Apex Ace Holding Limited, an investment holding company, sells electronic components in Hong Kong, the People’s Republic of China, and internationally.
The last earnings update was 31 days ago.
Discounted Cash Flow Calculation for SEHK:6036 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Apex Ace Holding
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
SEHK:6036 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
Apex Ace Holding
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
Apex Ace Holding
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Apex Ace Holding's share price is below the future cash flow value, and at a moderate discount (> 20%).
Apex Ace Holding's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Apex Ace Holding's
is considered below, and whether this is a fair price.
Price based on past earnings
Apex Ace Holding's earnings available for a low price, and how does
this compare to other companies in the same industry?
Apex Ace Holding's earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Apex Ace Holding is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Apex Ace Holding's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Apex Ace Holding
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Apex Ace Holding's finances.
The net worth of a company is the difference between its assets and liabilities.
Apex Ace Holding is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Apex Ace Holding's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Apex Ace Holding's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 2.2x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
Mr. Bing Kwong Lee serves as the chief executive officer of Group and the chairman of the Board of Apex Ace Holding Ltd. He has been executive Director since July 4, 2012. He is the founder of the Group and the Controlling Shareholder. Mr. Lee established Nicegoal Investments in 1987 AVT International in 1992. Mr. Lee acted as sales engineer and marketing engineer in the sales and marketing department of Motorola Semiconductors Hong Kong Limited during the period from 1981 and 1985. Mr. Lee is the director of Best Sheen Limited. Mr. Lee obtained the bachelor’s degree of applied science from the University of Toronto, Canada in 1980.
Bing Kwong's compensation has been consistent with company performance over the past year, both up more than 20%.
Bing Kwong's remuneration is about average for companies of similar size in Hong Kong.
Management Team Tenure
Average tenure and age of the
Apex Ace Holding
management team in years:
The average tenure for the Apex Ace Holding management team is less than 2 years, this suggests a new team.
Bing Kwong Lee
Chairman & CEO
Yuen Kin Lo
Yuen Ting Leung
Deputy Chief Executive Officer
Yuen Lai Lo
Company Secretary & Authorized Representative
Board of Directors Tenure
Average tenure and age of the
Apex Ace Holding
board of directors in years:
The average tenure for the Apex Ace Holding board of directors is less than 3 years, this suggests a new board.
Those Who Purchased Apex Ace Holding (HKG:6036) Shares A Year Ago Have A 23% Loss To Show For It
This week we saw the Apex Ace Holding Limited (HKG:6036) share price climb by 11%. … Check out our latest analysis for Apex Ace Holding In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … Unfortunately Apex Ace Holding reported an EPS drop of 49% for the last year.
Does Apex Ace Holding Limited's (HKG:6036) P/E Ratio Signal A Buying Opportunity?
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Apex Ace Holding has a price to earnings ratio of 11.55, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Why Apex Ace Holding Limited’s (HKG:6036) Return On Capital Employed Is Impressive
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
Why Apex Ace Holding Limited (HKG:6036) Looks Like A Quality Company
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each HK$1 of shareholders' equity it has, the company made HK$0.16 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Can We See Significant Insider Ownership On The Apex Ace Holding Limited (HKG:6036) Share Register?
The big shareholder groups in Apex Ace Holding Limited (HKG:6036) have power over the company. … Apex Ace Holding is a smaller company with a market capitalization of HK$275m, so it may still be flying under the radar of many institutional investors. … View our latest analysis for Apex Ace Holding
Is Apex Ace Holding Limited’s (HKG:6036) 23% ROCE Any Good?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Should You Be Impressed By Apex Ace Holding Limited's (HKG:6036) ROE?
Apex Ace Holding has a ROE of 16%, based on the last twelve months. … That means that for every HK$1 worth of shareholders' equity, it generated HK$0.16 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Does Apex Ace Holding Limited's (HKG:6036) PE Ratio Warrant A Buy?
I am writing today to help inform people who are new to the stock market. … and want to learn about the link between company’s fundamentals and stock market performance. … While 6036 might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions.
What Should Investors Know About Apex Ace Holding Limited's (HKG:6036) Return On Capital?
and want a simplistic look at the return on Apex Ace Holding Limited (HKG:6036) stock. … To understand Apex Ace Holding’s capital returns we will look at a useful metric called return on capital employed. … This will tell us if the company is growing your capital and placing you in good stead to sell your shares at a profit
Are Apex Ace Holding Limited's (HKG:6036) Interest Costs Too High?
Investors are always looking for growth in small-cap stocks like Apex Ace Holding Limited (HKG:6036), with a market cap of HK$485.00m. … However, an important fact which most ignore is: how financially healthy is the business?
Apex Ace Holding Limited, an investment holding company, sells electronic components in Hong Kong, the People’s Republic of China, and internationally. The company supplies digital storage products that comprise memory products, including integrated circuits, such as mobile phones, set-top boxes, smart TVs, and wearables; and data and cloud products. It also provides general components comprising switches, connectors, passive components, main chips, sensors, power semiconductors, and analog to digital converters for use in the mobile and multimedia devices, as well as offers technical support services. In addition, the company sells storage systems; and provides related supporting services. The company was founded in 2005 and is headquartered in Kowloon, Hong Kong.
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