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

Imperfect balance sheet with limited growth.

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

0.6%

1271

0.8%

HK Construction

2.2%

HK Market


1 Year Return

-1.4%

1271

-19.8%

HK Construction

-1.3%

HK Market

Return vs Industry: 1271 exceeded the Hong Kong Construction industry which returned -19.8% over the past year.

Return vs Market: 1271 matched the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

1271IndustryMarket
7 Day0.6%0.8%2.2%
30 Day-1.4%-5.4%-2.9%
90 Day1.9%-10.6%-5.8%
1 Year0.6%-1.4%-16.6%-19.8%2.3%-1.3%
3 Year20.8%14.3%-24.1%-32.3%15.6%3.9%
5 Year107.2%91.1%0.3%-14.8%20.1%0.06%

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

Undervalued: 1271 (HK$4.83) is trading below our estimate of fair value (HK$5.03)

Significantly Undervalued: 1271 is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: 1271 is poor value based on its PE Ratio (23x) compared to the Construction industry average (10.2x).

PE vs Market: 1271 is poor value based on its PE Ratio (23x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: 1271 is overvalued based on its PB Ratio (1.2x) compared to the HK Construction industry average (1.1x).


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?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 1271's forecast earnings growth (16.5% per year) is above the savings rate (2%).

Earnings vs Market: 1271's earnings (16.5% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

High Growth Earnings: 1271's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1271's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1271's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if 1271's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: 1271's earnings have declined by -28% 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 (-13.3%) over the past year, making it difficult to compare to the Construction industry average (-12.8%).


Return on Equity

High ROE: 1271's Return on Equity (5.3%) is considered low.


Return on Assets

ROA vs Industry: 1271's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 1271's Return on Capital Employed has declined over the past 3 years.


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$2.6B) exceeds its short term liabilities (HK$977.6M)

Long Term Liabilities: 1271's short term assets (2.6B) do not cover its long term liabilities (3.3B)


Debt to Equity History and Analysis

Debt Level: 1271's debt to equity ratio (141.8%) is considered high

Reducing Debt: 1271's debt to equity ratio has increased from 45.9% to 141.8% over the past 5 years.

Debt Coverage: 1271's debt is not well covered by operating cash flow (2.7%).

Interest Coverage: 1271's interest payments on its debt are well covered by EBIT (4.1x 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 0.6x 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 vs Market

company2.0%marketbottom25%2.3%markettop25%6.3%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 1271's dividend (2.03%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1271's dividend (2.03%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

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 (46.7%), 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?

6.3yrs

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 ($USD327.00K) is about average for companies of similar size in the Hong Kong market ($USD302.46K).

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


Board Age and Tenure

6.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 1271's board of directors are considered experienced (6.3 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


Management Team

  • Matthew Leung (53yo)

    Company Secretary

    • Tenure: 6.3yrs
  • 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: 6.3yrs
    • 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: 6.3yrs
    • Compensation: HK$358.00k
  • Yau Kan (66yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$358.00k
  • Johnny Lee (75yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • 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$3.435b
  • 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 Analysis2019/10/14 12:50
End of Day Share Price2019/10/14 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.

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