SEHK:1667

Stock Analysis Report

Milestone Builder Holdings

Executive Summary

Milestone Builder Holdings Limited, an investment holding company, operates as a contractor for private and public sectors in Hong Kong.

Risk Analysis

Earnings have declined by -23.69% per year over past 5 years

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Does not have a meaningful market cap (HK$142M)



Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1667 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.2%

1667

-0.4%

HK Construction

0.9%

HK Market


1 Year Return

-24.3%

1667

-16.2%

HK Construction

-1.5%

HK Market

Return vs Industry: 1667 underperformed the Hong Kong Construction industry which returned -16.2% over the past year.

Return vs Market: 1667 underperformed the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

1667IndustryMarket
7 Day-2.2%-0.4%0.9%
30 Day4.7%-3.5%-3.7%
90 Day-10.6%-3.0%-0.1%
1 Year-24.3%-24.3%-12.3%-16.2%2.0%-1.5%
3 Yearn/a-25.8%-33.8%17.3%5.4%
5 Yearn/a-20.9%-32.7%17.1%-2.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Milestone Builder Holdings undervalued compared to its fair value and its price relative to the market?

23.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1667's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1667's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1667 is poor value based on its PE Ratio (23.1x) compared to the Construction industry average (10.3x).

PE vs Market: 1667 is poor value based on its PE Ratio (23.1x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1667's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1667 is good value based on its PB Ratio (1x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

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

12.4%

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 Milestone Builder 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 Milestone Builder Holdings performed over the past 5 years?

-23.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1667 has a large one-off gain of HK$1.4M impacting its September 30 2019 financial results.

Growing Profit Margin: 1667's current net profit margins (1.9%) are lower than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: 1667's earnings have declined by -23.7% per year over the past 5 years.

Accelerating Growth: 1667's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1667 had negative earnings growth (-51.2%) over the past year, making it difficult to compare to the Construction industry average (-12.4%).


Return on Equity

High ROE: 1667's Return on Equity (4.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Milestone Builder Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1667's short term assets (HK$413.3M) exceed its short term liabilities (HK$298.3M).

Long Term Liabilities: 1667's short term assets (HK$413.3M) exceed its long term liabilities (HK$3.9M).


Debt to Equity History and Analysis

Debt Level: 1667's debt to equity ratio (87.2%) is considered high.

Reducing Debt: 1667's debt to equity ratio has increased from 85.7% to 87.2% over the past 5 years.

Debt Coverage: 1667's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1667's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

Inventory Level: 1667 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1667's debt is covered by short term assets (assets are 3.3x debt).


Next Steps

Dividend

What is Milestone Builder Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.3%industryaverage4.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1667's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1667'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 1667's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1667's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1667 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 1667'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 Milestone Builder Holdings's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average board tenure


CEO

Milestone Builder Holdings has no CEO, or we have no data on them.


Board Age and Tenure

2.8yrs

Average Tenure

50.5yo

Average Age

Experienced Board: 1667's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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

  • Kam Fai Leung (51yo)

    Chairman

    • Tenure: 3.3yrs
    • Compensation: HK$2.50m
  • Ka Ho Lam (52yo)

    Executive Director

    • Tenure: 3.5yrs
    • Compensation: HK$2.50m
  • Linda Lee (47yo)

    Company Secretary & Group Financial Controller

    • Tenure: 1.6yrs

Board Members

  • Kwok Hung Keung (46yo)

    Independent Non Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$150.00k
  • Loretta Lau (50yo)

    Independent Non Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$150.00k
  • Kam Fai Leung (51yo)

    Chairman

    • Tenure: 3.3yrs
    • Compensation: HK$2.50m
  • Ka Ho Lam (52yo)

    Executive Director

    • Tenure: 3.5yrs
    • Compensation: HK$2.50m
  • Eric Fong (63yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: HK$150.00k
  • Chun Wong (49yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs

Company Information

Milestone Builder Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Milestone Builder Holdings Limited
  • Ticker: 1667
  • Exchange: SEHK
  • Founded: 2001
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$142.400m
  • Shares outstanding: 800.00m
  • Website: https://www.milestone.hk

Number of Employees


Location

  • Milestone Builder Holdings Limited
  • 9 Po Lun Street
  • 14th Floor
  • Lai Chi Kok
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1667SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2017

Biography

Milestone Builder Holdings Limited, an investment holding company, operates as a contractor for private and public sectors in Hong Kong. It operates through two segments, Construction and Engineering Servi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 12:53
End of Day Share Price2019/12/09 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.