SEHK:1637

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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


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 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 1637's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

17.2%

1637

-13.0%

HK Construction

0.4%

HK Market


1 Year Return

-8.5%

1637

-12.9%

HK Construction

10.1%

HK Market

Return vs Industry: 1637 exceeded the Hong Kong Construction industry which returned -12.9% over the past year.

Return vs Market: 1637 underperformed the Hong Kong Market which returned 10.1% over the past year.


Shareholder returns

1637IndustryMarket
7 Day17.2%-13.0%0.4%
30 Day8.7%-11.5%9.3%
90 Day5.6%-9.2%6.1%
1 Year-3.4%-8.5%-8.6%-12.9%14.6%10.1%
3 Year-43.3%-50.0%-31.7%-40.0%1.5%-9.1%
5 Yearn/a-29.9%-41.9%33.7%11.2%

Long-Term 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

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$0.38) is trading below our estimate of fair value (HK$2.44)

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 (5.3x) compared to the HK Construction industry average (7.7x).

PE vs Market: 1637 is good value based on its PE Ratio (5.3x) compared to the Hong Kong market (11.1x).


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 (0.6x) compared to the HK Construction industry average (0.9x).


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?

13.5%

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

Past Performance

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

6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1637 has high quality earnings.

Growing Profit Margin: 1637's current net profit margins (4.7%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: 1637's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: 1637's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1637 had negative earnings growth (-15.8%) over the past year, making it difficult to compare to the Construction industry average (-9.8%).


Return on Equity

High ROE: 1637's Return on Equity (10.4%) 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$397.0M) exceed its short term liabilities (HK$168.3M).

Long Term Liabilities: 1637's short term assets (HK$397.0M) exceed its long term liabilities (HK$3.7M).


Debt to Equity History and Analysis

Debt Level: 1637's debt to equity ratio (2.4%) is considered satisfactory.

Reducing Debt: 1637's debt to equity ratio has reduced from 22.3% to 2.4% over the past 5 years.

Debt Coverage: 1637's debt is well covered by operating cash flow (878.8%).

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?

4.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1637's dividend (4.53%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.18%).

High Dividend: 1637's dividend (4.53%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.58%).


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 low payout ratio (24.2%), 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?

3.8yrs

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 ($USD372.68K) is above average for companies of similar size in the Hong Kong market ($USD230.00K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Cheung Choy Yu
Chairmanno dataHK$3.45m61.5%
HK$ 88.6m
Man Ching Lau
CEO & Executive Directorno dataHK$2.89m13.5%
HK$ 19.4m
Ho Chi Yu
Executive Director4.5yrsHK$1.75mno data
Arash Azarbarzin
President2.92yrsno datano data
Ho Kei Chan
Group Financial Controller4.75yrsno datano data
Kam Fai Tse
Company Secretary4.58yrsno datano data

3.8yrs

Average Tenure

55yo

Average Age

Experienced Management: 1637's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Cheung Choy Yu
Chairmanno dataHK$3.45m61.5%
HK$ 88.6m
Man Ching Lau
CEO & Executive Directorno dataHK$2.89m13.5%
HK$ 19.4m
Ho Chi Yu
Executive Director4.5yrsHK$1.75mno data
Man Wah Law
Independent Non-Executive Director1.08yrsHK$65.00kno data
Yim Nam Lam
Independent Non-Executive Director4yrsHK$156.00kno data
Wing Kee Lee
Independent Non-Executive Director4yrsHK$156.00kno data

4.0yrs

Average Tenure

62yo

Average Age

Experienced Board: 1637's board of directors are considered experienced (4 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$144.000m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1637SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 10:18
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.