Executive Summary
EFT Solutions Holdings Limited, an investment holding company, provides electronic fund transfer at point-of-sale (EFT-POS) solutions in Hong Kong, Australia, and internationally.
Rewards
Risk Analysis
+ 1 more risk
Snowflake Analysis
Fair value with mediocre balance sheet.
Share Price & News
How has EFT Solutions Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 8062's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
0%
8062
-6.9%
HK Electronic
-3.7%
HK Market
1 Year Return
-49.6%
8062
-5.8%
HK Electronic
-10.4%
HK Market
Return vs Industry: 8062 underperformed the Hong Kong Electronic industry which returned -5.8% over the past year.
Return vs Market: 8062 underperformed the Hong Kong Market which returned -10.4% over the past year.
Shareholder returns
| 8062 | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | -6.9% | -3.7% |
| 30 Day | -6.7% | -4.8% | -3.0% |
| 90 Day | -18.7% | -16.0% | -7.6% |
| 1 Year | -49.6%-49.6% | -3.4%-5.8% | -7.4%-10.4% |
| 3 Year | -49.6%-49.6% | -22.5%-28.4% | -4.5%-14.2% |
| 5 Year | n/a | 5.6%-7.9% | -16.2%-29.1% |
Price Volatility Vs. Market
How volatile is EFT Solutions Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Are Insiders Buying EFT Solutions Holdings Limited (HKG:8062) Stock?1 month ago | Simply Wall St
EFT Solutions Holdings (HKG:8062) Has A Mountain Of Debt1 month ago | Simply Wall St
Don’t Buy EFT Solutions Holdings Limited (HKG:8062) Until You Understand Its ROCEValuation
Is EFT Solutions 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: 8062 (HK$0.13) is trading below our estimate of fair value (HK$0.8)
Significantly Below Fair Value: 8062 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 8062 is poor value based on its PE Ratio (46.8x) compared to the Electronic industry average (8.5x).
PE vs Market: 8062 is poor value based on its PE Ratio (46.8x) compared to the Hong Kong market (9.3x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 8062's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 8062 is good value based on its PB Ratio (0.6x) compared to the HK Electronic industry average (0.7x).
Next Steps
Future Growth
How is EFT Solutions Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
20.5%
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 EFT Solutions 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
- Examine whether EFT Solutions Holdings is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- EFT Solutions Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Tech industry.
Past Performance
How has EFT Solutions Holdings performed over the past 5 years?
6.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 8062 has a large one-off loss of HK$8.0M impacting its December 31 2019 financial results.
Growing Profit Margin: 8062's current net profit margins (1%) are lower than last year (20%).
Past Earnings Growth Analysis
Earnings Trend: 8062's earnings have grown by 6% per year over the past 5 years.
Accelerating Growth: 8062's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 8062 had negative earnings growth (-94.6%) over the past year, making it difficult to compare to the Electronic industry average (-4.3%).
Return on Equity
High ROE: 8062's Return on Equity (1.1%) is considered low.
Next Steps
Financial Health
How is EFT Solutions Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: 8062's short term assets (HK$124.2M) exceed its short term liabilities (HK$117.8M).
Long Term Liabilities: 8062's short term assets (HK$124.2M) exceed its long term liabilities (HK$112.2M).
Debt to Equity History and Analysis
Debt Level: 8062's debt to equity ratio (174.4%) is considered high.
Reducing Debt: Insufficient data to determine if 8062's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: 8062's debt is well covered by operating cash flow (23.5%).
Interest Coverage: 8062's interest payments on its debt are not well covered by EBIT (2.6x coverage).
Balance Sheet
Next Steps
Dividend
What is EFT Solutions Holdings's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate 8062's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate 8062's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if 8062's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 8062's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 8062's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average management tenure
CEO
Andrew Lo (44yo)
3.92yrs
Tenure
HK$1,518,000
Compensation
Mr. Chun Kit Lo, also known as Andrew, has been the Chairman, Chief Executive Officer and Executive Director of EFT Solutions Holdings Limited since June 2016. Mr. Lo is responsible for supervising overall ...
CEO Compensation Analysis
Compensation vs Market: Andrew's total compensation ($USD195.81K) is about average for companies of similar size in the Hong Kong market ($USD225.61K).
Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 3.92yrs | HK$1.52m | 73.17% HK$44.3m | |
| Chief Procurement & Logistics Officer | 3.92yrs | HK$742.00k | no data | |
| Chief Financial Officer | 1.17yrs | no data | no data | |
| Chief Operation Officer | 4.83yrs | no data | no data | |
| Chief Information Officer | 4.67yrs | no data | no data | |
| Company Secretary | 0.75yr | no data | no data |
3.9yrs
Average Tenure
40.5yo
Average Age
Experienced Management: 8062's management team is considered experienced (3.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 3.92yrs | HK$1.52m | 73.17% HK$44.3m | |
| Chief Procurement & Logistics Officer | 3.92yrs | HK$742.00k | no data | |
| Independent Non-Executive Director | 0.67yr | no data | no data | |
| Non-Executive Director | 3.5yrs | HK$144.00k | no data | |
| Independent Non-Executive Director | 0.58yr | no data | no data | |
| Independent Non-Executive Director | 1.17yrs | HK$2.00k | no data | |
| Non-Executive Director | 3.92yrs | HK$144.00k | no data |
3.5yrs
Average Tenure
44yo
Average Age
Experienced Board: 8062's board of directors are considered experienced (3.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 8062 insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
EFT Solutions Holdings Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: EFT Solutions Holdings Limited
- Ticker: 8062
- Exchange: SEHK
- Founded: 2004
- Industry: Electronic Equipment and Instruments
- Sector: Tech
- Market Cap: HK$60.480m
- Shares outstanding: 480.00m
- Website: https://www.eftsolutions.com
Number of Employees
Location
- EFT Solutions Holdings Limited
- Yip Fung Industrial Building
- 11th Floor
- Kwai Chung
- New Territories
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 8062 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Dec 2016 |
Biography
EFT Solutions Holdings Limited, an investment holding company, provides electronic fund transfer at point-of-sale (EFT-POS) solutions in Hong Kong, Australia, and internationally. It operates through Sale of Hardware Devices, and System Support and Software Solution Services segments. The company engages in sourcing EFT-POS terminals and peripheral devices, as well as providing EFT-POS system support services to various EFT-POS terminal manufacturers, acquirers, and merchants. It also provides value-added EFT-POS system support services, including installation, specification testing and electronic payment standards acceptance certification solutions, maintenance, collection, repair, and other related services of EFTPOS terminals. In addition, the company provides embedded system solution services. The company was founded in 2004 and is headquartered in Kwai Chung, Hong Kong. EFT Solutions Holdings Limited is a subsidiary of LCK Group Limited.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/29 13:35 |
| End of Day Share Price | 2020/05/28 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.