Wasion Holdings (SEHK:3393) - Share price, News & Analysis

Q: What is the Fair Price of 3393 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

3393 (HK$2.58) is trading below our estimate of [[fair value]] (HK$6.32)

3393 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	3/6
Past Performance	2/6
Financial Health	4/6
Dividends	3/6

3393 Stock Overview

Rewards

Trading at 59.2% below our estimate of its fair value

Earnings are forecast to grow 19.95% per year

Risk Analysis

Dividend of 7.54% is not well covered by earnings

Wasion Holdings Competitors

China Aerospace International Holdings

SEHK:31

HK$1.4b

IBO Technology

SEHK:2708

HK$1.3b

PAX Global Technology

SEHK:327

HK$8.3b

SMIT Holdings

SEHK:2239

HK$688.8m

Price History & Performance

Summary of all time highs, changes and price drops for Wasion Holdings
Historical stock prices
Current Share Price	HK$2.58
52 Week High	HK$4.03
52 Week Low	HK$2.25
Beta	0.96
1 Month Change	-8.51%
3 Month Change	4.03%
1 Year Change	-6.18%
3 Year Change	-3.37%
5 Year Change	-25.22%
Change since IPO	134.55%

Recent News & Updates

Jul 13

Should You Investigate Wasion Holdings Limited (HKG:3393) At HK$2.85?

While Wasion Holdings Limited ( HKG:3393 ) might not be the most widely known stock at the moment, it saw a decent...

Jun 02

Wasion Holdings (HKG:3393) Is Due To Pay A Dividend Of HK$0.20

Wasion Holdings Limited ( HKG:3393 ) has announced that it will pay a dividend of HK$0.20 per share on the 22nd of...

Shareholder Returns

	3393	HK Electronic	HK Market
7D	2.0%	2.2%	-0.5%
1Y	-6.2%	-34.5%	-20.6%

Return vs Industry: 3393 exceeded the Hong Kong Electronic industry which returned -34.5% over the past year.

Return vs Market: 3393 exceeded the Hong Kong Market which returned -20.6% over the past year.

Price Volatility

Is 3393's price volatile compared to industry and market?
3393 volatility
3393 Average Weekly Movement	5.6%
Electronic Industry Average Movement	6.9%
Market Average Movement	6.5%
10% most volatile stocks in HK Market	12.6%
10% least volatile stocks in HK Market	3.2%

Stable Share Price: 3393 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 3393's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2000	3,578	Chit Kat	https://www.wasion.com

Wasion Holdings Limited, an investment holding company, researches, develops, produces, and sells energy metering and energy efficiency management solutions for energy supply industries in the People’s Republic of China, Africa, South America, Europe, rest of Asia, the Middle East, and internationally. The company operates through three segments: Power Advanced Metering Infrastructure, Communication and Fluid Advanced Metering Infrastructure, and Advanced Distribution Operations. It offers smart meters, smart water meters, smart gas meters, and ultrasonic calorimeters; various meters and power quality monitoring devices; energy data collection terminals, load management terminals, and user management devices; and measurement automation systems and various application systems, services, and energy data mining, as well as system solution services, communication terminals, and heat meters.

Wasion Holdings Fundamentals Summary

How do Wasion Holdings's earnings and revenue compare to its market cap?
3393 fundamental statistics
Market Cap	HK$2.57b
Earnings (TTM)	HK$309.68m
Revenue (TTM)	HK$5.30b

8.3x

P/E Ratio

0.5x

P/S Ratio

Is 3393 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
3393 income statement (TTM)
Revenue	CN¥4.59b
Cost of Revenue	CN¥3.09b
Gross Profit	CN¥1.50b
Other Expenses	CN¥1.23b
Earnings	CN¥268.08m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 30, 2022

Earnings per share (EPS)	0.27
Gross Margin	32.65%
Net Profit Margin	5.84%
Debt/Equity Ratio	46.7%

How did 3393 perform over the long term?

See historical performance and comparison

Dividends

7.5%

Current Dividend Yield

60%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 3393 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3393?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 3393. This is calculated by dividing 3393's market cap by their current preferred multiple.
What is 3393's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥2.22b

3393 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.9x
Enterprise Value/EBITDA	8.6x
PEG Ratio	0.4x

Price to Earnings Ratio vs Peers

How does 3393's PE Ratio compare to its peers?

3393 PE Ratio vs Peers

The above table shows the PE ratio for 3393 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	24.3x
31 China Aerospace International Holdings	4.1x	n/a	HK$1.4b
2708 IBO Technology	77.5x	n/a	HK$1.3b
327 PAX Global Technology	6.5x	18.2%	HK$8.3b
2239 SMIT Holdings	8.9x	n/a	HK$688.8m
3393 Wasion Holdings	8.3x	19.9%	HK$2.6b

Price-To-Earnings vs Peers: 3393 is good value based on its Price-To-Earnings Ratio (8.3x) compared to the peer average (24.3x).

Price to Earnings Ratio vs Industry

How does 3393's PE Ratio compare vs other companies in the HK Electronic Industry?

Price-To-Earnings vs Industry: 3393 is expensive based on its Price-To-Earnings Ratio (8.3x) compared to the Hong Kong Electronic industry average (6.8x)

Price to Earnings Ratio vs Fair Ratio

What is 3393's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3393 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.3x
Fair PE Ratio	10.2x

Price-To-Earnings vs Fair Ratio: 3393 is good value based on its Price-To-Earnings Ratio (8.3x) compared to the estimated Fair Price-To-Earnings Ratio (10.2x).

Share Price vs Fair Value

What is the Fair Price of 3393 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3393 (HK$2.58) is trading below our estimate of fair value (HK$6.32)

Significantly Below Fair Value: 3393 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

Discover undervalued companies

Future Growth

How is Wasion Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

19.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3393's forecast earnings growth (19.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 3393's earnings (19.9% per year) are forecast to grow faster than the Hong Kong market (16.7% per year).

High Growth Earnings: 3393's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3393's revenue (14.6% per year) is forecast to grow faster than the Hong Kong market (9.9% per year).

High Growth Revenue: 3393's revenue (14.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 3393's Return on Equity is forecast to be low in 3 years time (14.8%).

Discover growth companies

Past Performance

How has Wasion Holdings performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-4.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3393 has high quality earnings.

Growing Profit Margin: 3393's current net profit margins (5.8%) are lower than last year (5.9%).

Past Earnings Growth Analysis

Earnings Trend: 3393's earnings have declined by 4.3% per year over the past 5 years.

Accelerating Growth: 3393's earnings growth over the past year (16%) exceeds its 5-year average (-4.3% per year).

Earnings vs Industry: 3393 earnings growth over the past year (16%) underperformed the Electronic industry 19.5%.

Return on Equity

High ROE: 3393's Return on Equity (7%) is considered low.

Discover strong past performing companies

Financial Health

How is Wasion Holdings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 3393's short term assets (CN¥9.6B) exceed its short term liabilities (CN¥5.8B).

Long Term Liabilities: 3393's short term assets (CN¥9.6B) exceed its long term liabilities (CN¥833.7M).

Debt to Equity History and Analysis

Debt Level: 3393's net debt to equity ratio (4.2%) is considered satisfactory.

Reducing Debt: 3393's debt to equity ratio has increased from 26.2% to 46.7% over the past 5 years.

Debt Coverage: 3393's debt is not well covered by operating cash flow (8.9%).

Interest Coverage: 3393's interest payments on its debt are well covered by EBIT (23.7x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Wasion Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

7.54%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 3393's dividend (7.54%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.84%).

High Dividend: 3393's dividend (7.54%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.33%).

Stability and Growth of Payments

Stable Dividend: 3393's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3393's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (59.9%), 3393's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 3393 is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

8.9yrs

Average management tenure

CEO

Chit Kat (38 yo)

0.17yr

Tenure

CN¥249,000

Compensation

Mr. Chit Kat has been Vice General Manager of Hunan Jianhe Property Development Company Limited since 2013. He serves as the President of Willfar Information Technology Company Limited with effect from Jan...

Leadership Team

Experienced Management: 3393's management team is seasoned and experienced (8.9 years average tenure).

Board Members

Experienced Board: 3393's board of directors are considered experienced (6.3 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/08/17 00:00
End of Day Share Price	2022/08/17 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31