SEHK:1271

Stock Analysis Report

Grand Ming Group Holdings

Executive Summary

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


Snowflake Analysis

Imperfect balance sheet with poor track record.

Share Price & News

How has Grand Ming Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1271 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

1271

-2.7%

HK Construction

-4.1%

HK Market


1 Year Return

-0.6%

1271

-19.7%

HK Construction

-0.5%

HK Market

Return vs Industry: 1271 exceeded the Hong Kong Construction industry which returned -16.2% over the past year.

Return vs Market: 1271 matched the Hong Kong Market which returned -0.7% over the past year.


Shareholder returns

1271IndustryMarket
7 Day1.7%-2.7%-4.1%
30 Day1.2%-2.0%-1.2%
90 Day1.0%-1.1%3.4%
1 Year1.4%-0.6%-15.8%-19.7%3.2%-0.5%
3 Year21.3%14.7%-29.4%-37.1%20.4%8.2%
5 Year18.4%8.9%-20.1%-32.0%19.0%-0.9%

Price Volatility Vs. Market

How volatile is Grand Ming Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Grand Ming Group Holdings undervalued compared to its fair value and its price relative to the market?

24.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1271 (HK$4.76) is trading above our estimate of fair value (HK$1.25)

Significantly Below Fair Value: 1271 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1271 is poor value based on its PE Ratio (23.8x) compared to the Construction industry average (9.9x).

PE vs Market: 1271 is poor value based on its PE Ratio (23.8x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: 1271 is overvalued based on its PB Ratio (1.2x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

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

11.1%

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.


Next Steps

Past Performance

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

-28.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1271 has a large one-off gain of HK$36.9M impacting its September 30 2019 financial results.

Growing Profit Margin: 1271's current net profit margins (20%) are higher than last year (17.2%).


Past Earnings Growth Analysis

Earnings Trend: 1271's earnings have declined by -28.6% per year over the past 5 years.

Accelerating Growth: 1271's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1271 had negative earnings growth (-6.6%) over the past year, making it difficult to compare to the Construction industry average (-12.3%).


Return on Equity

High ROE: 1271's Return on Equity (5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Grand Ming Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1271's short term assets (HK$2.7B) exceed its short term liabilities (HK$1.2B).

Long Term Liabilities: 1271's short term assets (HK$2.7B) do not cover its long term liabilities (HK$3.3B).


Debt to Equity History and Analysis

Debt Level: 1271's debt to equity ratio (146.2%) is considered high.

Reducing Debt: 1271's debt to equity ratio has increased from 45.2% to 146.2% over the past 5 years.

Debt Coverage: 1271's debt is not well covered by operating cash flow (0.09%).

Interest Coverage: 1271's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet

Inventory Level: 1271 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1271's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

2.01%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%2.2%markettop25%6.2%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1271's dividend (2.06%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 1271's dividend (2.06%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1271 has been paying a dividend for less than 10 years.

Growing Dividend: 1271's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.1%), 1271's dividend payments are 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

What is the CEO of Grand Ming Group Holdings's salary, the management and board of directors tenure and is there insider trading?

6.5yrs

Average board tenure


CEO

Chi Lau (54yo)

0yrs

Tenure

HK$2,565,000

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's total compensation ($USD329.89K) is about average for companies of similar size in the Hong Kong market ($USD340.45K).

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


Board Age and Tenure

6.5yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 1271's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

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.


Management Team

  • Matthew Leung (53yo)

    Company Secretary

    • Tenure: 6.5yrs
  • Hung Ming Chan (65yo)

    Executive Chairman

    • Compensation: HK$2.56m
  • Chi Lau (54yo)

    CEO & Executive Director

    • Compensation: HK$2.57m
  • Ying Wai Yuen (56yo)

    Executive Director

    • Compensation: HK$2.65m
  • Wing Wo Kwan (51yo)

    CFO & Executive Director

    • Compensation: HK$2.54m
  • King Fung Ngan (52yo)

    Director of Sales & Marketing


    Board Members

    • Bill Mok (58yo)

      Independent Non-Executive Director

      • Tenure: 6.5yrs
      • Compensation: HK$358.00k
    • Hung Ming Chan (65yo)

      Executive Chairman

      • Compensation: HK$2.56m
    • Chi Lau (54yo)

      CEO & Executive Director

      • Compensation: HK$2.57m
    • Ying Wai Yuen (56yo)

      Executive Director

      • Compensation: HK$2.65m
    • Wing Wo Kwan (51yo)

      CFO & Executive Director

      • Compensation: HK$2.54m
    • Ka Tsui (66yo)

      Independent Non-Executive Director

      • Tenure: 6.5yrs
      • Compensation: HK$358.00k
    • Yau Kan (66yo)

      Independent Non-Executive Director

      • Tenure: 6.5yrs
      • Compensation: HK$358.00k
    • Johnny Lee (75yo)

      Independent Non-Executive Director

      • Tenure: 6.5yrs
      • Compensation: HK$358.00k

    Company Information

    Grand Ming Group Holdings Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Grand Ming Group Holdings Limited
    • Ticker: 1271
    • Exchange: SEHK
    • Founded: 1995
    • Industry: Construction and Engineering
    • Sector: Capital Goods
    • Market Cap: HK$3.457b
    • Shares outstanding: 709.77m
    • Website: https://www.grandming.com.hk

    Number of Employees


    Location

    • Grand Ming Group Holdings Limited
    • Railway Plaza
    • 22nd Floor
    • Tsim Sha Tsui
    • Kowloon
    • Hong Kong

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    1271SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 2013

    Biography

    Grand Ming Group Holdings Limited, an investment holding company, engages in the building construction, property leasing, and property development businesses in Hong Kong. Its Construction segment constructs residential and commercial buildings, as well as data centers. The company’s Property Leasing segment is involved in the lease of data centers and office premises. Its Property Development segment develops and sells residential properties. The company was founded in 1995 and is headquartered in Tsim Sha Tsui, Hong Kong. Grand Ming Group Holdings Limited is a subsidiary of Chan HM Company Limited. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/26 13:11
    End of Day Share Price2020/01/24 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.