Loading...

SFK Construction Holdings

SEHK:1447
Snowflake Description

Adequate balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1447
SEHK
HK$760M
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

SFK Construction Holdings Limited engages in the construction and maintenance of building and civil engineering projects primarily in Hong Kong. The last earnings update was 96 days ago. More info.


Add to Portfolio Compare Print
1447 Share Price and Events
7 Day Returns
3.3%
SEHK:1447
1.1%
HK Construction
0.8%
HK Market
1 Year Returns
-37.9%
SEHK:1447
-11.1%
HK Construction
-4.4%
HK Market
1447 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SFK Construction Holdings (1447) 3.3% -4% -14% -37.9% -6.9% -
HK Construction 1.1% -4.7% -13.3% -11.1% -21.2% -4.5%
HK Market 0.8% 1.5% -7.4% -4.4% 17.7% 1.6%
1 Year Return vs Industry and Market
  • 1447 underperformed the Construction industry which returned -11.1% over the past year.
  • 1447 underperformed the Market in Hong Kong which returned -4.4% over the past year.
Price Volatility
1447
Industry
5yr Volatility vs Market

1447 Value

 Is SFK Construction Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SFK Construction Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SFK Construction Holdings.

SEHK:1447 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 10.5%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1447
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Construction Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.035 (1 + (1- 25%) (48.91%))
1.277
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.28
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.277 * 6.65%)
10.5%

Discounted Cash Flow Calculation for SEHK:1447 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for SFK Construction Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:1447 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 10.5%)
2020 103.20 Est @ -1.85% 93.40
2021 102.48 Est @ -0.69% 83.94
2022 102.60 Est @ 0.11% 76.05
2023 103.30 Est @ 0.68% 69.29
2024 104.41 Est @ 1.08% 63.38
2025 105.83 Est @ 1.36% 58.14
2026 107.47 Est @ 1.55% 53.43
2027 109.28 Est @ 1.69% 49.17
2028 111.23 Est @ 1.78% 45.29
2029 113.28 Est @ 1.85% 41.75
Present value of next 10 years cash flows HK$633.83
SEHK:1447 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= HK$113.28 × (1 + 2%) ÷ (10.5% – 2%)
HK$1,360.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$1,360.18 ÷ (1 + 10.5%)10
HK$501.23
SEHK:1447 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$633.83 + HK$501.23
HK$1,135.06
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$1,135.06 / 400.00
HK$2.84
SEHK:1447 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$2.84
Current discount Discount to share price of HK$1.90
= -1 x (HK$1.90 - HK$2.84) / HK$2.84
33%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price SFK Construction Holdings is available for.
Intrinsic value
33%
Share price is HK$1.9 vs Future cash flow value of HK$2.84
Current Discount Checks
For SFK Construction Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • SFK Construction Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • SFK Construction Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SFK Construction Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SFK Construction Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1447 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.32
SEHK:1447 Share Price ** SEHK (2019-07-19) in HKD HK$1.9
Hong Kong Construction Industry PE Ratio Median Figure of 105 Publicly-Listed Construction Companies 10.19x
Hong Kong Market PE Ratio Median Figure of 1,511 Publicly-Listed Companies 10.76x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SFK Construction Holdings.

SEHK:1447 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1447 Share Price ÷ EPS (both in HKD)

= 1.9 ÷ 0.32

5.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SFK Construction Holdings is good value based on earnings compared to the HK Construction industry average.
  • SFK Construction Holdings is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does SFK Construction Holdings's expected growth come at a high price?
Raw Data
SEHK:1447 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.86x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
-15.4%per year
Hong Kong Construction Industry PEG Ratio Median Figure of 10 Publicly-Listed Construction Companies 0.56x
Hong Kong Market PEG Ratio Median Figure of 480 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for SFK Construction Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on SFK Construction Holdings's assets?
Raw Data
SEHK:1447 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$1.23
SEHK:1447 Share Price * SEHK (2019-07-19) in HKD HK$1.9
Hong Kong Construction Industry PB Ratio Median Figure of 136 Publicly-Listed Construction Companies 1.37x
Hong Kong Market PB Ratio Median Figure of 2,197 Publicly-Listed Companies 0.92x
SEHK:1447 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1447 Share Price ÷ Book Value per Share (both in HKD)

= 1.9 ÷ 1.23

1.54x

* Primary Listing of SFK Construction Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SFK Construction Holdings is overvalued based on assets compared to the HK Construction industry average.
X
Value checks
We assess SFK Construction Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. SFK Construction Holdings has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

1447 Future Performance

 How is SFK Construction Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover SFK Construction Holdings, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-15.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SFK Construction Holdings expected to grow at an attractive rate?
  • SFK Construction Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.
Growth vs Market Checks
  • SFK Construction Holdings's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
  • Unable to compare SFK Construction Holdings's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:1447 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1447 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -15.4%
Hong Kong Construction Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
Hong Kong Construction Industry Revenue Growth Rate Market Cap Weighted Average 9.6%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1447 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1447 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 6,197 130 130
2018-09-30 6,022 170 139
2018-06-30 5,846 209 149
2018-03-31 5,229 149 145
2017-12-31 4,612 89 142
2017-09-30 3,890 20 132
2017-06-30 3,168 -49 122
2017-03-31 3,085 37 114
2016-12-31 3,002 124 106
2016-09-30 3,011 95 94
2016-06-30 3,021 65 82
2016-03-31 2,877 -76 77

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SFK Construction Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if SFK Construction Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1447 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from SFK Construction Holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1447 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.32
2018-09-30 0.35
2018-06-30 0.37
2018-03-31 0.36
2017-12-31 0.35
2017-09-30 0.33
2017-06-30 0.31
2017-03-31 0.29
2016-12-31 0.26
2016-09-30 0.25
2016-06-30 0.23
2016-03-31 0.23

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if SFK Construction Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess SFK Construction Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SFK Construction Holdings has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

1447 Past Performance

  How has SFK Construction Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SFK Construction Holdings's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • SFK Construction Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • SFK Construction Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • SFK Construction Holdings's 1-year earnings growth is negative, it can't be compared to the HK Construction industry average.
Earnings and Revenue History
SFK Construction Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SFK Construction Holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1447 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 6,197.16 129.69 92.53
2018-09-30 6,021.77 139.34 87.56
2018-06-30 5,846.37 149.00 82.59
2018-03-31 5,229.17 145.44 77.63
2017-12-31 4,611.97 141.87 72.67
2017-09-30 3,889.74 132.11 69.61
2017-06-30 3,167.51 122.34 66.54
2017-03-31 3,084.77 114.15 66.77
2016-12-31 3,002.02 105.97 67.00
2016-09-30 3,011.30 94.10 64.16
2016-06-30 3,020.58 82.23 61.32
2016-03-31 2,877.07 77.10 60.98
2015-12-31 2,733.57 71.96 60.64
2015-09-30 2,695.25 68.80 66.52
2015-06-30 2,656.94 65.64 72.40
2015-03-31 2,704.55 69.06 74.88
2014-12-31 2,752.16 72.48 77.37
2013-12-31 2,839.21 119.63 72.39
2012-12-31 2,805.46 50.60 68.60

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • SFK Construction Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • SFK Construction Holdings used its assets more efficiently than the HK Construction industry average last year based on Return on Assets.
  • SFK Construction Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess SFK Construction Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SFK Construction Holdings has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

1447 Health

 How is SFK Construction Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SFK Construction Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • SFK Construction Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • SFK Construction Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of SFK Construction Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 5.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SFK Construction Holdings Company Filings, last reported 6 months ago.

SEHK:1447 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 493.78 371.73 241.82
2018-09-30 493.78 371.73 241.82
2018-06-30 463.20 471.93 289.52
2018-03-31 463.20 471.93 289.52
2017-12-31 474.80 307.74 300.01
2017-09-30 474.80 307.74 300.01
2017-06-30 437.62 320.87 184.57
2017-03-31 437.62 320.87 184.57
2016-12-31 451.74 100.73 255.33
2016-09-30 451.74 100.73 255.33
2016-06-30 421.41 165.00 235.20
2016-03-31 421.41 165.00 235.20
2015-12-31 481.79 155.00 327.63
2015-09-30 481.79 155.00 327.63
2015-06-30 315.40 115.00 116.29
2015-03-31 315.40 115.00 116.29
2014-12-31 286.98 0.00 281.15
2013-12-31 214.86 44.85 477.80
2012-12-31 295.37 90.85 464.18
  • SFK Construction Holdings's level of debt (75.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (20.8% vs 75.3% today).
  • Debt is well covered by operating cash flow (34.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 15.5x coverage).
X
Financial health checks
We assess SFK Construction Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SFK Construction Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

1447 Dividends

 What is SFK Construction Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.84%
Current annual income from SFK Construction Holdings dividends.
If you bought HK$2,000 of SFK Construction Holdings shares you are expected to receive HK$137 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • SFK Construction Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • SFK Construction Holdings's dividend is above the markets top 25% of dividend payers in Hong Kong (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1447 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Construction Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 3.9%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1447 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-04-15 0.130 6.486
2018-05-23 0.310 10.419
2017-04-12 0.265 8.359
2017-03-24 0.265 8.327
2016-09-07 0.180 8.734
2016-08-29 0.180 8.466
2016-04-14 0.250 14.775
2016-03-24 0.250 17.243

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SFK Construction Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • SFK Construction Holdings has only been paying a dividend for 3 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of SFK Construction Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x 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.
X
Income/ dividend checks
We assess SFK Construction Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SFK Construction Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SFK Construction Holdings has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

1447 Management

 What is the CEO of SFK Construction Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ki Chun Chan
COMPENSATION HK$1,658,000
AGE 63
CEO Bio

Mr. Ki Chun Chan served as the Chief project manager at SFK Civil at SFK Construction Holdings Ltd. since March 1989. Prior to joining SFK Construction Holdings Ltd., Mr. Chan served as Associate at Ove Arup & Partners Hong Kong Limited. Mr. Chan has been the Chairman of the Board at SFK Construction Holdings Ltd. since October 24, 2007. Mr. Chan is responsible for overseeing and planning the business strategies and overall management of SFK Construction Holdings Ltd. Mr. Chan has been an Executive Director of SFK Construction Holdings Ltd since January 1995. Mr. Chan served as Director of each of SFK Civil and SFK Construction since January 1993 and January 1995, respectively. Mr. Chan has extensive experience in construction projects and has been involved in various major foundation, substructures, building works, drainage and bridge works. Mr. Chan is a Registered Professional Engineer (Civil and Geotechnical) in Hong Kong and is a member of each of Institution of Civil Engineers, Hong Kong Institution of Engineers and American Society of Civil Engineers. Mr. Chan is a beneficial owner at Champion Real Estate Investment Trust. Mr. Chan graduated from the University of Alberta with a bachelor of science degree in civil engineering in March 1979.

CEO Compensation
  • Ki Chun's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ki Chun's remuneration is about average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the SFK Construction Holdings management team in years:

9.5
Average Tenure
61
Average Age
  • The average tenure for the SFK Construction Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Ki Chun Chan

TITLE
Chairman & Group MD
COMPENSATION
HK$2M
AGE
63

William Yeung

TITLE
CFO & Executive Director
COMPENSATION
HK$1M
AGE
57
TENURE
12.1 yrs

Chor Tung Chan

TITLE
Director of Construction & Civil Division and Executive Director
COMPENSATION
HK$2M
AGE
62

Kim Man Yung

TITLE
Director of Construction & Civil Division and Executive Director
COMPENSATION
HK$2M
AGE
58

Rity Tang

TITLE
Deputy Director of Administration & Company Secretary
AGE
60
TENURE
6.5 yrs

Patrick Lee

TITLE
Managing Director of Construction and Civil Division
COMPENSATION
HK$2M
AGE
64
TENURE
9.5 yrs
Board of Directors Tenure

Average tenure and age of the SFK Construction Holdings board of directors in years:

4.5
Average Tenure
62
Average Age
  • The tenure for the SFK Construction Holdings board of directors is about average.
Board of Directors

Ki Chun Chan

TITLE
Chairman & Group MD
COMPENSATION
HK$2M
AGE
63
TENURE
11.8 yrs

William Yeung

TITLE
CFO & Executive Director
COMPENSATION
HK$1M
AGE
57
TENURE
4.5 yrs

Chor Tung Chan

TITLE
Director of Construction & Civil Division and Executive Director
COMPENSATION
HK$2M
AGE
62
TENURE
5 yrs

Kim Man Yung

TITLE
Director of Construction & Civil Division and Executive Director
COMPENSATION
HK$2M
AGE
58
TENURE
5 yrs

Frederick Jim

TITLE
Independent Non-Executive Director
COMPENSATION
HK$120K
AGE
72
TENURE
3.7 yrs

Simon Chan

TITLE
Independent Non-Executive Director
COMPENSATION
HK$120K
AGE
63
TENURE
3.7 yrs

Leung Tsun Lam

TITLE
Independent Non-Executive Director
COMPENSATION
HK$120K
AGE
62
TENURE
3.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess SFK Construction Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SFK Construction Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

1447 News

Simply Wall St News

Looking At SFK Construction Holdings Limited (HKG:1447) From All Angles

In the case of 1447, it is a company with great financial health as well as a an impressive track record of performance. … Adequate balance sheet with proven track record 1447 has a strong track record of performance. … The intrinsic value infographic in our free research report helps visualize whether 1447 is currently mispriced by the market.

Simply Wall St -

These 4 Measures Indicate That SFK Construction Holdings (HKG:1447) Is Using Debt Safely

SEHK:1447 Historical Debt, July 3rd 2019 A Look At SFK Construction Holdings's Liabilities We can see from the most recent balance sheet that SFK Construction Holdings had liabilities of HK$1.66b falling due within a year, and liabilities of HK$4.72m due beyond that. … This surplus strongly suggests that SFK Construction Holdings has a rock-solid balance sheet (and the debt is of no concern whatsoever). … Either way, since SFK Construction Holdings does have more debt than cash, it's worth keeping an eye on its balance sheet.

Simply Wall St -

Here's What SFK Construction Holdings Limited's (HKG:1447) P/E Ratio Is Telling Us

SFK Construction Holdings has a price to earnings ratio of 6.17, based on the last twelve months. … View our latest analysis for SFK Construction Holdings How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for SFK Construction Holdings: P/E of 6.17 = HK$2 ÷ HK$0.32 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

Is SFK Construction Holdings Limited's (HKG:1447) Balance Sheet Strong Enough To Weather A Storm?

1447’s Debt (And Cash Flows) Over the past year, 1447 has ramped up its debt from HK$308m to HK$372m. … Additionally, 1447 has generated HK$130m in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 35%, signalling that 1447’s operating cash is sufficient to cover its debt. … Next Steps: Although 1447’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.

Simply Wall St -

If You Had Bought SFK Construction Holdings (HKG:1447) Shares Three Years Ago You'd Have Made 48%

SFK Construction Holdings Limited (HKG:1447) shareholders might understandably be very concerned that the share price has dropped 31% in the last quarter. … SFK Construction Holdings was able to grow its EPS at 11% per year over three years, sending the share price higher. … As it happens, SFK Construction Holdings's TSR for the last 3 years was 86%, which exceeds the share price return mentioned earlier.

Simply Wall St -

Should You Be Concerned About SFK Construction Holdings Limited's (HKG:1447) Historical Volatility?

If you're interested in SFK Construction Holdings Limited (HKG:1447), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … If this beta value holds true in the future, SFK Construction Holdings shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. … What this means for you: Since SFK Construction Holdings tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock.

Simply Wall St -

What Percentage Of SFK Construction Holdings Limited (HKG:1447) Shares Do Insiders Own?

If you want to know who really controls SFK Construction Holdings Limited (HKG:1447), then you'll have to look at the makeup of its share registry. … With a market capitalization of HK$872m, SFK Construction Holdings is a small cap stock, so it might not be well known by many institutional investors. … See our latest analysis for SFK Construction Holdings

Simply Wall St -

How Should Investors Feel About SFK Construction Holdings Limited's (HKG:1447) CEO Pay?

How Does Ki Chun Chan's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that SFK Construction Holdings Limited has a market cap of HK$892m, and is paying total annual CEO compensation of HK$1.7m. … We examined a group of similar sized companies, with market capitalizations of below HK$1.6b

Simply Wall St -

SFK Construction Holdings Limited (HKG:1447): Does The Earnings Decline Make It An Underperformer?

When SFK Construction Holdings Limited (HKG:1447) released its most recent earnings update (31 December 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … 1447's trailing twelve-month earnings (from 31 December 2018) of HK$130m has? … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 15%, indicating the rate at which 1447 is growing has slowed down

Simply Wall St -

Should You Be Concerned About SFK Construction Holdings Limited's (HKG:1447) Historical Volatility?

If you're interested in SFK Construction Holdings Limited (HKG:1447), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … The first thing to understand about beta is that the beta of the overall market is one.

Simply Wall St -

1447 Company Info

Description

SFK Construction Holdings Limited engages in the construction and maintenance of building and civil engineering projects primarily in Hong Kong. The company also undertakes construction projects in Macau under the SFK brand. It offers engineering services for substructure or superstructure of building structures, and infrastructure facilities; and maintenance, repair, and alteration services to building structures and infrastructure facilities, as well as additions to building structures. In addition, the company provides housing and property management services, such as cleaning services and security management services, and building information modeling services to customers in the public and private sectors. The company was founded in 1961 and is headquartered in Wanchai, Hong Kong. SFK Construction Holdings Limited is a subsidiary of Sun Fook Kong Group Limited.

Details
Name: SFK Construction Holdings Limited
1447
Exchange: SEHK
Founded: 1961
HK$760,000,000
400,000,000
Website: http://www.sfkchl.com.hk
Address: SFK Construction Holdings Limited
Hopewell Centre,
43rd Floor,
Wanchai,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1447 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 10. Dec 2015
Number of employees
Current staff
Staff numbers
2,234
SFK Construction Holdings employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 12:49
End of day share price update: 2019/07/19 00:00
Last earnings filing: 2019/04/15
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.