SEHK:8106

Stock Analysis Report

Shenghua Lande Scitech

Executive Summary

Shenghua Lande Scitech Limited, an investment holding company, engages in the trading of hardware and computer software in the People’s Republic of China.


Snowflake Analysis

Excellent balance sheet with questionable track record.

Share Price & News

How has Shenghua Lande Scitech's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8106's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

8106

3.9%

HK Electronic

4.0%

HK Market


1 Year Return

-27.8%

8106

-19.1%

HK Electronic

-20.1%

HK Market

Return vs Industry: 8106 underperformed the Hong Kong Electronic industry which returned -19.1% over the past year.

Return vs Market: 8106 underperformed the Hong Kong Market which returned -20.1% over the past year.


Shareholder returns

8106IndustryMarket
7 Day0%3.9%4.0%
30 Day0.6%-16.4%-11.3%
90 Day-33.3%-23.5%-15.6%
1 Year-27.8%-27.8%-16.7%-19.1%-17.2%-20.1%
3 Year-68.1%-68.1%-22.8%-29.1%-2.9%-12.7%
5 Year-74.8%-74.8%26.3%10.0%-6.8%-21.8%

Price Volatility Vs. Market

How volatile is Shenghua Lande Scitech's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shenghua Lande Scitech undervalued compared to its fair value and its price relative to the market?

16.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8106's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8106's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8106 is poor value based on its PE Ratio (16.7x) compared to the Electronic industry average (8.1x).

PE vs Market: 8106 is poor value based on its PE Ratio (16.7x) compared to the Hong Kong market (9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8106's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8106 is good value based on its PB Ratio (0.7x) compared to the HK Electronic industry average (0.7x).


Next Steps

Future Growth

How is Shenghua Lande Scitech forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.4%

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 Shenghua Lande Scitech 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 Shenghua Lande Scitech performed over the past 5 years?

54.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8106 has high quality earnings.

Growing Profit Margin: 8106's current net profit margins (1.6%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: 8106 has become profitable over the past 5 years, growing earnings by 54.5% per year.

Accelerating Growth: 8106's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8106 had negative earnings growth (-45%) over the past year, making it difficult to compare to the Electronic industry average (-17.6%).


Return on Equity

High ROE: 8106's Return on Equity (3.4%) is considered low.


Next Steps

Financial Health

How is Shenghua Lande Scitech's financial position?


Financial Position Analysis

Short Term Liabilities: 8106's short term assets (CN¥149.9M) exceed its short term liabilities (CN¥53.7M).

Long Term Liabilities: 8106's short term assets (CN¥149.9M) exceed its long term liabilities (CN¥601.0K).


Debt to Equity History and Analysis

Debt Level: 8106's debt to equity ratio (7.3%) is considered satisfactory.

Reducing Debt: 8106's debt to equity ratio has reduced from 7.6% to 7.3% over the past 5 years.


Balance Sheet

Inventory Level: 8106 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8106's debt is covered by short term assets (assets are 18.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 8106 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 8106 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Shenghua Lande Scitech's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8106's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8106's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 8106's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8106'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 8106'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?

3.1yrs

Average management tenure


CEO

Jinsong Qi (55yo)

3.08s

Tenure

CN¥412,000

Compensation

Mr. Jinsong Qi has been Chief Executive Officer of Zheda Lande Scitech Limited since February 17, 2017. Mr. Qi has been the General Manager and President of the board of Shenghua Estate Group Company Limit ...


CEO Compensation Analysis

Compensation vs Market: Jinsong's total compensation ($USD58.06K) is below average for companies of similar size in the Hong Kong market ($USD229.07K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jinsong Qi
Chairman & CEO3.08yrsCN¥412.00kno data
Ping Chen
Founderno dataCN¥120.00k5.39% CN¥4.5m
Zilong Guan
Financial Controller & Executive Directorno dataCN¥213.00kno data
Jianfeng Xu
Executive Director & Secretary of the Board2.83yrsCN¥136.00kno data
Linhua Wang
Chief Financial Officer12.17yrsCN¥15.00kno data
Qiao Ping Liu
Administrative Presidentno datano datano data
Benlin Wu
President of Increator Technologyno datano datano data
Siu Lun Fork
Company Secretaryno datano datano data

3.1yrs

Average Tenure

45yo

Average Age

Experienced Management: 8106's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jinsong Qi
Chairman & CEO3.08yrsCN¥412.00kno data
Ping Chen
Founderno dataCN¥120.00k5.39% CN¥4.5m
Zilong Guan
Financial Controller & Executive Directorno dataCN¥213.00kno data
Jianfeng Xu
Executive Director & Secretary of the Board2.83yrsCN¥136.00kno data
Lianxi Huang
Independent Non-Executive Director2.83yrsCN¥50.00kno data
Haiying Shen
Independent Non-Executive Director2.83yrsCN¥50.00kno data
Xuguang Zhang
Chairman of the Board at Increator Technologyno datano datano data
Jiamei Cai
Independent Non-Executive Director2.83yrsCN¥50.00kno data
Weifeng Lu
Chairman of the Supervisory Committee0.83yrno datano data
Xiaofen Shen
Supervisor0.83yrno datano data

2.8yrs

Average Tenure

50.5yo

Average Age

Experienced Board: 8106's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Shenghua Lande Scitech Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shenghua Lande Scitech Limited
  • Ticker: 8106
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: HK$84.087m
  • Shares outstanding: 506.55m
  • Website: https://www.landpage.com.cn

Number of Employees


Location

  • Shenghua Lande Scitech Limited
  • Deqing Shanghui Building
  • 17th Floor
  • Huzhou
  • Zhejiang Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8106SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDMay 2002

Biography

Shenghua Lande Scitech Limited, an investment holding company, engages in the trading of hardware and computer software in the People’s Republic of China. The company also provides telecommunication solutions; telecommunication value-added services; smart city solutions; and e-commerce supply chain services. Its businesses include SMS business cards, precise marketing, and 114 Bai Shi Tong Alliance. The company was formerly known as Zheda Lande Scitech Limited and changed its name to Shenghua Lande Scitech Limited in June 2017. Shenghua Lande Scitech Limited was founded in 1996 and is based in Huzhou, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:01
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.