SEHK:40

Stock Analysis Report

Gold Peak Industries (Holdings)

Executive Summary

Gold Peak Industries (Holdings) Limited, an investment holding company, develops, manufactures, markets, and trades in batteries, electronics and acoustics products, and automotive wire harness.

Snowflake

Fundamentals

Average dividend payer with acceptable track record.

Share Price & News

How has Gold Peak Industries (Holdings)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.5%

40

0.8%

HK Electronic

0.9%

HK Market


1 Year Return

1.3%

40

-2.6%

HK Electronic

0.6%

HK Market

Return vs Industry: 40 exceeded the Hong Kong Electronic industry which returned -2.6% over the past year.

Return vs Market: 40 matched the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

40IndustryMarket
7 Day-2.5%0.8%0.9%
30 Day-2.5%-1.6%0.5%
90 Day-4.9%8.4%-4.3%
1 Year6.8%1.3%0.7%-2.6%4.2%0.6%
3 Year14.8%2.6%-2.6%-10.3%15.6%4.0%
5 Year32.5%6.8%54.6%34.4%20.0%-0.08%

Price Volatility Vs. Market

How volatile is Gold Peak Industries (Holdings)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gold Peak Industries (Holdings) undervalued compared to its fair value and its price relative to the market?

9.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 40 (HK$0.78) is trading above our estimate of fair value (HK$0.49)

Significantly Below Fair Value: 40 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 40 is poor value based on its PE Ratio (10x) compared to the Electronic industry average (8.7x).

PE vs Market: 40 is good value based on its PE Ratio (10x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 40's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 40 is good value based on its PB Ratio (0.4x) compared to the HK Electronic industry average (0.9x).


Next Steps

Future Growth

How is Gold Peak Industries (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 40's forecast earnings growth (20.8% per year) is above the savings rate (2%).

Earnings vs Market: 40's earnings (20.8% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

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

Revenue vs Market: Insufficient data to determine if 40's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 40's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 40's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Gold Peak Industries (Holdings) performed over the past 5 years?

55.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 40 has become profitable over the past 5 years, growing earnings by 55.3% per year.

Accelerating Growth: 40's earnings growth over the past year (201.8%) exceeds its 5-year average (55.3% per year).

Earnings vs Industry: 40 earnings growth over the past year (201.8%) exceeded the Electronic industry -10.9%.


Return on Equity

High ROE: 40's Return on Equity (8.3%) is considered low.


Return on Assets

ROA vs Industry: 40's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: 40's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Gold Peak Industries (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: 40's short term assets (HK$4.0B) exceeds its short term liabilities (HK$3.9B)

Long Term Liabilities: 40's short term assets (4.0B) exceeds its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: 40's debt to equity ratio (153.7%) is considered high

Reducing Debt: 40's debt to equity ratio has increased from 67.9% to 153.7% over the past 5 years.

Debt Coverage: 40's debt is not well covered by operating cash flow (2%).

Interest Coverage: 40's interest payments on its debt are not well covered by EBIT (0.5x coverage).


Balance Sheet

Inventory Level: 40 has a high level of physical assets or inventory.

Debt Coverage by Assets: 40's debt is covered by short term assets (assets are 1.178650x debt).


Next Steps

Dividend

What is Gold Peak Industries (Holdings)'s current dividend yield, its reliability and sustainability?

6.41%

Current Dividend Yield


Dividend Yield vs Market

company6.4%marketbottom25%2.3%markettop25%6.3%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 40's dividend (6.41%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 40's dividend (6.41%) is in the top 25% of dividend payers in the Hong Kong market (6.25%)

Stable Dividend: 40's dividend payments have been volatile in the past 10 years.

Growing Dividend: 40's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.6%), 40's dividend payments are 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

What is the CEO of Gold Peak Industries (Holdings)'s salary, the management and board of directors tenure and is there insider trading?

0.5yrs

Average management tenure


CEO

Victor Lo (69yo)

29.8yrs

Tenure

HK$10,901,000

Compensation

Mr. Chung Wing Lo, also known as Victor, GBS, OBE, JP has been the Chief Executive Officer of GP Industries Limited since February 3, 2016. Mr. Lo has been the Chairman and Chief Executive Officer of GP Ba ...


CEO Compensation Analysis

Compensation vs. Market: Victor's total compensation ($USD1.39M) is about average for companies of similar size in the Hong Kong market ($USD214.48K).

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


Management Age and Tenure

0.5yrs

Average Tenure

62yo

Average Age

Experienced Management: 40's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Age and Tenure

9.4yrs

Average Tenure

67.5yo

Average Age

Experienced Board: 40's board of directors are considered experienced (9.4 years average tenure).


Insider Trading

Insider Buying: 40 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$17,841,72928 Aug 19
Chung Wing Lo
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares22,302,166
Max PriceHK$0.80

Ownership Breakdown


Management Team

  • Victor Lo (69yo)

    Chairman & CEO

    • Tenure: 29.8yrs
    • Compensation: HK$10.90m
  • Richard Ku (71yo)

    Executive Director

    • Tenure: 29.8yrs
    • Compensation: HK$2.65m
  • Brian Li (66yo)

    Executive VP & Executive Director

    • Tenure: 4.5yrs
    • Compensation: HK$5.98m
  • Brian Wong (56yo)

    Executive Director

    • Tenure: 0.5yrs
  • Michael Lam (58yo)

    Executive Director

    • Tenure: 0.5yrs
  • Louis Wong (54yo)

    Company Secretary

    • Tenure: 0.5yrs

Board Members

  • Victor Lo (69yo)

    Chairman & CEO

    • Tenure: 29.8yrs
    • Compensation: HK$10.90m
  • Richard Ku (71yo)

    Executive Director

    • Tenure: 29.8yrs
    • Compensation: HK$2.65m
  • Pak Chuen Leung (69yo)

    Non-Executive Vice Chairman & Senior Adviser to Chief Executive

    • Tenure: 0.8yrs
    • Compensation: HK$5.71m
  • Brian Li (66yo)

    Executive VP & Executive Director

    • Tenure: 4.5yrs
    • Compensation: HK$5.98m
  • Kei Chan (71yo)

    Independent Non-Executive Director

    • Tenure: 14.3yrs
    • Compensation: HK$230.00k
  • Ming Wah Lui (81yo)

    Independent Non-Executive Director

    • Tenure: 24.8yrs
    • Compensation: HK$280.00k
  • Frank Chan (65yo)

    Independent Non-Executive Director

    • Tenure: 15.3yrs
    • Compensation: HK$270.00k
  • Brian Wong (56yo)

    Executive Director

    • Tenure: 0.5yrs
  • Michael Lam (58yo)

    Executive Director

    • Tenure: 0.5yrs
  • Karen Ng (38yo)

    Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$230.00k

Company Information

Gold Peak Industries (Holdings) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gold Peak Industries (Holdings) Limited
  • Ticker: 40
  • Exchange: SEHK
  • Founded: 1964
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: HK$612.061m
  • Shares outstanding: 784.69m
  • Website: https://www.goldpeak.com

Number of Employees


Location

  • Gold Peak Industries (Holdings) Limited
  • Building 12W
  • 9th Floor
  • Tai Po
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
40SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Gold Peak Industries (Holdings) Limited, an investment holding company, develops, manufactures, markets, and trades in batteries, electronics and acoustics products, and automotive wire harness. The compan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:36
End of Day Share Price2019/10/18 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.