Executive Summary
PAX Global Technology Limited, an investment holding company, engages in the development and sale of electronic funds transfer point-of-sale products worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with solid track record.
Share Price & News
How has PAX Global Technology's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 327's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
6.3%
327
6.1%
HK Electronic
7.4%
HK Market
1 Year Return
-21.4%
327
-22.1%
HK Electronic
-22.7%
HK Market
Return vs Industry: 327 underperformed the Hong Kong Electronic industry which returned -19.3% over the past year.
Return vs Market: 327 underperformed the Hong Kong Market which returned -20.3% over the past year.
Shareholder returns
| 327 | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.3% | 6.1% | 7.4% |
| 30 Day | -26.1% | -15.0% | -11.2% |
| 90 Day | -20.8% | -26.0% | -17.3% |
| 1 Year | -19.6%-21.4% | -19.7%-22.1% | -19.9%-22.7% |
| 3 Year | -38.6%-42.3% | -25.0%-31.1% | -5.3%-14.8% |
| 5 Year | -66.1%-68.5% | 23.2%7.1% | -8.7%-23.4% |
Price Volatility Vs. Market
How volatile is PAX Global Technology's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is Now The Time To Look At Buying PAX Global Technology Limited (HKG:327)?4 weeks ago | Simply Wall St
Calculating The Fair Value Of PAX Global Technology Limited (HKG:327)1 month ago | Simply Wall St
What To Know Before Buying PAX Global Technology Limited (HKG:327) For Its DividendValuation
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$2.86) is trading below our estimate of fair value (HK$28.23)
Significantly Below Fair Value: 327 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 327 is good value based on its PE Ratio (5.3x) compared to the Electronic industry average (7.6x).
PE vs Market: 327 is good value based on its PE Ratio (5.3x) compared to the Hong Kong market (9x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 327's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 327 is good value based on its PB Ratio (0.7x) compared to the HK Electronic industry average (0.7x).
Next Steps
Future Growth
How is PAX Global Technology forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
7.2%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if 327's forecast earnings growth is above the savings rate (1.6%).
Earnings vs Market: Insufficient data to determine if 327's earnings are forecast to grow faster than the Hong Kong market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 327's revenue (7.2% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).
High Growth Revenue: 327's revenue (7.2% 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 (13.6%).
Next Steps
Past Performance
How has PAX Global Technology performed over the past 5 years?
2.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 327 has high quality earnings.
Growing Profit Margin: 327's current net profit margins (12%) are higher than last year (10.4%).
Past Earnings Growth Analysis
Earnings Trend: 327's earnings have grown by 2.7% per year over the past 5 years.
Accelerating Growth: 327's earnings growth over the past year (47%) exceeds its 5-year average (2.7% per year).
Earnings vs Industry: 327 earnings growth over the past year (47%) exceeded the Electronic industry -12.2%.
Return on Equity
High ROE: 327's Return on Equity (13.1%) is considered low.
Next Steps
Financial Health
How is PAX Global Technology's financial position?
Financial Position Analysis
Short Term Liabilities: 327's short term assets (HK$6.1B) exceed its short term liabilities (HK$2.0B).
Long Term Liabilities: 327's short term assets (HK$6.1B) exceed its long term liabilities (HK$40.7M).
Debt to Equity History and Analysis
Debt Level: 327's debt to equity ratio (0.2%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if 327's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: 327's debt is well covered by operating cash flow (8221.1%).
Interest Coverage: 327 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: 327 has a high level of physical assets or inventory.
Debt Coverage by Assets: 327's debt is covered by short term assets (assets are 634.9x debt).
Next Steps
Dividend
What is PAX Global Technology's current dividend yield, its reliability and sustainability?
2.80%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 327's dividend (2.8%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.65%).
High Dividend: 327's dividend (2.8%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.3%).
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 5 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (14.9%), 327's dividend payments are thoroughly 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?
7.9yrs
Average management tenure
CEO
Jack Lu (54yo)
6.83s
Tenure
HK$8,115,000
Compensation
Jie Lu is the Chief Executive Officer and an Executive Director of PAX Global Technology Limited (the “Company”) and the President of Pax Computer Technology (Shenzhen) Co., Ltd. He joined the Group in Aug ...
CEO Compensation Analysis
Compensation vs Market: Jack's total compensation ($USD1.05M) is above average for companies of similar size in the Hong Kong market ($USD343.55K).
Compensation vs Earnings: Jack's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 9.25yrs | HK$5.27m | 0.39% HK$12.0m | |
| CEO & Executive Director | 6.83yrs | HK$8.12m | 0.82% HK$25.4m | |
| Executive Director | 10yrs | no data | 0.27% HK$8.3m | |
| CFO & Joint Secretary | 4.17yrs | no data | no data | |
| Executive VP & Chairman of Pax Technology (Shenzhen) | no data | no data | no data | |
| Joint Company Secretary | 10yrs | no data | no data | |
| CEO & President of United States Operations | 9yrs | no data | no data |
7.9yrs
Average Tenure
54yo
Average Age
Experienced Management: 327's management team is seasoned and experienced (7.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 9.25yrs | HK$5.27m | 0.39% HK$12.0m | |
| CEO & Executive Director | 6.83yrs | HK$8.12m | 0.82% HK$25.4m | |
| Executive Director | 10yrs | no data | 0.27% HK$8.3m | |
| Independent Non Executive Director | 9.25yrs | HK$380.00k | no data | |
| Independent Non-Executive Director | 9.25yrs | HK$380.00k | no data | |
| Independent Non-Executive Director | 9.25yrs | HK$380.00k | no data |
9.3yrs
Average Tenure
54.5yo
Average Age
Experienced Board: 327's board of directors are considered experienced (9.3 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 company bio, 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$3.111b
- Shares outstanding: 1.09b
- Website: https://www.paxglobal.com.hk
Number of Employees
Location
- PAX Global Technology Limited
- Room 2416, Sun Hung Kai Centre
- 24th Floor
- Wanchai
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 327 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Dec 2010 |
| P8X | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Dec 2010 |
| PXGY.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Dec 2010 |
Biography
PAX Global Technology Limited, an investment holding company, engages in the development and sale of electronic funds transfer point-of-sale products worldwide. It offers Smart POS, ECR, countertop, wireless, mobile, pin pad, and multilane E-payment terminals, as well as other accessories to process a range of electronic payment types, including signature and PIN-based debit cards, credit cards, contactless/radio frequency identification cards, RF-enabled mobile phones, QR code, IC cards, and pre-paid gift and other stored-value cards. The company also develops and sells consumer activated devices and contactless devices, as well as E-payment terminal software; and provides after-sales services. In addition, it provides payment solutions services, and maintenance and installation services. The company sells its E-payment terminal solutions for the mobile and other payment solutions, services, and/or platforms. PAX Global Technology Limited was founded in 2000 and is headquartered in Wanchai, Hong Kong.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/29 13:15 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.