OTCPK:VARX.F

Stock Analysis Report

Executive Summary

BOE Varitronix Limited, an investment holding company, designs, manufactures, and sells liquid crystal display and related products the People’s Republic of China, Europe, the United States, South Korea, and internationally.


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has BOE Varitronix's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

VARX.F

-1.0%

US Semiconductor

0.06%

US Market


1 Year Return

n/a

VARX.F

38.8%

US Semiconductor

19.4%

US Market

Return vs Industry: Insufficient data to determine how VARX.F performed against the US Semiconductor industry.

Return vs Market: Insufficient data to determine how VARX.F performed against the US Market.


Shareholder returns

VARX.FIndustryMarket
7 Day0%-1.0%0.06%
30 Day-3.0%3.1%1.1%
90 Dayn/a14.9%8.9%
1 Yearn/a41.4%38.8%21.9%19.4%
3 Yearn/a91.3%81.0%48.9%39.3%
5 Yearn/a154.4%130.0%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is BOE Varitronix undervalued compared to its fair value and its price relative to the market?

123.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VARX.F ($0.32) is trading above our estimate of fair value ($0.01)

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


Price To Earnings Ratio

PE vs Industry: VARX.F is poor value based on its PE Ratio (121.5x) compared to the Semiconductor industry average (35.4x).

PE vs Market: VARX.F is poor value based on its PE Ratio (121.5x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: VARX.F is good value based on its PB Ratio (0.6x) compared to the US Semiconductor industry average (3.1x).


Next Steps

Future Growth

How is BOE Varitronix forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.9%

Forecasted Semiconductors 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 BOE Varitronix 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.


Next Steps

Past Performance

How has BOE Varitronix performed over the past 5 years?

-55.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VARX.F has high quality earnings.

Growing Profit Margin: VARX.F's current net profit margins (0.4%) are lower than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: VARX.F's earnings have declined by -55.9% per year over the past 5 years.

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

Earnings vs Industry: VARX.F had negative earnings growth (-30.6%) over the past year, making it difficult to compare to the Semiconductor industry average (-27.7%).


Return on Equity

High ROE: VARX.F's Return on Equity (0.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BOE Varitronix's financial position?


Financial Position Analysis

Short Term Liabilities: VARX.F's short term assets (HK$2.7B) exceed its short term liabilities (HK$499.8M).

Long Term Liabilities: VARX.F's short term assets (HK$2.7B) exceed its long term liabilities (HK$23.1M).


Debt to Equity History and Analysis

Debt Level: VARX.F is debt free.

Reducing Debt: VARX.F has no debt compared to 5 years ago when its debt to equity ratio was 19.4%.

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

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if VARX.F's debt is covered by short term assets.


Next Steps

Dividend

What is BOE Varitronix's current dividend yield, its reliability and sustainability?

0.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VARX.F's dividend (0.43%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: VARX.F's dividend (0.43%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: VARX.F is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: VARX.F is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: VARX.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

2.5yrs

Average board tenure


CEO

Ning Su (39yo)

1.1yrs

Tenure

HK$1,220,000

Compensation

Mr. Ning Su has been Chief Executive Officer AT BOE Varitronix Limited since January 1, 2019, serves as Executive Director since April 2016 and was its Co-Chief Executive Officer since April 28, 2016 until ...


CEO Compensation Analysis

Compensation vs Market: Ning's total compensation ($USD157.06K) is below average for companies of similar size in the US market ($USD1.11M).

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


Board Members

NamePositionTenureCompensationOwnership
Wenbao Gao
Chairman1.4yrsno datano data
Ning Su
CEO & Executive Director1.1yrsHK$1.22mno data
Chu Chang
Honorary Chairman12.7yrsno datano data
Ziqiang Hou
Independent Non-Executive Director14.9yrsHK$200.00kno data
Wing Yan Ko
Vice Chairlady1.1yrsHK$2.42m0.034% HK$74.4k
Ho Hwa Chu
Independent Non-Executive Director3.7yrsHK$200.00kno data
Yuk Kan Fung
Independent Non-Executive Director3.7yrsHK$200.00kno data
Xibin Shao
Non-Executive Director0.8yrsno datano data
Hao Jin
Non-Executive Director0.8yrsno datano data
Shujun Zhang
Non-Executive Director0.8yrsno datano data

2.5yrs

Average Tenure

50.5yo

Average Age

Experienced Board: VARX.F's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: VARX.F 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

BOE Varitronix Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BOE Varitronix Limited
  • Ticker: VARX.F
  • Exchange: OTCPK
  • Founded: 1978
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: HK$1.720b
  • Listing Market Cap: HK$221.369m
  • Shares outstanding: 735.18m
  • Website: https://www.boevx.com

Number of Employees


Location

  • BOE Varitronix Limited
  • Legend Tower
  • 35th Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VARX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
710SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
VTXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

BOE Varitronix Limited, an investment holding company, designs, manufactures, and sells liquid crystal display and related products the People’s Republic of China, Europe, the United States, South Korea, and internationally. It primarily provides thin film transistor modules. The company offers display products for use in automotive applications in audio/navigation, passive display audio, cluster, passive display cluster, E-mirror, HUD, and customized display products; and products for use in industrial applications in white goods, medical equipment, and other products. It also engages in property holding; and marketing and sales consulting activities. The company was formerly known as Varitronix International Limited and changed its name to BOE Varitronix Limited in July 2017. BOE Varitronix Limited was founded in 1978 and is headquartered in Kwun Tong, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:32
End of Day Share Price2020/01/30 00:00
Earnings2019/06/30
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.