SH Group (Holdings)
Market Cap
HK$132.0m
Last Updated
2020/10/30 13:01 UTC
Data Sources
Company Financials
Executive Summary
SH Group (Holdings) Limited, an investment holding company, provides electrical and mechanical (E&M) engineering services for public and private sectors in Hong Kong. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and undervalued.
Share Price & News
How has SH Group (Holdings)'s share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1637 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.5%
1637
-1.0%
HK Construction
-0.7%
HK Market
1 Year Return
-21.4%
1637
-13.2%
HK Construction
0.5%
HK Market
Return vs Industry: 1637 underperformed the Hong Kong Construction industry which returned -13.2% over the past year.
Return vs Market: 1637 underperformed the Hong Kong Market which returned 0.5% over the past year.
Shareholder returns
| 1637 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.5% | -1.0% | -0.7% |
| 30 Day | 0% | 6.4% | 5.8% |
| 90 Day | 11.9% | 1.8% | 1.4% |
| 1 Year | -17.0%-21.4% | -8.6%-13.2% | 4.6%0.5% |
| 3 Year | -51.4%-57.1% | -36.3%-44.1% | -6.8%-16.9% |
| 5 Year | n/a | -39.5%-49.9% | 15.8%-3.8% |
Price Volatility Vs. Market
How volatile is SH Group (Holdings)'s share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
Why Dividend Hunters Love SH Group (Holdings) Limited (HKG:1637)3 weeks ago | Simply Wall St
Has SH Group (Holdings) (HKG:1637) Got What It Takes To Become A Multi-Bagger?1 month ago | Simply Wall St
SH Group (Holdings)'s (HKG:1637) Earnings Are Growing But Is There More To The Story?Valuation
Is SH Group (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: 1637 (HK$0.33) is trading below our estimate of fair value (HK$1.75)
Significantly Below Fair Value: 1637 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 1637 is good value based on its PE Ratio (5.1x) compared to the HK Construction industry average (8.6x).
PE vs Market: 1637 is good value based on its PE Ratio (5.1x) compared to the Hong Kong market (10.9x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 1637's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 1637 is good value based on its PB Ratio (0.5x) compared to the HK Construction industry average (0.8x).
Next Steps
Future Growth
How is SH Group (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
12.8%
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.
Next Steps
- 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.
- Explore growth companies in the Capital Goods industry.
Past Performance
How has SH Group (Holdings) performed over the past 5 years?
11.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1637 has high quality earnings.
Growing Profit Margin: 1637's current net profit margins (4.6%) are lower than last year (5.7%).
Past Earnings Growth Analysis
Earnings Trend: 1637's earnings have grown by 11.4% per year over the past 5 years.
Accelerating Growth: 1637's earnings growth over the past year (14.4%) exceeds its 5-year average (11.4% per year).
Earnings vs Industry: 1637 earnings growth over the past year (14.4%) exceeded the Construction industry -6.7%.
Return on Equity
High ROE: 1637's Return on Equity (10.1%) is considered low.
Next Steps
Financial Health
How is SH Group (Holdings)'s financial position?
Financial Position Analysis
Short Term Liabilities: 1637's short term assets (HK$340.5M) exceed its short term liabilities (HK$122.7M).
Long Term Liabilities: 1637's short term assets (HK$340.5M) exceed its long term liabilities (HK$4.9M).
Debt to Equity History and Analysis
Debt Level: 1637's debt to equity ratio (2.6%) is considered satisfactory.
Reducing Debt: 1637's debt to equity ratio has reduced from 26.2% to 2.6% over the past 5 years.
Debt Coverage: 1637's debt is well covered by operating cash flow (830.3%).
Interest Coverage: 1637 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is SH Group (Holdings) current dividend yield, its reliability and sustainability?
5.15%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 1637's dividend (5.15%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).
High Dividend: 1637's dividend (5.15%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.97%).
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 has only been paying a dividend for 2 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (26.1%), 1637's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.6yrs
Average management tenure
CEO
Man Ching Lau (55 yo)
no data
Tenure
HK$2,889,000
Compensation
Mr. Man Ching Lau serves as Chief Executive Officer of SH Group (Holdings) Limited and has been its Executive Director since May 9, 2016. Mr. Lau joined SH Group and became the Sales and Marketing Manager ...
CEO Compensation Analysis
Compensation vs Market: Man Ching's total compensation ($USD372.63K) is above average for companies of similar size in the Hong Kong market ($USD232.43K).
Compensation vs Earnings: Man Ching's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | no data | HK$3.45m | 61.5% HK$ 81.2m | |
| CEO & Executive Director | no data | HK$2.89m | 13.5% HK$ 17.8m | |
| Executive Director | 4.33yrs | HK$1.75m | no data | |
| President | 2.75yrs | no data | no data | |
| Group Financial Controller | 4.58yrs | no data | no data | |
| Company Secretary | 4.42yrs | no data | no data |
3.6yrs
Average Tenure
55yo
Average Age
Experienced Management: 1637's management team is considered experienced (3.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | no data | HK$3.45m | 61.5% HK$ 81.2m | |
| CEO & Executive Director | no data | HK$2.89m | 13.5% HK$ 17.8m | |
| Executive Director | 4.33yrs | HK$1.75m | no data | |
| Independent Non-Executive Director | 0.92yr | HK$65.00k | no data | |
| Independent Non-Executive Director | 3.83yrs | HK$156.00k | no data | |
| Independent Non-Executive Director | 3.83yrs | HK$156.00k | no data |
3.8yrs
Average Tenure
62yo
Average Age
Experienced Board: 1637's board of directors are considered experienced (3.8 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 company bio, 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
- Market Cap: HK$132.000m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1637 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jan 2017 |
Biography
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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/30 13:01 |
| End of Day Share Price | 2020/10/29 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2020/03/31 |
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.