OTCPK:SIMT.F

Stock Analysis Report

Executive Summary

SIM Technology Group Limited, an investment holding company, operates in the mobile communication and Internet of Things (IOT) industry.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has SIM Technology Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-14.3%

SIMT.F

-12.5%

US Communications

-10.6%

US Market


1 Year Return

-25.0%

SIMT.F

-21.4%

US Communications

5.2%

US Market

Return vs Industry: SIMT.F underperformed the US Communications industry which returned -21.4% over the past year.

Return vs Market: SIMT.F underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

SIMT.FIndustryMarket
7 Day-14.3%-12.5%-10.6%
30 Day-14.3%-13.6%-8.5%
90 Day0%-10.7%-4.6%
1 Year-25.0%-25.0%-19.7%-21.4%7.4%5.2%
3 Year-23.1%-23.1%14.9%7.5%31.7%23.2%
5 Year-40.7%-40.7%40.6%24.6%56.4%39.3%

Price Volatility Vs. Market

How volatile is SIM Technology Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SIM Technology Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SIMT.F ($0.03) is trading below our estimate of fair value ($0.58)

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


Price To Earnings Ratio

PE vs Industry: SIMT.F is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: SIMT.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SIMT.F is good value based on its PB Ratio (0.3x) compared to the US Communications industry average (1.8x).


Next Steps

Future Growth

How is SIM Technology Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.9%

Forecasted Tech 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 SIM Technology Group 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

  • Examine whether SIM Technology Group is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access SIM Technology Group's filings and announcements here.
  • Explore growth companies in the Tech industry.

Past Performance

How has SIM Technology Group performed over the past 5 years?

31.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIMT.F is currently unprofitable.

Growing Profit Margin: SIMT.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SIMT.F is unprofitable, but has reduced losses over the past 5 years at a rate of 31.6% per year.

Accelerating Growth: Unable to compare SIMT.F's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SIMT.F is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-19.9%).


Return on Equity

High ROE: SIMT.F has a negative Return on Equity (-9.29%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SIM Technology Group's financial position?


Financial Position Analysis

Short Term Liabilities: SIMT.F's short term assets (HK$1.7B) exceed its short term liabilities (HK$656.2M).

Long Term Liabilities: SIMT.F's short term assets (HK$1.7B) exceed its long term liabilities (HK$150.2M).


Debt to Equity History and Analysis

Debt Level: SIMT.F's debt to equity ratio (5.2%) is considered satisfactory.

Reducing Debt: SIMT.F's debt to equity ratio has reduced from 16.5% to 5.2% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: SIMT.F's debt is covered by short term assets (assets are 16.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SIMT.F has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: SIMT.F has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is SIM Technology Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.6%markettop25%4.1%industryaverage3.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

Dividend Coverage: SIMT.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 SIMT.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?

8.0yrs

Average board tenure


CEO

Jun Liu (47yo)

5.4yrs

Tenure

HK$1,341,000

Compensation

Mr. Jun Liu has been the Chief Executive Officer at SIM Technology Group Ltd. since September 2014. Mr. Liu joined SIM Technology in 2009 after the acquisition by SIM Technology of (Smartwireless Technolog ...


CEO Compensation Analysis

Compensation vs Market: Jun's total compensation ($USD172.06K) is below average for companies of similar size in the US market ($USD535.60K).

Compensation vs Earnings: Jun's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Man Ying Yeung
Chairman of the Board0yrsno data0.14% HK$105.3k
Jun Liu
CEO & Executive Director5.4yrsHK$1.34m0.041% HK$30.8k
Cho Tung Wong
President & Executive Director15.3yrsno data19.71% HK$14.7m
Rongrong Tang
VP of the Business Operation Headquarter & Executive Director15.1yrsHK$868.00kno data
Hing Hung Liu
Independent Non-Executive Director11.4yrsHK$156.00kno data
Tianmiao Wang
Independent Non-Executive Director2.8yrsHK$156.00kno data
Zhe Wu
Independent Non-Executive Director2.8yrsHK$156.00kno data

8.0yrs

Average Tenure

62yo

Average Age

Experienced Board: SIMT.F's board of directors are considered experienced (8 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.


Top Shareholders

Company Information

SIM Technology Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SIM Technology Group Limited
  • Ticker: SIMT.F
  • Exchange: OTCPK
  • Founded: 1986
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: HK$581.263m
  • Listing Market Cap: HK$74.582m
  • Shares outstanding: 2.42b
  • Website: https://www.sim.com

Number of Employees


Location

  • SIM Technology Group Limited
  • Billion Trade Centre
  • Unit 1206
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2000SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2005
SIMT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2005
912000TSEC (Taiwan Stock Exchange)TDR EACH REPR 2 SHSTWTWDApr 2011

Biography

SIM Technology Group Limited, an investment holding company, operates in the mobile communication and Internet of Things (IOT) industry. It operates through six segments: Handsets and IOT Terminals Business, Electronic Manufacturing Services Business, IOT System and Online-to-Offline Business, Intelligent Manufacturing Business, Property Development, and Property Management. The company offers handsets and IOT terminals; and 2G, 3G, and 4G wireless communication modules. It also provides capacitor panels and LCD modules for mobile phones and portable devices; administrative and finance lease services; building design and construction services of smart homes; logistics services; hand-sets original design manufacturing and electronics manufacturing, as well as operation services; and online to online equipment. In addition, the company develops automated test equipment; trades in snacks; and holds land use rights. SIM Technology Group Limited was founded in 1986 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 Analysis2020/02/28 00:56
End of Day Share Price2020/02/26 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.