SEHK:1500

Stock Analysis Report

In Construction Holdings

Executive Summary

In Construction Holdings Limited, an investment holding company, engages in construction and engineering activities in Hong Kong.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.

Share Price & News

How has In Construction Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-7.1%

1500

0.6%

HK Construction

0.3%

HK Market


1 Year Return

-45.3%

1500

-14.9%

HK Construction

1.3%

HK Market

Return vs Industry: 1500 underperformed the Hong Kong Construction industry which returned -14.9% over the past year.

Return vs Market: 1500 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

1500IndustryMarket
7 Day-7.1%0.6%0.3%
30 Day-9.4%-4.7%0.5%
90 Day-34.1%-10.5%-4.6%
1 Year-45.3%-45.3%-11.1%-14.9%4.9%1.3%
3 Year-74.9%-81.2%-25.3%-33.6%15.3%3.7%
5 Yearn/a0.004%-15.1%20.0%-0.006%

Price Volatility Vs. Market

How volatile is In Construction Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is In Construction Holdings undervalued compared to its fair value and its price relative to the market?

11.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1500's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1500's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1500 is poor value based on its PE Ratio (11.4x) compared to the Construction industry average (10.3x).

PE vs Market: 1500 is poor value based on its PE Ratio (11.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1500's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1500 is good value based on its PB Ratio (0.5x) compared to the HK Construction industry average (1.1x).


Next Steps

Future Growth

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

1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1500's forecast earnings growth (1.5% per year) is below the savings rate (2%).

Earnings vs Market: 1500's earnings (1.5% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 1500's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1500's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1500's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1500's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-19.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1500's earnings have declined by -19% per year over the past 5 years.

Accelerating Growth: 1500's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1500 had negative earnings growth (-54.1%) over the past year, making it difficult to compare to the Construction industry average (-12.4%).


Return on Equity

High ROE: 1500's Return on Equity (4.3%) is considered low.


Return on Assets

ROA vs Industry: 1500's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 1500's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is In Construction Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1500's short term assets (HK$326.9M) exceeds its short term liabilities (HK$82.4M)

Long Term Liabilities: 1500's short term assets (326.9M) exceeds its long term liabilities (16.9M)


Debt to Equity History and Analysis

Debt Level: 1500 is debt free.

Reducing Debt: 1500 has no debt compared to 5 years ago when its debt to equity ratio was 5%.

Debt Coverage: 1500 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1500 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1500 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 1500's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.2%industryaverage4.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1500's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1500's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1500's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1500's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1500 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1500's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

4.6yrs

Average board tenure


CEO

Pak Man Lau (64yo)

0yrs

Tenure

HK$1,470,000

Compensation

Mr. Pak Man Lau serves as the Chairman, Chief Executive Officer and General Manager at In Construction Holdings Limited. Mr. Lau is the Technical Director and Authorised Signatory of In Construction. He co ...


CEO Compensation Analysis

Compensation vs. Market: Pak Man's total compensation ($USD187.42K) is about average for companies of similar size in the Hong Kong market ($USD215.97K).

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


Board Age and Tenure

4.6yrs

Average Tenure

64yo

Average Age

Experienced Board: 1500's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: 1500 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$127,99915 Aug 19
Chi Man Yau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares640,000
Max PriceHK$0.20
BuyHK$8,00014 Aug 19
Chi Man Yau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares40,000
Max PriceHK$0.20
BuyHK$29,99913 Aug 19
Chi Man Yau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares150,000
Max PriceHK$0.20
BuyHK$27,00012 Aug 19
Chi Man Yau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares135,000
Max PriceHK$0.20
BuyHK$95009 Aug 19
Chi Man Yau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares5,000
Max PriceHK$0.19
BuyHK$71,24923 Jan 19
Chi Man Yau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares250,000
Max PriceHK$0.28
BuyHK$22,80023 Jan 19
Chi Man Yau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares80,000
Max PriceHK$0.28
BuyHK$62,69923 Jan 19
Chi Man Yau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares220,000
Max PriceHK$0.28
BuyHK$128,24921 Jan 19
Chi Man Yau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares450,000
Max PriceHK$0.28
BuyHK$285,00418 Jan 19
Chi Man Yau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,000,000
Max PriceHK$0.29

Ownership Breakdown


Management Team

  • Pak Man Lau (64yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: HK$1.47m
  • Wing Cheong Cheng (64yo)

    Director of Construction & Executive Director

    • Tenure: 22.8yrs
    • Compensation: HK$1.46m
  • Kit Kwan (47yo)

    Director of Operations & Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$1.46m
  • Reginia Wong (53yo)

    Company Secretary & CFO

    • Tenure: 0.6yrs

Board Members

  • Pak Man Lau (64yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: HK$1.47m
  • Wing Cheong Cheng (64yo)

    Director of Construction & Executive Director

    • Tenure: 22.8yrs
    • Compensation: HK$1.46m
  • Kit Kwan (47yo)

    Director of Operations & Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$1.46m
  • Chi Kin Leung (65yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: HK$150.00k
  • Norman Yau (56yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: HK$150.00k
  • Louis Lam (71yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: HK$150.00k

Company Information

In Construction Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: In Construction Holdings Limited
  • Ticker: 1500
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$120.350m
  • Shares outstanding: 830.00m
  • Website: https://www.inconstruction.hk

Number of Employees


Location

  • In Construction Holdings Limited
  • Park Avenue Tower
  • 26th Floor
  • Causeway Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1500SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2015

Biography

In Construction Holdings Limited, an investment holding company, engages in construction and engineering activities in Hong Kong. The company undertakes foundation works and related works, including demoli ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:51
End of Day Share Price2019/10/22 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.