SEHK:465

Stock Analysis Report

Futong Technology Development Holdings

Executive Summary

Futong Technology Development Holdings Limited, an investment holding company, provides enterprise information technology (IT) infrastructure, cloud computing, and intelligent digitalized application products and services in the People’s Republic of China.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

465

-2.6%

HK Tech

0.9%

HK Market


1 Year Return

-6.3%

465

-22.7%

HK Tech

0.6%

HK Market

Return vs Industry: 465 exceeded the Hong Kong Tech industry which returned -22.7% over the past year.

Return vs Market: 465 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

465IndustryMarket
7 Day0%-2.6%0.9%
30 Day-9.1%-5.5%0.5%
90 Day-29.4%-7.1%-4.3%
1 Year-3.8%-6.3%-22.0%-22.7%4.2%0.6%
3 Year-49.6%-51.6%-3.5%-12.1%15.6%4.0%
5 Year-37.9%-43.4%-32.8%-46.1%20.0%-0.08%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Futong Technology Development Holdings 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: 465 (HK$0.6) is trading below our estimate of fair value (HK$2.94)

Significantly Below Fair Value: 465 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 465 is good value based on its PE Ratio (8.8x) compared to the Tech industry average (9.8x).

PE vs Market: 465 is good value based on its PE Ratio (8.8x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 465's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 465 is good value based on its PB Ratio (0.3x) compared to the HK Tech industry average (1x).


Next Steps

Future Growth

How is Futong Technology Development Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 465's forecast earnings growth (20.2% per year) is above the savings rate (2%).

Earnings vs Market: 465's earnings (20.2% 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 465's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 465'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 465's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Futong Technology Development Holdings performed over the past 5 years?

-41.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 465's earnings have declined by -41.5% per year over the past 5 years.

Accelerating Growth: 465 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 465 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Tech industry (4%).


Return on Equity

High ROE: 465's Return on Equity (3.5%) is considered low.


Return on Assets

ROA vs Industry: 465's Return on Assets is below or equal to the Tech industry average last year.


Return on Capital Employed

ROCE Improving: 465's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Futong Technology Development Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 465's short term assets (CN¥732.1M) exceeds its short term liabilities (CN¥234.8M)

Long Term Liabilities: 465's short term assets (732.1M) exceeds its long term liabilities (419.0K)


Debt to Equity History and Analysis

Debt Level: 465's debt to equity ratio (1.9%) is considered satisfactory

Reducing Debt: 465's debt to equity ratio has reduced from 169% to 1.9% over the past 5 years.

Debt Coverage: 465's debt is well covered by operating cash flow (2368.2%).

Interest Coverage: 465 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 465 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 465's debt is covered by short term assets (assets are 69.720280x debt).


Next Steps

Dividend

What is Futong Technology Development Holdings's current dividend yield, its reliability and sustainability?

3.56%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%2.3%markettop25%6.3%industryaverage3.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 465's dividend (3.56%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 465's dividend (3.56%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 465 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 465 has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.9%), 465's dividend payments are well 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 Futong Technology Development Holdings's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average board tenure


CEO

Wei Zhao (48yo)

1.9yrs

Tenure

0

Mr. Wei Zhao has been the Chief Executive Officer of Futong Technology Development Holdings Limited since November 17, 2017. Mr. Zhao serves as Vice President of Futong Dongfang at Futong Technology Develo ...


Board Age and Tenure

2.3yrs

Average Tenure

58yo

Average Age

Experienced Board: 465's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 465 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥17,73905 Sep 19
Wei Zhao
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares30,000
Max PriceCN¥0.59

Ownership Breakdown


Management Team

  • Jian Chen (58yo)

    Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: CN¥2.29m
  • Wei Zhao (48yo)

    Chief Executive Officer

    • Tenure: 1.9yrs
  • Jing Chen (50yo)

    VP of Futong Dongfang & Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥1.13m
  • Hui Xie (49yo)

    Co-Founder & Senior VP of Futong Dongfang

    • Tenure: 0yrs
  • Wei Jin (44yo)

    Chief Technical Officer & VP of Futong Dongfang

    • Tenure: 0yrs
  • Ka Lung Leung (33yo)

    Company Secretary & Financial Controller

    • Tenure: 1.3yrs
  • Ai Ai Shen (35yo)

    Chief Financial Officer

    • Tenure: 0yrs

Board Members

  • Jian Chen (58yo)

    Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: CN¥2.29m
  • Jing Chen (50yo)

    VP of Futong Dongfang & Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥1.13m
  • Siu Lui Chow (59yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥247.00k
  • Yun Yao (52yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: CN¥148.00k
  • David Kwei (59yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥226.00k

Company Information

Futong Technology Development Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Futong Technology Development Holdings Limited
  • Ticker: 465
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: HK$196.088m
  • Shares outstanding: 311.25m
  • Website: https://www.futong.com.hk

Number of Employees


Location

  • Futong Technology Development Holdings Limited
  • Chaowaimen Office Center
  • Units B1901 on level 19 and B2001 on level 20 of Tower B
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
465SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2009

Biography

Futong Technology Development Holdings Limited, an investment holding company, provides enterprise information technology (IT) infrastructure, cloud computing, and intelligent digitalized application produ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:49
End of Day Share Price2019/10/21 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.