SEHK:1630

Stock Analysis Report

Executive Summary

Kin Shing Holdings Limited engages in erecting formworks for construction works in private residential and commercial buildings primarily in Hong Kong.

Rewards

Trading at 88% below its fair value

Risk Analysis

Earnings have declined by -54.94% per year over past 5 years

Has a high level of debt

Highly volatile share price over past 3 months

Does not have a meaningful market cap (HK$144M)



Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1630's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.1%

1630

-0.9%

HK Construction

1.0%

HK Market


1 Year Return

-60.1%

1630

-16.4%

HK Construction

6.5%

HK Market

Return vs Industry: 1630 underperformed the Hong Kong Construction industry which returned -16.2% over the past year.

Return vs Market: 1630 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

1630IndustryMarket
7 Day-1.1%-0.9%1.0%
30 Day-10.6%-0.5%3.7%
90 Day-13.9%1.5%8.0%
1 Year-60.1%-60.1%-12.3%-16.4%10.4%6.5%
3 Yearn/a-27.7%-35.6%25.9%13.1%
5 Yearn/a-20.1%-32.0%22.2%1.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Kin Shing Holdings 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: 1630 (HK$0.1) is trading below our estimate of fair value (HK$0.8)

Significantly Below Fair Value: 1630 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1630 is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: 1630 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 1630's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1630 is good value based on its PB Ratio (0.8x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

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

12.1%

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 Kin Shing Holdings 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 Kin Shing Holdings performed over the past 5 years?

-54.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1630 is currently unprofitable.

Growing Profit Margin: 1630 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1630 is unprofitable, and losses have increased over the past 5 years at a rate of -54.9% per year.

Accelerating Growth: Unable to compare 1630's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1630 is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-12.3%).


Return on Equity

High ROE: 1630 has a negative Return on Equity (-10.56%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kin Shing Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1630's short term assets (HK$352.6M) exceed its short term liabilities (HK$197.6M).

Long Term Liabilities: 1630's short term assets (HK$352.6M) exceed its long term liabilities (HK$2.2M).


Debt to Equity History and Analysis

Debt Level: 1630's debt to equity ratio (80%) is considered high.

Reducing Debt: 1630's debt to equity ratio has increased from 3.8% to 80% over the past 5 years.

Debt Coverage: 1630's debt is well covered by operating cash flow (32.5%).

Interest Coverage: Insufficient data to determine if 1630's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 1630 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1630's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

What is Kin Shing Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.1%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1630's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1630'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 1630's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1630'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 1630'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 Kin Shing Holdings's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average board tenure


CEO

Dik Cheung Chow (43yo)

0yrs

Tenure

HK$1,021,000

Compensation

Mr. Dik Cheung Chow serves as the Chief Executive Officer of Kin Shing Holdings Limited and has been its Executive Director since May 2016 and also serves as its Representative since August 20, 2018. Mr. C ...


CEO Compensation Analysis

Compensation vs Market: Dik Cheung's total compensation ($USD131.31K) is below average for companies of similar size in the Hong Kong market ($USD228.16K).

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


Board Age and Tenure

3.7yrs

Average Tenure

59yo

Average Age

Experienced Board: 1630's board of directors are considered experienced (3.7 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

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


Management Team

  • Chi Kit Leung (59yo)

    Chairman

    • Tenure: 3.8yrs
    • Compensation: HK$2.91m
  • Yuk Ching Tso (59yo)

    Executive Director

    • Tenure: 3.7yrs
    • Compensation: HK$2.13m
  • Dik Cheung Chow (43yo)

    CEO & Executive Director

    • Compensation: HK$1.02m
  • Sik Mau Chan (63yo)

    Executive Director

    • Tenure: 3.7yrs
    • Compensation: HK$985.00k
  • Wing Wong (40yo)

    Head of Purchasing

    • Wai Cheng (45yo)

      Head of Administration

      • Rosalie Tsui (29yo)

        Company Secretary

        • Tenure: 1.4yrs

      Board Members

      • Kai Yeung Lam (50yo)

        Independent Non-Executive Director

        • Tenure: 2.7yrs
        • Compensation: HK$181.00k
      • Chi Kit Leung (59yo)

        Chairman

        • Tenure: 3.8yrs
        • Compensation: HK$2.91m
      • Yuk Ching Tso (59yo)

        Executive Director

        • Tenure: 3.7yrs
        • Compensation: HK$2.13m
      • Dik Cheung Chow (43yo)

        CEO & Executive Director

        • Compensation: HK$1.02m
      • Sik Mau Chan (63yo)

        Executive Director

        • Tenure: 3.7yrs
        • Compensation: HK$985.00k
      • Chun Pong Chang (50yo)

        Independent Non-Executive Director

        • Tenure: 2.7yrs
        • Compensation: HK$181.00k
      • Leung Cho Tsui (90yo)

        Independent Non-Executive Director

        • Tenure: 2.7yrs
        • Compensation: HK$181.00k

      Company Information

      Kin Shing Holdings Limited's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Kin Shing Holdings Limited
      • Ticker: 1630
      • Exchange: SEHK
      • Founded: 1994
      • Industry: Construction and Engineering
      • Sector: Capital Goods
      • Market Cap: HK$144.000m
      • Shares outstanding: 1.50b
      • Website: https://www.kinshingholdings.com.hk

      Number of Employees


      Location

      • Kin Shing Holdings Limited
      • Billion Plaza 2
      • Unit D, 9th Floor
      • Cheung Sha Wan
      • Kowloon
      • Hong Kong

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      1630SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2017

      Biography

      Kin Shing Holdings Limited engages in erecting formworks for construction works in private residential and commercial buildings primarily in Hong Kong. The company primarily provides timber formworks by using timber and plywood; and metal formwork system by using aluminum and other metals. It also engages in building construction works. The company was founded in 1994 and is headquartered in Cheung Sha Wan, Hong Kong. Kin Shing Holdings Limited is a subsidiary of Five Continental Enterprise Limited. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/16 13:01
      End of Day Share Price2020/01/16 00:00
      Earnings2019/09/30
      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.