SEHK:2788

Stock Analysis Report

Yorkey Optical International (Cayman)

Executive Summary

Yorkey Optical International (Cayman) Ltd., an investment holding company, manufactures and sells plastic and metallic parts, components of optical and opto-electronic products, and molds and cases in Japan, the People's Republic of China, and internationally.


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

How has Yorkey Optical International (Cayman)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2788 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

2788

-0.4%

HK Electronic

-0.6%

HK Market


1 Year Return

-38.0%

2788

-10.2%

HK Electronic

-7.6%

HK Market

Return vs Industry: 2788 underperformed the Hong Kong Electronic industry which returned -10.2% over the past year.

Return vs Market: 2788 underperformed the Hong Kong Market which returned -7.4% over the past year.


Shareholder returns

2788IndustryMarket
7 Day0%-0.4%-0.6%
30 Day-3.8%-5.8%-1.2%
90 Day-5.1%2.7%3.0%
1 Year-28.2%-38.0%-7.5%-10.2%-4.2%-7.6%
3 Year-1.7%-34.8%-0.6%-8.6%12.9%1.5%
5 Year51.2%-23.5%75.9%52.7%13.1%-5.6%

Price Volatility Vs. Market

How volatile is Yorkey Optical International (Cayman)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Yorkey Optical International (Cayman) undervalued compared to its fair value and its price relative to the market?

39.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2788 (HK$0.75) is trading below our estimate of fair value (HK$1.24)

Significantly Below Fair Value: 2788 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2788 is poor value based on its PE Ratio (11.6x) compared to the Electronic industry average (9.1x).

PE vs Market: 2788 is poor value based on its PE Ratio (11.6x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2788's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2788 is overvalued based on its PB Ratio (0.9x) compared to the HK Electronic industry average (0.9x).


Next Steps

Future Growth

How is Yorkey Optical International (Cayman) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

24.6%

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 Yorkey Optical International (Cayman) 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 Yorkey Optical International (Cayman) performed over the past 5 years?

6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2788 has high quality earnings.

Growing Profit Margin: 2788's current net profit margins (10.3%) are higher than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: 2788's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: 2788's earnings growth over the past year (17.7%) exceeds its 5-year average (6.5% per year).

Earnings vs Industry: 2788 earnings growth over the past year (17.7%) exceeded the Electronic industry -11.5%.


Return on Equity

High ROE: 2788's Return on Equity (7.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Yorkey Optical International (Cayman)'s financial position?


Financial Position Analysis

Short Term Liabilities: 2788's short term assets ($109.7M) exceed its short term liabilities ($34.5M).

Long Term Liabilities: 2788's short term assets ($109.7M) exceed its long term liabilities ($1.6M).


Debt to Equity History and Analysis

Debt Level: 2788 is debt free.

Reducing Debt: 2788 has not had any debt for past 5 years.

Debt Coverage: 2788 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 2788 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 2788 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 2788's debt is covered by short term assets.


Next Steps

Dividend

What is Yorkey Optical International (Cayman)'s current dividend yield, its reliability and sustainability?

18.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2788's dividend (18.26%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 2788's dividend (18.26%) is in the top 25% of dividend payers in the Hong Kong market (6.35%)


Stability and Growth of Payments

Stable Dividend: 2788's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2788's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (83.5%), 2788's 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

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

4.7yrs

Average board tenure


CEO

Toshihiko Kurihara (65yo)

2.9yrs

Tenure

US$150,000

Compensation

Mr. Toshihiko Kurihara has been Chief Executive Officer and Executive Director of Yorkey Optical International (Cayman) Ltd. since March 10, 2017. Mr. Kurihara serves as Deputy General Manager of Dongguan  ...


CEO Compensation Analysis

Compensation vs Market: Toshihiko's total compensation ($USD150.00K) is below average for companies of similar size in the Hong Kong market ($USD225.23K).

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


Board Members

NamePositionTenureCompensationOwnership
I-Jen Lai
Chairman6.5yrsUS$15.00kno data
Toshihiko Kurihara
CEO & Executive Director2.9yrsUS$150.00kno data
Shu-Ping Wu
Non-Executive Director14.2yrsUS$15.00kno data
Yi-Chi Wang
Independent Non-Executive Director7.8yrsUS$15.00kno data
Meng-Tsung Lin
Independent Non-Executive Director2.7yrsUS$15.00kno data
Wei-Li Liu
Independent Non-Executive Director2.7yrsUS$20.00kno data

4.7yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 2788's board of directors are considered experienced (4.7 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Yorkey Optical International (Cayman) Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yorkey Optical International (Cayman) Ltd.
  • Ticker: 2788
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: HK$614.880m
  • Shares outstanding: 819.84m
  • Website: https://www.yorkey-optical.com

Number of Employees


Location

  • Yorkey Optical International (Cayman) Ltd.
  • Goldfield Industrial Centre, Block A
  • 6th Floor
  • Shatin
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2788SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2006
9188TSEC (Taiwan Stock Exchange)TDR EACH REP 1 SHTWTWDOct 2009

Biography

Yorkey Optical International (Cayman) Ltd., an investment holding company, manufactures and sells plastic and metallic parts, components of optical and opto-electronic products, and molds and cases in Japan, the People's Republic of China, and internationally. Its precision processing products include pressing molds; pressing parts of micro motors; processing components of cameras, and electronic and optical products; and processing components of lead wires, etc. Goldfield Industrial Centre The company also offers plastic injection molding products, such as plastic components of cameras, video cameras, audio products, office machines, microscopes, CD-ROMs, HDDs and FDDs, game players, range finders, binoculars, electronic locks, micro motors, cellular phones, beep pagers, and battery chargers, as well as their components; and precision tooling molds and metal pressing molds for cameras, office machines, optical instruments, etc. In addition, it is involved in the printing and painting of components for cameras, copiers, optical instruments, computer HDDs and FDDs, and other communication equipment; and provision of soft/hard cases and wrist/shoulder strips for photographic equipment, as well as cases for portable computers, mobile phones, and optical appliances. Further, the company provides technical training and after-sales services, as well as holds properties. Yorkey Optical International (Cayman) Ltd. was founded in 1995 and is based in Shatin, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 12:49
End of Day Share Price2020/02/21 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.