Goldpac Group (3315)

[mrmoon]

Hi,

Here's some writeup on Goldpac, the top financial card solution provider in China and potentially a fintech play listed in HK.

Pls DYODD☺

http://myhuntingtripforvalue.blogspot.sg...c.html?m=1

[mrmoon]

Goldpac to announce results on 17 Aug.
Price stamp: 2.69

[mrmoon]

Cash rich, good cashflow & high dividend yield.

Goldpac (3315.HK) is ranked first in China and fourth in the world in the financial cards industry, and is trading at below 3x ex-cash PE (TTM) at current price.

http://myhuntingtripforvalue.blogspot.sg...3.html?m=1

[kelvesy]

A very stable yield of 10%. Backed by huge cash holdings and reputable management.

Did a blog post on it lately!

[ushs168]

Hey guys, glad that we see the same company.
this is an interesting company. cash rich, EV/EBITDA less than 1, 10% dividend.
Compare to his peers who are trading between 30-100 pe, this is definitely a catch.

very down to earth management, but they do not have a strong marketing team.

cheers

[dreamybear]

I had come across Goldpac some time ago, but didn't really follow up on it.

Goldpac certainly has strong financials, but being in the credit cards chip industry, my fear is it is in a sunset industry. In the near future, I think moblie payment apps may be more prevalent than credit cards around the world, just like in China ( E.g. just for ref : https://www.businessinsider.sg/alipay-we...?r=US&IR=T).

Notwithstanding the company's plans to foray into fintech, Goldpac's share price and revenue/profit seems flat during last few years(ref : www.aatocks.com). For credit cards issuance, I think the developed countries and China more or less should have peaked. For developing countries, I think their population is more into smart phone payment apps.

From my experience in HK stocks, we need to factor in exchange rate(i.e. HKD to SGD) which may fluctuate by 10% - 20%, transaction costs, dividend taxes, custody costs, etc. If the share price declines from the entry price, it may not be profitable just investing purely based on dividend yield(and provided the company does not cut its dividend for investment purposes).  

I must profess I do not know the stock well, I am just sharing general thoughts so if anyone has analysis on the company, please share.

[soros]

MSCI index released the results of the semi-annual index review. 31 stocks will be included and 38 stocks will be removed in MSCI China Small Cap Index. ( reported on 14 Nov 2018 byaastocks website. ) Goldpac ( 3315 ) is one of the removed stocks.

The recent interim report said :

As the world’s largest UnionPay brand payment product supplier,
the Group’s payment card shipments continued to grow and its
market share further expanded in the first half of 2018. A new high
of UnionPay IC card shipment volumes was recorded, subsequent to
the previous peak in the first half of 2015 during the China IC card
migration. As a result of market competition, the price for standard
payment cards has decreased, however, the growth in high value-
added fashion products alleviated part of this price pressure.
In the first half of 2018, the Group’s turnover was approximately
Renminbi (“RMB”)633.0 million, representing a year-on-year
decrease of approximately 8.4%, of which the turnover of embedded
software and secure payment products segment was approximately
RMB501.1 million, representing a year-on-year decrease of
approximately 10.7%, whilst the turnover of the platform and service
segment was approximately RMB131.9 million, representing an
increase of approximately 1.5% year-on-year.

[money]

MSCI index released the results of the semi-annual index review. 31 stocks will be included and 38 stocks will be removed in MSCI China Small Cap Index. ( reported on 14 Nov 2018 byaastocks website. )    Goldpac ( 3315 )  is one of the removed stocks.

The recent  interim report said :

As the world’s largest UnionPay brand payment product supplier,
the Group’s payment card shipments continued to grow and its
market share further expanded in the first half of 2018. A new high
of UnionPay IC card shipment volumes was recorded, subsequent to
the  previous  peak  in  the  first  half  of  2015  during  the  China  IC  card  
migration. As a result of market competition, the price for standard
payment  cards  has  decreased,  however,  the  growth  in  high  value-
added fashion products alleviated part of this price pressure.
In the first half of 2018, the Group’s turnover was approximately
Renminbi (“RMB”)633.0 million, representing a year-on-year
decrease of approximately 8.4%, of which the turnover of embedded
software and secure payment products segment was approximately
RMB501.1 million, representing a year-on-year decrease of
approximately 10.7%, whilst the turnover of the platform and service
segment was approximately RMB131.9 million, representing an
increase of approximately 1.5% year-on-year.

thanks soros for always updating us with the HK stocks