SEHK:1726

Stock Analysis Report

Executive Summary

HKE Holdings Limited provides design and building services for hospitals and clinics in Singapore.

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

23.7%

1726

0.8%

HK Construction

2.2%

HK Market


1 Year Return

57.9%

1726

-19.8%

HK Construction

-1.3%

HK Market

Return vs Industry: 1726 exceeded the Hong Kong Construction industry which returned -19.8% over the past year.

Return vs Market: 1726 exceeded the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

1726IndustryMarket
7 Day23.7%0.8%2.2%
30 Day20.0%-5.4%-2.9%
90 Day29.0%-10.6%-5.8%
1 Year57.9%57.9%-16.6%-19.8%2.3%-1.3%
3 Yearn/a-24.1%-32.3%15.6%3.9%
5 Yearn/a0.3%-14.8%20.1%0.06%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is HKE Holdings undervalued based on future cash flows and its price relative to the stock market?

37.09x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: Insufficient data to calculate 1726's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate 1726's fair value to establish if it is undervalued.


Price Based on Earnings

PE vs Industry: 1726 is poor value based on its PE Ratio (37.1x) compared to the Construction industry average (10.2x).

PE vs Market: 1726 is poor value based on its PE Ratio (37.1x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate 1726's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: 1726 is overvalued based on its PB Ratio (3x) compared to the HK Construction industry average (1.1x).


Next Steps

Future Growth

How is HKE Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 1726's forecast earnings growth (12.5% per year) is above the savings rate (2%).

Earnings vs Market: 1726's earnings (12.5% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

High Growth Earnings: 1726's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1726's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1726's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if 1726's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has HKE Holdings performed over the past 5 years?

-22.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1726's earnings have declined by -22.7% per year over the past 5 years.

Accelerating Growth: 1726's earnings growth over the past year (157.7%) exceeds its 5-year average (-22.7% per year).

Earnings vs Industry: 1726 earnings growth over the past year (157.7%) exceeded the Construction industry -12.8%.


Return on Equity

High ROE: 1726's Return on Equity (8.1%) is considered low.


Return on Assets

ROA vs Industry: 1726 has a higher Return on Assets than the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 1726's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is HKE Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1726's short term assets (SGD28.5M) exceeds its short term liabilities (SGD1.3M)

Long Term Liabilities: 1726's short term assets (28.5M) exceeds its long term liabilities (27.3K)


Debt to Equity History and Analysis

Debt Level: 1726 is debt free.

Reducing Debt: 1726 has not had any debt for past 5 years.

Debt Coverage: 1726 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1726 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1726 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 1726's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate 1726's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1726's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1726's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1726'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 1726'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 HKE Holdings's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average board tenure


CEO

Lee Huat Koh (49yo)

2.1yrs

Tenure

S$110,175

Compensation

Mr. Koh Lee Huat has been the Chief Executive Officer and an Executive Director of HKE Holdings Ltd. since September 17, 2017. Mr. Koh has been a director and a shareholder of Hwa Koon since January 25, 20 ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Lee Huat's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

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


Board Age and Tenure

1.8yrs

Average Tenure

47yo

Average Age

Experienced Board: 1726's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 1726 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyS$288,000,08530 Jul 19
Xiaoer Chen
EntityIndividual
Shares600,000,000
Max PriceS$0.48
SellS$288,000,08526 Jul 19
Skylight Illumination Limited
EntityCompany
Shares600,000,000
Max PriceS$0.48

Ownership Breakdown


Management Team

  • Ryan Ong (35yo)

    Executive Director

    • Tenure: 2.2yrs
    • Compensation: S$84.38k
  • Lee Huat Koh (49yo)

    CEO & Executive Director

    • Tenure: 2.1yrs
    • Compensation: S$110.18k
  • Winnie Ramirez (36yo)

    Head of Architectural Design & Medical Planner

    • Tenure: 5.8yrs

Board Members

  • Wilfred Cheung (40yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: S$6.08k
  • Simon Siu (45yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: S$6.08k
  • Kam Keung Pong (57yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: S$6.08k
  • Kong Meng Ang (67yo)

    Non-Executive Chairman

    • Tenure: 2.1yrs
    • Compensation: S$114.00k
  • Ryan Ong (35yo)

    Executive Director

    • Tenure: 2.2yrs
    • Compensation: S$84.38k
  • Lee Huat Koh (49yo)

    CEO & Executive Director

    • Tenure: 2.1yrs
    • Compensation: S$110.18k

Company Information

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


Key Information

  • Name: HKE Holdings Limited
  • Ticker: 1726
  • Exchange: SEHK
  • Founded: 1979
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$480.000m
  • Shares outstanding: 800.00m
  • Website: https://www.hwakoon.com

Number of Employees


Location

  • HKE Holdings Limited
  • One Taikoo Place
  • Suites 1801–3
  • Quarry Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1726SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2018

Biography

HKE Holdings Limited provides design and building services for hospitals and clinics in Singapore. The company offers radiation shielding works, M&E works, and fitting-out works; maintenance and other serv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/12 13:20
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)