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VSTECS Holdings

SEHK:856
Snowflake Description

Established dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
856
SEHK
HK$6B
Market Cap
  1. Home
  2. HK
  3. Tech
Company description

VSTECS Holdings Limited, an investment holding company, distributes information, communication, and technology products and services in North Asia and South East Asia. The last earnings update was 13 days ago. More info.


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856 Share Price and Events
7 Day Returns
2.9%
SEHK:856
2.3%
HK Electronic
-0.9%
HK Market
1 Year Returns
11.7%
SEHK:856
-23.2%
HK Electronic
-6.3%
HK Market
856 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
VSTECS Holdings (856) 2.9% -6.7% 16.5% 11.7% 138.1% 118.8%
HK Electronic 2.3% 6.4% 19.4% -23.2% 25.8% 46.5%
HK Market -0.9% 1.7% 10.8% -6.3% 27.3% 20.1%
1 Year Return vs Industry and Market
  • 856 outperformed the Electronic industry which returned -23.2% over the past year.
  • 856 outperformed the Market in Hong Kong which returned -6.3% over the past year.
Price Volatility
856
Industry
5yr Volatility vs Market

856 Value

 Is VSTECS Holdings 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 VSTECS Holdings 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 VSTECS Holdings.

SEHK:856 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.5%
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:856
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.068 (1 + (1- 25%) (127.48%))
1.73
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.73
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.73 * 6.65%)
13.51%

Discounted Cash Flow Calculation for SEHK:856 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for VSTECS Holdings 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:856 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 13.51%)
2019 74.00 Analyst x1 65.19
2020 77.00 Analyst x1 59.76
2021 79.60 Est @ 3.38% 54.43
2022 81.96 Est @ 2.96% 49.37
2023 84.15 Est @ 2.68% 44.66
2024 86.24 Est @ 2.47% 40.32
2025 88.25 Est @ 2.33% 36.35
2026 90.22 Est @ 2.23% 32.74
2027 92.17 Est @ 2.16% 29.47
2028 94.12 Est @ 2.12% 26.51
Present value of next 10 years cash flows HK$438.80
SEHK:856 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$94.12 × (1 + 2%) ÷ (13.51% – 2%)
HK$834.42
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$834.42 ÷ (1 + 13.51%)10
HK$235.01
SEHK:856 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$438.80 + HK$235.01
HK$673.81
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$673.81 / 1,453.34
HK$0.46
SEHK:856 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$0.46
Current discount Discount to share price of HK$4.31
= -1 x (HK$4.31 - HK$0.46) / HK$0.46
-829.6%

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

  • The current share price of VSTECS Holdings 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 VSTECS Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are VSTECS Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:856 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.52
SEHK:856 Share Price ** SEHK (2019-04-24) in HKD HK$4.31
Hong Kong Electronic Industry PE Ratio Median Figure of 60 Publicly-Listed Electronic Companies 11.79x
Hong Kong Market PE Ratio Median Figure of 1,474 Publicly-Listed Companies 12.13x

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

** Primary Listing of VSTECS Holdings.

SEHK:856 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:856 Share Price ÷ EPS (both in HKD)

= 4.31 ÷ 0.52

8.35x

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

  • VSTECS Holdings is good value based on earnings compared to the HK Electronic industry average.
  • VSTECS Holdings is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does VSTECS Holdings's expected growth come at a high price?
Raw Data
SEHK:856 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.35x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
17.5%per year
Hong Kong Electronic Industry PEG Ratio Median Figure of 13 Publicly-Listed Electronic Companies 0.57x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.87x

*Line of best fit is calculated by linear regression .

SEHK:856 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.35x ÷ 17.5%

0.48x

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

  • VSTECS Holdings is good value based on expected growth next year.
Price based on value of assets
What value do investors place on VSTECS Holdings's assets?
Raw Data
SEHK:856 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$3.46
SEHK:856 Share Price * SEHK (2019-04-24) in HKD HK$4.31
Hong Kong Electronic Industry PB Ratio Median Figure of 84 Publicly-Listed Electronic Companies 1.2x
Hong Kong Market PB Ratio Median Figure of 2,150 Publicly-Listed Companies 1.02x
SEHK:856 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:856 Share Price ÷ Book Value per Share (both in HKD)

= 4.31 ÷ 3.46

1.25x

* Primary Listing of VSTECS Holdings.

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

  • VSTECS Holdings is overvalued based on assets compared to the HK Electronic industry average.
X
Value checks
We assess VSTECS Holdings'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. VSTECS Holdings has a total score of 3/6, 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.

856 Future Performance

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

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 annual growth in earnings.
Earnings growth vs Low Risk Savings
Is VSTECS Holdings expected to grow at an attractive rate?
  • VSTECS Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • VSTECS Holdings's earnings growth is expected to exceed the Hong Kong market average.
  • VSTECS Holdings's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:856 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:856 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 17.5%
SEHK:856 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 11.3%
Hong Kong Electronic Industry Earnings Growth Rate Market Cap Weighted Average 17.7%
Hong Kong Electronic Industry Revenue Growth Rate Market Cap Weighted Average 12%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.7%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 11.1%

*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:856 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:856 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 88,516 352 1,298 1
2020-12-31 78,566 102 1,062 2
2019-12-31 70,165 222 925 2
SEHK:856 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 62,482 -852 741
2018-09-30 60,483 -1,101 777
2018-06-30 58,484 -1,350 813
2018-03-31 56,514 -1,722 765
2017-12-31 54,543 -2,095 716
2017-09-30 52,170 -1,431 634
2017-06-30 49,796 -768 552
2017-03-31 48,979 186 552
2016-12-31 48,161 1,140 552
2016-09-30 47,531 1,334 490
2016-06-30 46,901 1,527 429
2016-03-31 46,238 1,024 440

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • VSTECS Holdings's earnings are expected to grow by 17.5% yearly, however this is not considered high growth (20% yearly).
  • VSTECS Holdings's revenue is expected to grow by 11.3% yearly, however this is not considered high growth (20% yearly).
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:856 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 2 Analyst Estimates (S&P Global) See Below

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

SEHK:856 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.91 0.91 0.91 1.00
2020-12-31 0.73 0.79 0.68 2.00
2019-12-31 0.64 0.67 0.61 2.00
SEHK:856 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.52
2018-09-30 0.54
2018-06-30 0.57
2018-03-31 0.54
2017-12-31 0.50
2017-09-30 0.45
2017-06-30 0.39
2017-03-31 0.39
2016-12-31 0.38
2016-09-30 0.34
2016-06-30 0.29
2016-03-31 0.30

*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.
  • VSTECS Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess VSTECS Holdings'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.
VSTECS Holdings has a total score of 3/6, 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.

856 Past Performance

  How has VSTECS Holdings 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 VSTECS Holdings'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.
  • VSTECS Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • VSTECS Holdings's 1-year earnings growth is less than its 5-year average (3.4% vs 8%)
  • VSTECS Holdings's earnings growth has exceeded the HK Electronic industry average in the past year (3.4% vs -1.9%).
Earnings and Revenue History
VSTECS Holdings'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 VSTECS Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:856 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 62,481.96 740.83 1,680.52
2018-09-30 60,483.21 776.85 1,562.25
2018-06-30 58,484.46 812.87 1,443.98
2018-03-31 56,513.77 764.66 1,363.84
2017-12-31 54,543.08 716.44 1,283.70
2017-09-30 52,169.58 634.37 1,171.44
2017-06-30 49,796.08 552.30 1,059.18
2017-03-31 48,978.70 552.11 1,062.49
2016-12-31 48,161.32 551.92 1,065.81
2016-09-30 47,531.23 490.37 1,092.56
2016-06-30 46,901.14 428.82 1,119.32
2016-03-31 46,238.39 439.60 1,068.28
2015-12-31 45,575.64 450.38 1,017.24
2015-09-30 44,857.38 530.51 948.76
2015-06-30 44,139.11 610.64 880.28
2015-03-31 43,015.91 609.01 862.20
2014-12-31 41,892.71 607.37 844.12
2014-09-30 40,794.89 572.69 861.26
2014-06-30 39,697.08 538.00 878.40
2014-03-31 39,968.18 520.36 872.22
2013-12-31 40,239.29 502.73 866.04
2013-09-30 39,392.56 481.97 843.36
2013-06-30 38,545.84 461.22 820.69
2013-03-31 37,821.71 452.73 818.75
2012-12-31 37,097.59 444.24 816.81
2012-09-30 36,224.22 463.74 822.00
2012-06-30 35,350.85 483.24 827.18

*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.
  • VSTECS Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • VSTECS Holdings used its assets less efficiently than the HK Electronic industry average last year based on Return on Assets.
  • VSTECS Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess VSTECS Holdings'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.
VSTECS Holdings has a total score of 3/6, 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.

856 Health

 How is VSTECS Holdings'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 VSTECS Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • VSTECS Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • VSTECS Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of VSTECS Holdings'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.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.8x debt.
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 VSTECS Holdings Company Filings, last reported 3 months ago.

SEHK:856 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 5,046.72 7,781.41 1,829.04
2018-09-30 5,046.72 7,781.41 1,829.04
2018-06-30 4,912.53 6,452.92 1,362.96
2018-03-31 4,912.53 6,452.92 1,362.96
2017-12-31 4,834.71 6,642.56 2,344.08
2017-09-30 4,834.71 6,642.56 2,344.08
2017-06-30 4,152.74 4,830.15 1,675.30
2017-03-31 4,152.74 4,830.15 1,675.30
2016-12-31 3,863.64 4,245.04 2,162.24
2016-09-30 3,863.64 4,245.04 2,162.24
2016-06-30 3,885.84 3,863.84 2,051.04
2016-03-31 3,885.84 3,863.84 2,051.04
2015-12-31 3,819.11 5,621.01 3,317.16
2015-09-30 3,819.11 5,621.01 3,317.16
2015-06-30 4,050.60 4,227.36 1,696.45
2015-03-31 4,050.60 4,227.36 1,696.45
2014-12-31 3,992.96 3,557.28 1,495.11
2014-09-30 3,992.96 3,557.28 1,495.11
2014-06-30 3,784.95 2,978.37 829.80
2014-03-31 3,784.95 2,978.37 829.80
2013-12-31 3,620.40 2,698.57 1,168.54
2013-09-30 3,620.40 2,698.57 1,168.54
2013-06-30 3,357.13 2,588.62 1,181.70
2013-03-31 3,357.13 2,588.62 1,181.70
2012-12-31 3,234.68 2,266.60 936.01
2012-09-30 3,234.68 2,266.60 936.01
2012-06-30 2,942.62 2,694.33 701.63
  • VSTECS Holdings's level of debt (154.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (74.6% vs 154.2% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 4.9x coverage).
X
Financial health checks
We assess VSTECS Holdings'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. VSTECS Holdings has a total score of 3/6, 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.

856 Dividends

 What is VSTECS Holdings'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
3.53%
Current annual income from VSTECS Holdings dividends. Estimated to be 5.05% next year.
If you bought HK$2,000 of VSTECS Holdings shares you are expected to receive HK$71 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?
  • VSTECS Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (1.96%).
  • VSTECS Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.38%).
Upcoming dividend payment

Purchase VSTECS Holdings before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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:856 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 2 Analyst Estimates (S&P Global) See Below
Hong Kong Electronic Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 2.6%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.4%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.1%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

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

SEHK:856 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.27 1.00
2020-12-31 0.22 2.00
2019-12-31 0.19 2.00
SEHK:856 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-03-26 0.152 3.479
2018-05-30 0.147 3.674
2017-04-07 0.124 4.007
2016-03-23 0.124 5.484
2015-03-19 0.118 5.246
2014-03-19 0.080 3.634
2013-03-22 0.067 3.995
2012-04-10 0.067 5.077
2012-03-22 0.067 4.360
2010-08-31 0.000 0.000
2010-08-24 0.000 0.000
2010-04-15 0.000 0.000
2010-03-31 0.000 0.000
2009-07-22 0.032 2.352
2009-07-10 0.032 3.263

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

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of VSTECS Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess VSTECS Holdings'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 VSTECS Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. VSTECS Holdings has a total score of 5/6, see the detailed checks below.


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

856 Management

 What is the CEO of VSTECS Holdings'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
David Li
COMPENSATION HK$8,018,000
AGE 55
TENURE AS CEO 5.4 years
CEO Bio

Mr. Jialin Li, also known as David, co-founded VST Holdings Ltd. and has been its Chief Executive Officer since November 18, 2013. Mr. Li served as Chief Executive Officer of VST Holdings Ltd. until October 31, 2012. He was responsible for the overall management and strategic positioning of VST Holdings Ltd. He joined VST in March, 2004. He has been Chairman of VST Holdings Ltd since November 18, 2013. He has been Chairman of ECS Technology (China) Ltd. since November 22, 2011. He served as Chairman of VST Holdings Ltd. until October 31, 2012. Mr. Li served as the Chairman of ECS Holdings Ltd. from December 31, 2007 to September 27, 2010. He has been Director of ECS Technology (China) Ltd. since November 22, 2011. He has been an Executive Director of VST Holdings Ltd. since November 18, 2013. He served as Executive Director of VST Holdings Ltd., from March 18, 2002 to October 31, 2012. He served as a Non Executive Director of Xin Yu Hengdeli Holdings Limited until February 15, 2006. Mr. Li graduated from Tsinghua University, the PRC with a Degree of Bachelor of Engineering in 1983 and a Master Degree in Management Engineering in 1986.

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

Average tenure and age of the VSTECS Holdings management team in years:

5.4
Average Tenure
46
Average Age
  • The average tenure for the VSTECS Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

David Li

TITLE
Chairman & CEO
COMPENSATION
HK$8M
AGE
55
TENURE
5.4 yrs

William Ong

TITLE
Group CFO & Executive Director
COMPENSATION
HK$3M
AGE
46

Ying Chow

TITLE
Group COO & Executive Director
COMPENSATION
HK$4M
AGE
50

Yue Li

TITLE
Executive Director
COMPENSATION
HK$921K
AGE
29

Yibing Zhou

TITLE
Deputy Chairman
AGE
55

Ningdong Liu

TITLE
Executive Director
AGE
42

Sebastian Chong

TITLE
President of Singapore & Indonesia
TENURE
0.1 yrs

Cheuk Yue

TITLE
Company Secretary
AGE
37
TENURE
7.6 yrs
Board of Directors Tenure

Average tenure and age of the VSTECS Holdings board of directors in years:

5.1
Average Tenure
49.5
Average Age
  • The tenure for the VSTECS Holdings board of directors is about average.
Board of Directors

David Li

TITLE
Chairman & CEO
COMPENSATION
HK$8M
AGE
55
TENURE
5.4 yrs

William Ong

TITLE
Group CFO & Executive Director
COMPENSATION
HK$3M
AGE
46
TENURE
10.5 yrs

Ying Chow

TITLE
Group COO & Executive Director
COMPENSATION
HK$4M
AGE
50
TENURE
6.3 yrs

Yue Li

TITLE
Executive Director
COMPENSATION
HK$921K
AGE
29
TENURE
2.9 yrs

Yibing Zhou

TITLE
Deputy Chairman
AGE
55
TENURE
1.3 yrs

Ningdong Liu

TITLE
Executive Director
AGE
42
TENURE
0.9 yrs

Wei Li

TITLE
Independent Non-Executive Director
COMPENSATION
HK$120K
AGE
63
TENURE
11.7 yrs

Hin Chi Lam

TITLE
Independent Non-Executive Director
COMPENSATION
HK$120K
AGE
54
TENURE
4.8 yrs

Xin Liang

TITLE
Non-Executive Director
COMPENSATION
HK$120K
AGE
47
TENURE
5.3 yrs

Wai Hung

TITLE
Independent Non-Executive Director
COMPENSATION
HK$120K
AGE
49
TENURE
2.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
15. Jan 19 Buy Jialin Li Individual 15. Jan 19 15. Jan 19 52,000 HK$3.43 HK$178,360
11. Jan 19 Buy Jialin Li Individual 11. Jan 19 11. Jan 19 800,000 HK$3.26 HK$2,611,999
08. Jan 19 Buy Jialin Li Individual 07. Jan 19 07. Jan 19 1,858,000 HK$3.50 HK$6,503,001
26. Apr 18 Buy Jialin Li Individual 25. Apr 18 25. Apr 18 578,000 HK$3.86 HK$2,232,815
X
Management checks
We assess VSTECS Holdings'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. VSTECS Holdings 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.

856 News

Simply Wall St News

Have Insiders Been Selling VSTECS Holdings Limited (HKG:856) Shares This Year?

Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. … So we'll take a look at whether insiders have been buying or selling shares in VSTECS Holdings Limited (HKG:856). … VSTECS Holdings Insider Transactions Over The Last Year.

Simply Wall St -

Are VSTECS Holdings Limited’s (HKG:856) High Returns Really That Great?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Are VSTECS Holdings Limited's (HKG:856) Interest Costs Too High?

Investors are always looking for growth in small-cap stocks like VSTECS Holdings Limited (HKG:856), with a market cap of HK$5.6b. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Does VSTECS Holdings Limited's (HKG:856) CEO Salary Compare Well With Others?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does David Li's Compensation Compare With Similar Sized Companies. … According to our data, VSTECS Holdings Limited has a market capitalization of HK$5.8b, and pays its CEO total annual compensation worth HK$8.0m.

Simply Wall St -

Interested In VSTECS Holdings Limited (HKG:856)? Here's What Its Recent Performance Looks Like

After looking at VSTECS Holdings Limited's (HKG:856) latest earnings update (30 June 2018), I found it helpful to revisit the company's performance in the past couple of years and compare this against the latest numbers. … Were 856's earnings stronger than its past performances and the industry. … 856's trailing twelve-month earnings (from 30 June 2018) of HK$813m has.

Simply Wall St -

Can VSTECS Holdings Limited (HKG:856) Maintain Its Strong Returns?

Our data shows VSTECS Holdings has a return on equity of 17% for the last year. … That means that for every HK$1 worth of shareholders' equity, it generated HK$0.17 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

VSTECS Holdings Limited (HKG:856) Has Attractive Fundamentals

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … In the case of VSTECS Holdings Limited (HKG:856), it

Simply Wall St -

What Does VSTECS Holdings Limited's (HKG:856) PE Ratio Tell You?

VSTECS Holdings Limited (HKG:856) is currently trading at a trailing P/E of 6.7, which is lower than the industry average of 9.1. … Although some investors might think this is a real positive, that might change once you understand the assumptions behind the P/E. … See our latest analysis for VSTECS Holdings

Simply Wall St -

VSTECS Holdings Limited (HKG:856): How Much Growth Is Left In Tech?

The line between hardware and software companies has blurred, with many businesses shifting from pure-hardware to software-defined hardware and from products to services and solutions … As enterprises in various industry sector look to technology to enable their own transformations, the opportunities for technology companies have widened extensively … Tech analysts are forecasting for the entire hardware tech industry,

Simply Wall St -

Does VSTECS Holdings Limited's (HKG:856) 29.81% Earnings Growth Make It An Outperformer?

After reading VSTECS Holdings Limited's (HKG:856) most recent earnings announcement (31 December 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … Were 856's earnings stronger than its past performances and the industry. … 856's trailing twelve-month earnings (from 31 December 2017) of HK$716.44m has

Simply Wall St -

856 Company Info

Description

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 Products, Mobility Digital Devices, Cloud and Big Data Analytics, and Network and Data Security segments. The Components Products segment provides information technology (IT) component products, such as CPUs and hard disks; and supply chain solutions for the original equipment manufacturers. The Mobility Digital Devices segment offers IT finished products, including computers, mobile phones, drones, smart sports watches, 3D printer, game consoles, etc. The Cloud and Big Data Analytics segment provides enterprise system tools, such as middleware, operating systems, Unix/NT servers, databases, and storage for IT infrastructure; and IT infrastructure design and implementation, training, maintenance, and support services. The Network and Data Security segment offers network security hardware and software for big data and cloud computing. The company also involved in the retail of IT products, equipment, and accessories; and provision of project investment and marketing research services. It serves individuals, small and medium enterprises, large corporations, and government entities through a distribution network of resellers comprising retailers, system integrators, and corporate dealers. The company was formerly known as VST Holdings Limited and changed its name to VSTECS Holdings Limited in August 2017. VSTECS Holdings Limited was founded in 1991 and is headquartered in Central, Hong Kong.

Details
Name: VSTECS Holdings Limited
856
Exchange: SEHK
Founded: 1991
HK$6,104,036,391
1,453,341,998
Website: http://www.vstecs.com
Address: VSTECS Holdings Limited
China Merchants Tower,
Unit 3312, 33rd Floor,
Central,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 856 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 09. May 2002
OTCPK VSTH.Y SPONSORED ADR Pink Sheets LLC US USD 28. Jul 2010
Number of employees
Current staff
Staff numbers
3,328
VSTECS Holdings employees.
Industry
Technology Distributors
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 12:40
End of day share price update: 2019/04/24 00:00
Last estimates confirmation: 2019/03/27
Last earnings filing: 2019/04/11
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


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.