SEHK:856

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VSTECS Holdings

Executive Summary

VSTECS Holdings Limited, an investment holding company, distributes information, communication, and technology products and services in North Asia and South East Asia. More Details


Snowflake Analysis

Proven track record with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 856's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.2%

856

4.2%

HK Electronic

1.5%

HK Market


1 Year Return

50.0%

856

-8.0%

HK Electronic

0.7%

HK Market

Return vs Industry: 856 exceeded the Hong Kong Electronic industry which returned -7.2% over the past year.

Return vs Market: 856 exceeded the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

856IndustryMarket
7 Day17.2%4.2%1.5%
30 Day31.8%-5.1%-3.1%
90 Day62.5%4.9%2.9%
1 Year57.6%50.0%-5.0%-8.0%4.8%0.7%
3 Year174.9%143.8%-36.2%-41.5%-5.6%-15.8%
5 Year245.2%174.6%21.3%4.9%24.5%3.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 856 (HK$5.85) is trading above our estimate of fair value (HK$2.16)

Significantly Below Fair Value: 856 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 856 is good value based on its PE Ratio (9.9x) compared to the HK Electronic industry average (14.1x).

PE vs Market: 856 is good value based on its PE Ratio (9.9x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 856 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 856 is overvalued based on its PB Ratio (1.5x) compared to the HK Electronic industry average (0.8x).


Next Steps

Future Growth

How is VSTECS Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 856's forecast earnings growth (12.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 856's earnings (12.4% per year) are forecast to grow slower than the Hong Kong market (22.5% per year).

High Growth Earnings: 856's earnings are forecast to grow, but not significantly.

Revenue vs Market: 856's revenue (8.7% per year) is forecast to grow slower than the Hong Kong market (13.2% per year).

High Growth Revenue: 856's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 856's Return on Equity is forecast to be low in 3 years time (14.9%).


Next Steps

Past Performance

How has VSTECS Holdings performed over the past 5 years?

12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 856 has high quality earnings.

Growing Profit Margin: 856's current net profit margins (1.3%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: 856's earnings have grown by 12.4% per year over the past 5 years.

Accelerating Growth: 856's earnings growth over the past year (8.8%) is below its 5-year average (12.4% per year).

Earnings vs Industry: 856 earnings growth over the past year (8.8%) exceeded the Electronic industry -15.1%.


Return on Equity

High ROE: 856's Return on Equity (15%) is considered low.


Next Steps

Financial Health

How is VSTECS Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 856's short term assets (HK$21.0B) exceed its short term liabilities (HK$15.7B).

Long Term Liabilities: 856's short term assets (HK$21.0B) exceed its long term liabilities (HK$1.7B).


Debt to Equity History and Analysis

Debt Level: 856's debt to equity ratio (134.6%) is considered high.

Reducing Debt: 856's debt to equity ratio has increased from 105.2% to 134.6% over the past 5 years.

Debt Coverage: 856's debt is well covered by operating cash flow (25.4%).

Interest Coverage: 856's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Next Steps

Dividend

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

2.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 856's dividend (2.85%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 856's dividend (2.85%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.87%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 856 has been paying a dividend for less than 10 years.

Growing Dividend: 856's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.2%), 856's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 856's dividends in 3 years are forecast to be well covered by earnings (32.2% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

David Li (57 yo)

6.83yrs

Tenure

HK$8,518,000

Compensation

Mr. Jialin Li, also known as David, co-founded VSTECS Holdings Limited (formerly known as VST Holdings Limited). and has been its Chief Executive Officer since November 18, 2013. Mr. Li served as Chief Exe ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.10M) is above average for companies of similar size in the Hong Kong market ($USD463.84K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jialin Li
Chairman & CEO6.83yrsHK$8.52m26.92%
HK$ 2.3b
Wei Ong
Group CFO & Executive Director11.92yrsHK$3.64m0.038%
HK$ 3.2m
Hoi Chan
Executive Director0.83yrHK$2.52mno data
Yue Li
Executive Director4.33yrsHK$1.12mno data
Sebastian Chong
President of Singapore & Indonesia1.5yrsno datano data
Cheuk Yue
Company Secretary9yrsno datano data
Luning Song
Chief Executive Officer of China1yrno datano data

1.5yrs

Average Tenure

48yo

Average Age

Experienced Management: 856's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jialin Li
Chairman & CEO6.83yrsHK$8.52m26.92%
HK$ 2.3b
Wei Ong
Group CFO & Executive Director11.92yrsHK$3.64m0.038%
HK$ 3.2m
Hoi Chan
Executive Director0.83yrHK$2.52mno data
Yue Li
Executive Director4.33yrsHK$1.12mno data
Hin Chi Lam
Independent Non-Executive Director6.25yrsHK$120.00kno data
Wei Li
Independent Non-Executive Director13.08yrsHK$120.00k0%
HK$ 0
Xiaolong Wang
Independent Non-Executive Director4.33yrsHK$120.00kno data
Wai Man Hung
Independent Non-Executive Director4.33yrsHK$120.00kno data

5.3yrs

Average Tenure

53.5yo

Average Age

Experienced Board: 856's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 856 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: VSTECS Holdings Limited
  • Ticker: 856
  • Exchange: SEHK
  • Founded: 1991
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: HK$8.493b
  • Shares outstanding: 1.45b
  • Website: https://www.vstecs.com

Number of Employees


Location

  • VSTECS Holdings Limited
  • China Merchants Tower
  • Unit 3312, 33rd Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
856SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2002
856SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 2002
VSTH.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJul 2010

Biography

VSTECS Holdings Limited, an investment holding company, distributes information, communication, and technology products and services in North Asia and South East Asia. It operates through Components Produc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/17 19:58
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.