SEHK:3393

Stock Analysis Report

Executive Summary

Wasion Holdings Limited, an investment holding company, researches, develops, produces, and sells energy metering and energy efficiency management for energy supply industries in the People’s Republic of China and internationally.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet and pays a dividend.

Share Price & News

How has Wasion Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

25.8%

3393

0.8%

HK Electronic

0.9%

HK Market


1 Year Return

8.9%

3393

-2.6%

HK Electronic

0.6%

HK Market

Return vs Industry: 3393 exceeded the Hong Kong Electronic industry which returned -2.6% over the past year.

Return vs Market: 3393 exceeded the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

3393IndustryMarket
7 Day25.8%0.8%0.9%
30 Day30.9%-1.9%0.4%
90 Day21.5%4.2%-5.5%
1 Year17.6%8.9%0.7%-2.6%4.2%0.6%
3 Year-4.2%-20.9%-2.6%-10.3%15.5%3.9%
5 Year-31.9%-48.1%54.6%34.4%19.9%-0.1%

Price Volatility Vs. Market

How volatile is Wasion Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wasion Holdings undervalued compared to its fair value and its price relative to the market?

11.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 3393 (HK$3.9) is trading above our estimate of fair value (HK$2.45)

Significantly Undervalued: 3393 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3393 is poor value based on its PE Ratio (11.5x) compared to the Electronic industry average (8.7x).

PE vs Market: 3393 is poor value based on its PE Ratio (11.5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 3393 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 3393 is good value based on its PB Ratio (0.8x) compared to the HK Electronic industry average (0.9x).


Next Steps

Future Growth

How is Wasion Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3393's forecast earnings growth (22% per year) is above the savings rate (2%).

Earnings vs Market: 3393's earnings (22% per year) are forecast to grow faster than the Hong Kong market (11.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 3393's revenue (15.3% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 3393's revenue (15.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 3393's Return on Equity is forecast to be low in 3 years time (10.1%).


Next Steps

Past Performance

How has Wasion Holdings performed over the past 5 years?

-14.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 3393's earnings have declined by -14.2% per year over the past 5 years.

Accelerating Growth: 3393's earnings growth over the past year (13.2%) exceeds its 5-year average (-14.2% per year).

Earnings vs Industry: 3393 earnings growth over the past year (13.2%) exceeded the Electronic industry -10.9%.


Return on Equity

High ROE: 3393's Return on Equity (7.8%) is considered low.


Return on Assets

ROA vs Industry: 3393's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: 3393 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Wasion Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3393's short term assets (CN¥6.5B) exceeds its short term liabilities (CN¥4.3B)

Long Term Liabilities: 3393's short term assets (6.5B) exceeds its long term liabilities (399.3M)


Debt to Equity History and Analysis

Debt Level: 3393's debt to equity ratio (39.1%) is considered satisfactory

Reducing Debt: 3393's debt to equity ratio has increased from 34.7% to 39.1% over the past 5 years.

Debt Coverage: 3393's debt is not well covered by operating cash flow (10.6%).

Interest Coverage: 3393's interest payments on its debt are well covered by EBIT (24.6x coverage).


Balance Sheet

Inventory Level: 3393 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3393's debt is covered by short term assets (assets are 3.501670x debt).


Next Steps

Dividend

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

3.07%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%2.3%markettop25%6.3%industryaverage2.8%forecastin3Years5.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 3393's dividend (3.07%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 3393's dividend (3.07%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.4%), 3393's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3393's dividends in 3 years are forecast to be well covered by earnings (29.7% payout ratio).


Next Steps

Management

What is the CEO of Wasion Holdings's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average board tenure


CEO

Zhao Hui Cao (51yo)

0yrs

Tenure

CN¥627,000

Compensation

Ms. Zhao Hui Cao serves as the Chief Executive Officer of Wasion Group Holdings Limited. Ms. Cao served as Director of finance and Deputy General Manager of Wasion Group Holdings Limited. She was employed  ...


CEO Compensation Analysis

Compensation vs. Market: Zhao Hui's total compensation ($USD88.54K) is about average for companies of similar size in the Hong Kong market ($USD298.58K).

Compensation vs Earnings: Zhao Hui's compensation has been consistent with company performance over the past year.


Board Age and Tenure

5.2yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 3393's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥2,881,40221 Jun 19
Wei Ji
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares1,000,000
Max PriceCN¥2.88
BuyCN¥325,38018 Jun 19
Wing Kuen Hui
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares110,000
Max PriceCN¥2.96
BuyCN¥11,705,42612 Jun 19
Edgbaston Investment Partners LLP
EntityCompany
Shares3,928,000
Max PriceCN¥2.98
BuyCN¥1,152,56922 Oct 18
Wei Ji
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares300,000
Max PriceCN¥3.84

Ownership Breakdown


Management Team

  • Edward Choi (50yo)

    CFO & Company Secretary

    • Tenure: 0yrs
  • Wei Ji (62yo)

    Founder & Chairman

    • Tenure: 0yrs
    • Compensation: CN¥529.00k
  • Xiao Ping Zheng (55yo)

    Senior Engineer & Executive Director

    • Tenure: 14.1yrs
    • Compensation: CN¥572.00k
  • Xin Zeng (48yo)

    GM of Wasion Electric Limited & Executive Director

    • Tenure: 14.1yrs
    • Compensation: CN¥617.00k
  • Zhao Hui Cao (51yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥627.00k
  • Zhongping Tian (39yo)

    Executive Director & President

    • Tenure: 2.8yrs
    • Compensation: CN¥482.00k

Board Members

  • Wei Ji (62yo)

    Founder & Chairman

    • Tenure: 0yrs
    • Compensation: CN¥529.00k
  • Xiao Ping Zheng (55yo)

    Senior Engineer & Executive Director

    • Tenure: 14.1yrs
    • Compensation: CN¥572.00k
  • Xin Zeng (48yo)

    GM of Wasion Electric Limited & Executive Director

    • Tenure: 14.1yrs
    • Compensation: CN¥617.00k
  • Zhao Hui Cao (51yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥627.00k
  • Wing Kuen Hui (71yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥419.00k
  • Jing Huang (62yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: CN¥205.00k
  • Chit Kat (35yo)

    Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: CN¥257.00k
  • Shi Jie Cheng (73yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: CN¥156.00k
  • Wenpeng Luan (54yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: CN¥103.00k
  • Zhongping Tian (39yo)

    Executive Director & President

    • Tenure: 2.8yrs
    • Compensation: CN¥482.00k

Company Information

Wasion Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wasion Holdings Limited
  • Ticker: 3393
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: HK$3.900b
  • Shares outstanding: 999.96m
  • Website: https://www.wasion.com

Number of Employees


Location

  • Wasion Holdings Limited
  • West Tower
  • Unit 2605, 26th Floor
  • Sheung Wan
  • 410205
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3393SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2005
W1UDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2005

Biography

Wasion Holdings Limited, an investment holding company, researches, develops, produces, and sells energy metering and energy efficiency management for energy supply industries in the People’s Republic of C ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:40
End of Day Share Price2019/10/18 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.