327

PAX Global TechnologySEHK:327 Stock Report

Market Cap

HK$10.9b

7D

-1.6%

1Y

113.7%

Updated

17 Sep, 2021

Data

Company Financials +
327 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
Financial Health6/6
Dividends3/6

327 Overview

PAX Global Technology Limited, an investment holding company, engages in the development and sale of electronic funds transfer point-of-sale products worldwide.

Price History & Performance

Summary of all time highs, changes and price drops for PAX Global Technology
Historical stock prices
Current Share PriceHK$10.00
52 Week HighHK$4.36
52 Week LowHK$11.00
Beta1.18
1 Month Change1.21%
3 Month Change2.99%
1 Year Change113.68%
3 Year Change155.10%
5 Year Change66.95%
Change since IPO246.02%

Recent News & Updates

Aug 14
PAX Global Technology (HKG:327) Is Increasing Its Dividend To HK$0.12

PAX Global Technology (HKG:327) Is Increasing Its Dividend To HK$0.12

PAX Global Technology Limited's ( HKG:327 ) dividend will be increasing to HK$0.12 on 16th of September. This takes the...

Aug 12
With EPS Growth And More, PAX Global Technology (HKG:327) Is Interesting

With EPS Growth And More, PAX Global Technology (HKG:327) Is Interesting

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Jul 28
PAX Global Technology (HKG:327) Hasn't Managed To Accelerate Its Returns

PAX Global Technology (HKG:327) Hasn't Managed To Accelerate Its Returns

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

327HK ElectronicHK Market
7D-1.6%-5.2%-4.1%
1Y113.7%36.4%5.4%

Return vs Industry: 327 exceeded the Hong Kong Electronic industry which returned 36.4% over the past year.

Return vs Market: 327 exceeded the Hong Kong Market which returned 5.4% over the past year.

Price Volatility

Is 327's price volatile compared to industry and market?
327 volatility
327 Beta1.18
Industry Beta0.98
Market Beta1

Stable Share Price: 327 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 327's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20001,657Jack Luhttps://www.paxglobal.com.hk

PAX Global Technology Limited, an investment holding company, engages in the development and sale of electronic funds transfer point-of-sale products worldwide. Its E-payment terminal products include smart and traditional E-payment terminals, smart electronic cash register solutions, mobile E-payment terminals, and QR code E-payment terminals, as well as other accessories. The company also develops PAXSTORE, a cloud-based platform that allows users to create and manage their own independent white-label marketplace for software application distribution; and paxRhino, a key injection service.

Valuation

Is PAX Global Technology 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: 327 (HK$10) is trading below our estimate of fair value (HK$38.57)

Significantly Below Fair Value: 327 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 327 is poor value based on its PE Ratio (10.7x) compared to the Hong Kong Electronic industry average (9.1x).

PE vs Market: 327 is poor value based on its PE Ratio (10.7x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 327 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 327 is overvalued based on its PB Ratio (1.8x) compared to the HK Electronic industry average (0.8x).


Future Growth

How is PAX Global Technology forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 327's forecast earnings growth (16.1% per year) is above the savings rate (1.5%).

Earnings vs Market: 327's earnings (16.1% per year) are forecast to grow slower than the Hong Kong market (17% per year).

High Growth Earnings: 327's earnings are forecast to grow, but not significantly.

Revenue vs Market: 327's revenue (15.5% per year) is forecast to grow faster than the Hong Kong market (12.1% per year).

High Growth Revenue: 327's revenue (15.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 327's Return on Equity is forecast to be low in 3 years time (19.6%).


Past Performance

How has PAX Global Technology performed over the past 5 years?

12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 327 has a high level of non-cash earnings.

Growing Profit Margin: 327's current net profit margins (16%) are higher than last year (13.4%).


Past Earnings Growth Analysis

Earnings Trend: 327's earnings have grown by 12.3% per year over the past 5 years.

Accelerating Growth: 327's earnings growth over the past year (51.1%) exceeds its 5-year average (12.3% per year).

Earnings vs Industry: 327 earnings growth over the past year (51.1%) exceeded the Electronic industry 50.5%.


Return on Equity

High ROE: 327's Return on Equity (17.2%) is considered low.


Financial Health

How is PAX Global Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 327's short term assets (HK$7.0B) exceed its short term liabilities (HK$1.6B).

Long Term Liabilities: 327's short term assets (HK$7.0B) exceed its long term liabilities (HK$101.7M).


Debt to Equity History and Analysis

Debt Level: 327 is debt free.

Reducing Debt: 327 had no debt 5 years ago.

Debt Coverage: 327 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 327 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is PAX Global Technology current dividend yield, its reliability and sustainability?

2.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 327's dividend (2.4%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 327's dividend (2.4%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.74%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 327 has been paying a dividend for less than 10 years.

Growing Dividend: 327's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.3%), 327's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 327's dividends in 3 years are forecast to be well covered by earnings (26.2% payout ratio).


Next Steps

Management

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

9.4yrs

Average management tenure


CEO

Jack Lu (56 yo)

8.33yrs

Tenure

HK$17,087,000

Compensation

Mr. Jie Lu, also known as Jack, is the Chief Executive Officer and an Executive Director of PAX Global Technology Limited (the “Company”) and the President of Pax Computer Technology (Shenzhen) Co., Ltd. H...


CEO Compensation Analysis

Compensation vs Market: Jack's total compensation ($USD2.20M) is above average for companies of similar size in the Hong Kong market ($USD632.78K).

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


Leadership Team

Experienced Management: 327's management team is seasoned and experienced (9.4 years average tenure).


Board Members

Experienced Board: 327's board of directors are seasoned and experienced ( 10.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

PAX Global Technology Limited's employee growth, exchange listings and data sources


Key Information

  • Name: PAX Global Technology Limited
  • Ticker: 327
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: HK$10.877b
  • Shares outstanding: 1.10b
  • Website: https://www.paxglobal.com.hk

Number of Employees


Location

  • PAX Global Technology Limited
  • Sun Hung Kai Centre
  • Room 2504, 25th Floor
  • Wan Chai
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/17 10:04
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.