World Precision Machinery (SGX:B49) - Share price, News & Analysis

B49 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	4/6

B49 Stock Overview

World Precision Machinery Limited, an investment holding company, manufactures and sells stamping machines and related components in the People’s Republic of China.

Rewards

Trading at 87.2% below our estimate of its fair value

Risk Analysis

Shares are highly illiquid

Unstable dividend track record

Profit margins (5.7%) are lower than last year (8.5%)

World Precision Machinery Competitors

Price History & Performance

Summary of all time highs, changes and price drops for World Precision Machinery
Historical stock prices
Current Share Price	S$0.39
52 Week High	S$0.43
52 Week Low	S$0.32
Beta	0.69
1 Month Change	11.59%
3 Month Change	5.48%
1 Year Change	-1.28%
3 Year Change	165.52%
5 Year Change	67.39%
Change since IPO	-45.00%

Recent News & Updates

Jun 25

World Precision Machinery (SGX:B49) Is Looking To Continue Growing Its Returns On Capital

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'd want to...

Shareholder Returns

	B49	SG Machinery	SG Market
7D	13.2%	-1.3%	0.2%
1Y	-1.3%	-28.6%	-3.4%

Return vs Industry: B49 exceeded the SG Machinery industry which returned -36.4% over the past year.

Return vs Market: B49 exceeded the SG Market which returned -4.2% over the past year.

Price Volatility

Is B49's price volatile compared to industry and market?
B49 volatility
B49 Average Weekly Movement	n/a
Machinery Industry Average Movement	7.8%
Market Average Movement	4.8%
10% most volatile stocks in SG Market	11.3%
10% least volatile stocks in SG Market	2.2%

Stable Share Price: Insufficient data to determine B49's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine B49's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
2004	1,905	Guosheng Zhuang	https://www.wpmlimited.com

World Precision Machinery Limited, an investment holding company, manufactures and sells stamping machines and related components in the People’s Republic of China. Its products include high performance C-frame fixed, C-frame inclined, and C-frame dual-pistons fixed stamping machines; and single point fixed bolster, C-frame fixed bolster, C-frame deep-throat fixed bolster, single point, closed type double-point, half straight-side two points, closed type single point, straight-side two point, and single action hydraulic presses, as well as computer numeric control laser cutting machines. The company also provides hydraulic swing beam shears, hydraulic gate type shearing machines, and hydraulic sheet metal press brakes.

World Precision Machinery Fundamentals Summary

How do World Precision Machinery's earnings and revenue compare to its market cap?
B49 fundamental statistics
Market Cap	CN¥742.37m
Earnings (TTM)	CN¥72.43m
Revenue (TTM)	CN¥1.28b

10.3x

P/E Ratio

0.6x

P/S Ratio

Is B49 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
B49 income statement (TTM)
Revenue	CN¥1.28b
Cost of Revenue	CN¥1.06b
Gross Profit	CN¥215.96m
Other Expenses	CN¥143.53m
Earnings	CN¥72.43m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.18
Gross Margin	16.86%
Net Profit Margin	5.65%
Debt/Equity Ratio	0%

How did B49 perform over the long term?

See historical performance and comparison

Dividends

6.7%

Current Dividend Yield

69%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is B49 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for B49?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for B49. This is calculated by dividing B49's market cap by their current preferred multiple.
What is B49's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥742.37m

B49 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.3x
Enterprise Value/EBITDA	3.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does B49's PE Ratio compare to its peers?

B49 PE Ratio vs Peers

The above table shows the PE ratio for B49 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	8.4x

Forward PE

Price-To-Earnings vs Peers: B49 is expensive based on its Price-To-Earnings Ratio (10.3x) compared to the peer average (8.4x).

Price to Earnings Ratio vs Industry

How does B49's PE Ratio compare vs other companies in the Machinery Industry?

Price-To-Earnings vs Industry: B49 is expensive based on its Price-To-Earnings Ratio (10.3x) compared to the SG Machinery industry average (9.4x)

Price to Earnings Ratio vs Fair Ratio

What is B49's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

B49 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate B49's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of B49 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: B49 (SGD0.39) is trading below our estimate of fair value (SGD3)

Significantly Below Fair Value: B49 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate B49's PEG Ratio to determine if it is good value.

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Future Growth

How is World Precision Machinery forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

35.6%

Forecasted Capital Goods 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 World Precision Machinery 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.

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Examine World Precision Machinery'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.
World Precision Machinery competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has World Precision Machinery performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

39.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: B49 has high quality earnings.

Growing Profit Margin: B49's current net profit margins (5.7%) are lower than last year (8.5%).

Past Earnings Growth Analysis

Earnings Trend: B49's earnings have grown significantly by 39.8% per year over the past 5 years.

Accelerating Growth: B49's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: B49 had negative earnings growth (-27.2%) over the past year, making it difficult to compare to the Machinery industry average (32.1%).

Return on Equity

High ROE: B49's Return on Equity (6%) is considered low.

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Financial Health

How is World Precision Machinery's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: B49's short term assets (CN¥1.3B) exceed its short term liabilities (CN¥816.0M).

Long Term Liabilities: B49's short term assets (CN¥1.3B) exceed its long term liabilities (CN¥15.9M).

Debt to Equity History and Analysis

Debt Level: B49 is debt free.

Reducing Debt: B49 has no debt compared to 5 years ago when its debt to equity ratio was 11.4%.

Debt Coverage: B49 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: B49 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is World Precision Machinery current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.73%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: B49's dividend (6.74%) is higher than the bottom 25% of dividend payers in the SG market (2.3%).

High Dividend: B49's dividend (6.74%) is in the top 25% of dividend payers in the SG market (6.22%)

Stability and Growth of Payments

Stable Dividend: B49's dividend payments have been volatile in the past 10 years.

Growing Dividend: B49's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (69%), B49's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (44.3%), B49's dividend payments are well covered by cash flows.

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Management

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

2.9yrs

Average management tenure

CEO

Guosheng Zhuang

2.58yrs

Tenure

Mr. Guosheng Zhuang serves as the Chief Executive Officer of World Precision Machinery Ltd. since November 22, 2019. In March 2019, Mr. Zhuang has been appointed as Chief Deputy General Manager of WPM(Chin...

Leadership Team

Experienced Management: B49's management team is considered experienced (2.9 years average tenure).

Board Members

Experienced Board: B49's board of directors are seasoned and experienced ( 15 years average tenure).

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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31