Hongzhou Liu has been the CEO of China Electronics Huada Technology Company Limited (HKG:85) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for China Electronics Huada Technology

How Does Hongzhou Liu’s Compensation Compare With Similar Sized Companies?

According to our data, China Electronics Huada Technology Company Limited has a market capitalization of HK$1.4b, and pays its CEO total annual compensation worth HK$1.8m. That’s a modest increase of 1.5% on the prior year year. We looked at a group of companies with market capitalizations from HK$783m to HK$3.1b, and the median CEO compensation was HK$2.1m.

That means Hongzhou Liu receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at China Electronics Huada Technology, below.

Is China Electronics Huada Technology Company Limited Growing?

Over the last three years China Electronics Huada Technology Company Limited has shrunk its earnings per share by an average of 1.3% per year. It achieved revenue growth of 25% over the last year.

As investors, we do are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.

We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has China Electronics Huada Technology Company Limited Been A Good Investment?

With a three year total loss of 74%, China Electronics Huada Technology Company Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

Hongzhou Liu is paid around what is normal the leaders of comparable size companies.

The company cannot boast particularly strong per share growth. And shareholder returns have been disappointing over the last three years. So suffice it to say we don’t think the compensation is modest! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling China Electronics Huada Technology Company Limited (free visualization of insider trades).

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.