SEHK:567

Stock Analysis Report

Daisho Microline Holdings

Executive Summary

Daisho Microline Holdings Limited, an investment holding company, manufactures and trades in printed circuit boards.

Rewards

PE ratio (1.2x) is below the Hong Kong market (10.5x)

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Does not have a meaningful market cap (HK$64M)

Highly volatile share price over past 3 months



Snowflake Analysis

Fair value with acceptable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 567's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.3%

567

-1.8%

HK Electronic

-3.7%

HK Market


1 Year Return

-55.1%

567

13.7%

HK Electronic

1.0%

HK Market

Return vs Industry: 567 underperformed the Hong Kong Electronic industry which returned 19.1% over the past year.

Return vs Market: 567 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

567IndustryMarket
7 Day-4.3%-1.8%-3.7%
30 Day-9.1%0.01%-0.2%
90 Day-22.5%12.6%4.1%
1 Year-55.1%-55.1%17.2%13.7%4.7%1.0%
3 Year-84.3%-84.3%13.2%3.9%20.1%7.9%
5 Year-75.0%-75.0%99.8%73.4%18.4%-1.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 567's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 567's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 567 is good value based on its PE Ratio (1.2x) compared to the Electronic industry average (9.5x).

PE vs Market: 567 is good value based on its PE Ratio (1.2x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 567's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 567 is good value based on its PB Ratio (0.4x) compared to the HK Electronic industry average (1x).


Next Steps

Future Growth

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

25.7%

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 Daisho Microline 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 Daisho Microline Holdings performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 567 has a high level of non-cash earnings.

Growing Profit Margin: 567 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 567 has become profitable over the past 5 years, growing earnings by 14.7% per year.

Accelerating Growth: 567 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 567 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (-10.3%).


Return on Equity

High ROE: 567's Return on Equity (32.3%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Daisho Microline Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 567's short term assets (HK$234.3M) exceed its short term liabilities (HK$187.3M).

Long Term Liabilities: 567's short term assets (HK$234.3M) exceed its long term liabilities (HK$2.2M).


Debt to Equity History and Analysis

Debt Level: 567's debt to equity ratio (76.6%) is considered high.

Reducing Debt: 567's debt to equity ratio has increased from 68% to 76.6% over the past 5 years.

Debt Coverage: 567's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 567's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 567 has a high level of physical assets or inventory.

Debt Coverage by Assets: 567's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.2%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 567's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 567's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 567's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 567's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 567 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 567's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Daisho Microline Holdings has no CEO, or we have no data on them.


Management Age and Tenure

1.2yrs

Average Tenure

60yo

Average Age

Experienced Management: 567's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

3.1yrs

Average Tenure

58yo

Average Age

Experienced Board: 567's board of directors are considered experienced (3.1 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

BuyHK$120,067,87316 Aug 19
Lai Ming Cheung
EntityIndividual
Role
Chairman of the Board
Chairman
Shares120,068,000
Max PriceHK$1.00
SellHK$120,067,87316 Aug 19
Lai Na Cheung
EntityIndividual
Shares120,068,000
Max PriceHK$1.00

Ownership Breakdown

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


Management Team

  • Man Kwong Lee (64yo)

    Executive Director

    • Tenure: 3.1yrs
    • Compensation: HK$565.00k
  • Bernard Law (60yo)

    CFO & Executive Director

    • Tenure: 2.2yrs
    • Compensation: HK$381.00k
  • Bret Yeung (62yo)

    Consultant

    • Tenure: 2.3yrs
    • Compensation: HK$120.00k
  • Steve Ng (41yo)

    Company Secretary

    • Tenure: 0.3yrs
  • Sara Cheung (37yo)

    Chairman

    • Compensation: HK$630.00k

Board Members

  • Patrick Leung (47yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: HK$240.00k
  • Man Kwong Lee (64yo)

    Executive Director

    • Tenure: 3.1yrs
    • Compensation: HK$565.00k
  • Bernard Law (60yo)

    CFO & Executive Director

    • Tenure: 2.2yrs
    • Compensation: HK$381.00k
  • Bob Chan (56yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: HK$139.00k
  • Yuk Yan Chou (74yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: HK$240.00k
  • Sara Cheung (37yo)

    Chairman

    • Compensation: HK$630.00k

Company Information

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


Key Information

  • Name: Daisho Microline Holdings Limited
  • Ticker: 567
  • Exchange: SEHK
  • Founded:
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: HK$63.387m
  • Shares outstanding: 576.24m
  • Website: https://www.daisho-microline.com

Number of Employees


Location

  • Daisho Microline Holdings Limited
  • Tai Tung Building
  • 9th Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
567SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Daisho Microline Holdings Limited, an investment holding company, manufactures and trades in printed circuit boards. The company is also involved in the trading of petroleum and energy products, and related business; and vessel chartering and property holding activities. It has operations in the People’s Republic of China, Hong Kong, Singapore, North America, Japan, Europe, and internationally. The company is headquartered in Wan Chai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/23 12:45
End of Day Share Price2020/01/22 00:00
Earnings2019/09/30
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.