TSEC:4958

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Zhen Ding Technology Holding

Executive Summary

Zhen Ding Technology Holding Limited, together with its subsidiaries, engages in the manufacturing and sale of various printed circuit board (PCB) products in the United States, Mainland China, Taiwan, Singapore, and internationally. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Zhen Ding Technology Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 4958 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 4958's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.4%

4958

-2.2%

TW Electronic

2.4%

TW Market


1 Year Return

-13.0%

4958

17.8%

TW Electronic

31.3%

TW Market

Return vs Industry: 4958 underperformed the TW Electronic industry which returned 17.8% over the past year.

Return vs Market: 4958 underperformed the TW Market which returned 31.3% over the past year.


Shareholder returns

4958IndustryMarket
7 Day-0.4%-2.2%2.4%
30 Day-0.8%12.3%12.4%
90 Day-11.7%23.7%23.2%
1 Year-10.1%-13.0%22.0%17.8%35.9%31.3%
3 Year97.4%73.8%33.5%17.7%58.4%40.6%
5 Year109.6%67.1%113.9%75.2%138.4%96.6%

Long-Term Price Volatility Vs. Market

How volatile is Zhen Ding Technology Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Zhen Ding Technology Holding undervalued compared to its fair value and its price relative to the market?

14.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 4958 (NT$117) is trading above our estimate of fair value (NT$67.59)

Significantly Below Fair Value: 4958 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 4958 is good value based on its PE Ratio (14.2x) compared to the TW Electronic industry average (16.9x).

PE vs Market: 4958 is good value based on its PE Ratio (14.2x) compared to the TW market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: 4958 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 4958's PB Ratio (1.6x) is in line with the TW Electronic industry average.


Next Steps

Future Growth

How is Zhen Ding Technology Holding forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4958's forecast earnings growth (22% per year) is above the savings rate (0.8%).

Earnings vs Market: 4958's earnings (22% per year) are forecast to grow faster than the TW market (18.6% per year).

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

Revenue vs Market: 4958's revenue (12.2% per year) is forecast to grow faster than the TW market (11.2% per year).

High Growth Revenue: 4958's revenue (12.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4958's Return on Equity is forecast to be low in 3 years time (13.9%).


Next Steps

Past Performance

How has Zhen Ding Technology Holding performed over the past 5 years?

11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4958 has high quality earnings.

Growing Profit Margin: 4958's current net profit margins (6.3%) are lower than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: 4958's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: 4958's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 4958 had negative earnings growth (-13%) over the past year, making it difficult to compare to the Electronic industry average (5%).


Return on Equity

High ROE: 4958's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is Zhen Ding Technology Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 4958's short term assets (NT$80.9B) exceed its short term liabilities (NT$38.6B).

Long Term Liabilities: 4958's short term assets (NT$80.9B) exceed its long term liabilities (NT$16.8B).


Debt to Equity History and Analysis

Debt Level: 4958's debt to equity ratio (22.8%) is considered satisfactory.

Reducing Debt: 4958's debt to equity ratio has reduced from 54.1% to 22.8% over the past 5 years.

Debt Coverage: 4958's debt is well covered by operating cash flow (90.8%).

Interest Coverage: 4958 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Zhen Ding Technology Holding current dividend yield, its reliability and sustainability?

3.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 4958's dividend (3.85%) is higher than the bottom 25% of dividend payers in the TW market (2.11%).

High Dividend: 4958's dividend (3.85%) is low compared to the top 25% of dividend payers in the TW market (5.16%).


Stability and Growth of Payments

Stable Dividend: 4958 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 4958's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.5%), 4958's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 4958's dividends in 3 years are forecast to be well covered by earnings (45.6% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Ting-Chuan Lee

3.67yrs

Tenure

Mr. Ting-Chuan Lee serves as Director at Zhen Ding Technology Holding Limited since June 19, 2020. He has been General Manager of Zhen Ding Technology Holding Limited since May 11, 2017. Mr. Lee had been C...


Leadership Team

NamePositionTenureCompensationOwnership
Ting-Chuan Lee
GM & Director3.67yrsno datano data
Ling Tun
Financial Director2.83yrsno datano data
Ming-Chi Chang
Senior Director of Corporate Planning & Investment Departmentno datano datano data
Jin-Ten Chang
Accounting Director3.67yrsno datano data
Yang Huang
Senior Director of Sales Marketing Departmentno datano datano data
Chang-Yao Chen
Senior Vice President14.58yrsno datano data
Yin-Shen Chin
Senior Vice Presidentno datano datano data
Ying Sheng Jin
Senior Vice Presidentno datano datano data
Kuo Pin Li
Head of Audit & Senior VPno datano datano data

3.7yrs

Average Tenure

Experienced Management: 4958's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ting-Chuan Lee
GM & Director3.67yrsno datano data
Zhong Xi Lee
Independent Director9.58yrsno datano data
Che Hung Yu
Representative Director7.92yrsno datano data
Chang-Fang Shen
Chairman14.58yrsno data0.44%
NT$ 478.2m
Chih-Cheng Chou
Independent Director9.58yrsno datano data
Chi-Hsien Lee
Independent Director0.58yrno datano data
Chen-Fu Chien
Independent Director0.58yrno datano data

7.9yrs

Average Tenure

Experienced Board: 4958's board of directors are considered experienced (7.9 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 been diluted in the past year, with total shares outstanding growing by 5%.


Top Shareholders

Company Information

Zhen Ding Technology Holding Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zhen Ding Technology Holding Limited
  • Ticker: 4958
  • Exchange: TSEC
  • Founded: 2006
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: NT$108.911b
  • Shares outstanding: 947.05m
  • Website: https://www.zdtco.com

Number of Employees


Location

  • Zhen Ding Technology Holding Limited
  • Yanluo Road
  • Shenzhen Town
  • Shenzhen
  • Guangdong Province
  • 518105
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4958TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDDec 2011

Biography

Zhen Ding Technology Holding Limited, together with its subsidiaries, engages in the manufacturing and sale of various printed circuit board (PCB) products in the United States, Mainland China, Taiwan, Sin...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 08:44
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
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.