Zioncom Holdings (SEHK:8287) - Share price, News & Analysis

8287 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	0/6
Financial Health	3/6
Dividends	0/6

8287 Stock Overview

Zioncom Holdings Limited, an investment holding company, manufactures and sells networking and non-networking products for home use and small scale commercial applications.

Risk Analysis

Earnings have declined by 48.5% per year over past 5 years

Highly volatile share price over the past 3 months

Does not have a meaningful market cap (HK$51M)

Shareholders have been diluted in the past year

Zioncom Holdings Competitors

Atlinks Group

SEHK:8043

HK$68.8m

InvesTech Holdings

SEHK:1087

HK$86.8m

Sandmartin International Holdings

SEHK:482

HK$88.6m

Vodatel Networks Holdings

SEHK:8033

HK$106.6m

Price History & Performance

Summary of all time highs, changes and price drops for Zioncom Holdings
Historical stock prices
Current Share Price	HK$0.07
52 Week High	HK$0.13
52 Week Low	HK$0.047
Beta	-0.0022
1 Month Change	6.06%
3 Month Change	32.07%
1 Year Change	-27.83%
3 Year Change	-74.54%
5 Year Change	n/a
Change since IPO	-81.33%

Recent News & Updates

Aug 16

Is Zioncom Holdings (HKG:8287) Using Debt Sensibly?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

Shareholder Returns

	8287	HK Communications	HK Market
7D	2.9%	-2.5%	-2.7%
1Y	-27.8%	-15.1%	-24.5%

Return vs Industry: 8287 underperformed the Hong Kong Communications industry which returned -15.1% over the past year.

Return vs Market: 8287 underperformed the Hong Kong Market which returned -24.5% over the past year.

Price Volatility

Is 8287's price volatile compared to industry and market?
8287 volatility
8287 Average Weekly Movement	13.0%
Communications Industry Average Movement	7.8%
Market Average Movement	6.4%
10% most volatile stocks in HK Market	12.7%
10% least volatile stocks in HK Market	3.1%

Stable Share Price: 8287 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: 8287's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

Founded	Employees	CEO	Website
1999	843	Ja Chun Koo	https://www.zioncom.net

Zioncom Holdings Limited, an investment holding company, manufactures and sells networking and non-networking products for home use and small scale commercial applications. It offers routers for wired and wireless transmission of data; and wired and wireless networking products, such as Ethernet switches, LAN cards, Wi-Fi modules, and access points, as well as non-networking products, including power banks and USB hubs. The company offers products through distributors in Korea, the People’s Republic of China, Vietnam, other Asian countries, Europe, South America, Africa, and North America.

Zioncom Holdings Fundamentals Summary

How do Zioncom Holdings's earnings and revenue compare to its market cap?
8287 fundamental statistics
Market Cap	HK$50.82m
Earnings (TTM)	-HK$47.45m
Revenue (TTM)	HK$594.44m

0.1x

P/S Ratio

-1.1x

P/E Ratio

Is 8287 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
8287 income statement (TTM)
Revenue	HK$594.44m
Cost of Revenue	HK$530.60m
Gross Profit	HK$63.84m
Other Expenses	HK$111.29m
Earnings	-HK$47.45m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.065
Gross Margin	10.74%
Net Profit Margin	-7.98%
Debt/Equity Ratio	76.7%

How did 8287 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 8287 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8287?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 8287. This is calculated by dividing 8287's market cap by their current preferred multiple.
What is 8287's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$50.82m

8287 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.3x
Enterprise Value/EBITDA	-6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 8287's PS Ratio compare to its peers?

8287 PS Ratio vs Peers

The above table shows the PS ratio for 8287 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	0.2x
8043 Atlinks Group	0.3x	n/a	HK$68.8m
1087 InvesTech Holdings	0.2x	n/a	HK$86.8m
482 Sandmartin International Holdings	0.1x	n/a	HK$88.6m
8033 Vodatel Networks Holdings	0.3x	n/a	HK$106.6m
8287 Zioncom Holdings	0.09x	n/a	HK$50.8m

Price-To-Sales vs Peers: 8287 is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.2x).

Price to Earnings Ratio vs Industry

How does 8287's PE Ratio compare vs other companies in the HK Communications Industry?

Price-To-Sales vs Industry: 8287 is good value based on its Price-To-Sales Ratio (0.1x) compared to the Hong Kong Communications industry average (0.6x)

Price to Sales Ratio vs Fair Ratio

What is 8287's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

8287 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.09x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 8287's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 8287 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 8287's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 8287's fair value for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Zioncom Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

28.2%

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 Zioncom 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.

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Take a look at our analysis of 8287’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
Zioncom Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Zioncom Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-48.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8287 is currently unprofitable.

Growing Profit Margin: 8287 is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: 8287 is unprofitable, and losses have increased over the past 5 years at a rate of 48.5% per year.

Accelerating Growth: Unable to compare 8287's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8287 is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-0.7%).

Return on Equity

High ROE: 8287 has a negative Return on Equity (-36.01%), as it is currently unprofitable.

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Financial Health

How is Zioncom Holdings's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: 8287's short term assets (HK$376.1M) do not cover its short term liabilities (HK$381.2M).

Long Term Liabilities: 8287's short term assets (HK$376.1M) exceed its long term liabilities (HK$5.4M).

Debt to Equity History and Analysis

Debt Level: 8287's net debt to equity ratio (71.8%) is considered high.

Reducing Debt: 8287's debt to equity ratio has increased from 17.4% to 76.7% over the past 5 years.

Balance Sheet

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: Whilst unprofitable 8287 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 8287 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 7.2% per year.

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8287's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 8287'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 8287's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8287's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 8287 has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure

CEO

Ja Chun Koo (49 yo)

6.67yrs

Tenure

HK$1,507,000

Compensation

Mr. Ja Chun Koo is the Executive director and also serves as Chief Executive Officer and Head of Sales Department at Zioncom Holdings Ltd. since January 29, 2016 and served as Executive Director since Janu...

CEO Compensation Analysis

Compensation vs Market: Ja Chun's total compensation ($USD191.99K) is about average for companies of similar size in the Hong Kong market ($USD241.60K).

Compensation vs Earnings: Ja Chun's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: 8287's management team is considered experienced (3.9 years average tenure).

Board Members

Experienced Board: 8287's board of directors are not considered experienced ( 0.7 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.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10%.

Top Shareholders

Top 1 shareholders own 40.91% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
40.91%	Xiaohe Sui	296,980,000	HK$20.8m	0%	no data

Data	Last Updated (UTC time)
Company Analysis	2022/09/23 00:00
End of Day Share Price	2022/09/23 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31