SEHK:1726

Stock Analysis Report

Executive Summary

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

Rewards

Earnings grew by 157.7% over the past year

Risk Analysis

Earnings have declined by -24.55% per year over past 5 years

High level of non-cash earnings

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

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

Stable Share Price: 1726's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.2%

1726

-1.8%

HK Construction

-3.1%

HK Market


1 Year Return

21.7%

1726

-17.9%

HK Construction

2.3%

HK Market

Return vs Industry: 1726 exceeded the Hong Kong Construction industry which returned -16.5% over the past year.

Return vs Market: 1726 exceeded the Hong Kong Market which returned 4.5% over the past year.


Shareholder returns

1726IndustryMarket
7 Day-5.2%-1.8%-3.1%
30 Day-9.9%-2.2%0.5%
90 Day-37.1%0.5%5.3%
1 Year21.7%21.7%-13.9%-17.9%6.1%2.3%
3 Yearn/a-29.3%-37.0%22.2%9.8%
5 Yearn/a-21.7%-33.2%18.0%-1.7%

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?

22.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1726 (HK$0.39) is trading above our estimate of fair value (HK$0)

Significantly Below Fair Value: 1726 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1726 is poor value based on its PE Ratio (23.6x) compared to the Construction industry average (9.8x).

PE vs Market: 1726 is poor value based on its PE Ratio (23.6x) compared to the Hong Kong market (10.5x).


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 is overvalued based on its PB Ratio (1.9x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

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

10.8%

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?

-24.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1726 has a high level of non-cash earnings.

Growing Profit Margin: 1726's current net profit margins (21.7%) are higher than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: 1726's earnings have declined by -24.5% per year over the past 5 years.

Accelerating Growth: 1726's earnings growth over the past year (157.7%) exceeds its 5-year average (-24.5% per year).

Earnings vs Industry: 1726 earnings growth over the past year (157.7%) exceeded the Construction industry -9.7%.


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HKE Holdings's financial position?


Financial Position Analysis

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

Long Term Liabilities: 1726's short term assets (SGD28.5M) exceed its long term liabilities (SGD27.3K).


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%2.2%markettop25%6.2%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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.


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

What is the CEO of HKE Holdings's salary, the management and board of directors tenure and is there insider trading?

0.3yrs

Average management tenure


CEO

Xiaoer Chen (37yo)

0.3yrs

Tenure

0

Mr. 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 management experience in the fields o ...


Management Age and Tenure

0.3yrs

Average Tenure

39yo

Average Age

Experienced Management: 1726's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$288,000,08530 Jul 19
Xiaoer Chen
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares600,000,000
Max PriceHK$0.48
SellHK$288,000,08526 Jul 19
Skylight Illumination Limited
EntityCompany
Shares600,000,000
Max PriceHK$0.48

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25%.


Management Team

  • Wing Hang Chan (41yo)

    CFO & Company Secretary

    • Tenure: 0.3yrs
  • Lee Huat Koh (49yo)

    Executive Director

    • Tenure: 2.4yrs
    • Compensation: S$110.18k
  • Winnie Ramirez (36yo)

    Head of Architectural Design & Medical Planner

    • Tenure: 6yrs
  • Xiaoer Chen (37yo)

    Chairman & CEO

    • Tenure: 0.3yrs

Board Members

  • Wilfred Cheung (40yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: S$30.00k
  • Simon Siu (45yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: S$30.00k
  • Kam Keung Pong (57yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: S$30.00k
  • Kong Meng Ang (67yo)

    Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: S$114.00k
  • Lee Huat Koh (49yo)

    Executive Director

    • Tenure: 2.4yrs
    • Compensation: S$110.18k
  • Xiaoer Chen (37yo)

    Chairman & CEO

    • Tenure: 0.3yrs

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$296.000m
  • Shares outstanding: 800.00m
  • Website: https://www.hwakoon.com

Number of Employees


Location

  • HKE Holdings Limited
  • No. 02–47 North Link Building
  • 10 Admiralty Street
  • Singpaore
  • 757695
  • Singapore

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 services, which include conducting examinations, replacement of parts, and repair works; and ancillary services, such as minor renovation and installation works, dismantling and disposal of used medical equipment, removal of construction waste materials, and cleaning of the work sites upon completion of building works. It also sells tools and materials, such as fabricated radiation shielding products, signage boards, lead sheets, and lead glass. The company was founded in 1979 and is headquartered in Singapore. HKE Holdings Limited is a subsidiary of Eagle Fortitude Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/22 13:20
End of Day Share Price2020/01/22 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.