SEHK:1690

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Lap Kei Engineering (Holdings)

Executive Summary

Lap Kei Engineering (Holdings) Limited, an investment holding company, provides engineering services for building services systems in Hong Kong.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Lap Kei Engineering (Holdings)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1690's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.6%

1690

2.0%

HK Construction

3.0%

HK Market


1 Year Return

-72.1%

1690

-21.3%

HK Construction

-0.9%

HK Market

Return vs Industry: 1690 underperformed the Hong Kong Construction industry which returned -21.3% over the past year.

Return vs Market: 1690 underperformed the Hong Kong Market which returned -0.9% over the past year.


Shareholder returns

1690IndustryMarket
7 Day-3.6%2.0%3.0%
30 Day-8.6%1.9%6.1%
90 Day-14.5%-4.8%12.1%
1 Year-72.1%-72.1%-17.3%-21.3%3.1%-0.9%
3 Year-77.5%-78.0%-36.3%-44.1%7.1%-4.4%
5 Yearn/a-36.2%-46.7%8.7%-9.4%

Price Volatility Vs. Market

How volatile is Lap Kei Engineering (Holdings)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lap Kei Engineering (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: 1690 (HK$0.05) is trading below our estimate of fair value (HK$1.26)

Significantly Below Fair Value: 1690 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1690 is unprofitable, so we can't compare its PE Ratio to the HK Construction industry average.

PE vs Market: 1690 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 1690's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1690 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 Lap Kei Engineering (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.2%

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 Lap Kei Engineering (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 Lap Kei Engineering (Holdings) performed over the past 5 years?

-34.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1690 is currently unprofitable.

Growing Profit Margin: 1690 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1690 is unprofitable, and losses have increased over the past 5 years at a rate of -34.3% per year.

Accelerating Growth: Unable to compare 1690's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1690 is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-10%).


Return on Equity

High ROE: 1690 has a negative Return on Equity (-27.86%), as it is currently unprofitable.


Next Steps

Financial Health

How is Lap Kei Engineering (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: 1690's short term assets (HK$182.1M) exceed its short term liabilities (HK$77.0M).

Long Term Liabilities: 1690's short term assets (HK$182.1M) exceed its long term liabilities (HK$199.0K).


Debt to Equity History and Analysis

Debt Level: 1690 is debt free.

Reducing Debt: 1690 has no debt compared to 5 years ago when its debt to equity ratio was 14.2%.

Debt Coverage: 1690 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1690 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Lap Kei Engineering (Holdings) current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1690's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1690's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1690's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1690's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1690 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 1690's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

4.8yrs

Average board tenure


CEO

Kang Kwong Wong (54yo)

no data

Tenure

HK$2,178,000

Compensation

Mr. Kang Kwong Wong serves as Executive Chairman of Lap Kei Engineering (Holdings) Limited and has been an Executive Director since April 29, 2015. He serves as Chief Executive Officer at Lap Kei Engineeri ...


CEO Compensation Analysis

Compensation vs Market: Kang Kwong's total compensation ($USD281.00K) is about average for companies of similar size in the Hong Kong market ($USD228.77K).

Compensation vs Earnings: Kang Kwong's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Kang Kwong Wong
Executive Chairman & CEOno dataHK$2.18m8.08% HK$5.7m
Nui Ho So
Compliance Officer & Executive Director5.17yrsHK$675.00k0.60% HK$424.0k
Chun Man Tang
Executive Director1.67yrsHK$738.00k0.012% HK$8.5k
Chun Chung Tam
Independent Non-Executive Director4.83yrsHK$144.00kno data
Ka Chi Fok
Independent Non-Executive Director4.83yrsHK$144.00kno data
Yuk Ming Chung
Independent Non-Executive Director4.83yrsHK$144.00kno data

4.8yrs

Average Tenure

47yo

Average Age

Experienced Board: 1690's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1690 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Lap Kei Engineering (Holdings) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lap Kei Engineering (Holdings) Limited
  • Ticker: 1690
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$70.490m
  • Shares outstanding: 1.33b
  • Website: https://www.lapkeieng.com

Number of Employees


Location

  • Lap Kei Engineering (Holdings) Limited
  • Tonic Industrial Centre
  • 6th Floor, Block B
  • Kowloon Bay
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1690SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2015

Biography

Lap Kei Engineering (Holdings) Limited, an investment holding company, provides engineering services for building services systems in Hong Kong. It operates through Building Services Engineering Work; and Maintenance, Repair, and Other Services segments. The company offers a range of services for electrical systems, including design, testing, and commissioning for systems, such as main switch compartments, sub-main switch distribution systems, cable transmission system, final sub-circuit systems, and emergency generator installation and extra low voltage installation systems for various residential, industrial, institutional, commercial, and data/computer center projects. It is also involved in the design, supply, installation, testing, commissioning, and project management of mechanical ventilation, cooling, and heating air-conditioning systems that include sea water cooling equipment, air-cooled refrigeration equipment, VAV systems, and automatic controls systems for office buildings, commercial complexes, institutions, hotels, hospitals, industrial buildings, and residential buildings, as well as plumbing and drainage systems for residential, industrial, and commercial buildings. In addition, the company designs energy management systems; provides contracting services for various firefighting and testing systems; and offers maintenance and repair services for building services system and replacement of parts. It serves subcontractors, landlords, and property developers. The company was founded in 1997 and is headquartered in Kowloon Bay, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 12:42
End of Day Share Price2020/07/10 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.