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

Fundamentals

Limited growth with imperfect balance sheet.

Risks

  • Grand Ming Group Holdings is not covered by any analysts.

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


Market Performance


7 Day Return

-1.4%

1271

-1.1%

HK Construction

-2.7%

HK Market


1 Year Return

-1.2%

1271

-20.0%

HK Construction

-9.4%

HK Market

1271 outperformed the Construction industry which returned -20% over the past year.

1271 outperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

1271IndustryMarket
7 Day-1.4%-1.1%-2.7%
30 Day-0.2%3.9%1.8%
90 Day1.9%-13.4%-5.6%
1 Year0.8%-1.2%-16.6%-20.0%-6.2%-9.4%
3 Year21.6%15.0%-21.9%-29.9%14.3%2.7%
5 Year107.2%91.1%1.6%-13.9%16.7%-2.8%

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 based on future cash flows and its price relative to the stock market?

4%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Grand Ming Group Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Grand Ming Group Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Grand Ming Group Holdings is overvalued based on earnings compared to the HK Construction industry average.

Grand Ming Group Holdings is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Grand Ming Group Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Grand Ming Group Holdings is overvalued based on assets compared to the HK Construction industry average.


Next Steps

Future Growth

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

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Grand Ming Group Holdings is high growth as no revenue estimate data is available.

Grand Ming Group Holdings's earnings are expected to grow by 16.6% yearly, however this is not considered high growth (20% yearly).

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

Grand Ming Group Holdings's earnings growth is expected to exceed the Hong Kong market average.

Grand Ming Group 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 Grand Ming Group Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

-28.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Grand Ming Group Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Grand Ming Group Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Grand Ming Group Holdings's 1-year earnings growth is negative, it can't be compared to the HK Construction industry average.


Return on Equity

Grand Ming Group Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Grand Ming Group Holdings used its assets less efficiently than the HK Construction industry average last year based on Return on Assets.


Return on Capital Employed

Grand Ming Group Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Grand Ming Group Holdings's financial position?


Financial Position Analysis

Grand Ming Group Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Grand Ming Group Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Grand Ming Group Holdings's level of debt (141.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (45.9% vs 141.8% today).

Debt is not well covered by operating cash flow (2.7%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

2.03%

Current Dividend Yield


Dividend Yield and Payments Analysis

Grand Ming Group Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Grand Ming Group Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.16%).

Whilst dividend payments have been stable, Grand Ming Group Holdings has been paying a dividend for less than 10 years.

Dividend payments have increased, but Grand Ming Group Holdings only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


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

6.2yrs

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

Chi's remuneration is about average for companies of similar size in Hong Kong.

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


Board Age and Tenure

6.2yrs

Average Tenure

61.5yo

Average Age

The tenure for the Grand Ming Group Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Matthew Leung (53yo)

    Company Secretary

    • Tenure: 6.2yrs
  • Hung Ming Chan (65yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: HK$2.56m
  • Chi Lau (54yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$2.57m
  • Ying Wai Yuen (56yo)

    Executive Director

    • Tenure: 0yrs
    • Compensation: HK$2.65m
  • Wing Wo Kwan (51yo)

    CFO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$2.54m
  • King Fung Ngan (52yo)

    Director of Sales & Marketing

    • Tenure: 0yrs

Board Members

  • Bill Mok (58yo)

    Independent Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: HK$358.00k
  • Hung Ming Chan (65yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: HK$2.56m
  • Chi Lau (54yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$2.57m
  • Ying Wai Yuen (56yo)

    Executive Director

    • Tenure: 0yrs
    • Compensation: HK$2.65m
  • Wing Wo Kwan (51yo)

    CFO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$2.54m
  • Ka Tsui (66yo)

    Independent Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: HK$358.00k
  • Yau Kan (66yo)

    Independent Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: HK$358.00k
  • Johnny Lee (75yo)

    Independent Non-Executive Director

    • Tenure: 6.2yrs
    • 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$3.428b
  • 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 construc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 12:56
End of Day Share Price2019/09/20 00:00
Earnings2019/03/31
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.