SEHK:327

Stock Analysis Report

PAX Global Technology

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.


Snowflake Analysis

Excellent balance sheet 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

5.3%

327

4.4%

HK Electronic

5.3%

HK Market


1 Year Return

-23.9%

327

-20.5%

HK Electronic

-20.4%

HK Market

Return vs Industry: 327 matched the Hong Kong Electronic industry which returned -22.1% over the past year.

Return vs Market: 327 exceeded the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

327IndustryMarket
7 Day5.3%4.4%5.3%
30 Day-27.3%-12.8%-8.5%
90 Day-25.7%-24.0%-14.7%
1 Year-22.1%-23.9%-18.2%-20.5%-17.6%-20.4%
3 Year-39.9%-43.5%-23.2%-29.5%-2.5%-12.3%
5 Year-69.6%-71.7%24.8%8.4%-5.7%-20.9%

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

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$2.92) is trading below our estimate of fair value (HK$28.13)

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 (5.5x) compared to the Electronic industry average (7.9x).

PE vs Market: 327 is good value based on its PE Ratio (5.5x) compared to the Hong Kong market (8.9x).


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 overvalued 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 2 analysts?

11.3%

Forecasted annual earnings 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 (10% 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?

1.0%

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 -10.7%.


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?

4.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 327's dividend (2.74%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.63%).

High Dividend: 327's dividend (2.74%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.28%).


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?

8.0yrs

Average management tenure


CEO

Jack Lu (54yo)

6.92s

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 ($USD1.05M) is above average for companies of similar size in the Hong Kong market ($USD335.42K).

Compensation vs Earnings: Jack's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Guoming Nie
Executive Chairman9.33yrsHK$5.27m0.39% HK$12.3m
Jie Lu
CEO & Executive Director6.92yrsHK$8.12m0.82% HK$25.9m
Wenjin Li
Executive Director10.17yrsno data0.27% HK$8.4m
Shi Yeung Cheung
CFO & Joint Secretary4.25yrsno datano data
Shaowen Luo
Executive VP & Chairman of Pax Technology (Shenzhen)no datano datano data
Yiu Kwong Chan
Joint Company Secretary10.08yrsno datano data
Andy Chau
CEO & President of United States Operations9.08yrsno datano data

8.0yrs

Average Tenure

54yo

Average Age

Experienced Management: 327's management team is seasoned and experienced (7.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Guoming Nie
Executive Chairman9.33yrsHK$5.27m0.39% HK$12.3m
Jie Lu
CEO & Executive Director6.92yrsHK$8.12m0.82% HK$25.9m
Wenjin Li
Executive Director10.17yrsno data0.27% HK$8.4m
Wai Ming Yip
Independent Non Executive Director9.33yrsHK$380.00kno data
Min Wu
Independent Non-Executive Director9.33yrsHK$380.00kno data
Kwok Kuen Man
Independent Non-Executive Director9.33yrsHK$380.00kno 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$3.176b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
327SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2010
P8XDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2010
PXGY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 12:58
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.