Grand Ming Group Holdings (SEHK:1271) - Share price, News & Analysis

1271 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	3/6
Financial Health	2/6
Dividends	3/6

1271 Stock Overview

Grand Ming Group Holdings Limited, an investment holding company, engages in the building construction, property leasing, and property development businesses in Hong Kong.

Rewards

Trading at 63.9% below our estimate of its fair value

Earnings grew by 146.4% over the past year

Risk Analysis

Earnings have declined by 18% per year over past 5 years

Interest payments are not well covered by earnings

Unstable dividend track record

Large one-off items impacting financial results

+ 1 more risk

Grand Ming Group Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Grand Ming Group Holdings
Historical stock prices
Current Share Price	HK$7.73
52 Week High	HK$8.30
52 Week Low	HK$7.40
Beta	0.27
1 Month Change	-3.25%
3 Month Change	3.34%
1 Year Change	-3.01%
3 Year Change	226.16%
5 Year Change	227.67%
Change since IPO	2,389.87%

Shareholder Returns

	1271	HK Construction	HK Market
7D	1.0%	-1.1%	1.2%
1Y	-3.0%	2.0%	-23.3%

Return vs Industry: 1271 underperformed the Hong Kong Construction industry which returned 2% over the past year.

Return vs Market: 1271 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 1271's price volatile compared to industry and market?
1271 volatility
1271 Average Weekly Movement	2.2%
Construction Industry Average Movement	7.0%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.7%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 1271 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 1271's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1995	185	Chi Wah Lau	https://www.grandming.com.hk

Grand Ming Group Holdings Limited, an investment holding company, engages in the building construction, property leasing, and property development businesses in Hong Kong. The Construction segment constructs residential and commercial buildings, as well as data centers. The Property Leasing segment is involved in leasing data centers.

Grand Ming Group Holdings Fundamentals Summary

How do Grand Ming Group Holdings's earnings and revenue compare to its market cap?
1271 fundamental statistics
Market Cap	HK$10.97b
Earnings (TTM)	HK$148.05m
Revenue (TTM)	HK$1.29b

74.1x

P/E Ratio

8.5x

P/S Ratio

Is 1271 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1271 income statement (TTM)
Revenue	HK$1.29b
Cost of Revenue	HK$1.05b
Gross Profit	HK$242.21m
Other Expenses	HK$94.16m
Earnings	HK$148.05m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.10
Gross Margin	18.74%
Net Profit Margin	11.46%
Debt/Equity Ratio	180.7%

How did 1271 perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

77%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 1271 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1271?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1271. This is calculated by dividing 1271's market cap by their current preferred multiple.
What is 1271's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$10.97b

1271 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	11.4x
Enterprise Value/EBITDA	74.2x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 1271's PE Ratio compare to its peers?

1271 PE Ratio vs Peers

The above table shows the PE ratio for 1271 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	20.4x

Forward PE

Price-To-Earnings vs Peers: 1271 is expensive based on its Price-To-Earnings Ratio (74.1x) compared to the peer average (20.4x).

Price to Earnings Ratio vs Industry

How does 1271's PE Ratio compare vs other companies in the Hong Kong Construction Industry?

Price-To-Earnings vs Industry: 1271 is expensive based on its Price-To-Earnings Ratio (74.1x) compared to the Hong Kong Construction industry average (10.9x)

Price to Earnings Ratio vs Fair Ratio

What is 1271's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1271 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	74.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1271's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 1271 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1271 (HK$7.73) is trading below our estimate of fair value (HK$21.43)

Significantly Below Fair Value: 1271 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1271's PEG Ratio to determine if it is good value.

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Future Growth

How is Grand Ming Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.2%

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 Grand Ming Group 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.

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Take a look at our analysis of 1271’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
Grand Ming Group Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Grand Ming Group Holdings performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-18.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1271 has a large one-off gain of HK$66.5M impacting its September 30 2021 financial results.

Growing Profit Margin: 1271's current net profit margins (11.5%) are higher than last year (4.5%).

Past Earnings Growth Analysis

Earnings Trend: 1271's earnings have declined by 18% per year over the past 5 years.

Accelerating Growth: 1271's earnings growth over the past year (146.4%) exceeds its 5-year average (-18% per year).

Earnings vs Industry: 1271 earnings growth over the past year (146.4%) exceeded the Construction industry 0.5%.

Return on Equity

High ROE: 1271's Return on Equity (6.7%) is considered low.

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Financial Health

How is Grand Ming Group Holdings's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1271's short term assets (HK$4.6B) do not cover its short term liabilities (HK$5.0B).

Long Term Liabilities: 1271's short term assets (HK$4.6B) exceed its long term liabilities (HK$2.7B).

Debt to Equity History and Analysis

Debt Level: 1271's net debt to equity ratio (169.3%) is considered high.

Reducing Debt: 1271's debt to equity ratio has increased from 87.9% to 180.7% over the past 5 years.

Debt Coverage: 1271's debt is well covered by operating cash flow (28.2%).

Interest Coverage: 1271's interest payments on its debt are not well covered by EBIT (2.6x coverage).

Balance Sheet

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Dividend

What is Grand Ming Group Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.62%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1271's dividend (3.62%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.76%).

High Dividend: 1271's dividend (3.62%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).

Stability and Growth of Payments

Stable Dividend: 1271 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1271's dividend payments have increased, but the company has only paid a dividend for 9 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (76.7%), 1271's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (30.4%), 1271's dividend payments are well covered by cash flows.

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Management

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

8.9yrs

Average board tenure

CEO

Chi Wah Lau (56 yo)

no data

Tenure

HK$3,169,000

Compensation

Mr. Chi Wah Lau serves as the Chief Executive Officer and Executive Director of Grand Ming Group Holdings Limited. Mr. Lau holds a Honour Diploma in Accountancy from the Lingnan College (now known as the L...

CEO Compensation Analysis

Compensation vs Market: Chi Wah's total compensation ($USD403.73K) is below average for companies of similar size in the Hong Kong market ($USD585.06K).

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

Board Members

Experienced Board: 1271's board of directors are considered experienced (8.9 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/09/30
Annual Earnings	2021/03/31