Loading...

PAX Global Technology

SEHK:327
Snowflake Description

Very undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
327
SEHK
HK$4B
Market Cap
  1. Home
  2. HK
  3. Tech
Company description

PAX Global Technology Limited, an investment holding company, engages in the development and sale of electronic funds transfer point-of-sale products worldwide. The last earnings update was 69 days ago. More info.


Add to Portfolio Compare Print
327 Share Price and Events
7 Day Returns
2.2%
SEHK:327
-9.8%
HK Electronic
-3.5%
HK Market
1 Year Returns
-4.9%
SEHK:327
-42.6%
HK Electronic
-16.8%
HK Market
327 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
PAX Global Technology (327) 2.2% -11.5% -7.5% -4.9% -46.4% -29.3%
HK Electronic -9.8% -20.6% -15.1% -42.6% 2.1% 18.2%
HK Market -3.5% -9.6% -4.2% -16.8% 24.6% 7.2%
1 Year Return vs Industry and Market
  • 327 outperformed the Electronic industry which returned -42.6% over the past year.
  • 327 outperformed the Market in Hong Kong which returned -16.8% over the past year.
Price Volatility
327
Industry
5yr Volatility vs Market

Value

 Is PAX Global Technology undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of PAX Global Technology to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for PAX Global Technology.

SEHK:327 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.9%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:327
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.046 (1 + (1- 25%) (0.23%))
1.032
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.032 * 6.65%)
8.87%

Discounted Cash Flow Calculation for SEHK:327 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for PAX Global Technology is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:327 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 8.87%)
2019 657.50 Analyst x1 603.96
2020 493.80 Analyst x1 416.65
2021 542.50 Analyst x1 420.47
2022 581.48 Est @ 7.18% 413.98
2023 614.21 Est @ 5.63% 401.67
2024 642.11 Est @ 4.54% 385.72
2025 666.38 Est @ 3.78% 367.71
2026 688.02 Est @ 3.25% 348.73
2027 707.79 Est @ 2.87% 329.54
2028 726.29 Est @ 2.61% 310.61
Present value of next 10 years cash flows HK$3,999.04
SEHK:327 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$726.29 × (1 + 2%) ÷ (8.87% – 2%)
HK$10,795.87
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$10,795.87 ÷ (1 + 8.87%)10
HK$4,617.08
SEHK:327 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$3,999.04 + HK$4,617.08
HK$8,616.12
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$8,616.12 / 1,100.19
HK$7.83
SEHK:327 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$7.83
Current discount Discount to share price of HK$3.31
= -1 x (HK$3.31 - HK$7.83) / HK$7.83
57.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price PAX Global Technology is available for.
Intrinsic value
>50%
Share price is HK$3.31 vs Future cash flow value of HK$7.83
Current Discount Checks
For PAX Global Technology to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • PAX Global Technology's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • PAX Global Technology's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for PAX Global Technology's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are PAX Global Technology's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:327 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.47
SEHK:327 Share Price ** SEHK (2019-05-21) in HKD HK$3.31
Hong Kong Electronic Industry PE Ratio Median Figure of 59 Publicly-Listed Electronic Companies 11.13x
Hong Kong Market PE Ratio Median Figure of 1,477 Publicly-Listed Companies 11.08x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of PAX Global Technology.

SEHK:327 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:327 Share Price ÷ EPS (both in HKD)

= 3.31 ÷ 0.47

6.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PAX Global Technology is good value based on earnings compared to the HK Electronic industry average.
  • PAX Global Technology is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does PAX Global Technology's expected growth come at a high price?
Raw Data
SEHK:327 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.97x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
15.2%per year
Hong Kong Electronic Industry PEG Ratio Median Figure of 13 Publicly-Listed Electronic Companies 0.61x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

SEHK:327 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.97x ÷ 15.2%

0.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PAX Global Technology is good value based on expected growth next year.
Price based on value of assets
What value do investors place on PAX Global Technology's assets?
Raw Data
SEHK:327 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$3.86
SEHK:327 Share Price * SEHK (2019-05-21) in HKD HK$3.31
Hong Kong Electronic Industry PB Ratio Median Figure of 83 Publicly-Listed Electronic Companies 1.19x
Hong Kong Market PB Ratio Median Figure of 2,156 Publicly-Listed Companies 0.97x
SEHK:327 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:327 Share Price ÷ Book Value per Share (both in HKD)

= 3.31 ÷ 3.86

0.86x

* Primary Listing of PAX Global Technology.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PAX Global Technology is good value based on assets compared to the HK Electronic industry average.
X
Value checks
We assess PAX Global Technology's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. PAX Global Technology has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is PAX Global Technology expected to grow at an attractive rate?
  • PAX Global Technology's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • PAX Global Technology's earnings growth is expected to exceed the Hong Kong market average.
  • PAX Global Technology's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:327 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:327 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 15.2%
SEHK:327 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 9.7%
Hong Kong Electronic Industry Earnings Growth Rate Market Cap Weighted Average 18.3%
Hong Kong Electronic Industry Revenue Growth Rate Market Cap Weighted Average 12.8%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average -5.7%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:327 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:327 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 5,800 546 797 2
2020-12-31 5,109 483 690 3
2019-12-31 4,524 574 579 3
SEHK:327 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 4,415 198 522
2018-09-30 4,138 318 462
2018-06-30 3,861 438 401
2018-03-31 3,726 326 404
2017-12-31 3,591 214 408
2017-09-30 3,389 128 481
2017-06-30 3,188 41 555
2017-03-31 3,051 145 578
2016-12-31 2,915 250 601
2016-09-30 3,005 343 612
2016-06-30 3,096 436 622
2016-03-31 2,983 377 622

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • PAX Global Technology's earnings are expected to grow by 15.2% yearly, however this is not considered high growth (20% yearly).
  • PAX Global Technology's revenue is expected to grow by 9.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:327 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from PAX Global Technology Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:327 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.73 0.76 0.69 2.00
2020-12-31 0.63 0.64 0.62 3.00
2019-12-31 0.53 0.53 0.52 3.00
SEHK:327 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.47
2018-09-30 0.42
2018-06-30 0.36
2018-03-31 0.37
2017-12-31 0.37
2017-09-30 0.43
2017-06-30 0.50
2017-03-31 0.52
2016-12-31 0.54
2016-09-30 0.55
2016-06-30 0.56
2016-03-31 0.56

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • PAX Global Technology is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess PAX Global Technology's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
PAX Global Technology has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare PAX Global Technology's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • PAX Global Technology's year on year earnings growth rate has been positive over the past 5 years.
  • PAX Global Technology's 1-year earnings growth exceeds its 5-year average (28.2% vs 6.4%)
  • PAX Global Technology's earnings growth has exceeded the HK Electronic industry average in the past year (28.2% vs -4.6%).
Earnings and Revenue History
PAX Global Technology's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from PAX Global Technology Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:327 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 4,415.41 522.47 1,028.63
2018-09-30 4,138.17 461.76 1,002.06
2018-06-30 3,860.93 401.04 1,016.28
2018-03-31 3,726.01 404.28 991.14
2017-12-31 3,591.08 407.51 925.21
2017-09-30 3,389.45 481.39 858.00
2017-06-30 3,187.83 555.28 790.79
2017-03-31 3,051.33 578.09 717.64
2016-12-31 2,914.84 600.91 644.49
2016-09-30 3,005.36 611.59 620.20
2016-06-30 3,095.87 622.27 595.90
2016-03-31 2,983.33 621.50 569.83
2015-12-31 2,870.79 620.74 543.75
2015-09-30 2,673.02 561.68 513.19
2015-06-30 2,475.25 502.63 482.63
2015-03-31 2,424.26 447.22 477.38
2014-12-31 2,373.27 391.81 472.12
2014-09-30 2,110.15 362.89 426.34
2014-06-30 1,847.04 333.98 380.55
2014-03-31 1,659.76 280.26 347.46
2013-12-31 1,472.49 226.54 314.36
2013-09-30 1,443.55 208.45 296.04
2013-06-30 1,414.62 190.36 277.72
2013-03-31 1,363.97 186.66 274.37
2012-12-31 1,313.33 182.96 271.01
2012-09-30 1,247.45 190.45 266.90
2012-06-30 1,181.57 197.93 262.79

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • PAX Global Technology has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • PAX Global Technology used its assets more efficiently than the HK Electronic industry average last year based on Return on Assets.
  • PAX Global Technology's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess PAX Global Technology's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
PAX Global Technology has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is PAX Global Technology's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up PAX Global Technology's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • PAX Global Technology is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • PAX Global Technology's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of PAX Global Technology's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 648.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from PAX Global Technology Company Filings, last reported 4 months ago.

SEHK:327 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,212.61 8.24 2,168.56
2018-09-30 4,212.61 8.24 2,168.56
2018-06-30 4,149.51 12.07 2,042.57
2018-03-31 4,149.51 12.07 2,042.57
2017-12-31 3,897.07 14.37 2,181.83
2017-09-30 3,897.07 14.37 2,181.83
2017-06-30 3,797.78 0.00 1,867.04
2017-03-31 3,797.78 0.00 1,867.04
2016-12-31 3,501.28 0.00 2,276.12
2016-09-30 3,501.28 0.00 2,276.12
2016-06-30 3,426.95 0.00 2,050.69
2016-03-31 3,426.95 0.00 2,050.69
2015-12-31 3,090.60 0.00 2,188.03
2015-09-30 3,090.60 0.00 2,188.03
2015-06-30 2,878.99 0.00 1,724.07
2015-03-31 2,878.99 0.00 1,724.07
2014-12-31 2,548.18 0.00 1,932.81
2014-09-30 2,548.18 0.00 1,932.81
2014-06-30 2,316.77 0.00 1,554.64
2014-03-31 2,316.77 0.00 1,554.64
2013-12-31 2,087.12 0.00 1,704.73
2013-09-30 2,087.12 0.00 1,704.73
2013-06-30 1,927.75 0.00 1,267.05
2013-03-31 1,927.75 0.00 1,267.05
2012-12-31 1,810.83 0.00 1,378.82
2012-09-30 1,810.83 0.00 1,378.82
2012-06-30 1,685.90 0.00 969.89
  • PAX Global Technology's level of debt (0.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 0.2% today).
  • Debt is well covered by operating cash flow (2405.1%, greater than 20% of total debt).
  • PAX Global Technology earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess PAX Global Technology's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. PAX Global Technology has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.42%
Current annual income from PAX Global Technology dividends. Estimated to be 3.08% next year.
If you bought HK$2,000 of PAX Global Technology shares you are expected to receive HK$48 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • PAX Global Technology's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.09%).
  • PAX Global Technology's dividend is below the markets top 25% of dividend payers in Hong Kong (5.75%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:327 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Hong Kong Electronic Industry Average Dividend Yield Market Cap Weighted Average of 39 Stocks 3.1%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 968 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:327 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.12 1.00
2020-12-31 0.10 2.00
2019-12-31 0.10 2.00
SEHK:327 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-03-06 0.080 2.230
2018-08-08 0.080 2.241
2018-03-13 0.080 2.152
2018-03-07 0.080 2.082
2017-08-09 0.080 2.058
2017-03-08 0.080 1.629
2016-08-16 0.080 1.502
2016-08-09 0.080 1.232
2016-03-14 0.040 0.603
2016-03-08 0.040 0.509
2015-08-11 0.040 0.480
2015-08-06 0.040 0.400

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, PAX Global Technology has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but PAX Global Technology only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of PAX Global Technology's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (6x coverage).
X
Income/ dividend checks
We assess PAX Global Technology's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can PAX Global Technology afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. PAX Global Technology has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of PAX Global Technology's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jack Lu
COMPENSATION HK$8,115,000
AGE 53
TENURE AS CEO 6 years
CEO Bio

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 August 2001. Mr. Lu has over 15 years of experience in sales and marketing in the electronic payment industry and served a number of management positions and executive role at Beijing Order Computer Company, a system integration company, from 1998 to 2001, including General Manager of insurance department, General Manager of marketing department and Vice President of the Company. He had also worked as an Engineer of the Ministry of Geology and Mineral Resources of the People's Republic of China and the Chinese Academy of Geological Sciences from 1986 to 1994 and from 1994 to 1995 respectively. Mr. Lu holds bachelor's a degree from Chengdu Geology Institute. He obtained an Executive Master of Business Administration degree from the Cheung Kong Graduate School of Business in 2010. He was appointed as the Chief Executive Officer and an Executive Director of the Company in May 2013.

CEO Compensation
  • Jack's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jack's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the PAX Global Technology management team in years:

6
Average Tenure
53
Average Age
  • The average tenure for the PAX Global Technology management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Tiger Nie

TITLE
Executive Chairman
COMPENSATION
HK$5M
AGE
56

Jack Lu

TITLE
CEO & Executive Director
COMPENSATION
HK$8M
AGE
53
TENURE
6 yrs

Wenjin Li

TITLE
Executive Director
AGE
54

Ethan Cheung

TITLE
CFO & Joint Secretary
AGE
34
TENURE
3.3 yrs

Shaowen Luo

TITLE
Executive VP & Chairman of Pax Technology (Shenzhen)
AGE
49

Yiu Kwong Chan

TITLE
Joint Company Secretary
AGE
53
TENURE
9.2 yrs

Andy Chau

TITLE
CEO & President of United States Operations
TENURE
8.2 yrs

Agnes Lau

TITLE
Joint Company Secretary
TENURE
2.8 yrs
Board of Directors Tenure

Average tenure and age of the PAX Global Technology board of directors in years:

8.4
Average Tenure
53.5
Average Age
  • The tenure for the PAX Global Technology board of directors is about average.
Board of Directors

Tiger Nie

TITLE
Executive Chairman
COMPENSATION
HK$5M
AGE
56
TENURE
8.4 yrs

Jack Lu

TITLE
CEO & Executive Director
COMPENSATION
HK$8M
AGE
53
TENURE
6 yrs

Wenjin Li

TITLE
Executive Director
AGE
54
TENURE
9.3 yrs

Min Wu

TITLE
Independent Non-Executive Director
COMPENSATION
HK$380K
AGE
46
TENURE
8.4 yrs

Wai Ming Yip

TITLE
Independent Non Executive Director
COMPENSATION
HK$380K
AGE
53
TENURE
8.4 yrs

Charles Man

TITLE
Independent Non-Executive Director
COMPENSATION
HK$380K
AGE
59
TENURE
8.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
17. Dec 18 Sell Franklin Resources, Inc. Company 12. Dec 18 12. Dec 18 -2,396,000 HK$3.27 HK$-7,831,797
22. Nov 18 Sell Franklin Resources, Inc. Company 19. Nov 18 19. Nov 18 -422,800 HK$3.86 HK$-1,630,824
08. Nov 18 Sell Kopernik Global Investors, LLC Company 06. Nov 18 06. Nov 18 -108,000 HK$3.86 HK$-416,599
01. Sep 18 Sell Kopernik Global Investors, LLC Company 30. Aug 18 30. Aug 18 -514,000 HK$3.90 HK$-2,005,731
X
Management checks
We assess PAX Global Technology's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. PAX Global Technology has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

PAX Global Technology Limited (HKG:327): Commentary On Fundamentals

Investors have the opportunity to buy into the stock to reap capital gains, if 327's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. … Also, relative to the rest of its peers with similar levels of earnings, 327's share price is trading below the group's average. … SEHK:327 Intrinsic value, May 13th 2019 Next Steps: For PAX Global Technology, I've compiled three essential factors you should look at: Future Outlook: What are well-informed industry analysts predicting for 327’s future growth?

Simply Wall St -

Only 2 Days Left To Cash In On PAX Global Technology Limited (HKG:327) Dividend

If you are interested in cashing in on PAX Global Technology Limited's (HKG:327) upcoming dividend of HK$0.04 per share, you only have 2 days left to buy the shares before its ex-dividend date, 08 May 2019, in time for dividends payable on the 29 May 2019. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine PAX Global Technology's latest financial data to analyse its dividend characteristics. … Here's how I find good dividend stocks?

Simply Wall St -

How Do Analysts See PAX Global Technology Limited (HKG:327) Performing In The Next Couple Of Years?

PAX Global Technology Limited's (HKG:327) released its most recent earnings update in December 2018, whicha

Simply Wall St -

PAX Global Technology Limited (HKG:327): What Does The Future Look Like?

In December 2018, PAX Global Technology Limited (HKG:327) released its earnings update. … with earnings expected to grow by 11% in the upcoming year … the past 5-year average growth rate of 6.4%

Simply Wall St -

What Does PAX Global Technology Limited's (HKG:327) Share Price Indicate?

Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing? … So, could the stock still be trading at a low price relative to its actual value. … Let’s take a look at PAX Global Technology’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

PAX Global Technology Limited (HKG:327) Has A ROE Of 12%

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows PAX Global Technology has a return on equity of 12% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

PAX Global Technology Limited (HKG:327) Is Employing Capital Very Effectively

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

The PAX Global Technology Share Price Is Down 50% So Some Shareholders Are Getting Worried

PAX Global Technology Limited (HKG:327) shareholders should be happy to see the share price up 11% in the last quarter. … In fact, the share price is down 50% in the last three years, falling well short of the market return. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Simply Wall St -

PAX Global Technology Limited (HKG:327) Has Attractive Fundamentals

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on PAX Global Technology Limited (HKG:327) due to its excellent fundamentals in more than one area. … is a company that has been able to sustain great financial health, trading at an attractive share price

Simply Wall St -

Can We See Significant Institutional Ownership On The PAX Global Technology Limited (HKG:327) Share Register?

A look at the shareholders of PAX Global Technology Limited (HKG:327) can tell us which group is most powerful. … Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … PAX Global Technology is a smaller company with a market capitalization of HK$3.6b, so it may still be flying under the radar of many institutional investors.

Simply Wall St -

Company Info

Description

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.

Details
Name: PAX Global Technology Limited
327
Exchange: SEHK
Founded: 2000
HK$3,564,628,560
1,100,194,000
Website: http://www.paxglobal.com.hk
Address: PAX Global Technology Limited
Room 2416, Sun Hung Kai Centre,
24th Floor,
Wanchai,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 327 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 20. Dec 2010
OTCPK PXGY.F Ordinary Shares Pink Sheets LLC US USD 20. Dec 2010
DB P8X Ordinary Shares Deutsche Boerse AG DE EUR 20. Dec 2010
SZSC 327 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 20. Dec 2010
Number of employees
Current staff
Staff numbers
1,723
PAX Global Technology employees.
Industry
Electronic Equipment and Instruments
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/21 12:55
End of day share price update: 2019/05/21 00:00
Last estimates confirmation: 2019/04/10
Last earnings filing: 2019/03/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.