SEHK:8062

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

EFT Solutions Holdings

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.


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

8062IndustryMarket
7 Day0%-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 Yearn/a5.6%-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

Valuation

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

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

NamePositionTenureCompensationOwnership
Chun Kit Lo
Chairman & CEO3.92yrsHK$1.52m73.17% HK$44.3m
Chun Wa Lo
Chief Procurement & Logistics Officer3.92yrsHK$742.00kno data
Sing Yan Fok
Chief Financial Officer1.17yrsno datano data
Ka Ming Lee
Chief Operation Officer4.83yrsno datano data
Wai To Chan
Chief Information Officer4.67yrsno datano data
Man Li
Company Secretary0.75yrno datano 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

NamePositionTenureCompensationOwnership
Chun Kit Lo
Chairman & CEO3.92yrsHK$1.52m73.17% HK$44.3m
Chun Wa Lo
Chief Procurement & Logistics Officer3.92yrsHK$742.00kno data
Ping Cheong Tso
Independent Non-Executive Director0.67yrno datano data
Hin Weng Lui
Non-Executive Director3.5yrsHK$144.00kno data
Ping Yiu Wong
Independent Non-Executive Director0.58yrno datano data
Wing Kuen Wu
Independent Non-Executive Director1.17yrsHK$2.00kno data
Ching Man Lam
Non-Executive Director3.92yrsHK$144.00kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8062SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 13:35
End of Day Share Price2020/05/28 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.