SEHK:8236

Stock Analysis Report

Powerleader Science & Technology Group

Executive Summary

Powerleader Science & Technology Group Limited, together with its subsidiaries, provides cloud computing solutions in the People’s Republic of China and Hong Kong.


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

How has Powerleader Science & Technology Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8236 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.5%

8236

0.5%

HK Tech

2.7%

HK Market


1 Year Return

19.0%

8236

-23.0%

HK Tech

-19.8%

HK Market

Return vs Industry: 8236 exceeded the Hong Kong Tech industry which returned -25.6% over the past year.

Return vs Market: 8236 exceeded the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

8236IndustryMarket
7 Day-3.5%0.5%2.7%
30 Day-10.7%-18.7%-7.2%
90 Day31.6%-12.0%-12.1%
1 Year19.0%19.0%-22.1%-23.0%-16.9%-19.8%
3 Year-28.2%-28.2%-46.1%-49.6%0.9%-9.3%
5 Year-45.7%-45.7%-52.7%-62.0%-12.6%-26.7%

Price Volatility Vs. Market

How volatile is Powerleader Science & Technology Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Powerleader Science & Technology Group undervalued compared to its fair value and its price relative to the market?

5.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 8236 (HK$2.45) is trading above our estimate of fair value (HK$1.58)

Significantly Below Fair Value: 8236 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 8236 is good value based on its PE Ratio (8.5x) compared to the Tech industry average (9.2x).

PE vs Market: 8236 is good value based on its PE Ratio (8.5x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8236's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8236 is good value based on its PB Ratio (0.4x) compared to the HK Tech industry average (0.8x).


Next Steps

Future Growth

How is Powerleader Science & Technology Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.6%

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 Powerleader Science & Technology Group 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 Powerleader Science & Technology Group performed over the past 5 years?

6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8236 has a large one-off gain of CN¥33.3M impacting its September 30 2019 financial results.

Growing Profit Margin: 8236 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 8236's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: 8236 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 8236 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Tech industry (-15.7%).


Return on Equity

High ROE: 8236's Return on Equity (5.4%) is considered low.


Next Steps

Financial Health

How is Powerleader Science & Technology Group's financial position?


Financial Position Analysis

Short Term Liabilities: 8236's short term assets (CN¥2.6B) exceed its short term liabilities (CN¥1.9B).

Long Term Liabilities: 8236's short term assets (CN¥2.6B) exceed its long term liabilities (CN¥71.8M).


Debt to Equity History and Analysis

Debt Level: 8236's debt to equity ratio (60.1%) is considered high.

Reducing Debt: 8236's debt to equity ratio has reduced from 123.2% to 60.1% over the past 5 years.

Debt Coverage: 8236's debt is not well covered by operating cash flow (13%).

Interest Coverage: 8236's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Powerleader Science & Technology Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8236's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8236'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 8236's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8236's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 8236 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 8236'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?

9.2yrs

Average board tenure


CEO

Weiping Dong (59yo)

no data

Tenure

CN¥670,791

Compensation

Mr. Weiping Dong serves as the Chief Executive Officer and General Manager of Powerleader Science & Technology Group Ltd. (formerly, Powerleader Science & Technology Company Ltd) and serves as its Company  ...


CEO Compensation Analysis

Compensation vs Market: Weiping's total compensation ($USD94.48K) is below average for companies of similar size in the Hong Kong market ($USD228.57K).

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


Board Members

NamePositionTenureCompensationOwnership
Yunxia Zhang
Founder & Executive Chairman8.08yrsCN¥293.45kno data
Weiping Dong
CEO, Presidentno dataCN¥670.79kno data
Ruijie Li
Founder8.08yrsCN¥73.24kno data
Ling Shu
Chairman of Supervisory Committeeno dataCN¥141.00kno data
Shiu Yuen Chan
Independent Non-Executive Director10.33yrsCN¥60.64kno data
Baijun Jiang
Independent Non-Executive Director14.92yrsCN¥60.64kno data
Xiaowei Li
Supervisor15.58yrsCN¥149.14kno data
Wanda Guo
Independent Non Executive Director11.83yrsCN¥60.64kno data
Funeng Xing
Supervisor2yrsno datano data

9.2yrs

Average Tenure

53yo

Average Age

Experienced Board: 8236's board of directors are considered experienced (9.2 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Powerleader Science & Technology Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Powerleader Science & Technology Group Limited
  • Ticker: 8236
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: HK$595.350m
  • Shares outstanding: 243.00m
  • Website: https://www.powerleader.com.cn

Number of Employees


Location

  • Powerleader Science & Technology Group Limited
  • Building No. 7
  • 16th Floor
  • Shenzhen
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8236SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2002

Biography

Powerleader Science & Technology Group Limited, together with its subsidiaries, provides cloud computing solutions in the People’s Republic of China and Hong Kong. It operates through Supply of Servers, Storage and Solutions; Distribution of Electronic Equipment and Accessories; Guangzhou Internet Data Centre (IDC) Business; and Industrial Park Development, Operation and Property Management segments. The Supply of Servers, Storage and Solutions segment provides cloud servers solutions; and cloud storage and other related equipment and services. The Distribution of Electronic Equipment and Accessories segment offers distribution services for new energy, consumer electronics, electronic components, LCD, and IoT products, as well as for other products and accessories. The Guangzhou IDC Business segment provides IDC cabinet and broadband services. The Industrial Park Development, Operation and Property Management segment engages in the development and operation of industrial parks; and property leasing and management businesses. Powerleader Science & Technology Group Limited also offers software and information technology; and technical consultation services. The company was formerly known as Shenzhen Powerleader Science & Technology Limited. Powerleader Science & Technology Group Limited was founded in 1997 and is headquartered in Shenzhen, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 13:07
End of Day Share Price2020/04/07 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.