SEHK:1693

Stock Analysis Report

Executive Summary

BGMC International Limited, an investment holding company, provides construction services in Malaysia.

Risk Analysis

Revenue has declined by -48.6% over the past year

Debt is not well covered by operating cash flow

Latest financial reports are more than 6 months old

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has BGMC International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1693 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

1693

-0.9%

HK Construction

1.0%

HK Market


1 Year Return

-26.3%

1693

-16.4%

HK Construction

6.5%

HK Market

Return vs Industry: 1693 underperformed the Hong Kong Construction industry which returned -16.2% over the past year.

Return vs Market: 1693 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

1693IndustryMarket
7 Day0%-0.9%1.0%
30 Day-4.8%-0.5%3.7%
90 Day0.7%1.5%8.0%
1 Year-26.3%-26.3%-12.3%-16.4%10.4%6.5%
3 Yearn/a-27.7%-35.6%25.9%13.1%
5 Yearn/a-20.1%-32.0%22.2%1.8%

Price Volatility Vs. Market

How volatile is BGMC International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BGMC International undervalued compared to its fair value and its price relative to the market?

0.49x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1693's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1693's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1693 is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: 1693 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 1693's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1693 is good value based on its PB Ratio (0.5x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

How is BGMC International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.1%

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 BGMC International 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 BGMC International performed over the past 5 years?

-276.0%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 1693 is currently unprofitable.

Growing Profit Margin: 1693 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 1693's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare 1693's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1693 is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-12.3%).


Return on Equity

High ROE: 1693 has a negative Return on Equity (-26.16%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BGMC International's financial position?


Financial Position Analysis

Short Term Liabilities: 1693's short term assets (MYR471.0M) exceed its short term liabilities (MYR320.0M).

Long Term Liabilities: 1693's short term assets (MYR471.0M) exceed its long term liabilities (MYR207.7M).


Debt to Equity History and Analysis

Debt Level: 1693's debt to equity ratio (100.2%) is considered high.

Reducing Debt: Insufficient data to determine if 1693's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1693's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 1693's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 1693 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1693's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is BGMC International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.1%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1693's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1693'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 1693's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1693's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1693 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 1693'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 BGMC International's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average board tenure


CEO

Michael Teh (36yo)

0yrs

Tenure

RM712,000

Compensation

Mr. Kok Lee Teh, also known as Michael, serves as the Chief Executive Officer of BGMC International Limited and has been an Executive Director since 18 November 2016. He serves as Managing Director of Proj ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD174.81K) is about average for companies of similar size in the Hong Kong market ($USD228.16K).

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


Board Age and Tenure

2.5yrs

Average Tenure

52yo

Average Age

Experienced Board: 1693's board of directors are not considered experienced ( 2.5 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 been diluted in the past year, with total shares outstanding growing by 9.7%.


Management Team

  • Seaman Kwok (60yo)

    Company Secretary

    • Barry Goh (55yo)

      Chairman

      • Compensation: RM684.00k
    • Michael Teh (36yo)

      CEO & Executive Director

      • Compensation: RM712.00k
    • Arifin bin Mohd Arif (55yo)

      Vice Chairman

      • Compensation: RM720.00k
    • Azham bin Mohd Hashim (52yo)

      Executive Director

      • Tenure: 3.2yrs
      • Compensation: RM365.85k
    • Boon Tuck Chua (52yo)

      Finance Director


      Board Members

      • Yuk Yeung Ng (45yo)

        Independent Non-Executive Director

        • Tenure: 2.5yrs
        • Compensation: RM111.25k
      • May May Chan (52yo)

        Independent Non-Executive Director

        • Tenure: 2.5yrs
        • Compensation: RM111.25k
      • Barry Goh (55yo)

        Chairman

        • Compensation: RM684.00k
      • Michael Teh (36yo)

        CEO & Executive Director

        • Compensation: RM712.00k
      • Arifin bin Mohd Arif (55yo)

        Vice Chairman

        • Compensation: RM720.00k
      • Azham bin Mohd Hashim (52yo)

        Executive Director

        • Tenure: 3.2yrs
        • Compensation: RM365.85k
      • Cho Ha Kong (68yo)

        Independent Non-Executive Director

        • Tenure: 2.5yrs
        • Compensation: RM111.25k

      Company Information

      BGMC International Limited's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: BGMC International Limited
      • Ticker: 1693
      • Exchange: SEHK
      • Founded: 1996
      • Industry: Construction and Engineering
      • Sector: Capital Goods
      • Market Cap: HK$252.000m
      • Shares outstanding: 1.80b
      • Website: https://www.bgmc.asia

      Number of Employees


      Location

      • BGMC International Limited
      • A-3A-02, Sky Park One City
      • Block A
      • Subang Jaya
      • Selangor
      • 47650
      • Malaysia

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      1693SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 2017

      Biography

      BGMC International Limited, an investment holding company, provides construction services in Malaysia. The company operates through five segments: Building and Structures, Energy Infrastructure, Mechanical and Electrical, Earthworks and Infrastructure, and Concession and Maintenance. It constructs low-rise and high-rise residential, and commercial properties; factories; and government-led infrastructure and facility projects. The company also designs and constructs medium and high voltage power substations; installs medium and high voltage underground cabling systems; and develops and establishes utility scale solar power plants. In addition, it undertakes installation of mechanical and electrical components, and equipment for buildings and infrastructure; and designs, plans, and installs mechanical and electrical facilities. Further, the company is also involved in the undertaking of earthworks, such as site clearing, building platform preparation, installation of road and drainage system, and other infrastructure installation; and infrastructure works. Additionally, it supplies and installs elevators; provides construction services under private finance initiative and related post-construction property management services, as well as maintains related facilities and infrastructure; and undertakes development and construction relating to provision of renewable energy. The company is also involved in the provision of mechanical and electrical engineering services; and property investment. BGMC International Limited was founded in 1996 and is headquartered in Subang Jaya, Malaysia. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/17 12:59
      End of Day Share Price2019/12/31 00:00
      Earnings2019/03/31
      Annual Earnings2018/09/30


      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.