SEHK:1742

Stock Analysis Report

Executive Summary

HPC Holdings Limited, an investment holding company, engages in the provision of general building and civil engineering construction works in Singapore.

Rewards

PE ratio (2.7x) is below the Hong Kong market (10.5x)

Risk Analysis

Earnings have declined by -10.32% per year over past 5 years

High level of non-cash earnings

Profit margins (5.9%) are lower than last year (10.8%)

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1742 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.3%

1742

-0.9%

HK Construction

1.0%

HK Market


1 Year Return

-27.2%

1742

-16.4%

HK Construction

6.5%

HK Market

Return vs Industry: 1742 underperformed the Hong Kong Construction industry which returned -16.2% over the past year.

Return vs Market: 1742 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

1742IndustryMarket
7 Day4.3%-0.9%1.0%
30 Day-2.0%-0.5%3.7%
90 Day-11.4%1.5%8.0%
1 Year-27.2%-27.2%-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 HPC Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is HPC Holdings undervalued compared to its fair value and its price relative to the market?

2.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1742's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1742's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1742 is good value based on its PE Ratio (2.7x) compared to the Construction industry average (9.9x).

PE vs Market: 1742 is good value based on its PE Ratio (2.7x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1742's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1742 is good value based on its PB Ratio (0.4x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

How is HPC Holdings 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 HPC 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 HPC Holdings performed over the past 5 years?

-10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1742 has a high level of non-cash earnings.

Growing Profit Margin: 1742's current net profit margins (5.9%) are lower than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: 1742's earnings have declined by -10.3% per year over the past 5 years.

Accelerating Growth: 1742's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1742 had negative earnings growth (-41.1%) over the past year, making it difficult to compare to the Construction industry average (-12.3%).


Return on Equity

High ROE: 1742's Return on Equity (15.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HPC Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1742's short term assets (SGD135.7M) exceed its short term liabilities (SGD61.0M).

Long Term Liabilities: 1742's short term assets (SGD135.7M) exceed its long term liabilities (SGD17.3M).


Debt to Equity History and Analysis

Debt Level: 1742's debt to equity ratio (14.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1742's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1742's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1742 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1742 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1742's debt is covered by short term assets (assets are 10.8x debt).


Next Steps

Dividend

What is HPC Holdings'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 1742's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1742'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 1742's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1742's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1742 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 1742'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 HPC Holdings's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average board tenure


CEO

Yingde Wang (56yo)

0yrs

Tenure

S$470,000

Compensation

Mr. Wang Yingde serves Chairman of the Board and Chief Executive Officer of HPC Holdings Ltd. He was appointed as a Director of HPC Holdings on 13 October 2016 and designated as an Executive Director on 15 ...


CEO Compensation Analysis

Compensation vs Market: Yingde's total compensation ($USD348.94K) is above average for companies of similar size in the Hong Kong market ($USD228.16K).

Compensation vs Earnings: Yingde's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

1.8yrs

Average Tenure

53.5yo

Average Age

Experienced Board: 1742'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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 32.6%.


Management Team

  • Sharon Leung

    Company Secretary

    • Tenure: 3yrs
  • Yingde Wang (56yo)

    Chairman & CEO

    • Compensation: S$470.00k
  • Jianhua Shi (55yo)

    COO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: S$468.00k
  • Jie Zhang (35yo)

    Chief Financial Officer

    • Tenure: 0.8yrs

Board Members

  • Wai Yip Leung (43yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: S$19.00k
  • Yingde Wang (56yo)

    Chairman & CEO

    • Compensation: S$470.00k
  • Jianhua Shi (55yo)

    COO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: S$468.00k
  • Dong Zhu (58yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: S$19.00k
  • Diana Ng (49yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: S$19.00k
  • Toon Lian Ong (52yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: S$19.00k

Company Information

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


Key Information

  • Name: HPC Holdings Limited
  • Ticker: 1742
  • Exchange: SEHK
  • Founded: 2004
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$212.800m
  • Shares outstanding: 1.60b
  • Website: https://www.hpc.sg

Number of Employees


Location

  • HPC Holdings Limited
  • Bukit Merah Central No. 08-3687
  • Block 165
  • Singapore
  • 150165
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1742SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2018

Biography

HPC Holdings Limited, an investment holding company, engages in the provision of general building and civil engineering construction works in Singapore. The company provides contractor and subcontractor construction services for public and private sectors. It designs and builds projects for commercial and industrial buildings, such as logistics and warehouses facilities, factories, offices, workshops and car parks, and nursing homes. The company’s subcontracting works relate to upgrading of government-built flats, as well as construction of train stations, schools, factories, and highways. HPC Holdings Limited was founded in 2004 and is headquartered in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 12:50
End of Day Share Price2020/01/17 00:00
Earnings2019/04/30
Annual Earnings2018/10/31


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.