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Zhicheng Technology Group

SEHK:8511
Snowflake Description

Flawless balance sheet with weak fundamentals.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
8511
SEHK
HK$78M
Market Cap
  1. Home
  2. HK
  3. Tech
Company description

Zhicheng Technology Group Ltd., an investment holding company, provides precision 3D testing and machining solutions in the People’s Republic of China. The last earnings update was 80 days ago. More info.


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  • Zhicheng Technology Group has significant price volatility in the past 3 months.
8511 Share Price and Events
7 Day Returns
-4.9%
SEHK:8511
1.4%
HK Electronic
0.5%
HK Market
1 Year Returns
-60.8%
SEHK:8511
-27.6%
HK Electronic
-6.1%
HK Market
8511 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Zhicheng Technology Group (8511) -4.9% -3% 11.5% -60.8% - -
HK Electronic 1.4% 4.3% 17.9% -27.6% 24.4% 43.3%
HK Market 0.5% 1.1% 11.2% -6.1% 25.9% 19.4%
1 Year Return vs Industry and Market
  • 8511 underperformed the Electronic industry which returned -27.6% over the past year.
  • 8511 underperformed the Market in Hong Kong which returned -6.1% over the past year.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Zhicheng Technology Group's competitors could be found in our database.

8511 Value

 Is Zhicheng Technology Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Zhicheng Technology Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Zhicheng Technology Group.

SEHK:8511 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.2%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:8511
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.067 (1 + (1- 25%) (0%))
1.045
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.045 * 5.96%)
8.23%

Discounted Cash Flow Calculation for SEHK:8511 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Zhicheng Technology Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:8511 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 8.23%)
2019 1.32 Est @ 8.79% 1.22
2020 1.41 Est @ 6.76% 1.20
2021 1.49 Est @ 5.33% 1.17
2022 1.55 Est @ 4.33% 1.13
2023 1.61 Est @ 3.63% 1.08
2024 1.66 Est @ 3.14% 1.03
2025 1.70 Est @ 2.8% 0.98
2026 1.75 Est @ 2.56% 0.93
2027 1.79 Est @ 2.39% 0.88
2028 1.83 Est @ 2.28% 0.83
Present value of next 10 years cash flows HK$10.46
SEHK:8511 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$1.83 × (1 + 2%) ÷ (8.23% – 2%)
HK$29.97
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$29.97 ÷ (1 + 8.23%)10
HK$13.59
SEHK:8511 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$10.46 + HK$13.59
HK$24.05
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$24.05 / 400.00
HK$0.06
SEHK:8511 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$0.06
Current discount Discount to share price of HK$0.19
= -1 x (HK$0.19 - HK$0.06) / HK$0.06
-222.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Zhicheng Technology Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Zhicheng Technology Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Zhicheng Technology Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:8511 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$-0.01
SEHK:8511 Share Price ** SEHK (2019-04-18) in HKD HK$0.19
Hong Kong Electronic Industry PE Ratio Median Figure of 60 Publicly-Listed Electronic Companies 11.89x
Hong Kong Market PE Ratio Median Figure of 1,474 Publicly-Listed Companies 12x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Zhicheng Technology Group.

SEHK:8511 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:8511 Share Price ÷ EPS (both in HKD)

= 0.19 ÷ -0.01

-20.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zhicheng Technology Group is loss making, we can't compare its value to the HK Electronic industry average.
  • Zhicheng Technology Group is loss making, we can't compare the value of its earnings to the Hong Kong market.
Price based on expected Growth
Does Zhicheng Technology Group's expected growth come at a high price?
Raw Data
SEHK:8511 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -20.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Hong Kong Electronic Industry PEG Ratio Median Figure of 13 Publicly-Listed Electronic Companies 0.57x
Hong Kong Market PEG Ratio Median Figure of 462 Publicly-Listed Companies 0.86x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Zhicheng Technology Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Zhicheng Technology Group's assets?
Raw Data
SEHK:8511 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$0.13
SEHK:8511 Share Price * SEHK (2019-04-18) in HKD HK$0.19
Hong Kong Electronic Industry PB Ratio Median Figure of 84 Publicly-Listed Electronic Companies 1.19x
Hong Kong Market PB Ratio Median Figure of 2,149 Publicly-Listed Companies 1.03x
SEHK:8511 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:8511 Share Price ÷ Book Value per Share (both in HKD)

= 0.19 ÷ 0.13

1.49x

* Primary Listing of Zhicheng Technology Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zhicheng Technology Group is overvalued based on assets compared to the HK Electronic industry average.
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Value checks
We assess Zhicheng Technology Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Zhicheng Technology Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

8511 Future Performance

 How is Zhicheng Technology Group expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 Zhicheng 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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.5%
Expected Electronic industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Zhicheng Technology Group expected to grow at an attractive rate?
  • Unable to compare Zhicheng Technology Group's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Zhicheng Technology Group's earnings growth to the Hong Kong market average as no estimate data is available.
  • Unable to compare Zhicheng Technology Group's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:8511 Future Growth Rates Data Sources
Data Point Source Value (per year)
Hong Kong Electronic Industry Earnings Growth Rate Market Cap Weighted Average 17.5%
Hong Kong Electronic Industry Revenue Growth Rate Market Cap Weighted Average 11.7%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.6%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 11.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:8511 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:8511 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 53 -3
2018-09-30 48 -17 -4
2018-06-30 44 -14
2018-03-31 48 -1 -11
2017-12-31 34 -2
2017-09-30 44 4 6
2017-06-30 45 15
2017-03-31 43 -2 17
2016-03-31 26 7 4

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Zhicheng Technology Group is high growth as no earnings estimate data is available.
  • Unable to determine if Zhicheng Technology Group is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:8511 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Zhicheng Technology Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:8511 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 -0.01
2018-09-30 -0.01
2018-06-30 -0.04
2018-03-31 -0.04
2017-12-31 -0.01
2017-09-30 0.02
2017-06-30 0.05
2017-03-31 0.06
2016-03-31 0.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Zhicheng Technology Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine Zhicheng Technology Group's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  2. Zhicheng Technology Group's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Tech companies here
  3. Zhicheng Technology Group's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Zhicheng Technology Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Zhicheng Technology Group has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

8511 Past Performance

  How has Zhicheng Technology Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Zhicheng Technology Group's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Zhicheng Technology Group does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.
  • Unable to compare Zhicheng Technology Group's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Zhicheng Technology Group's 1-year growth to the HK Electronic industry average as it is not currently profitable.
Earnings and Revenue History
Zhicheng Technology Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Zhicheng Technology Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:8511 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 52.79 -3.48 4.35
2018-09-30 47.69 -4.43 4.23
2018-06-30 44.25 -13.67 12.15
2018-03-31 48.41 -11.24 12.83
2017-12-31 33.71 -2.46 23.26
2017-09-30 43.71 6.36 20.69
2017-06-30 44.77 15.30 10.89
2017-03-31 43.49 17.26 6.21
2016-03-31 25.96 3.62 4.74

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Zhicheng Technology Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Zhicheng Technology Group has efficiently used its assets last year compared to the HK Electronic industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Zhicheng Technology Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Zhicheng Technology Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Zhicheng Technology Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

8511 Health

 How is Zhicheng Technology Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Zhicheng Technology Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Zhicheng Technology Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Zhicheng Technology Group has no long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Zhicheng Technology Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Zhicheng Technology Group has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Zhicheng Technology Group Company Filings, last reported 3 months ago.

SEHK:8511 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 51.94 0.00 35.70
2018-09-30 51.94 0.00 35.70
2018-06-30 4.76 10.16 1.53
2018-03-31 4.76 10.16 1.53
2017-12-31
2017-09-30 5.61 0.59 1.07
2017-06-30 15.13 4.64 2.31
2017-03-31 15.13 4.64 2.31
2016-03-31 -2.14 4.64 2.75
  • Zhicheng Technology Group has no debt.
  • Zhicheng Technology Group currently has no debt however we can't compare to 5 years ago as we have no data for that period.
  • Zhicheng Technology Group has no debt, it does not need to be covered by operating cash flow.
  • Zhicheng Technology Group has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Zhicheng Technology Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Zhicheng Technology Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

8511 Dividends

 What is Zhicheng Technology Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Zhicheng Technology Group dividends.
If you bought HK$2,000 of Zhicheng Technology Group shares you are expected to receive HK$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Zhicheng Technology Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Zhicheng Technology Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:8511 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Electronic Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 2.5%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 965 Stocks 3.4%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.1%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 1.9%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Zhicheng Technology Group has not reported any payouts.
  • Unable to verify if Zhicheng Technology Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Zhicheng Technology Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Zhicheng Technology Group has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Zhicheng Technology Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Zhicheng Technology Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Zhicheng Technology Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

8511 Management

 What is the CEO of Zhicheng Technology Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Di Wu
COMPENSATION HK$164,000
AGE 40
CEO Bio

Mr. Di Wu serves as the Chief Executive Officer of Zhicheng Technology Group Ltd. and has been its Chairman since 26 September 2017. Mr. Wu was appointed as a Director of Zhicheng Technology Group Ltd. on 23 June 2017 and as its Executive Director with effect from 26 September 2017. Mr. Wu is primarily responsible for overall management, corporate policy making and strategic planning of Zhicheng Technology Group’s business operations. Mr. Wu is the founder of Zhicheng Technology Group and established it in 2008. Mr. Wu has more than 14 years of professional experience in the area of smart manufacturing, machining and industrial design. Prior to establishing Zhicheng Technology Group, from June 2003 to June 2006, he worked as the General Manager of Prosperity Corporation Limited, a distributor for various electronic accessories such as integrated circuits, capacitors and sensors, responsible for strategic development and business planning in the North America and China market. He was also engaged in the supply chain management and the customer relationship management for the company. From June 2006 to April 2008, he worked as a Project Manager in Ignite USA LLC, a company engaged in the design and technical innovation of reusable, environmentally friendly thermal mugs and hydration bottles, responsible for inspecting new product development process, vendor management, cost and credit control and supply chain management. Mr. Wu graduated from the Beijing University of Chemical Technology with a bachelor’s degree in management engineering in July 2000 and obtained a master degree in business administration from Loyola University, Chicago in November 2005.

CEO Compensation
  • Di's compensation has been consistent with company performance over the past year.
  • Di's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team

Di Wu

TITLE
Chairman & CEO
COMPENSATION
HK$164K
AGE
40

Zhining Liu

TITLE
COO, Compliance Officer & Executive Director
COMPENSATION
HK$161K
AGE
47

Cuimin Zou

TITLE
Financial Director
AGE
40

Zhuoru Yang

TITLE
Technical Director
AGE
71

Wenming Xu

TITLE
Sales & Marketing Director
AGE
34

Sau Ping Wong

TITLE
Company Secretary
AGE
43
TENURE
1.6 yrs
Board of Directors Tenure

Average tenure and age of the Zhicheng Technology Group board of directors in years:

1.1
Average Tenure
47
Average Age
  • The average tenure for the Zhicheng Technology Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Di Wu

TITLE
Chairman & CEO
COMPENSATION
HK$164K
AGE
40
TENURE
1.6 yrs

Zhining Liu

TITLE
COO, Compliance Officer & Executive Director
COMPENSATION
HK$161K
AGE
47
TENURE
1.6 yrs

Yong Tang

TITLE
Independent Non-Executive Director
COMPENSATION
HK$3K
AGE
55
TENURE
1.1 yrs

Gordon Xing

TITLE
Independent Non-Executive Director
COMPENSATION
HK$3K
AGE
62
TENURE
1.1 yrs

Zhen Tan

TITLE
Independent Nonexecutive Director
COMPENSATION
HK$3K
AGE
41
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
14. Jun 18 Buy RAYS Capital Partners Limited Company 12. Jun 18 12. Jun 18 7,768,000 HK$0.58 HK$4,493,772
15. Jun 18 Buy RAYS Capital Partners Limited Company 13. Jun 18 13. Jun 18 156,000 HK$0.62 HK$96,393
12. Jun 18 Buy RAYS Capital Partners Limited Company 11. Jun 18 11. Jun 18 7,288,000 HK$0.51 HK$3,746,742
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Management checks
We assess Zhicheng Technology Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Zhicheng Technology Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

8511 News

Simply Wall St News

What Investors Should Know About Zhicheng Technology Group Ltd.'s (HKG:8511) Financial Strength

(HKG:8511), which has zero-debt on its balance sheet, can maximize capital returns by increasing debt due to its lower cost of capital. … Is financial flexibility worth the lower cost of capital. … But the downside of having debt in a company’s balance sheet is the debtholder’s higher claim on its assets in the case of liquidation, as well as stricter capital management requirements.

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Who Are Zhicheng Technology Group Ltd's (HKG:8511) Major Shareholders?

If you want to know who really controls Zhicheng Technology Group Ltd (HKG:8511), then you'll have to look at the makeup of its share registry. … Zhicheng Technology Group is a smaller company with a market capitalization of HK$108m, so it may still be flying under the radar of many institutional investors. … Check out our latest analysis for Zhicheng Technology Group

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Does Zhicheng Technology Group Ltd's (HKG:8511) CEO Pay Matter?

Di Wu is the CEO of Zhicheng Technology Group Ltd (HKG:8511), which has recently grown to a market capitalization of HK$178.00m. … CEOs leading companies of similar size and profitability … View out our latest analysis for Zhicheng Technology Group

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Zhicheng Technology Group Ltd (HKG:8511): Does The -39.19% Earnings Drop Reflect A Longer Term Trend?

Today I will run you through a basic sense check to gain perspective on how Zhicheng Technology Group is doing by comparing its latest earnings with its long-term trend as well as the performance of its electronic industry peers. … Check out our latest analysis for Zhicheng Technology Group How Did 8511's Recent Performance Stack Up Against Its Past? … For Zhicheng Technology Group, its most recent earnings (trailing twelve month) is HK$6.36M, which compared to last year’s level, has fallen by a non-trivial -39.19%.

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What does Zhicheng Technology Group Ltd's (HKG:8511) Balance Sheet Tell Us About Its Future?

How does 8511’s operating cash flow stack up against its debt? … Moving onto cash from operations, its small level of operating cash flow means calculating cash-to-debt wouldn't be too useful, though these low levels of cash means that operational efficiency is worth a look. … Next Steps: Although 8511’s debt level is relatively low, its cash flow levels still could not copiously cover its borrowings.

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Does Zhicheng Technology Group Ltd's (HKG:8511) PE Ratio Signal A Selling Opportunity?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for 8511 Price per share = HK$0.42 Earnings per share = HK$0.022 ∴ Price-Earnings Ratio = HK$0.42 ÷ HK$0.022 = 19.5x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you accidentally compared lower growth firms with 8511, then 8511’s P/E would naturally be higher since investors would reward 8511’s higher growth with a higher price. … Alternatively, if you inadvertently compared riskier firms with 8511, 8511’s P/E would again be higher since investors would reward 8511’s lower risk with a higher price as well.

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8511 Company Info

Description

Zhicheng Technology Group Ltd., an investment holding company, provides precision 3D testing and machining solutions in the People’s Republic of China. The company offers non-contact optical measurement and full-field positioning systems, and non-contact three-dimensional dynamic measurement and analysis systems. It serves equipment manufacturers in the aviation, aerospace, shipbuilding, ground transportation vehicle, and electronics industries. The company was incorporated in 2017 and is headquartered in Guangzhou, the People’s Republic of China.

Details
Name: Zhicheng Technology Group Ltd.
8511
Exchange: SEHK
Founded: 2017
HK$77,600,000
400,000,000
Website: http://www.ztecgroup.com
Address: Zhicheng Technology Group Ltd.
Jin Ying Building,
Room 1508–1510,
Guangzhou,
Guangdong Province, 510663,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 8511 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 20. Apr 2018
Number of employees
Current staff
Staff numbers
27
Zhicheng Technology Group employees.
Industry
Electronic Equipment and Instruments
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 13:03
End of day share price update: 2019/04/18 00:00
Last earnings filing: 2019/01/29
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.