SGX:B49

Stock Analysis Report

World Precision Machinery

Executive Summary

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

Snowflake

Excellent balance sheet and fair value.

Share Price & News

How has World Precision Machinery's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: B49 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

B49

-0.2%

SG Machinery

-0.6%

SG Market


1 Year Return

42.9%

B49

-13.9%

SG Machinery

3.9%

SG Market

Return vs Industry: B49 exceeded the SG Machinery industry which returned -13.9% over the past year.

Return vs Market: B49 exceeded the SG Market which returned 3.9% over the past year.


Shareholder returns

B49IndustryMarket
7 Day0%-0.2%-0.6%
30 Day2.6%7.2%3.1%
90 Day28.2%6.0%3.0%
1 Year42.9%42.9%-12.0%-13.9%8.0%3.9%
3 Year-43.7%-43.7%15.1%7.5%19.9%7.1%
5 Year-19.0%-40.3%-32.7%-40.6%11.6%-7.0%

Price Volatility Vs. Market

How volatile is World Precision Machinery's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is World Precision Machinery undervalued compared to its fair value and its price relative to the market?

0.38x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: B49 (SGD0.2) is trading above our estimate of fair value (SGD0.09)

Significantly Below Fair Value: B49 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: B49 is good value based on its PE Ratio (-486.7x) compared to the Machinery industry average (9.2x).

PE vs Market: B49 is good value based on its PE Ratio (-486.7x) compared to the SG market (13.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: B49 is good value based on its PB Ratio (0.4x) compared to the SG Machinery industry average (0.6x).


Next Steps

Future Growth

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

29.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: B49's forecast earnings growth (29.8% per year) is above the savings rate (2.3%).

Earnings vs Market: B49's earnings (29.8% per year) are forecast to grow faster than the SG market (5.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if B49's revenue is forecast to grow faster than the SG market.

High Growth Revenue: Insufficient data to determine if B49's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if B49's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-46.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: B49 has large one-off items impacting its financial results.

Growing Profit Margin: B49's current net profit margins (0.4%) are lower than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: B49's earnings have declined by -46.9% 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 (-85.3%) over the past year, making it difficult to compare to the Machinery industry average (4.6%).


Return on Equity

High ROE: B49's Return on Equity (0.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is World Precision Machinery's financial position?


Financial Position Analysis

Short Term Liabilities: B49's short term assets (CN¥625.5M) exceeds its short term liabilities (CN¥508.5M)

Long Term Liabilities: B49's short term assets (625.5M) exceeds its long term liabilities (8.5M)


Debt to Equity History and Analysis

Debt Level: B49's debt to equity ratio (3.2%) is considered satisfactory

Reducing Debt: B49's debt to equity ratio has reduced from 23.1% to 3.2% over the past 5 years.

Debt Coverage: B49's debt is well covered by operating cash flow (398.9%).

Interest Coverage: Insufficient data to determine if B49's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: B49 has a high level of physical assets or inventory.

Debt Coverage by Assets: B49's debt is covered by short term assets (assets are 18.3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.5%markettop25%5.5%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate B49's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate B49'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 B49's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if B49's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: B49 is not paying a notable dividend for the SG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of B49's dividend in 3 years as they are not forecast to pay a notable one for the SG market.


Next Steps

Management

What is the CEO of World Precision Machinery's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Ming Lei Ge 0

3.3yrs

Tenure

0

Mr. Ming Lei Ge is the General Manager of World Precise Machinery (China) Co Ltd since August 2016 and served as its Chief Deputy General Manager since March 2016. Mr. Ge has been the Chief Executive Offic ...


Management Age and Tenure

3.9yrs

Average Tenure

46yo

Average Age

Experienced Management: B49's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

Experienced Board: B49's board of directors are considered experienced (8 years average tenure).


Insider Trading

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.


Management Team

  • Jianjun Shao (63yo)

    Executive Chairman

    • Tenure: 6.6yrs
  • Samuell Ng (42yo)

    Chief Financial Officer

    • Tenure: 11.4yrs
  • Baoping Ge

    Deputy GM & Chief Procurement Officer of WPM (China)

    • Tenure: 3.9yrs
  • Ming Lei Ge

    CEO & GM of WPM (China)

    • Tenure: 3.3yrs
  • Perry Yuen

    Company Secretary

    • Tenure: 0yrs
  • Guojun Bao (46yo)

    Chief Technology Officer & Chief Engineer of WPM (China)

    • Tenure: 3.9yrs

Board Members

  • Weiyao Wang

    Non-Executive & Non-Independent Director

    • Tenure: 15.3yrs
  • Jianjun Shao (63yo)

    Executive Chairman

    • Tenure: 6.6yrs
  • Lawrence Phang

    Lead Independent Director

    • Tenure: 6.6yrs
  • Yoke Hean Lim (65yo)

    Independent Director

    • Tenure: 9.3yrs

Company Information

World Precision Machinery Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: World Precision Machinery Limited
  • Ticker: B49
  • Exchange: SGX
  • Founded: 2004
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: S$80.000m
  • Shares outstanding: 400.00m
  • Website: https://www.wpmlimited.com

Number of Employees


Location

  • World Precision Machinery Limited
  • Picheng Town
  • Danyang
  • Jiangsu Province
  • 212311
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
B49SGX (Singapore Exchange)YesOrdinary SharesSGSGDApr 2006

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 12:46
End of Day Share Price2019/11/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.