SEHK:1718

Stock Analysis Report

Wan Kei Group Holdings

Executive Summary

Wan Kei Group Holdings Limited, an investment holding company, provides foundation and ground investigation field works to public and private sectors in Hong Kong.


Snowflake Analysis

Excellent balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has Wan Kei Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1718 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

1718

-2.3%

HK Construction

-3.2%

HK Market


1 Year Return

-1.6%

1718

-28.6%

HK Construction

-10.2%

HK Market

Return vs Industry: 1718 exceeded the Hong Kong Construction industry which returned -27.4% over the past year.

Return vs Market: 1718 exceeded the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

1718IndustryMarket
7 Day0%-2.3%-3.2%
30 Day-3.1%-4.3%-3.3%
90 Day-7.5%-5.9%0.2%
1 Year-1.6%-1.6%-25.1%-28.6%-6.9%-10.2%
3 Year-17.3%-17.3%-35.3%-42.3%11.7%0.4%
5 Yearn/a-27.7%-38.4%11.1%-7.3%

Price Volatility Vs. Market

How volatile is Wan Kei Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wan Kei Group Holdings undervalued compared to its fair value and its price relative to the market?

2.39x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1718's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1718's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1718 is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: 1718 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 1718's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1718 is overvalued based on its PB Ratio (2.3x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

How is Wan Kei Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.9%

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 Wan Kei 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 Wan Kei Group Holdings performed over the past 5 years?

-74.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1718 is currently unprofitable.

Growing Profit Margin: 1718 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1718 is unprofitable, and losses have increased over the past 5 years at a rate of -74% per year.

Accelerating Growth: Unable to compare 1718's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1718 is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-5.4%).


Return on Equity

High ROE: 1718 has a negative Return on Equity (-15.97%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wan Kei Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1718's short term assets (HK$480.6M) exceed its short term liabilities (HK$247.1M).

Long Term Liabilities: 1718's short term assets (HK$480.6M) exceed its long term liabilities (HK$2.4M).


Debt to Equity History and Analysis

Debt Level: 1718's debt to equity ratio (81.6%) is considered high.

Reducing Debt: 1718 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: 1718 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1718's debt is covered by short term assets (assets are 2.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 1718 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 1718 has sufficient cash runway for 2.2 years if free cash flow continues to reduce at historical rates of -62.4% each year.


Next Steps

Dividend

What is Wan Kei Group Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.4%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1718's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1718'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 1718's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1718's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1718'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?

0.6yrs

Average management tenure


CEO

Wan Kei Group Holdings has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Shuai Yan
Chairman of the Board0.4yrsHK$1.55mno data
Zhenyi Zhang
CFO & Executive Director2.1yrsHK$1.96mno data
Kwan Chan
Executive Director1.9yrsHK$1.56mno data
Jiayu Zhu
Executive Director0.4yrsno datano data
Wing Fu Jan
Company Secretary & Financial Controller0.8yrsno datano data

0.6yrs

Average Tenure

38yo

Average Age

Experienced Management: 1718's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Shuai Yan
Chairman of the Board0.4yrsHK$1.55mno data
Zhenyi Zhang
CFO & Executive Director2.1yrsHK$1.96mno data
Kwan Chan
Executive Director1.9yrsHK$1.56mno data
Jiayu Zhu
Executive Director0.4yrsno datano data
Wa Kei Lo
Independent Non-Executive Director2.9yrsHK$240.00kno data
Woon Si Lau
Honorary Chairman1.4yrsHK$1.44mno data
Ka Fai Leung
Independent Non-Executive Director2.6yrsHK$144.00kno data
Fen Qin
Independent Non-Executive Director1.2yrsHK$41.03kno data

1.7yrs

Average Tenure

40.5yo

Average Age

Experienced Board: 1718's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


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

Wan Kei Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wan Kei Group Holdings Limited
  • Ticker: 1718
  • Exchange: SEHK
  • Founded: 2014
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$576.000m
  • Shares outstanding: 960.00m
  • Website: https://www.wankei.com.hk

Number of Employees


Location

  • Wan Kei Group Holdings Limited
  • AXA Centre
  • 18th Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1718SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 2015

Biography

Wan Kei Group Holdings Limited, an investment holding company, provides foundation and ground investigation field works to public and private sectors in Hong Kong. The company operates through Foundation Construction, Ground Investigation Services, and Financial Services segments. Its foundation works primarily consist of construction of socketed H-piles, mini piles, soldier piles, pipe piles, and king posts. The company also leases machinery; and engages in the construction of site foundation engineering and bore pile pre-drilling works. In addition, it provides investment, financing, and money lending services. The company was incorporated in 2014 and is headquartered in Wanchai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 13:14
End of Day Share Price2020/02/25 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.