SEHK:732

Stock Analysis Report

Truly International Holdings

Executive Summary

Truly International Holdings Limited, an investment holding company, manufactures, sells, and trades in liquid crystal display products and electronic consumer products.

Snowflake

Fundamentals

Good value with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.7%

732

0.8%

HK Electronic

0.9%

HK Market


1 Year Return

-16.8%

732

-2.6%

HK Electronic

0.6%

HK Market

Return vs Industry: 732 underperformed the Hong Kong Electronic industry which returned -2.6% over the past year.

Return vs Market: 732 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

732IndustryMarket
7 Day-5.7%0.8%0.9%
30 Day-16.8%-1.9%0.4%
90 Day-10.0%4.2%-5.5%
1 Year-16.8%-16.8%0.7%-2.6%4.2%0.6%
3 Year-69.4%-70.0%-2.6%-10.3%15.5%3.9%
5 Year-72.5%-75.1%54.6%34.4%19.9%-0.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Truly 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

Undervalued: 732 (HK$0.99) is trading below our estimate of fair value (HK$2.29)

Significantly Undervalued: 732 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 732 is poor value based on its PE Ratio (15.3x) compared to the Electronic industry average (8.7x).

PE vs Market: 732 is poor value based on its PE Ratio (15.3x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 732 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 732 is good value based on its PB Ratio (0.4x) compared to the HK Electronic industry average (0.9x).


Next Steps

Future Growth

How is Truly International Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

47.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 732's forecast earnings growth (47.7% per year) is above the savings rate (2%).

Earnings vs Market: 732's earnings (47.7% 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: 732's revenue (10.6% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 732's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 732's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has Truly International Holdings performed over the past 5 years?

-48.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 732's earnings have declined by -48.8% per year over the past 5 years.

Accelerating Growth: 732's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 732 had negative earnings growth (-29.4%) over the past year, making it difficult to compare to the Electronic industry average (-10.9%).


Return on Equity

High ROE: 732's Return on Equity (3.3%) is considered low.


Return on Assets

ROA vs Industry: 732's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: 732 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Truly International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 732's short term assets (HK$11.2B) do not cover its short term liabilities (HK$16.2B)

Long Term Liabilities: 732's short term assets (11.2B) exceeds its long term liabilities (185.2M)


Debt to Equity History and Analysis

Debt Level: 732's debt to equity ratio (78.4%) is considered high

Reducing Debt: 732's debt to equity ratio has increased from 60.7% to 78.4% over the past 5 years.

Debt Coverage: 732's debt is not well covered by operating cash flow (9.2%).

Interest Coverage: 732's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Inventory Level: 732 has a high level of physical assets or inventory.

Debt Coverage by Assets: 732's debt is covered by short term assets (assets are 1.634840x debt).


Next Steps

Dividend

What is Truly International Holdings's current dividend yield, its reliability and sustainability?

1.19%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage2.8%forecastin3Years1.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 732's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 732's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 732's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 732's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 732 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 732'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 Truly International Holdings's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average board tenure


CEO

Steven Lam (66yo)

0yrs

Tenure

HK$5,781,000

Compensation

Mr. Wai Wah Lam, also known as Steven, serves as an Executive Chairman and Managing Director of Truly International Holdings Ltd. Mr. Lam is the founder of Truly International Holdings Ltd. and has over 26 ...


CEO Compensation Analysis

Compensation vs. Market: Steven's total compensation ($USD737.17K) is above average for companies of similar size in the Hong Kong market ($USD298.58K).

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


Board Age and Tenure

0.9yrs

Average Tenure

60yo

Average Age

Experienced Board: 732's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


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$11,00005 Jun 19
Bei Bei Song
EntityIndividual
Role
Member of the Board of Directors
VP, Purchasing & Procurement Director & Executive Director
Shares10,000
Max PriceHK$1.10
BuyHK$99,00005 Jun 19
Bei Bei Song
EntityIndividual
Role
Member of the Board of Directors
VP, Purchasing & Procurement Director & Executive Director
Shares90,000
Max PriceHK$1.10
BuyHK$37,76027 May 19
Bei Bei Song
EntityIndividual
Role
Member of the Board of Directors
VP, Purchasing & Procurement Director & Executive Director
Shares32,000
Max PriceHK$1.18
BuyHK$559,01923 May 19
Bei Bei Song
EntityIndividual
Role
Member of the Board of Directors
VP, Purchasing & Procurement Director & Executive Director
Shares462,000
Max PriceHK$1.21
BuyHK$199,184,23707 Nov 18
Wai Lam
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & MD
Shares168,800,000
Max PriceHK$1.18

Ownership Breakdown


Management Team

  • Steven Lam (66yo)

    Executive Chairman & MD

    • Tenure: 0yrs
    • Compensation: HK$5.78m
  • James Cheung (63yo)

    Marketing Director

    • Tenure: 0yrs
    • Compensation: HK$2.73m
  • Jian Li (55yo)

    Managing Director of Truly Opto-Electronics Limited

    • Tenure: 0yrs
    • Compensation: HK$1.94m
  • James Wong (60yo)

    Executive Director & COO

    • Tenure: 0yrs
    • Compensation: HK$2.11m
  • Michael Ma (47yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 0.9yrs
    • Compensation: HK$1.76m
  • Bei Bei Song (42yo)

    VP, Purchasing & Procurement Director & Executive Director

    • Tenure: 0.9yrs
    • Compensation: HK$1.01m
  • Cheng Yun Dai (45yo)

    VP, Factory Chief Operating Officer & Executive Director

    • Tenure: 0.9yrs
    • Compensation: HK$720.95k
  • Wing Cheung Cheung (48yo)

    Executive Director

    • Tenure: 0.9yrs
    • Compensation: HK$984.67k

Board Members

  • Spencer Ip (60yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: HK$132.00k
  • Steven Lam (66yo)

    Executive Chairman & MD

    • Tenure: 0yrs
    • Compensation: HK$5.78m
  • James Wong (60yo)

    Executive Director & COO

    • Tenure: 0yrs
    • Compensation: HK$2.11m
  • Kai Heung (70yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: HK$132.00k
  • Kam Kwong Chung (62yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: HK$264.00k
  • Michael Ma (47yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 0.9yrs
    • Compensation: HK$1.76m
  • Bei Bei Song (42yo)

    VP, Purchasing & Procurement Director & Executive Director

    • Tenure: 0.9yrs
    • Compensation: HK$1.01m
  • Cheng Yun Dai (45yo)

    VP, Factory Chief Operating Officer & Executive Director

    • Tenure: 0.9yrs
    • Compensation: HK$720.95k
  • Wing Cheung Cheung (48yo)

    Executive Director

    • Tenure: 0.9yrs
    • Compensation: HK$984.67k

Company Information

Truly International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Truly International Holdings Limited
  • Ticker: 732
  • Exchange: SEHK
  • Founded:
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: HK$3.256b
  • Shares outstanding: 3.29b
  • Website: https://www.truly.com.hk

Number of Employees


Location

  • Truly International Holdings Limited
  • Chung Shun Knitting Centre
  • 2nd Floor
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
732SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
TYU2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
TRUH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
732SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
732SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
TRUH.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJul 1994

Biography

Truly International Holdings Limited, an investment holding company, manufactures, sells, and trades in liquid crystal display products and electronic consumer products. It operates through two segments, L ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:33
End of Day Share Price2019/10/18 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.