SEHK:8511

Stock Analysis Report

Zhicheng Technology Group

Executive Summary

Zhicheng Technology Group Ltd., an investment holding company, provides precision 3D testing and machining solutions in the People’s Republic of China.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8511's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.2%

8511

-2.2%

HK Electronic

-3.3%

HK Market


1 Year Return

-37.0%

8511

-6.7%

HK Electronic

-9.6%

HK Market

Return vs Industry: 8511 underperformed the Hong Kong Electronic industry which returned -8% over the past year.

Return vs Market: 8511 underperformed the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

8511IndustryMarket
7 Day-3.2%-2.2%-3.3%
30 Day-13.0%-7.7%-3.8%
90 Day-22.9%-1.8%-0.2%
1 Year-37.0%-37.0%-3.9%-6.7%-6.3%-9.6%
3 Yearn/a-2.5%-10.3%11.2%-0.05%
5 Yearn/a72.6%49.8%12.7%-6.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Zhicheng Technology Group undervalued compared to its fair value and its price relative to the market?

7.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8511's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8511's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8511 is good value based on its PE Ratio (7x) compared to the Electronic industry average (9x).

PE vs Market: 8511 is good value based on its PE Ratio (7x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8511's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8511 is good value based on its PB Ratio (0.8x) compared to the HK Electronic industry average (0.8x).


Next Steps

Future Growth

How is Zhicheng Technology Group 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 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 SimplyWall St do have past financial data.


Next Steps

Past Performance

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

-10.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8511 has high quality earnings.

Growing Profit Margin: 8511 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 8511's earnings have declined by -10.6% per year over the past 5 years.

Accelerating Growth: 8511 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 8511 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (-11.5%).


Return on Equity

High ROE: 8511's Return on Equity (11.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Zhicheng Technology Group's financial position?


Financial Position Analysis

Short Term Liabilities: 8511's short term assets (HK$60.5M) exceed its short term liabilities (HK$3.3M).

Long Term Liabilities: 8511 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 8511 is debt free.

Reducing Debt: 8511 had no debt 5 years ago.

Debt Coverage: 8511 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 8511 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 8511 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 8511's debt is covered by short term assets.


Next Steps

Dividend

What is Zhicheng Technology Group'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 8511's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8511'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 8511's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8511'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 8511'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?

1.9yrs

Average board tenure


CEO

Di Wu (41yo)

HK$239,000

Compensation

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  ...


CEO Compensation Analysis

Compensation vs Market: Di's total compensation ($USD30.68K) is below average for companies of similar size in the Hong Kong market ($USD225.90K).

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


Board Members

NamePositionTenureCompensationOwnership
Di Wu
Chairman & CEO0yrsHK$239.00k73.49% HK$35.3m
Zhining Liu
COO, Compliance Officer & Executive Director2.4yrsHK$269.00kno data
Zhen Shan Tan
Independent Nonexecutive Director1.9yrsHK$183.00kno data
Shaonan Xing
Independent Non-Executive Director1.9yrsHK$183.00kno data
Yong Tang
Independent Non-Executive Director1.9yrsHK$183.00kno data

1.9yrs

Average Tenure

48yo

Average Age

Experienced Board: 8511's board of directors are not considered experienced ( 1.9 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 8.2%.


Top Shareholders

Company Information

Zhicheng Technology Group Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zhicheng Technology Group Ltd.
  • Ticker: 8511
  • Exchange: SEHK
  • Founded: 2017
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: HK$48.000m
  • Shares outstanding: 400.00m
  • Website: https://www.ztecgroup.com

Number of Employees


Location

  • Zhicheng Technology Group Ltd.
  • Jin Ying Building
  • Room 1508–1510
  • Guangzhou
  • Guangdong Province
  • 510663
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8511SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2018

Biography

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 to detect and analyze the shape and appearance data of objects; and non-contact three-dimensional dynamic measurement and analysis systems to calculate surface displacement and strain distribution. It serves equipment manufacturers in the aviation, aerospace, shipbuilding, ground transportation vehicles, and electronics industries. The company was incorporated in 2017 and is headquartered in Guangzhou, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 13:37
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.