BYD Electronic (International) (SEHK:285) - Share price, News & Analysis

Q: What is the Fair Price of 285 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

285 (HK$18.76) is trading below our estimate of [[fair value]] (HK$29.72)

285 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	2/6
Financial Health	6/6
Dividends	0/6

285 Stock Overview

Rewards

Trading at 36.9% below our estimate of its fair value

Earnings are forecast to grow 40.4% per year

Risk Analysis

Profit margins (1.5%) are lower than last year (5.3%)

BYD Electronic (International) Competitors

Yangtze Optical Fibre And Cable Limited

SEHK:6869

HK$25.2b

Vtech Holdings

SEHK:303

HK$10.9b

Plover Bay Technologies

SEHK:1523

HK$2.6b

Hengxin Technology

SEHK:1085

HK$1.9b

Price History & Performance

Summary of all time highs, changes and price drops for BYD Electronic (International)
Historical stock prices
Current Share Price	HK$18.76
52 Week High	HK$34.60
52 Week Low	HK$13.20
Beta	0.86
1 Month Change	-14.14%
3 Month Change	-20.84%
1 Year Change	-30.52%
3 Year Change	51.78%
5 Year Change	-22.64%
Change since IPO	70.55%

Recent News & Updates

Aug 08

Should You Investigate BYD Electronic (International) Company Limited (HKG:285) At HK$22.20?

While BYD Electronic (International) Company Limited ( HKG:285 ) might not be the most widely known stock at the...

Jul 22

Is There An Opportunity With BYD Electronic (International) Company Limited's (HKG:285) 28% Undervaluation?

Today we will run through one way of estimating the intrinsic value of BYD Electronic (International) Company Limited...

Shareholder Returns

	285	HK Communications	HK Market
7D	-12.5%	-7.2%	-4.3%
1Y	-30.5%	-18.5%	-28.3%

Return vs Industry: 285 underperformed the Hong Kong Communications industry which returned -18.9% over the past year.

Return vs Market: 285 underperformed the Hong Kong Market which returned -28.8% over the past year.

Price Volatility

Is 285's price volatile compared to industry and market?
285 volatility
285 Average Weekly Movement	7.5%
Communications Industry Average Movement	7.2%
Market Average Movement	6.5%
10% most volatile stocks in HK Market	12.7%
10% least volatile stocks in HK Market	3.1%

Stable Share Price: 285 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 285's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1995	96,000	Nian-Qiang Wang	https://electronics.byd.com

BYD Electronic (International) Company Limited, an investment holding company, designs, manufactures, assembles, and sells mobile handset components and modules in the People’s Republic of China and internationally. The company provides high-level assembly services; and manufactures and sells batteries, chargers, and iron phosphate batteries for use in electric buses, trucks, cars, and forklifts, as well as its components and spare parts. It builds and maintains monorail projects.

BYD Electronic (International) Fundamentals Summary

How do BYD Electronic (International)'s earnings and revenue compare to its market cap?
285 fundamental statistics
Market Cap	HK$42.27b
Earnings (TTM)	HK$1.44b
Revenue (TTM)	HK$97.34b

29.5x

P/E Ratio

0.4x

P/S Ratio

Is 285 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
285 income statement (TTM)
Revenue	CN¥88.22b
Cost of Revenue	CN¥82.92b
Gross Profit	CN¥5.30b
Other Expenses	CN¥4.00b
Earnings	CN¥1.30b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.58
Gross Margin	6.00%
Net Profit Margin	1.47%
Debt/Equity Ratio	0%

How did 285 perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

18%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 285 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 285?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 285. This is calculated by dividing 285's market cap by their current preferred multiple.
What is 285's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥38.31b

285 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.4x
Enterprise Value/EBITDA	12.5x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does 285's PE Ratio compare to its peers?

285 PE Ratio vs Peers

The above table shows the PE ratio for 285 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.7x
6869 Yangtze Optical Fibre And Cable Limited	16.4x	8.0%	HK$25.2b
303 Vtech Holdings	8x	n/a	HK$10.9b
1523 Plover Bay Technologies	14.8x	25.5%	HK$2.6b
1085 Hengxin Technology	19.6x	n/a	HK$1.9b
285 BYD Electronic (International)	29.5x	40.4%	HK$42.3b

Price-To-Earnings vs Peers: 285 is expensive based on its Price-To-Earnings Ratio (29.5x) compared to the peer average (14.7x).

Price to Earnings Ratio vs Industry

How does 285's PE Ratio compare vs other companies in the Asian Communications Industry?

Price-To-Earnings vs Industry: 285 is expensive based on its Price-To-Earnings Ratio (29.5x) compared to the Asian Communications industry average (25.3x)

Price to Earnings Ratio vs Fair Ratio

What is 285's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

285 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	29.5x
Fair PE Ratio	19.9x

Price-To-Earnings vs Fair Ratio: 285 is expensive based on its Price-To-Earnings Ratio (29.5x) compared to the estimated Fair Price-To-Earnings Ratio (19.9x).

Share Price vs Fair Value

What is the Fair Price of 285 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 285 (HK$18.76) is trading below our estimate of fair value (HK$29.72)

Significantly Below Fair Value: 285 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

Future Growth

How is BYD Electronic (International) forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

40.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 285's forecast earnings growth (40.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 285's earnings (40.4% per year) are forecast to grow faster than the Hong Kong market (16.8% per year).

High Growth Earnings: 285's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 285's revenue (16% per year) is forecast to grow faster than the Hong Kong market (9.7% per year).

High Growth Revenue: 285's revenue (16% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 285's Return on Equity is forecast to be low in 3 years time (12.2%).

Discover growth companies

Past Performance

How has BYD Electronic (International) performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

8.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 285 has high quality earnings.

Growing Profit Margin: 285's current net profit margins (1.5%) are lower than last year (5.3%).

Past Earnings Growth Analysis

Earnings Trend: 285's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: 285's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 285 had negative earnings growth (-71.8%) over the past year, making it difficult to compare to the Communications industry average (-0.7%).

Return on Equity

High ROE: 285's Return on Equity (5.3%) is considered low.

Discover strong past performing companies

Financial Health

How is BYD Electronic (International)'s financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 285's short term assets (CN¥30.0B) exceed its short term liabilities (CN¥19.0B).

Long Term Liabilities: 285's short term assets (CN¥30.0B) exceed its long term liabilities (CN¥1.2B).

Debt to Equity History and Analysis

Debt Level: 285 is debt free.

Reducing Debt: 285 had no debt 5 years ago.

Debt Coverage: 285 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 285 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is BYD Electronic (International) current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.60%

Current Dividend Yield

Dividend Yield vs Market

BYD Electronic (International) Dividend Yield vs Market

How does BYD Electronic (International) dividend yield compare to the market?
Segment	Dividend Yield
Company (BYD Electronic (International))	0.6%
Market Bottom 25% (HK)	3.1%
Market Top 25% (HK)	9.0%
Industry Average (Communications)	2.7%
Analyst forecast in 3 Years (BYD Electronic (International))	0.8%

Notable Dividend: 285's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (3.01%).

High Dividend: 285's dividend (0.61%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.95%).

Stability and Growth of Payments

Stable Dividend: 285 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 285 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 285 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: 285 is not paying a notable dividend for the Hong Kong market.

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Management

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

7.5yrs

Average management tenure

CEO

Nian-Qiang Wang (58 yo)

7.5yrs

Tenure

CN¥8,088,000

Compensation

Mr. Nian-Qiang Wang has been the Chief Executive Officer and Executive Director of BYD Electronic International Company Limited since April 27, 2015. Mr. Wang served as Vice President and General Manager o...

CEO Compensation Analysis

Nian-Qiang Wang's Compensation vs BYD Electronic (International) Earnings

How has Nian-Qiang Wang's remuneration changed compared to BYD Electronic (International)'s earnings?
Date	Total Comp.	Salary	Company Earnings
Jun 30 2022	n/a	n/a	CN¥1b
Mar 31 2022	n/a	n/a	CN¥2b
Dec 31 2021	CN¥8m	CN¥8m	CN¥2b
Sep 30 2021	n/a	n/a	CN¥3b
Jun 30 2021	n/a	n/a	CN¥5b
Mar 31 2021	n/a	n/a	CN¥5b
Dec 31 2020	CN¥11m	CN¥10m	CN¥5b
Sep 30 2020	n/a	n/a	CN¥4b
Jun 30 2020	n/a	n/a	CN¥3b
Mar 31 2020	n/a	n/a	CN¥3b
Dec 31 2019	CN¥9m	CN¥9m	CN¥2b
Sep 30 2019	n/a	n/a	CN¥2b
Jun 30 2019	n/a	n/a	CN¥2b
Mar 31 2019	n/a	n/a	CN¥2b
Dec 31 2018	CN¥10m	CN¥10m	CN¥2b
Sep 30 2018	n/a	n/a	CN¥2b
Jun 30 2018	n/a	n/a	CN¥2b
Mar 31 2018	n/a	n/a	CN¥2b
Dec 31 2017	CN¥8m	CN¥8m	CN¥3b
Sep 30 2017	n/a	n/a	CN¥2b
Jun 30 2017	n/a	n/a	CN¥2b
Mar 31 2017	n/a	n/a	CN¥2b
Dec 31 2016	CN¥8m	CN¥8m	CN¥1b
Sep 30 2016	n/a	n/a	CN¥1b
Jun 30 2016	n/a	n/a	CN¥1b
Mar 31 2016	n/a	n/a	CN¥982m
Dec 31 2015	CN¥3m	CN¥3m	CN¥908m

Compensation vs Market: Nian-Qiang's total compensation ($USD1.14M) is above average for companies of similar size in the Hong Kong market ($USD731.00K).

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

Leadership Team

Experienced Management: 285's management team is seasoned and experienced (7.5 years average tenure).

Board Members

Experienced Board: 285's board of directors are considered experienced (7.5 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

What is the ownership structure of 285?
Owner Type	Number of Shares	Ownership Percentage
Individual Insiders	8,505,000	0.4%
Private Companies	112,155,650	5.0%
Institutions	191,000,592	8.5%
General Public	459,843,258	20.4%
Public Companies	1,481,700,000	65.8%

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

Top Shareholders

Top 25 shareholders own 78.24% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
65.76%	BYD Company Limited	1,481,700,000	CN¥27.8b	0%	no data
4.98%	BF Trust	112,155,650	CN¥2.1b	0%	no data
1.39%	The Vanguard Group, Inc.	31,396,601	CN¥589.0m	0.78%	no data
1.16%	BlackRock, Inc.	26,193,414	CN¥491.4m	4.9%	no data
0.74%	Dimensional Fund Advisors LP	16,674,268	CN¥312.8m	3.57%	0.01%
0.55%	China Asset Management Co., Ltd.	12,383,229	CN¥232.3m	0.24%	0.07%
0.49%	Dacheng Fund Management Company Limited	10,957,000	CN¥205.6m	0%	0.26%
0.44%	CSOP Asset Management Limited	9,984,737	CN¥187.3m	6.13%	1.07%
0.43%	Norges Bank Investment Management	9,713,976	CN¥182.2m	0%	no data
0.38%	Nian-Qiang Wang	8,500,000	CN¥159.5m	0%	no data
0.22%	HSBC Jintrust Fund Management Company Limited	4,877,500	CN¥91.5m	0%	0.29%
0.18%	Hua An Fund Management Co., Ltd.	4,067,500	CN¥76.3m	0%	0.05%
0.17%	GF Fund Management Co., Ltd.	3,907,000	CN¥73.3m	0%	0.03%
0.17%	China Universal Asset Management Company Ltd.	3,902,500	CN¥73.2m	0%	0.03%
0.14%	Nordea Investment Management AB	3,054,244	CN¥57.3m	8.99%	0.01%
0.13%	Harvest Fund Management Co., Ltd.	2,971,500	CN¥55.7m	0%	0.03%
0.13%	State Street Global Advisors, Inc.	2,903,722	CN¥54.5m	-15.31%	no data
0.13%	Fuh Hwa Securities Investment Trust Co. Ltd.	2,886,950	CN¥54.2m	0%	0.31%
0.13%	Grantham Mayo Van Otterloo & Co. LLC	2,846,120	CN¥53.4m	4.75%	0.02%
0.11%	HSBC Global Asset Management (UK) Limited	2,512,068	CN¥47.1m	1.74%	0.01%
0.11%	Geode Capital Management, LLC	2,385,500	CN¥44.8m	2.84%	no data
0.096%	Bosera Asset Management Co., Ltd.	2,162,500	CN¥40.6m	0%	0.03%
0.077%	First Trust Advisors LP	1,741,085	CN¥32.7m	1.13%	no data
0.074%	E Fund Management Co., Ltd.	1,677,500	CN¥31.5m	52.92%	0.01%
0.059%	WisdomTree Asset Management, Inc.	1,338,200	CN¥25.1m	8.87%	0.03%

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
285	SEHK (The Stock Exchange of Hong Kong Ltd.)	Yes	Ordinary Shares	HK	HKD	Dec 2007
4BY	DB (Deutsche Boerse AG)	Yes	Ordinary Shares	DE	EUR	Dec 2007
BYDI.F	OTCPK (Pink Sheets LLC)	Yes	Ordinary Shares	US	USD	Dec 2007
285	SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)	Yes	Ordinary Shares	HK	HKD	Dec 2007
285	SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)	Yes	Ordinary Shares	HK	HKD	Dec 2007
BYDI.Y	OTCPK (Pink Sheets LLC)		UNSPON ADR EA REPR 50 ORD HKD0.00	US	USD	Jul 2013

Data	Last Updated (UTC time)
Company Analysis	2022/10/03 00:00
End of Day Share Price	2022/10/03 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31