SEHK:698

Stock Analysis Report

Tongda Group Holdings

Executive Summary

Tongda Group Holdings Limited, an investment holding company, provides high-precision structures for smart mobile communications and consumer electronic products in Mainland China, Southeast Asia, the United States, and internationally.

Snowflake

Fundamentals

Very undervalued with reasonable growth potential and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 698 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.1%

698

-1.0%

HK Electronic

-0.7%

HK Market


1 Year Return

-31.9%

698

1.9%

HK Electronic

-2.3%

HK Market

Return vs Industry: 698 underperformed the Hong Kong Electronic industry which returned 1.9% over the past year.

Return vs Market: 698 underperformed the Hong Kong Market which returned -2.3% over the past year.


Shareholder returns

698IndustryMarket
7 Day5.1%-1.0%-0.7%
30 Day3.3%1.8%0.2%
90 Day10.7%9.4%2.8%
1 Year-29.9%-31.9%4.9%1.9%1.2%-2.3%
3 Year-66.5%-70.3%5.1%-3.2%20.4%8.4%
5 Year-28.4%-39.8%61.0%40.1%16.9%-2.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tongda Group 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: 698 (HK$0.62) is trading below our estimate of fair value (HK$1.45)

Significantly Below Fair Value: 698 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 698 is good value based on its PE Ratio (9x) compared to the Electronic industry average (9.3x).

PE vs Market: 698 is good value based on its PE Ratio (9x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 698 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 698 is good value based on its PB Ratio (0.6x) compared to the HK Electronic industry average (0.9x).


Next Steps

Future Growth

How is Tongda Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

24.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 698's forecast earnings growth (24% per year) is above the savings rate (2%).

Earnings vs Market: 698's earnings (24% per year) are forecast to grow faster than the Hong Kong market (11.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 698's revenue (13% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 698's revenue (13% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 698's Return on Equity is forecast to be low in 3 years time (13.2%).


Next Steps

Past Performance

How has Tongda Group Holdings performed over the past 5 years?

7.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 698 has high quality earnings.

Growing Profit Margin: 698's current net profit margins (5.1%) are lower than last year (12.5%).


Past Earnings Growth Analysis

Earnings Trend: 698's earnings have grown by 7.1% per year over the past 5 years.

Accelerating Growth: 698's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 698 had negative earnings growth (-61.2%) over the past year, making it difficult to compare to the Electronic industry average (-10.9%).


Return on Equity

High ROE: 698's Return on Equity (7.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tongda Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 698's short term assets (HK$7.8B) exceeds its short term liabilities (HK$5.9B)

Long Term Liabilities: 698's short term assets (HK$7.8B) exceeds its long term liabilities (1.7B)


Debt to Equity History and Analysis

Debt Level: 698's debt to equity ratio (70.1%) is considered high.

Reducing Debt: 698's debt to equity ratio has increased from 27.5% to 70.1% over the past 5 years.

Debt Coverage: 698's debt is not well covered by operating cash flow (16.2%).

Interest Coverage: 698's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet

Inventory Level: 698 has a high level of physical assets or inventory.

Debt Coverage by Assets: 698's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Tongda Group Holdings's current dividend yield, its reliability and sustainability?

4.52%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%2.2%markettop25%6.4%industryaverage2.7%forecastin3Years6.0%

Current dividend yield vs market & industry

Notable Dividend: 698's dividend (4.52%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 698's dividend (4.52%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.39%).


Stability and Growth of Payments

Stable Dividend: 698's dividend payments have been volatile in the past 10 years.

Growing Dividend: 698's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.2%), 698's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 698's dividends in 3 years are forecast to be well covered by earnings (27.1% payout ratio).


Next Steps

Management

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

6.5yrs

Average board tenure


CEO

Ya Nan Wang (61yo)

0yrs

Tenure

HK$2,034,000

Compensation

Mr. Ya Nan Wang serves as the Executive Chairman and Chief Executive Officer of Tongda Group Holdings Limited. Mr. Wang is responsible for its overall strategic planning and business development of Tongda  ...


CEO Compensation Analysis

Compensation vs Market: Ya Nan's total compensation ($USD259.87K) is about average for companies of similar size in the Hong Kong market ($USD327.74K).

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


Board Age and Tenure

6.5yrs

Average Tenure

51yo

Average Age

Experienced Board: 698's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: 698 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$1,679,99028 Aug 19
Ya Nan Wang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares3,000,000
Max PriceHK$0.56
BuyHK$1,709,98927 Aug 19
Ya Nan Wang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares3,000,000
Max PriceHK$0.57
BuyHK$1,679,99726 Aug 19
Ya Nan Wang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares3,000,000
Max PriceHK$0.56
BuyHK$2,950,01623 Aug 19
Ya Nan Wang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares5,000,000
Max PriceHK$0.59
BuyHK$4,400,01722 Aug 19
Ya Nan Wang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares8,000,000
Max PriceHK$0.55
BuyHK$1,739,99622 Aug 19
Ya Nan Wang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares3,000,000
Max PriceHK$0.58
SellHK$23,941,14712 Feb 19
Mondrian Investment Partners Limited
EntityCompany
Shares23,210,000
Max PriceHK$1.03

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.7%.


Management Team

  • Ya Nan Wang (61yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: HK$2.03m
  • Anthony Hui (51yo)

    Executive Director

    • Tenure: 0.08yrs
  • Ming Wang (43yo)

    Deputy GM of Tongda Ironware & Executive Director

    • Tenure: 11.7yrs
    • Compensation: HK$879.00k
  • HM Wang Wang (30yo)

    Executive Vice Chairman

    • Tenure: 0.08yrs
  • Siu Wa Lam (45yo)

    Company Secretary

    • Tenure: 1.3yrs
  • MY Wong Wong (37yo)

    Executive Director

    • Tenure: 0.08yrs
  • Connie Siu

    Financial Controller

    • Tenure: 1.2yrs

Board Members

  • Stephen Ting (65yo)

    Independent Non-Executive Director

    • Tenure: 18.9yrs
    • Compensation: HK$566.00k
  • Christopher Cheung (67yo)

    Independent Non-Executive Director

    • Tenure: 15.2yrs
    • Compensation: HK$512.00k
  • Ya Nan Wang (61yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: HK$2.03m
  • Sun Say Yu (80yo)

    Independent Non-Executive Director

    • Tenure: 12.1yrs
    • Compensation: HK$512.00k
  • Anthony Hui (51yo)

    Executive Director

    • Tenure: 0.08yrs
  • Ming Wang (43yo)

    Deputy GM of Tongda Ironware & Executive Director

    • Tenure: 11.7yrs
    • Compensation: HK$879.00k
  • Sze Man Chan (38yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: HK$105.00k
  • HM Wang Wang (30yo)

    Executive Vice Chairman

    • Tenure: 0.08yrs
  • MY Wong Wong (37yo)

    Executive Director

    • Tenure: 0.08yrs

Company Information

Tongda Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tongda Group Holdings Limited
  • Ticker: 698
  • Exchange: SEHK
  • Founded: 1988
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: HK$3.888b
  • Shares outstanding: 6.48b
  • Website: https://www.tongda.com

Number of Employees


Location

  • Tongda Group Holdings Limited
  • Shui On Centre
  • Room 1201-02
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
698SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2000
698SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2000
698SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2000
TJCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2000

Biography

Tongda Group Holdings Limited, an investment holding company, provides high-precision structures for smart mobile communications and consumer electronic products in Mainland China, Southeast Asia, the Unit ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 12:41
End of Day Share Price2019/11/19 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.