SEHK:2038

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Mediocre balance sheet and slightly overvalued.


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


Market Performance


7 Day Return

1.0%

2038

0.8%

HK Electronic

0.9%

HK Market


1 Year Return

34.2%

2038

-2.6%

HK Electronic

0.6%

HK Market

Return vs Industry: 2038 exceeded the Hong Kong Electronic industry which returned -2.6% over the past year.

Return vs Market: 2038 exceeded the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

2038IndustryMarket
7 Day1.0%0.8%0.9%
30 Day-1.0%-1.9%0.4%
90 Day18.1%4.2%-5.5%
1 Year34.2%34.2%0.7%-2.6%4.2%0.6%
3 Year-62.6%-64.6%-2.6%-10.3%15.5%3.9%
5 Year-70.5%-75.4%54.6%34.4%19.9%-0.1%

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?

23.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 2038 (HK$0.98) is trading below our estimate of fair value (HK$1.29)

Significantly Undervalued: 2038 is trading below fair value, but not by a significant amount.


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

Low 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 (0.5x) 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?

111.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2038 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 2038 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 2038 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 2038's revenue (2% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 2038's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 2038's Return on Equity is forecast to be low in 3 years time (4.8%).


Next Steps

Past Performance

How has FIH Mobile performed over the past 5 years?

-68.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2038 is unprofitable, and losses have increased over the past 5 years at a rate of -68.8% 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 (-10.9%).


Return on Equity

High ROE: 2038 has a negative Return on Equity (-28.51%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 2038 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 2038 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is FIH Mobile's financial position?


Financial Position Analysis

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

Long Term Liabilities: 2038's short term assets (5.7B) exceeds its long term liabilities (51.0M)


Debt to Equity History and Analysis

Debt Level: 2038's debt to equity ratio (52.2%) is considered high

Reducing Debt: 2038's debt to equity ratio has increased from 2.7% to 52.2% over the past 5 years.


Balance Sheet

Inventory Level: 2038 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2038's debt is covered by short term assets (assets are 5.256750x debt).


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 3 years 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's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage2.8%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of FIH Mobile's salary, the management and board of directors tenure and is there insider trading?

11.3yrs

Average management tenure


CEO

Yu Chih (60yo)

7.3yrs

Tenure

US$713,000

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 ($USD713.00K) is above average for companies of similar size in the Hong Kong market ($USD404.66K).

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


Management Age and Tenure

11.3yrs

Average Tenure

55yo

Average Age

Experienced Management: 2038's management team is seasoned and experienced (11.3 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 2038's board of directors are considered experienced (3 years average tenure).


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

BuyUS$272,01006 Dec 18
Wen-Yi Kuo
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares300,000
Max PriceUS$0.91
BuyUS$186,00004 Dec 18
Wen-Yi Kuo
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares200,000
Max PriceUS$0.93
BuyUS$88,00026 Nov 18
Wen-Yi Kuo
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares100,000
Max PriceUS$0.88
BuyUS$92,00023 Nov 18
Wen-Yi Kuo
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares100,000
Max PriceUS$0.92

Ownership Breakdown


Management Team

  • Danny Tam (55yo)

    Chief Financial Officer

    • Tenure: 0yrs
  • Tom Chen (54yo)

    Vice President of Business Development

    • Tenure: 16.3yrs
  • Vanessa Wong

    Company Secretary

    • Tenure: 2.3yrs
  • Yu Chih (60yo)

    Acting Chairman & CEO

    • Tenure: 7.3yrs
    • Compensation: US$713.00k
  • Wen-Yi Kuo (52yo)

    Executive Director

    • Tenure: 1.3yrs
    • Compensation: US$391.64k
  • Janson Wang (59yo)

    Director of Electronic Parts Manufacturing & SMT & System Assembly and Executive Director

    • Tenure: 3.3yrs
    • Compensation: US$464.00k

Board Members

  • Daniel Mehan (74yo)

    Independent Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: US$31.00k
  • Kevin Lau (61yo)

    Independent Non-Executive Director

    • Tenure: 14.8yrs
    • Compensation: US$40.00k
  • Yu Chih (60yo)

    Acting Chairman & CEO

    • Tenure: 7.3yrs
    • Compensation: US$713.00k
  • Wen-Yi Kuo (52yo)

    Executive Director

    • Tenure: 1.3yrs
    • Compensation: US$391.64k
  • Janson Wang (59yo)

    Director of Electronic Parts Manufacturing & SMT & System Assembly and Executive Director

    • Tenure: 3.3yrs
    • Compensation: US$464.00k
  • Yun Chih Tao (44yo)

    Independent Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: US$31.00k

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$8.050b
  • Shares outstanding: 8.21b
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:37
End of Day Share Price2019/10/18 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.