SEHK:1726

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1726 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 1726's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-2.9%

1726

0.4%

HK Construction

-5.9%

HK Market


1 Year Return

-34.8%

1726

-3.0%

HK Construction

21.6%

HK Market

Return vs Industry: 1726 underperformed the Hong Kong Construction industry which returned -2.5% over the past year.

Return vs Market: 1726 underperformed the Hong Kong Market which returned 22.2% over the past year.


Shareholder returns

1726IndustryMarket
7 Day-2.9%0.4%-5.9%
30 Day11.6%11.5%2.1%
90 Day1.0%6.2%9.0%
1 Year-34.8%-34.8%1.6%-3.0%26.3%21.6%
3 Yearn/a-24.1%-32.7%4.2%-6.7%
5 Yearn/a-10.0%-25.4%58.3%31.3%

Long-Term 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 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: 1726 (HK$0.2) is trading below our estimate of fair value (HK$1.16)

Significantly Below Fair Value: 1726 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1726 is poor value based on its PE Ratio (482.1x) compared to the HK Construction industry average (8.8x).

PE vs Market: 1726 is poor value based on its PE Ratio (482.1x) compared to the Hong Kong market (12.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: 1726's PB Ratio (1x) is in line with the HK Construction industry average.


Next Steps

Future Growth

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

17.3%

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 HKE 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 HKE Holdings performed over the past 5 years?

-31.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1726 has a large one-off gain of SGD205.5K impacting its June 30 2020 financial results.

Growing Profit Margin: 1726's current net profit margins (0.8%) are lower than last year (21.7%).


Past Earnings Growth Analysis

Earnings Trend: 1726's earnings have declined by 31.8% per year over the past 5 years.

Accelerating Growth: 1726's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1726 had negative earnings growth (-97.4%) over the past year, making it difficult to compare to the Construction industry average (-10.4%).


Return on Equity

High ROE: 1726's Return on Equity (0.2%) is considered low.


Next Steps

Financial Health

How is HKE Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1726's short term assets (SGD29.7M) exceed its short term liabilities (SGD1.9M).

Long Term Liabilities: 1726's short term assets (SGD29.7M) exceed its long term liabilities (SGD29.6K).


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


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate 1726'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 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

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

1.3yrs

Average management tenure


CEO

An Ming Wu (38 yo)

1.33yrs

Tenure

S$80,244

Compensation

Mr. An Ming Wu (formally known as Chen Xiaoer) has been Executive Director, Chairman and the Chief Executive Officer of HKE Holdings Limited since October 18, 2019. He has extensive investment and manageme...


Leadership Team

NamePositionTenureCompensationOwnership
An Ming Wu
Chairman & CEO1.33yrsS$80.24k75%
SGD 121.2m
Lee Huat Koh
Executive Director3.5yrsS$110.18kno data
Wing Hang Chan
CFO & Company Secretary1.33yrsno datano data

1.3yrs

Average Tenure

42yo

Average Age

Experienced Management: 1726's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
An Ming Wu
Chairman & CEO1.33yrsS$80.24k75%
SGD 121.2m
Lee Huat Koh
Executive Director3.5yrsS$110.18kno data
Kwok Yan Cheung
Independent Non-Executive Director2.92yrsS$30.36kno data
Man Ho Siu
Independent Non-Executive Director2.92yrsS$30.36kno data
Kam Keung Pong
Independent Non-Executive Director2.92yrsS$30.36kno data

2.9yrs

Average Tenure

46yo

Average Age

Experienced Board: 1726's board of directors are not considered experienced ( 2.9 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

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$161.600m
  • Shares outstanding: 800.00m
  • Website: https://www.hwakoon.com

Number of Employees


Location

  • HKE Holdings Limited
  • K11 Atelier
  • 20th Floor
  • Tsim Sha Tsui
  • Kowloon
  • 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 Analysis2021/02/27 10:15
End of Day Share Price2021/02/26 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.