SEHK:1615

Stock Analysis Report

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Executive Summary

AB Builders Group Limited, an investment holding company, provides structural and fitting-out works services in Macau. More Details


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has AB Builders Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1615 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 1615's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

1.3%

1615

-2.0%

HK Construction

1.4%

HK Market


1 Year Return

-22.6%

1615

-8.9%

HK Construction

11.5%

HK Market

Return vs Industry: 1615 underperformed the Hong Kong Construction industry which returned -8.9% over the past year.

Return vs Market: 1615 underperformed the Hong Kong Market which returned 11.5% over the past year.


Shareholder returns

1615IndustryMarket
7 Day1.3%-2.0%1.4%
30 Day-1.2%0.01%8.1%
90 Day-1.6%-1.4%6.1%
1 Year-22.6%-22.6%-4.4%-8.9%16.0%11.5%
3 Yearn/a-30.6%-39.0%1.7%-8.8%
5 Yearn/a-29.5%-41.6%33.3%10.9%

Long-Term Price Volatility Vs. Market

How volatile is AB Builders Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AB Builders Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1615 (HK$0.24) is trading below our estimate of fair value (HK$4.85)

Significantly Below Fair Value: 1615 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1615 is unprofitable, so we can't compare its PE Ratio to the HK Construction industry average.

PE vs Market: 1615 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1615's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1615 is good value based on its PB Ratio (0.6x) compared to the HK Construction industry average (0.9x).


Next Steps

Future Growth

How is AB Builders Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.6%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as AB Builders Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has AB Builders Group performed over the past 5 years?

-42.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1615 is currently unprofitable.

Growing Profit Margin: 1615 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1615 is unprofitable, and losses have increased over the past 5 years at a rate of 42.8% per year.

Accelerating Growth: Unable to compare 1615's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1615 is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-7%).


Return on Equity

High ROE: 1615 has a negative Return on Equity (-3.77%), as it is currently unprofitable.


Next Steps

Financial Health

How is AB Builders Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1615's short term assets (MOP359.2M) exceed its short term liabilities (MOP169.9M).

Long Term Liabilities: 1615's short term assets (MOP359.2M) exceed its long term liabilities (MOP555.0K).


Debt to Equity History and Analysis

Debt Level: 1615 is debt free.

Reducing Debt: 1615 has no debt compared to 5 years ago when its debt to equity ratio was 21.5%.

Debt Coverage: 1615 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1615 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is AB Builders Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1615's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1615's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1615's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1615's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1615 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 1615's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Athena Lao (32 yo)

2.25yrs

Tenure

Ms. Lao Chao U, also known as Athena, is Chief Executive Officer of AB Builders Group Limited and its Executive Director since August 17, 2018. She is responsible for the day-to-day operations of AB Builde...


Leadership Team

NamePositionTenureCompensationOwnership
Chio Seng Lao
Executive Chairman of the Board2.25yrsno data65%
MOP 93.6m
Chao U Lao
CEO & Executive Director2.25yrsno datano data
Kam Yin Wong
Financial Controller1.75yrsno datano data
Siu Lee
COO & Executive Director0.17yrno datano data
Ka U Lao
Executive Director3.75yrsno datano data
Iek Wai Cheang
Executive Director3.75yrsno datano data
Kin Wa Ip
Executive Director3.75yrsno data10%
MOP 14.4m
Yang Chau Lai
Company Secretary3.58yrsno datano data

2.3yrs

Average Tenure

46yo

Average Age

Experienced Management: 1615's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chio Seng Lao
Executive Chairman of the Board2.25yrsno data65%
MOP 93.6m
Chao U Lao
CEO & Executive Director2.25yrsno datano data
Siu Lee
COO & Executive Director0.17yrno datano data
Ka U Lao
Executive Director3.75yrsno datano data
Iek Wai Cheang
Executive Director3.75yrsno datano data
Kin Wa Ip
Executive Director3.75yrsno data10%
MOP 14.4m
Wai Shek Choy
Independent Non-Executive Director2.25yrsno datano data
Yat Pang Chu
Independent Non-Executive Director2.25yrsno datano data
Wiley O'Yang
Independent Non-Executive Director1.42yrsno datano data

2.3yrs

Average Tenure

53yo

Average Age

Experienced Board: 1615's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

Company Information

AB Builders Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AB Builders Group Limited
  • Ticker: 1615
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$144.000m
  • Shares outstanding: 600.00m
  • Website: https://www.abbuildersgroup.com

Number of Employees


Location

  • AB Builders Group Limited
  • Edf. Comercial I Tak
  • 10th Floor
  • Macau
  • Macau

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1615SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2018

Biography

AB Builders Group Limited, an investment holding company, provides structural and fitting-out works services in Macau. It also offers building construction and engineering services in Hong Kong. The compan...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 10:15
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.