SEHK:675

Stock Analysis Report

K & P International Holdings

Executive Summary

K & P International Holdings Limited, an investment holding company, designs, manufactures, and sells precision parts and components, and consumer electronic products.

Rewards

Trading at 95.8% below its fair value

Risk Analysis

Earnings have declined by -40.72% per year over past 5 years

Dividend of 4.17% is not well covered by earnings

Large one-off items impacting financial results

Does not have a meaningful market cap (HK$128M)



Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 675 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

675

-3.4%

HK Electronic

-4.1%

HK Market


1 Year Return

-16.1%

675

11.3%

HK Electronic

-0.5%

HK Market

Return vs Industry: 675 underperformed the Hong Kong Electronic industry which returned 19.1% over the past year.

Return vs Market: 675 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

675IndustryMarket
7 Day0%-3.4%-4.1%
30 Day10.0%-0.8%-1.2%
90 Day1.0%11.8%3.4%
1 Year-14.3%-16.1%14.7%11.3%3.2%-0.5%
3 Year-62.0%-62.8%12.0%3.0%20.4%8.2%
5 Year-41.1%-43.1%96.4%70.7%19.0%-0.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is K & P 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: 675 (HK$0.48) is trading below our estimate of fair value (HK$11.39)

Significantly Below Fair Value: 675 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 675 is poor value based on its PE Ratio (55.7x) compared to the Electronic industry average (9.5x).

PE vs Market: 675 is poor value based on its PE Ratio (55.7x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 675's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 675 is good value based on its PB Ratio (0.5x) compared to the HK Electronic industry average (1x).


Next Steps

Future Growth

How is K & P International 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 K & P 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 K & P International Holdings performed over the past 5 years?

-40.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 675 has a large one-off loss of HK$14.1M impacting its June 30 2019 financial results.

Growing Profit Margin: 675's current net profit margins (0.6%) are lower than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: 675's earnings have declined by -40.7% per year over the past 5 years.

Accelerating Growth: 675's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 675 had negative earnings growth (-29.4%) over the past year, making it difficult to compare to the Electronic industry average (-10.3%).


Return on Equity

High ROE: 675's Return on Equity (0.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is K & P International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 675's short term assets (HK$165.8M) exceed its short term liabilities (HK$86.3M).

Long Term Liabilities: 675's short term assets (HK$165.8M) exceed its long term liabilities (HK$23.7M).


Debt to Equity History and Analysis

Debt Level: 675's debt to equity ratio (7.5%) is considered satisfactory.

Reducing Debt: 675's debt to equity ratio has reduced from 12.9% to 7.5% over the past 5 years.

Debt Coverage: 675's debt is well covered by operating cash flow (263.3%).

Interest Coverage: 675's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

Inventory Level: 675 has a high level of physical assets or inventory.

Debt Coverage by Assets: 675's debt is covered by short term assets (assets are 8x debt).


Next Steps

Dividend

What is K & P International Holdings's current dividend yield, its reliability and sustainability?

4.04%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%2.2%markettop25%6.2%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 675's dividend (4.17%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 675's dividend (4.17%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).


Stability and Growth of Payments

Stable Dividend: 675 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 675 has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (115.9%), 675's dividend payments are not 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 K & P International Holdings's salary, the management and board of directors tenure and is there insider trading?

14.4yrs

Average board tenure


CEO

Pei Lai (63yo)

0yrs

Tenure

HK$3,237,719

Compensation

Mr. Pei Wor Lai is the Founder of K&P International Holdings Ltd. and serves as its Chairman, CEO and Managing Director. Mr. Lai is responsible for K&P International Holdings Limited's overall strategic pl ...


CEO Compensation Analysis

Compensation vs Market: Pei's total compensation ($USD416.41K) is above average for companies of similar size in the Hong Kong market ($USD228.16K).

Compensation vs Earnings: Pei's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

14.4yrs

Average Tenure

64yo

Average Age

Experienced Board: 675's board of directors are seasoned and experienced ( 14.4 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

  • Pei Lai (63yo)

    Founder

    • Compensation: HK$3.24m
  • Yau Chan (60yo)

    Executive Deputy Chairman

    • Compensation: HK$2.82m
  • Kwong Kui Ng

    Company Secretary

    • Tenure: 10.9yrs

Board Members

  • Pei Lai (63yo)

    Founder

    • Compensation: HK$3.24m
  • Fan Kung (64yo)

    Independent Non-Executive Director

    • Tenure: 23.3yrs
    • Compensation: HK$333.94k
  • Yau Chan (60yo)

    Executive Deputy Chairman

    • Compensation: HK$2.82m
  • Alexander Mak (69yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: HK$333.94k
  • Joseph Li (67yo)

    Independent Non-Executive Director

    • Tenure: 14.4yrs
    • Compensation: HK$333.94k

Company Information

K & P International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: K & P International Holdings Limited
  • Ticker: 675
  • Exchange: SEHK
  • Founded: 1985
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: HK$132.167m
  • Shares outstanding: 267.00m
  • Website: https://www.kpihl.com

Number of Employees


Location

  • K & P International Holdings Limited
  • Riley House
  • 23rd Floor
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
675SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1997

Biography

K & P International Holdings Limited, an investment holding company, designs, manufactures, and sells precision parts and components, and consumer electronic products. The company offers precision parts and components include keypads, synthetic rubber and plastic components and parts, and liquid crystal displays; and consumer electronic products comprise time, weather forecasting, and other products. It also provides management and administrative services; and holds properties. The company has operations in Hong Kong, Mainland China, Japan and other Asian countries, North America, South America, Europe, and other countries. K & P International Holdings Limited was founded in 1985 and is headquartered in Kwai Chung, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/26 12:34
End of Day Share Price2020/01/24 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.