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 Analysis

Mediocre balance sheet and overvalued.

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

Stable Share Price: 1001's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.0%

1001

3.1%

HK Trade Distributors

0.2%

HK Market


1 Year Return

-47.1%

1001

-37.1%

HK Trade Distributors

-22.0%

HK Market

Return vs Industry: 1001 underperformed the Hong Kong Trade Distributors industry which returned -37.8% over the past year.

Return vs Market: 1001 underperformed the Hong Kong Market which returned -21.6% over the past year.


Shareholder returns

1001IndustryMarket
7 Day-4.0%3.1%0.2%
30 Day-12.2%-22.4%-10.8%
90 Day-21.7%-28.2%-16.5%
1 Year-44.9%-47.1%-34.7%-37.1%-19.1%-22.0%
3 Year-60.5%-64.0%-34.4%-40.0%-3.7%-13.4%
5 Year-52.7%-61.3%-65.6%-70.9%-15.2%-28.8%

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 compared to its fair value and its price relative to the market?

28.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1001 (HK$0.36) is trading above our estimate of fair value (HK$0.21)

Significantly Below Fair Value: 1001 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1001 is poor value based on its PE Ratio (28.1x) compared to the Trade Distributors industry average (8.5x).

PE vs Market: 1001 is poor value based on its PE Ratio (28.1x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1001's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1001 is good value based on its PB Ratio (0.3x) compared to the HK Trade Distributors industry average (0.4x).


Next Steps

Future Growth

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

8.9%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hong Kong Shanghai Alliance Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

-54.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1001 has a large one-off gain of HK$109.1M impacting its September 30 2019 financial results.

Growing Profit Margin: 1001 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 1001's earnings have declined by -54.8% per year over the past 5 years.

Accelerating Growth: 1001 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 1001 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Trade Distributors industry (-1.1%).


Return on Equity

High ROE: 1001's Return on Equity (0.4%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: 1001's short term assets (HK$1.2B) exceed its short term liabilities (HK$1.1B).

Long Term Liabilities: 1001's short term assets (HK$1.2B) exceed its long term liabilities (HK$866.8M).


Debt to Equity History and Analysis

Debt Level: 1001's debt to equity ratio (155.4%) is considered high.

Reducing Debt: 1001's debt to equity ratio has reduced from 180.1% to 155.4% over the past 5 years.

Debt Coverage: 1001's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 1001's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 1001 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1001's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

5.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1001's dividend (5.56%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.57%).

High Dividend: 1001's dividend (5.56%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.33%).


Stability and Growth of Payments

Stable Dividend: 1001's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1001's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (155.9%), 1001's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Andrew Yao (53yo)

4.42s

Tenure

HK$10,712,000

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

Compensation vs Market: Andrew's total compensation ($USD1.38M) is above average for companies of similar size in the Hong Kong market ($USD227.09K).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Cho-Fai Yao
Chairman & CEO4.42yrsHK$10.71m14.54% HK$33.6m
Chi Chiu Lau
Executive Director and MD of Hong Kong Steel & International Trading4.42yrsHK$1.31mno data
Yu Lung Ching
Chief Financial Officer1.33yrsno datano data
Ching Han Lau
Human Resources Director11.25yrsno datano data
Wing Yan Yip
Group Treasurerno datano datano data
Yuen Sze Wong
Company Secretary1.25yrsno datano data
Zhong Xian Jiang
Managing Director of Shanghai Bao Shun Chong International Trading Company Limitedno datano datano data
Yiu Man Mak
Managing Director - Propertyno datano datano data
Ming Eric Deng
Managing Director of Building & Design Solutions - Mainland Chinano datano datano data

2.9yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 1001's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Cho-Fai Yao
Chairman & CEO4.42yrsHK$10.71m14.54% HK$33.6m
Chi Chiu Lau
Executive Director and MD of Hong Kong Steel & International Trading4.42yrsHK$1.31mno data
King-Ching Tam
Independent Non-Executive Director15.58yrsHK$225.00kno data
Yinquan Li
Independent Non-Executive Director1.75yrsHK$133.00kno data
Lin Bao Xu
Independent Non-Executive Director14yrsHK$207.00k0.82% HK$1.9m
Wing Sun Yeung
Independent Non-Executive Director6.08yrsHK$701.00kno data

10.0yrs

Average Tenure

65yo

Average Age

Experienced Board: 1001's board of directors are seasoned and experienced ( 10 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$230.844m
  • Shares outstanding: 641.23m
  • Website: https://www.hkshalliance.com

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 segments: Construction Materials Business, Building and Design Solution Business, Engineering Plastics Business, and Property Investment and Project Management. The company distributes construction materials, such as reinforcing steel, sheet piles, plates, and H-piles/H-beams; and reinforcement bars, including cut and bent reinforcement, and rebar couplers, as well as integrated rebar processing, rebars threading/coupling, traceability, and supply chain services. It also provides surface critical coils, such as cold roll, hot roll, electro galvanized, galvanized, and silicon steel products, as well as slitting, cut to length, and stamping services for the automotive, home appliance, and construction industries. In addition, the company trades in sanitary wares, kitchen cabinets, engineering plastics, and recycling steel; and engages in the steel recycling, property investment and holding, and project management businesses. Further, it installs kitchen cabinets; operates land situated in Tsing Yi; and provides fund management, management, investment advisory, asset and investment management, property agency, and investment consultancy services. Additionally, the company offers installation, inventory management, logistics, design, and technical support to developers, architects, and designers for its bathroom and kitchen products. It serves the commercial, government, hospitality, infrastructure, and residential industries. The company was formerly known as Van Shung Chong Holdings Limited and changed its name to Hong Kong Shanghai Alliance Holdings Limited in December 2015. Hong Kong Shanghai Alliance Holdings Limited was founded in 1961 and is headquartered in Wanchai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 14:52
End of Day Share Price2020/04/03 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.