SEHK:8311

Stock Analysis Report

Perfect Optronics

Executive Summary

Perfect Optronics Limited, an investment holding company, engages in trading display components for electronics in the People's Republic of China.


Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

How has Perfect Optronics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8311 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

8311

5.1%

HK Electronic

0.5%

HK Market


1 Year Return

-10.3%

8311

14.0%

HK Electronic

-0.2%

HK Market

Return vs Industry: 8311 underperformed the Hong Kong Electronic industry which returned 14% over the past year.

Return vs Market: 8311 underperformed the Hong Kong Market which returned -0.2% over the past year.


Shareholder returns

8311IndustryMarket
7 Day0%5.1%0.5%
30 Day0%2.5%-3.8%
90 Day6.6%12.2%-1.3%
1 Year-10.3%-10.3%17.4%14.0%3.4%-0.2%
3 Year-68.7%-69.1%20.8%11.0%18.8%6.7%
5 Year-89.5%-89.7%96.3%70.9%19.5%-0.5%

Price Volatility Vs. Market

How volatile is Perfect Optronics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Perfect Optronics undervalued compared to its fair value and its price relative to the market?

1.71x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 8311 (HK$0.21) is trading above our estimate of fair value (HK$0.04)

Significantly Below Fair Value: 8311 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 8311 is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: 8311 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8311's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8311 is overvalued based on its PB Ratio (1.7x) compared to the HK Electronic industry average (0.9x).


Next Steps

Future Growth

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

24.4%

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 Perfect Optronics 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 Perfect Optronics performed over the past 5 years?

-49.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8311 is currently unprofitable.

Growing Profit Margin: 8311 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8311 is unprofitable, and losses have increased over the past 5 years at a rate of -49.4% per year.

Accelerating Growth: Unable to compare 8311's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8311 is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-8.8%).


Return on Equity

High ROE: 8311 has a negative Return on Equity (-23.36%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Perfect Optronics's financial position?


Financial Position Analysis

Short Term Liabilities: 8311's short term assets (HK$141.2M) exceed its short term liabilities (HK$25.1M).

Long Term Liabilities: 8311's short term assets (HK$141.2M) exceed its long term liabilities (HK$11.0M).


Debt to Equity History and Analysis

Debt Level: 8311's debt to equity ratio (4.3%) is considered satisfactory.

Reducing Debt: 8311's debt to equity ratio has reduced from 27% to 4.3% over the past 5 years.

Debt Coverage: 8311's debt is well covered by operating cash flow (75.5%).

Interest Coverage: Insufficient data to determine if 8311's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 8311 has a high level of physical assets or inventory.

Debt Coverage by Assets: 8311's debt is covered by short term assets (assets are 17.5x debt).


Next Steps

Dividend

What is Perfect Optronics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.2%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8311's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8311'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 8311's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8311's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 8311 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 8311's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Perfect Optronics's salary, the management and board of directors tenure and is there insider trading?

6.5yrs

Average management tenure


CEO

Wai Tak Cheng (49yo)

0yrs

Tenure

HK$5,229,000

Compensation

Mr. Wai Tak Cheng serves as the Chairman and Chief Executive Officer of Perfect Optronics Limited. Mr. Cheng is the Founder of Perfect Optronics Limited Group. He has been in the business of trading TFT-LC ...


CEO Compensation Analysis

Compensation vs Market: Wai Tak 's total compensation ($USD668.10K) is above average for companies of similar size in the Hong Kong market ($USD226.68K).

Compensation vs Earnings: Wai Tak 's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

6.5yrs

Average Tenure

46.5yo

Average Age

Experienced Management: 8311's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

48.5yo

Average Age

Experienced Board: 8311's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

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.


Management Team

  • Ka Wing Tse (43yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$1.46m
  • Wai Tak Cheng (49yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: HK$5.23m
  • Cheung Wai Cheng (47yo)

    Consultant

    • Tenure: 4.6yrs
    • Compensation: HK$134.00k
  • Ka Wing Liu (46yo)

    Compliance Officer & Executive Director

    • Tenure: 6.5yrs
    • Compensation: HK$654.00k

Board Members

  • John Wong (52yo)

    Independent Non-Executive Director

    • Tenure: 5.9yrs
    • Compensation: HK$120.00k
  • Shui Yan Li (49yo)

    Independent Non-Executive Director

    • Tenure: 5.9yrs
    • Compensation: HK$120.00k
  • Ka Wing Tse (43yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$1.46m
  • Wai Tak Cheng (49yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: HK$5.23m
  • Ka Wing Liu (46yo)

    Compliance Officer & Executive Director

    • Tenure: 6.5yrs
    • Compensation: HK$654.00k
  • Chi Chiu Wong (48yo)

    Independent Non-Executive Director

    • Tenure: 5.9yrs
    • Compensation: HK$120.00k

Company Information

Perfect Optronics Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Perfect Optronics Limited
  • Ticker: 8311
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: HK$311.574m
  • Shares outstanding: 1.48b
  • Website: https://www.perfect-optronics.com

Number of Employees


Location

  • Perfect Optronics Limited
  • New Lee Wah Centre
  • Flat 903, 9th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8311SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2014

Biography

Perfect Optronics Limited, an investment holding company, engages in trading display components for electronics in the People's Republic of China. The company operates in two segments, Display Products and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 12:58
End of Day Share Price2019/09/25 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.