SEHK:1001

Stock Analysis Report

Hong Kong Shanghai Alliance Holdings

Executive Summary

Hong Kong Shanghai Alliance Holdings Limited, together with its subsidiaries, engages in stockholding and distribution of construction materials in Hong Kong and Mainland China.

Snowflake

Fundamentals

Moderate growth potential and overvalued.

Risks

  • Hong Kong Shanghai Alliance Holdings has significant price volatility in the past 3 months.
  • Hong Kong Shanghai Alliance Holdings's last earnings update was 189 days ago.
  • Hong Kong Shanghai Alliance Holdings is not covered by any analysts.

Share Price & News

How has Hong Kong Shanghai Alliance Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.4%

SEHK:1001

-1.3%

HK Trade Distributors

-0.005%

HK Market


1 Year Return

-26.4%

SEHK:1001

-5.8%

HK Trade Distributors

-13.0%

HK Market

1001 underperformed the Trade Distributors industry which returned -5.7% over the past year.

1001 underperformed the Market in Hong Kong which returned -13.2% over the past year.


Share holder returns

1001IndustryMarket
7 Day-5.4%-1.3%-0.005%
30 Day-8.6%-0.7%-1.1%
90 Day-24.3%-4.9%-8.6%
1 Year-24.8%-26.4%-1.9%-5.8%-9.8%-13.0%
3 Year-23.5%-30.3%-14.4%-24.1%30.9%18.1%
5 Year-52.3%-61.9%-46.9%-55.3%26.1%5.4%

Price Volatility Vs. Market

How volatile is Hong Kong Shanghai Alliance Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hong Kong Shanghai Alliance Holdings undervalued based on future cash flows and its price relative to the stock market?

0.36x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Hong Kong Shanghai Alliance Holdings to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Hong Kong Shanghai Alliance Holdings to establish if it is available at substantial discount.


Price Based on Earnings

Hong Kong Shanghai Alliance Holdings is loss making, we can't compare its value to the HK Trade Distributors industry average.

Hong Kong Shanghai Alliance Holdings is loss making, we can't compare the value of its earnings to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Hong Kong Shanghai Alliance Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Hong Kong Shanghai Alliance Holdings is good value based on assets compared to the HK Trade Distributors industry average.


Next Steps

Future Growth

How is Hong Kong Shanghai Alliance Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

36.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Hong Kong Shanghai Alliance Holdings is high growth as no revenue estimate data is available.

Hong Kong Shanghai Alliance Holdings's earnings are expected to grow significantly at over 20% yearly.

Unable to compare Hong Kong Shanghai Alliance Holdings's revenue growth to the Hong Kong market average as no estimate data is available.

Hong Kong Shanghai Alliance Holdings's earnings growth is expected to exceed the Hong Kong market average.

Hong Kong Shanghai Alliance Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Hong Kong Shanghai Alliance Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Hong Kong Shanghai Alliance Holdings performed over the past 5 years?

-42.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hong Kong Shanghai Alliance Holdings does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Hong Kong Shanghai Alliance Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Hong Kong Shanghai Alliance Holdings's 1-year growth to the HK Trade Distributors industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Hong Kong Shanghai Alliance Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Hong Kong Shanghai Alliance Holdings has efficiently used its assets last year compared to the HK Trade Distributors industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Hong Kong Shanghai Alliance Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Hong Kong Shanghai Alliance Holdings's financial position?


Financial Position Analysis

Hong Kong Shanghai Alliance Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Hong Kong Shanghai Alliance Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Hong Kong Shanghai Alliance Holdings's level of debt (142.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (104.1% vs 142.7% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on Hong Kong Shanghai Alliance Holdings's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

What is Hong Kong Shanghai Alliance Holdings's current dividend yield, its reliability and sustainability?

2.96%

Current Dividend Yield


Dividend Yield and Payments Analysis

Hong Kong Shanghai Alliance Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.1%).

Hong Kong Shanghai Alliance Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.95%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Hong Kong Shanghai Alliance Holdings's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Andrew Yao (52yo)

3.6yrs

Tenure

HK$9,968,000

Compensation

Mr. Cho-Fai Yao, also known as Andrew, J.P. has been Chief Executive Officer of Van Shung Chong Holdings Limited since November 25, 2015. Mr. Yao served as the Chief Executive Officer of Van Shung Chong Ho ...


CEO Compensation Analysis

Andrew's remuneration is higher than average for companies of similar size in Hong Kong.

Andrew's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.0yrs

Average Tenure

51.5yo

Average Age

The tenure for the Hong Kong Shanghai Alliance Holdings management team is about average.


Board Age and Tenure

9.2yrs

Average Tenure

64yo

Average Age

The tenure for the Hong Kong Shanghai Alliance Holdings board of directors is about average.


Insider Trading

No 3 month insider trading information.


Ownership Breakdown


Management Team

  • Zhong Xian Jiang (55yo)

    Managing Director of Shanghai Bao Shun Chong International Trading Company Limited

  • Charity Lau (56yo)

    Human Resources Director

    • Tenure: 10.4yrs
  • Ming Eric Deng (41yo)

    Managing Director of Building & Design Solutions - Mainland China

  • Charles Yip (48yo)

    Group Treasurer

  • Yuen Wong

    Company Secretary

    • Tenure: 0.4yrs
  • Daniel Mak (61yo)

    Managing Director - Property

  • Andrew Yao (52yo)

    Chairman & CEO

    • Tenure: 3.6yrs
    • Compensation: HK$9.97m
  • Patrick Lau (51yo)

    Executive Director and MD of Hong Kong Steel & International Trading

    • Compensation: HK$1.32m
  • Anthony Ching (48yo)

    Chief Financial Officer

    • Tenure: 0.5yrs

Board Members

  • Kenny Tam (69yo)

    Independent Non-Executive Director

    • Tenure: 14.8yrs
    • Compensation: HK$225.00k
  • Yinquan Li (63yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs
  • Andrew Yao (52yo)

    Chairman & CEO

    • Tenure: 19.9yrs
    • Compensation: HK$9.97m
  • Lin Xu (69yo)

    Independent Non-Executive Director

    • Tenure: 13.2yrs
    • Compensation: HK$207.00k
  • Patrick Lau (51yo)

    Executive Director and MD of Hong Kong Steel & International Trading

    • Tenure: 3.6yrs
    • Compensation: HK$1.32m
  • Mike Yeung (65yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: HK$180.00k

Company Information

Hong Kong Shanghai Alliance Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hong Kong Shanghai Alliance Holdings Limited
  • Ticker: 1001
  • Exchange: SEHK
  • Founded: 1961
  • Industry: trading companies and distributors
  • Sector: capital goods
  • Market Cap: HK$339.853m
  • Shares outstanding: 641.23m
  • Website: Click here

Number of Employees


Location

  • Hong Kong Shanghai Alliance Holdings Limited
  • East Town Building
  • Rooms 1103-05
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1001SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 1994

Biography

Hong Kong Shanghai Alliance Holdings Limited, together with its subsidiaries, engages in stockholding and distribution of construction materials in Hong Kong and Mainland China. It operates in four segment ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/19 12:37
End of Day Share Price2019/06/18 00:00
Earnings2018/09/30
Annual Earnings2018/03/31


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.