risks detected for 2038 from our risk checks.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has FIH Mobile's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2038 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.5%

2038

5.3%

HK Electronic

4.1%

HK Market


1 Year Return

1.1%

2038

3.3%

HK Electronic

-4.7%

HK Market

Return vs Industry: 2038 underperformed the Hong Kong Electronic industry which returned 3.3% over the past year.

Return vs Market: 2038 exceeded the Hong Kong Market which returned -4.7% over the past year.


Shareholder returns

2038IndustryMarket
7 Day3.5%5.3%4.1%
30 Day-4.3%12.0%4.2%
90 Day3.5%15.8%11.7%
1 Year1.1%1.1%7.1%3.3%-1.2%-4.7%
3 Year-62.9%-62.9%-12.9%-20.7%7.7%-3.5%
5 Year-76.4%-79.5%45.9%26.6%7.2%-10.1%

Price Volatility Vs. Market

How volatile is FIH Mobile's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is FIH Mobile undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2038 (HK$0.89) is trading below our estimate of fair value (HK$3.44)

Significantly Below Fair Value: 2038 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2038 is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: 2038 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2038's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2038 is good value based on its PB Ratio (0.4x) compared to the HK Electronic industry average (0.9x).


Next Steps

Future Growth

How is FIH Mobile forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

77.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2038 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: 2038 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 2038's is expected to become profitable in the next 3 years.

Revenue vs Market: 2038's revenue is expected to decline over the next 3 years (-4.7% per year).

High Growth Revenue: 2038's revenue is forecast to decline over the next 3 years (-4.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2038's Return on Equity is forecast to be low in 3 years time (4.1%).


Next Steps

Past Performance

How has FIH Mobile performed over the past 5 years?

-63.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2038 is currently unprofitable.

Growing Profit Margin: 2038 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2038 is unprofitable, and losses have increased over the past 5 years at a rate of -63.1% per year.

Accelerating Growth: Unable to compare 2038's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2038 is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-7.6%).


Return on Equity

High ROE: 2038 has a negative Return on Equity (-1.55%), as it is currently unprofitable.


Next Steps

Financial Health

How is FIH Mobile's financial position?


Financial Position Analysis

Short Term Liabilities: 2038's short term assets ($5.7B) exceed its short term liabilities ($4.9B).

Long Term Liabilities: 2038's short term assets ($5.7B) exceed its long term liabilities ($37.8M).


Debt to Equity History and Analysis

Debt Level: 2038's debt to equity ratio (28.8%) is considered satisfactory.

Reducing Debt: 2038's debt to equity ratio has increased from 4.6% to 28.8% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 2038 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 2038 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is FIH Mobile current dividend yield, its reliability and sustainability?

1.16%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2038's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2038's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2038's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2038's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2038 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2038'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?

12.0yrs

Average management tenure


CEO

Yu Chih (61yo)

8yrs

Tenure

US$96,000

Compensation

Mr. Chih Yu Yang has been the Chief Executive Officer of FIH Mobile Limited (alternate name, Foxconn International Holdings Limited) since July 26, 2012. Mr. Chih founded Chi Mei Communication Systems, Inc ...


CEO Compensation Analysis

Compensation vs Market: Yu's total compensation ($USD96.00K) is below average for companies of similar size in the Hong Kong market ($USD513.56K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yu Chih
Acting Chairman & CEO8yrsUS$96.00k0.25% $18.5m
Chien Wang
Director of Electronic Parts Manufacturing & SMT & System Assembly and Executive Director4.08yrsUS$182.00kno data
Wen-Yi Kuo
Executive Director2.08yrsUS$750.00k0.0085% $622.7k
Kam Tam
Chief Financial Officerno datano datano data
Hsu Chen
Vice President of Business Development17yrsno datano data
Kin Wong
Company Secretary3.08yrsno datano data

12.0yrs

Average Tenure

56yo

Average Age

Experienced Management: 2038's management team is seasoned and experienced (12 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yu Chih
Acting Chairman & CEO8yrsUS$96.00k0.25% $18.5m
Chien Wang
Director of Electronic Parts Manufacturing & SMT & System Assembly and Executive Director4.08yrsUS$182.00kno data
Wen-Yi Kuo
Executive Director2.08yrsUS$750.00k0.0085% $622.7k
Daniel Mehan
Independent Non-Executive Director13yrsUS$31.00kno data
Siu Ki Lau
Independent Non-Executive Director15.58yrsUS$40.00kno data
Yun Tao
Independent Non-Executive Director3.33yrsUS$31.00kno data

3.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 2038's board of directors are considered experienced (3.8 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

FIH Mobile Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FIH Mobile Limited
  • Ticker: 2038
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: HK$7.301b
  • Shares outstanding: 8.20b
  • Website: https://www.fihmb.com

Number of Employees


Location

  • FIH Mobile Limited
  • No. 369 Jianshe South Road
  • Anci District
  • Langfang
  • Hubei Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2038SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2005
FW3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2005
FXCN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2005
2038SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDFeb 2005
2038SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDFeb 2005
FXCN.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJan 2009

Biography

FIH Mobile Limited, an investment holding company, provides integrated manufacturing services for the handset industry worldwide. It operates through three segments: Asia, Europe, and America. The company manufactures, distributes, and trades handsets and communication products, as well as offers repair services. It is also involved in the research and development activity; and provides ancillary logistics services. The company was formerly known as Foxconn International Holdings Limited and changed its name to FIH Mobile Limited in May 2013. The company was incorporated in 2000 and is headquartered in Langfang, the People’s Republic of China. FIH Mobile Limited is a subsidiary of Foxconn (Far East) Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 12:37
End of Day Share Price2020/07/03 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.