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

Fundamentals

Excellent balance sheet and good value.

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


Market Performance


7 Day Return

12.4%

SEHK:327

5.1%

HK Electronic

1.9%

HK Market


1 Year Return

-10.6%

SEHK:327

-19.7%

HK Electronic

-10.4%

HK Market

327 outperformed the Electronic industry which returned -19.7% over the past year.

327 matched the Hong Kong Market (-10.4%) over the past year.


Share holder returns

327IndustryMarket
7 Day12.4%5.1%1.9%
30 Day13.9%-3.4%-7.5%
90 Day10.0%4.9%-4.4%
1 Year-8.5%-10.6%-17.2%-19.7%-7.2%-10.4%
3 Year-35.4%-39.3%-5.5%-12.7%15.3%3.9%
5 Year-46.0%-49.9%26.6%11.1%10.1%-8.1%

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 based on future cash flows and its price relative to the stock market?

10%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

PAX Global Technology's share price is below the future cash flow value, but not at a moderate discount (< 20%).

PAX Global Technology's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

PAX Global Technology is good value based on expected growth next year.


Price Based on Value of Assets

PAX Global Technology is good value based on assets compared to the HK Electronic industry average.


Next Steps

Future Growth

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

14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

PAX Global Technology's revenue is expected to grow by 11.3% yearly, however this is not considered high growth (20% yearly).

PAX Global Technology's earnings are expected to grow by 14.2% yearly, however this is not considered high growth (20% yearly).

PAX Global Technology's revenue growth is expected to exceed the Hong Kong market average.

PAX Global Technology's earnings growth is expected to exceed the Hong Kong market average.

PAX Global Technology's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

PAX Global Technology is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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


Past Earnings Growth Analysis

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 (47% vs 2.7%)

PAX Global Technology's earnings growth has exceeded the HK Electronic industry average in the past year (47% vs -9.7%).


Return on Equity

PAX Global Technology has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

PAX Global Technology used its assets more efficiently than the HK Electronic industry average last year based on Return on Assets.


Return on Capital Employed

PAX Global Technology's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is PAX Global Technology's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

PAX Global Technology's level of debt (0.2%) compared to net worth is satisfactory (less than 40%).

Unable to establish if PAX Global Technology's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (8221.1%, greater than 20% of total debt).

PAX Global Technology earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

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?

2.95%

Expected Dividend Yield


Dividend Yield and Payments Analysis

PAX Global Technology's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.25%).

PAX Global Technology's dividend is below the markets top 25% of dividend payers in Hong Kong (6.18%).

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

Dividends paid are thoroughly covered by earnings (6.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (6x coverage).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Jack Lu (54yo)

6.3yrs

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

Jack's remuneration is higher than average for companies of similar size in Hong Kong.

Jack's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.3yrs

Average Tenure

54yo

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.


Board Age and Tenure

8.7yrs

Average Tenure

54.5yo

Average Age

The tenure for the PAX Global Technology board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyHK$889,17025 Jun 19
Kopernik Global Investors, LLC
EntityCompany
Shares300,000
Max PriceHK$2.96
SellHK$7,831,79717 Dec 18
Franklin Resources, Inc.
EntityCompany
Shares2,396,000
Max PriceHK$3.27
SellHK$1,630,82422 Nov 18
Franklin Resources, Inc.
EntityCompany
Shares422,800
Max PriceHK$3.86
SellHK$416,59908 Nov 18
Kopernik Global Investors, LLC
EntityCompany
Shares108,000
Max PriceHK$3.86
SellHK$2,005,73101 Sep 18
Kopernik Global Investors, LLC
EntityCompany
Shares514,000
Max PriceHK$3.90

Ownership Breakdown


Management Team

  • Wenjin Li (55yo)

    Executive Director

    • Tenure: 9.5yrs
  • Yiu Kwong Chan (54yo)

    Joint Company Secretary

    • Tenure: 9.4yrs
  • Tiger Nie (57yo)

    Executive Chairman

    • Tenure: 8.7yrs
    • Compensation: HK$6.57m
  • Jack Lu (54yo)

    CEO & Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$8.12m
  • Shaowen Luo (50yo)

    Executive VP & Chairman of Pax Technology (Shenzhen)

    • Tenure: 0.0yrs
  • Andy Chau

    CEO & President of United States Operations

    • Tenure: 8.4yrs
  • Ethan Cheung (35yo)

    CFO & Joint Secretary

    • Tenure: 3.6yrs

Board Members

  • Wenjin Li (55yo)

    Executive Director

    • Tenure: 9.5yrs
  • Wai Ming Yip (54yo)

    Independent Non Executive Director

    • Tenure: 8.7yrs
    • Compensation: HK$380.00k
  • Tiger Nie (57yo)

    Executive Chairman

    • Tenure: 8.7yrs
    • Compensation: HK$6.57m
  • Min Wu (47yo)

    Independent Non-Executive Director

    • Tenure: 8.7yrs
    • Compensation: HK$380.00k
  • Jack Lu (54yo)

    CEO & Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$8.12m
  • Charles Man (60yo)

    Independent Non-Executive Director

    • Tenure: 8.7yrs
    • Compensation: HK$380.00k

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$3.884b
  • Shares outstanding: 1.10b
  • 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
327SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 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, wirele ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 12:58
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.