Key Insights
- Wuxi Sunlit Science and Technology's Annual General Meeting to take place on 26th of June
- Total pay for CEO Deqiang Zhang includes CN¥360.0k salary
- The total compensation is 66% less than the average for the industry
- Wuxi Sunlit Science and Technology's EPS grew by 130% over the past three years while total shareholder return over the past three years was 26%
Shareholders will be pleased by the robust performance of Wuxi Sunlit Science and Technology Company Limited (HKG:1289) recently and this will be kept in mind in the upcoming AGM on 26th of June. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.
View our latest analysis for Wuxi Sunlit Science and Technology
How Does Total Compensation For Deqiang Zhang Compare With Other Companies In The Industry?
Our data indicates that Wuxi Sunlit Science and Technology Company Limited has a market capitalization of HK$145m, and total annual CEO compensation was reported as CN¥613k for the year to December 2023. That's mostly flat as compared to the prior year's compensation. We note that the salary of CN¥360.0k makes up a sizeable portion of the total compensation received by the CEO.
In comparison with other companies in the Hong Kong Machinery industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥1.8m. Accordingly, Wuxi Sunlit Science and Technology pays its CEO under the industry median. Furthermore, Deqiang Zhang directly owns HK$34m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | CN¥360k | CN¥360k | 59% |
| Other | CN¥253k | CN¥252k | 41% |
| Total Compensation | CN¥613k | CN¥612k | 100% |
Speaking on an industry level, nearly 77% of total compensation represents salary, while the remainder of 23% is other remuneration. It's interesting to note that Wuxi Sunlit Science and Technology allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Wuxi Sunlit Science and Technology Company Limited's Growth
Over the past three years, Wuxi Sunlit Science and Technology Company Limited has seen its earnings per share (EPS) grow by 130% per year. Its revenue is up 51% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Wuxi Sunlit Science and Technology Company Limited Been A Good Investment?
With a total shareholder return of 26% over three years, Wuxi Sunlit Science and Technology Company Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
To Conclude...
The company's overall performance, while not bad, could be better. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for Wuxi Sunlit Science and Technology that investors should look into moving forward.
Switching gears from Wuxi Sunlit Science and Technology, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com