SEHK:8375

Stock Analysis Report

Vertical International Holdings

Executive Summary

Vertical International Holdings Limited, an investment holding company, engages in the manufacturing and trading of aluminum electrolytic capacitors primarily in Hong Kong, the People's Republic of China, Malaysia, Japan, Singapore, South Korea, Macau, and Indonesia.


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

How has Vertical International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8375's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.9%

8375

-0.5%

HK Electronic

0.6%

HK Market


1 Year Return

-35.1%

8375

-2.7%

HK Electronic

-4.5%

HK Market

Return vs Industry: 8375 underperformed the Hong Kong Electronic industry which returned -0.9% over the past year.

Return vs Market: 8375 underperformed the Hong Kong Market which returned -3.8% over the past year.


Shareholder returns

8375IndustryMarket
7 Day-5.9%-0.5%0.6%
30 Day-5.0%-9.6%-5.2%
90 Day-20.0%-0.4%2.3%
1 Year-35.1%-35.1%0.3%-2.7%-1.0%-4.5%
3 Yearn/a-3.8%-11.4%14.4%2.9%
5 Yearn/a77.3%54.3%15.5%-3.8%

Price Volatility Vs. Market

How volatile is Vertical International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vertical International Holdings undervalued compared to its fair value and its price relative to the market?

0.84x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8375's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8375's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8375 is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: 8375 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 8375's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8375 is good value based on its PB Ratio (0.8x) compared to the HK Electronic industry average (0.9x).


Next Steps

Future Growth

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

24.7%

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 Vertical International 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 Vertical International Holdings performed over the past 5 years?

-35.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8375 is currently unprofitable.

Growing Profit Margin: 8375 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8375 is unprofitable, and losses have increased over the past 5 years at a rate of -35.4% per year.

Accelerating Growth: Unable to compare 8375's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8375 is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-11.5%).


Return on Equity

High ROE: 8375 has a negative Return on Equity (-1.38%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vertical International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8375's short term assets (HK$75.0M) exceed its short term liabilities (HK$27.8M).

Long Term Liabilities: 8375's short term assets (HK$75.0M) exceed its long term liabilities (HK$2.3M).


Debt to Equity History and Analysis

Debt Level: 8375's debt to equity ratio (12.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 8375's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 8375 has a high level of physical assets or inventory.

Debt Coverage by Assets: 8375's debt is covered by short term assets (assets are 6.6x 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: 8375 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: 8375 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.4%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8375's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8375'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 8375's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8375'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 8375'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?

2.3yrs

Average board tenure


CEO

Henry Boon (44yo)

2.8yrs

Tenure

HK$619,000

Compensation

Mr. Boon Ho Yin, also known as Henry, has been Chairman and Chief Executive Officer of Vertical International Holdings Limited since July, 04 2017 and serves as its Compliance Officer. Mr. Boon has been Ex ...


CEO Compensation Analysis

Compensation vs Market: Henry's total compensation ($USD79.68K) is below average for companies of similar size in the Hong Kong market ($USD225.53K).

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


Board Members

NamePositionTenureCompensationOwnership
Ho Yin Boon
Chairman2.8yrsHK$619.00k75% HK$51.0m
Cheung Chu Chow
Executive Director2.8yrsHK$647.00kno data
Wai Leung Wong
Independent Non-Executive Director2.3yrsHK$120.00kno data
Kwan Liu
Independent Non-Executive Director2.3yrsHK$60.00kno data
Kin Man Chik
Independent Non-Executive Director2.3yrsHK$60.00kno data

2.3yrs

Average Tenure

44yo

Average Age

Experienced Board: 8375's board of directors are not considered experienced ( 2.3 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 3%.


Top Shareholders

Company Information

Vertical International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vertical International Holdings Limited
  • Ticker: 8375
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: HK$68.000m
  • Shares outstanding: 800.00m
  • Website: https://www.verticaltech.com.cn

Number of Employees


Location

  • Vertical International Holdings Limited
  • Global Gateway Tower
  • Unit 2212, 22nd Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8375SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2017

Biography

Vertical International Holdings Limited, an investment holding company, engages in the manufacturing and trading of aluminum electrolytic capacitors primarily in Hong Kong, the People's Republic of China, Malaysia, Japan, Singapore, South Korea, Macau, and Indonesia. It operates in Sales Of Manufactured Aluminum Electrolytic Capacitors and Trading Of Electronic Components segments. The company offers chip and radial lead type aluminum electrolytic capacitors. It also trades in electronic components, including integrated circuits and semi-conductors, such as diodes and transistors; and LED and LED lighting products. The company was founded in 2006 and is headquartered in Kowloon, Hong Kong. Vertical International Holdings Limited is a subsidiary of Vertical Technology Investment Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 13:16
End of Day Share Price2020/02/18 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.