SEHK:595

Stock Analysis Report

AV Concept Holdings

Executive Summary

AV Concept Holdings Limited, an investment holding company, engages in the marketing and distribution of electronic components in Hong Kong, Singapore, and Korea.

Rewards

PE ratio (4.9x) is below the Hong Kong market (10.1x)

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Profit margins (3.4%) are lower than last year (8.8%)

Does not have a meaningful market cap (HK$245M)



Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 595 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.6%

595

5.1%

HK Electronic

0.9%

HK Market


1 Year Return

-24.3%

595

13.9%

HK Electronic

-1.5%

HK Market

Return vs Industry: 595 underperformed the Hong Kong Electronic industry which returned 13.9% over the past year.

Return vs Market: 595 underperformed the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

595IndustryMarket
7 Day-8.6%5.1%0.9%
30 Day1.9%2.1%-3.7%
90 Day0%11.1%-0.1%
1 Year-18.5%-24.3%17.4%13.9%2.0%-1.5%
3 Year-26.0%-36.4%15.2%5.8%17.3%5.4%
5 Year-27.5%-37.6%85.9%61.6%17.1%-2.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

4.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 595 (HK$0.27) is trading above our estimate of fair value (HK$0.25)

Significantly Below Fair Value: 595 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 595 is good value based on its PE Ratio (4.9x) compared to the Electronic industry average (9.1x).

PE vs Market: 595 is good value based on its PE Ratio (4.9x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 595's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 595 is good value based on its PB Ratio (0.2x) compared to the HK Electronic industry average (0.9x).


Next Steps

Future Growth

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

24.3%

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 AV Concept 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 AV Concept Holdings performed over the past 5 years?

26.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 595 has a large one-off loss of HK$101.1M impacting its September 30 2019 financial results.

Growing Profit Margin: 595's current net profit margins (3.4%) are lower than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: 595's earnings have grown significantly by 26.1% per year over the past 5 years.

Accelerating Growth: 595's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 595 had negative earnings growth (-69.2%) over the past year, making it difficult to compare to the Electronic industry average (-8.8%).


Return on Equity

High ROE: 595's Return on Equity (4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AV Concept Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 595's short term assets (HK$370.8M) exceed its short term liabilities (HK$176.2M).

Long Term Liabilities: 595's short term assets (HK$370.8M) exceed its long term liabilities (HK$16.1M).


Debt to Equity History and Analysis

Debt Level: 595's debt to equity ratio (5.9%) is considered satisfactory.

Reducing Debt: 595's debt to equity ratio has reduced from 51.8% to 5.9% over the past 5 years.

Debt Coverage: 595's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 595's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 595 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 595's debt is covered by short term assets (assets are 5.5x debt).


Next Steps

Dividend

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

7.55%

Current Dividend Yield


Dividend Yield vs Market

company7.5%marketbottom25%2.2%markettop25%6.3%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 595's dividend (7.55%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 595's dividend (7.55%) is in the top 25% of dividend payers in the Hong Kong market (6.31%)


Stability and Growth of Payments

Stable Dividend: 595's dividend payments have been volatile in the past 10 years.

Growing Dividend: 595's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.2%), 595'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 AV Concept Holdings's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average management tenure


CEO

Yuk So (69yo)

2yrs

Tenure

HK$9,289,000

Compensation

Dr. Hon. Yuk Kwan So founded AV Concept Holdings Ltd and serves as Chairman of the Board and has been its Chief Executive Officer since December 26, 2017. Dr. Hon. So is responsible for the formulation of  ...


CEO Compensation Analysis

Compensation vs Market: Yuk's total compensation ($USD1.19M) is above average for companies of similar size in the Hong Kong market ($USD213.05K).

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


Management Age and Tenure

5.5yrs

Average Tenure

48.5yo

Average Age

Experienced Management: 595's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

15.3yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 595's board of directors are seasoned and experienced ( 15.3 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.


Ownership Breakdown

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


Management Team

  • Yuk So (69yo)

    Founder

    • Tenure: 2yrs
    • Compensation: HK$9.29m
  • Jun Hyog Lee (56yo)

    President

    • Tenure: 0yrs
  • Joon Choi (55yo)

    President & CEO of AVP Electronics Limited

    • Tenure: 7.9yrs
  • Kevin So (33yo)

    COO & Executive Director

    • Tenure: 4.1yrs
    • Compensation: HK$2.90m
  • Chi Hang Chan (42yo)

    CFO & Company Secretary

    • Tenure: 4.3yrs
  • Sunny So (31yo)

    Executive Director

    • Tenure: 4.1yrs
    • Compensation: HK$2.24m

Board Members

  • Yuk So (69yo)

    Founder

    • Tenure: 2yrs
    • Compensation: HK$9.29m
  • Charles Chapman (70yo)

    Independent Non-Executive Director

    • Tenure: 19.9yrs
    • Compensation: HK$100.00k
  • Ming Wah Lui (81yo)

    Independent Non-Executive Director

    • Tenure: 23.9yrs
    • Compensation: HK$100.00k
  • Ka Wong (42yo)

    Independent Non-Executive Director

    • Tenure: 15.3yrs
    • Compensation: HK$100.00k
  • Kevin So (33yo)

    COO & Executive Director

    • Tenure: 4.1yrs
    • Compensation: HK$2.90m
  • Sunny So (31yo)

    Executive Director

    • Tenure: 4.1yrs
    • Compensation: HK$2.24m

Company Information

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


Key Information

  • Name: AV Concept Holdings Limited
  • Ticker: 595
  • Exchange: SEHK
  • Founded: 1980
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: HK$245.339m
  • Shares outstanding: 908.66m
  • Website: https://www.avconcept.com

Number of Employees


Location

  • AV Concept Holdings Limited
  • Enterprise Square Three
  • 6th Floor
  • Kowloon Bay
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
595SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 1996

Biography

AV Concept Holdings Limited, an investment holding company, engages in the marketing and distribution of electronic components in Hong Kong, Singapore, and Korea. It operates through four segments: Semicon ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 12:37
End of Day Share Price2019/12/09 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.