InfoVision Optoelectronics (Kunshan) Co., Ltd. manufactures and sells LCD display panels. Its products include mobile panels, desktop and laptop panels, tablet and industrial personal computer panels, notebook panels, vehicle displays, and automotive displays. The company was founded in 2005 and is based in Kunshan, China. InfoVision Optoelectronics (Kunshan) Co., Ltd. is a subsidiary of Kunshan Guochuang Investment Group Co., Ltd.

China

InfoVision Optoelectronics (Kunshan) Co., Ltd.

Industrials

The company pays dividends from time to time. It has paid dividends in less than half the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. On average, the company pays dividends annually. 

688055.SS reported revenue of CNY 3 082mn in the last 12 months, down 10% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 2% from FY24 to CNY -0.06.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 22ppts over six months and grown 1ppts faster in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The company has reported weak EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -5.9% in the last 12 months, a decline from -2.8% in FY23. 

Historically, 688055.SS has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -6.1%, a growth from -7.4% in FY23. 

InfoVision Optoelectronics (Kunshan) Co., Ltd. reported a return on equity (RoE) of -4.3% in the last 12 months, up from -6.0% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to -4.0%, below the peers. 

Another important profitability metric, return on assets (RoA), amounted to -2.7% in the last 12 months, an increase from -3.9% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -0.2 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

688055.SS boasts high trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is usually stable and is average on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. 

No other major risks have been identified.

The risk of default is moderate. We note low margin volatility, adequate interest coverage, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, bleak profitability, negligible return on capital, and weak debt servicing capacity.

In highly turbulent market conditions, 688055.SS is not overly volatile. In other words, the stock will fall less than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be low. 

In normal market circumstances, 688055.SS is moderately volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move slightly wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from limited to average. We would also like to highlight the average intraday volatility of the instrument. 

Considering past and projected metrics, the stock is moderately 'expensive' compared to its peers. In particular, the stock is trading at neutral levels on P/FCF. 

InfoVision Optoelectronics (Kunshan) Co., Ltd.

CN¥ 3.4

4

InfoVision Optoelectronics (Kunshan) Co., Ltd.

CN¥ 3.4

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CN¥ 3.4

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