SEHK:1536

Stock Analysis Report

Yuk Wing Group Holdings

Executive Summary

Yuk Wing Group Holdings Limited, an investment holding company, designs, manufactures, and trades in down-the-hole (DTH) rock drilling tools in Hong Kong.

Snowflake

Fundamentals

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1536's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

16.0%

1536

-1.0%

HK Machinery

-0.7%

HK Market


1 Year Return

-25.6%

1536

20.9%

HK Machinery

-2.3%

HK Market

Return vs Industry: 1536 underperformed the Hong Kong Machinery industry which returned 20.9% over the past year.

Return vs Market: 1536 underperformed the Hong Kong Market which returned -2.3% over the past year.


Shareholder returns

1536IndustryMarket
7 Day16.0%-1.0%-0.7%
30 Day7.4%4.5%0.2%
90 Day-7.9%9.0%2.8%
1 Year-25.6%-25.6%24.4%20.9%1.2%-2.3%
3 Yearn/a62.9%52.5%20.4%8.4%
5 Yearn/a40.6%28.8%16.9%-2.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Yuk Wing Group Holdings undervalued compared to its fair value and its price relative to the market?

7.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1536's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1536's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1536 is good value based on its PE Ratio (8x) compared to the Machinery industry average (10.2x).

PE vs Market: 1536 is good value based on its PE Ratio (8x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1536's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1536 is good value based on its PB Ratio (0.8x) compared to the HK Machinery industry average (1x).


Next Steps

Future Growth

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

14.5%

Forecasted Capital Goods industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1536's forecast earnings growth (0% per year) is above the savings rate (2%).

Earnings vs Market: 1536's earnings (0% per year) are forecast to grow faster than the Hong Kong market (11.4% per year).

High Growth Earnings: 1536's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1536's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1536'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 1536's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Yuk Wing Group Holdings performed over the past 5 years?

-44.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1536 has a high level of non-cash earnings.

Growing Profit Margin: 1536 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 1536's earnings have declined by -44.7% per year over the past 5 years.

Accelerating Growth: 1536 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 1536 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (5.7%).


Return on Equity

High ROE: 1536's Return on Equity (11.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Yuk Wing Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1536's short term assets (HK$202.9M) exceeds its short term liabilities (HK$49.7M)

Long Term Liabilities: 1536 has no long term liabilities


Debt to Equity History and Analysis

Debt Level: 1536's debt to equity ratio (14.9%) is considered satisfactory.

Reducing Debt: 1536's debt to equity ratio has reduced from 29.4% to 14.9% over the past 5 years.

Debt Coverage: 1536's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1536's interest payments on its debt are well covered by EBIT (25.3x coverage).


Balance Sheet

Inventory Level: 1536 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1536's debt is covered by short term assets (assets are 8x debt).


Next Steps

Dividend

What is Yuk Wing Group Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.4%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1536's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1536's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1536's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1536's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1536'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 Yuk Wing Group Holdings's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Yuk Wing Group Holdings has no CEO, or we have no data on them.


Management Age and Tenure

1.6yrs

Average Tenure

42.5yo

Average Age

Experienced Management: 1536's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

1.6yrs

Average Tenure

36yo

Average Age

Experienced Board: 1536's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$197,20110 Aug 19
Shixin Huang
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares580,000
Max PriceHK$0.34

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ka Shing Wong (41yo)

    Executive Director

    • Tenure: 0.8yrs
  • Yee Man Choi (29yo)

    Company Secretary

    • Tenure: 1.6yrs
  • Alberto Barbera (70yo)

    Head of Research & Development and Export Manager

    • Tenure: 3.8yrs
  • Shixin Huang (44yo)

    Executive Director

    • Tenure: 0.6yrs

Board Members

  • Ka Shing Wong (41yo)

    Executive Director

    • Tenure: 0.8yrs
  • Nicki Lam (32yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: HK$114.00k
  • Leong Yuen Lau (34yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: HK$114.00k
  • Tin Liu (36yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: HK$114.00k
  • Shixin Huang (44yo)

    Executive Director

    • Tenure: 0.6yrs

Company Information

Yuk Wing Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yuk Wing Group Holdings Limited
  • Ticker: 1536
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: HK$98.800m
  • Shares outstanding: 380.00m
  • Website: https://www.yukwing.com

Number of Employees


Location

  • Yuk Wing Group Holdings Limited
  • Eton Building
  • 13th Floor
  • Sheung Wan
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1536SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2017

Biography

Yuk Wing Group Holdings Limited, an investment holding company, designs, manufactures, and trades in down-the-hole (DTH) rock drilling tools in Hong Kong. The company operates through Manufacturing and Tra ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 13:12
End of Day Share Price2019/11/19 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.