SEHK:529

Stock Analysis Report

SiS International Holdings

Executive Summary

SiS International Holdings Limited, an investment trading and investment holding company, engages in the distribution of mobile and information (IT) products.


Snowflake Analysis

Undervalued with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 529's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.0%

529

4.4%

HK Electronic

5.3%

HK Market


1 Year Return

-52.5%

529

-20.5%

HK Electronic

-20.4%

HK Market

Return vs Industry: 529 underperformed the Hong Kong Electronic industry which returned -22.1% over the past year.

Return vs Market: 529 underperformed the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

529IndustryMarket
7 Day-4.0%4.4%5.3%
30 Day-29.1%-12.8%-8.5%
90 Day-37.7%-24.0%-14.7%
1 Year-51.6%-52.5%-18.2%-20.5%-17.6%-20.4%
3 Year-52.1%-53.7%-23.2%-29.5%-2.5%-12.3%
5 Year-45.1%-47.9%24.8%8.4%-5.7%-20.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SiS International 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: 529 (HK$1.95) is trading below our estimate of fair value (HK$4.26)

Significantly Below Fair Value: 529 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 529 is good value based on its PE Ratio (6.9x) compared to the Electronic industry average (7.9x).

PE vs Market: 529 is good value based on its PE Ratio (6.9x) compared to the Hong Kong market (8.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 529's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 529 is good value based on its PB Ratio (0.2x) compared to the HK Electronic industry average (0.7x).


Next Steps

Future Growth

How is SiS International Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.5%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as SiS International Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has SiS International Holdings performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 529 has high quality earnings.

Growing Profit Margin: 529's current net profit margins (1.2%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: 529's earnings have grown by 5.4% per year over the past 5 years.

Accelerating Growth: 529's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 529 had negative earnings growth (-72.2%) over the past year, making it difficult to compare to the Electronic industry average (-10.7%).


Return on Equity

High ROE: 529's Return on Equity (3.1%) is considered low.


Next Steps

Financial Health

How is SiS International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 529's short term assets (HK$3.2B) do not cover its short term liabilities (HK$3.4B).

Long Term Liabilities: 529's short term assets (HK$3.2B) exceed its long term liabilities (HK$2.0B).


Debt to Equity History and Analysis

Debt Level: 529's debt to equity ratio (100.3%) is considered high.

Reducing Debt: 529's debt to equity ratio has increased from 36.6% to 100.3% over the past 5 years.

Debt Coverage: 529's debt is not well covered by operating cash flow (5.4%).

Interest Coverage: 529's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

Inventory Level: 529 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 529's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

1.05%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 529's dividend (1.03%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.63%).

High Dividend: 529's dividend (1.03%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.28%).


Stability and Growth of Payments

Stable Dividend: 529 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 529 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 529 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 529's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

HK$5m

CEO Compensation


CEO

Kia Hong Lim (62yo)

no data

Tenure

HK$4,915,000

Compensation

Mr. Kia Hong Lim is a Co-founder of SIS International Holdings Limited and serves as its Chairman and Chief Executive Officer. Mr. Lim serves as the Chairman and Chief Executive Officer of SiS Group. He is ...


CEO Compensation Analysis

Compensation vs Market: Kia Hong's total compensation ($USD633.86K) is above average for companies of similar size in the Hong Kong market ($USD232.34K).

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


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.


Top Shareholders

Company Information

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


Key Information

  • Name: SiS International Holdings Limited
  • Ticker: 529
  • Exchange: SEHK
  • Founded: 1983
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: HK$542.035m
  • Shares outstanding: 277.97m
  • Website: https://www.sis.com.hk

Number of Employees


Location

  • SiS International Holdings Limited
  • 803 Nine Queen's Road
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
529SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 1992

Biography

SiS International Holdings Limited, an investment trading and investment holding company, engages in the distribution of mobile and information (IT) products. The company distributes IT, software, network, and smartphone products through a network of IT resellers, retailers, mobile operators, and mobile phone resellers. It also invests in hotel, commercial, industrial, and residential properties. In addition, the company offers hardware, software, and corporate management services; distributes communication products; and provides securities investment services. It provides its products and services primarily in Hong Kong, Japan, Singapore, Thailand, and Bangladesh. The company was founded in 1983 and is based in Central, Hong Kong. SiS International Holdings Limited is a subsidiary of Gold Sceptre Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 12:44
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.