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1637

SH Group (Holdings) SEHK:1637 Stock Report

Last Price

HK$0.46

Market Cap

HK$184.0m

7D

0%

1Y

-11.5%

Updated

27 Jun, 2022

Data

Company Financials
1637 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends4/6

1637 Stock Overview

SH Group (Holdings) Limited, an investment holding company, provides electrical and mechanical (E&M) engineering services for public and private sectors in Hong Kong.

SH Group (Holdings) Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SH Group (Holdings)
Historical stock prices
Current Share PriceHK$0.46
52 Week HighHK$0.64
52 Week LowHK$0.41
Beta0.50
1 Month Change9.52%
3 Month Change-13.21%
1 Year Change-11.54%
3 Year Change2.22%
5 Year Change-32.35%
Change since IPO-77.45%

Recent News & Updates

Jun 09
There Are Reasons To Feel Uneasy About SH Group (Holdings)'s (HKG:1637) Returns On Capital

There Are Reasons To Feel Uneasy About SH Group (Holdings)'s (HKG:1637) Returns On Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Amongst other things, we'll want to...

Mar 18
Should You Be Adding SH Group (Holdings) (HKG:1637) To Your Watchlist Today?

Should You Be Adding SH Group (Holdings) (HKG:1637) To Your Watchlist Today?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

1637HK ConstructionHK Market
7D0%-0.5%2.1%
1Y-11.5%1.9%-23.3%

Return vs Industry: 1637 underperformed the Hong Kong Construction industry which returned 1.9% over the past year.

Return vs Market: 1637 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 1637's price volatile compared to industry and market?
1637 volatility
1637 Average Weekly Movement5.0%
Construction Industry Average Movement6.9%
Market Average Movement7.0%
10% most volatile stocks in HK Market13.8%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 1637 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 1637's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1986187Man Ching Lauhttps://www.shunhingeng.com

SH Group (Holdings) Limited, an investment holding company, provides electrical and mechanical (E&M) engineering services for public and private sectors in Hong Kong. It engages in the supply, installation, and maintenance of mechanical ventilation, and air-conditioning systems; and provides services related to low voltage electrical systems and other E&M systems, including fire services systems, and plumbing and drainage systems. The company was founded in 1986 and is headquartered in Kowloon, Hong Kong.

SH Group (Holdings) Fundamentals Summary

How do SH Group (Holdings)'s earnings and revenue compare to its market cap?
1637 fundamental statistics
Market CapHK$184.00m
Earnings (TTM)HK$39.31m
Revenue (TTM)HK$744.43m

4.7x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1637 income statement (TTM)
RevenueHK$744.43m
Cost of RevenueHK$678.97m
Gross ProfitHK$65.46m
Other ExpensesHK$26.15m
EarningsHK$39.31m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jun 29, 2022

Earnings per share (EPS)0.098
Gross Margin8.79%
Net Profit Margin5.28%
Debt/Equity Ratio0%

How did 1637 perform over the long term?

See historical performance and comparison

Dividends

8.5%

Current Dividend Yield

40%

Payout Ratio

Does 1637 pay a reliable dividends?

See 1637 dividend history and benchmarks
When do you need to buy 1637 by to receive an upcoming dividend?
SH Group (Holdings) dividend dates
Ex Dividend DateJun 29 2022
Dividend Pay DateJul 28 2022
Days until Ex dividend1 day
Days until Dividend pay date30 days

Does 1637 pay a reliable dividends?

See 1637 dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is 1637 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1637?

Other financial metrics that can be useful for relative valuation.

1637 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 1637's PE Ratio compare to its peers?

1637 PE Ratio vs Peers
The above table shows the PE ratio for 1637 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.5x
6182 Twintek Investment Holdings
12.2xn/aHK$168.0m
2017 Chanhigh Holdings
5.1xn/aHK$188.6m
2193 Man King Holdings
4.4xn/aHK$159.5m
3789 Royal Deluxe Holdings
24.5xn/aHK$165.6m
1637 SH Group (Holdings)
4.7xn/aHK$184.0m

Price-To-Earnings vs Peers: 1637 is good value based on its Price-To-Earnings Ratio (4.7x) compared to the peer average (11.5x).


Price to Earnings Ratio vs Industry

How does 1637's PE Ratio compare vs other companies in the HK Construction Industry?

Price-To-Earnings vs Industry: 1637 is good value based on its Price-To-Earnings Ratio (4.7x) compared to the Hong Kong Construction industry average (12.4x)


Price to Earnings Ratio vs Fair Ratio

What is 1637's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1637 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1637's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 1637 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1637 (HK$0.46) is trading below our estimate of fair value (HK$12.69)

Significantly Below Fair Value: 1637 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1637's PEG Ratio to determine if it is good value.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.1%

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 SH Group (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.


Discover growth companies

  • Examine whether SH Group (Holdings) is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • SH Group (Holdings) competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has SH Group (Holdings) performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


11.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1637 has high quality earnings.

Growing Profit Margin: 1637's current net profit margins (5.3%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: 1637's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: 1637's earnings growth over the past year (40%) exceeds its 5-year average (11.6% per year).

Earnings vs Industry: 1637 earnings growth over the past year (40%) exceeded the Construction industry -1.2%.


Return on Equity

High ROE: 1637's Return on Equity (13.4%) is considered low.


Discover strong past performing companies

Financial Health

How is SH Group (Holdings)'s financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1637's short term assets (HK$415.8M) exceed its short term liabilities (HK$193.9M).

Long Term Liabilities: 1637's short term assets (HK$415.8M) exceed its long term liabilities (HK$1.6M).


Debt to Equity History and Analysis

Debt Level: 1637 is debt free.

Reducing Debt: 1637 has no debt compared to 5 years ago when its debt to equity ratio was 12.7%.

Debt Coverage: 1637 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1637 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is SH Group (Holdings) current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


8.48%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1637's dividend (8.48%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.75%).

High Dividend: 1637's dividend (8.48%) is in the top 25% of dividend payers in the Hong Kong market (7.9%)


Stability and Growth of Payments

Stable Dividend: 1637 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1637's dividend payments have increased, but the company has only paid a dividend for 4 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (39.7%), 1637's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (17.9%), 1637's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

5.3yrs

Average management tenure


CEO

Man Ching Lau (57 yo)

no data

Tenure

HK$2,889,000

Compensation

Mr. Man Ching Lau serves as Chief Executive Officer of SH Group (Holdings) Limited and has been its Executive Director since May 9, 2016. Mr. Lau joined SH Group and became the Sales and Marketing Manager...


CEO Compensation Analysis

Compensation vs Market: Man Ching's total compensation ($USD368.06K) is above average for companies of similar size in the Hong Kong market ($USD233.02K).

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


Leadership Team

Experienced Management: 1637's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: 1637's board of directors are considered experienced (5.8 years average tenure).


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

SH Group (Holdings) Limited's employee growth, exchange listings and data sources


Key Information

  • Name: SH Group (Holdings) Limited
  • Ticker: 1637
  • Exchange: SEHK
  • Founded: 1986
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Implied Market Cap: HK$184.000m
  • Shares outstanding: 400.00m
  • Website: https://www.shunhingeng.com

Number of Employees


Location

  • SH Group (Holdings) Limited
  • Cheung Sha Wan Plaza
  • Tower I, 6th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.