SEHK:1757

Stock Analysis Report

Affluent Foundation Holdings

Executive Summary

Affluent Foundation Holdings Limited, an investment holding company, provides services related to foundation works in Hong Kong.

Snowflake

Fundamentals

Mediocre balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.6%

1757

0.2%

HK Construction

2.4%

HK Market


1 Year Return

-39.3%

1757

-19.0%

HK Construction

0.4%

HK Market

Return vs Industry: 1757 underperformed the Hong Kong Construction industry which returned -19% over the past year.

Return vs Market: 1757 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

1757IndustryMarket
7 Day-0.6%0.2%2.4%
30 Day-0.6%-6.3%-2.6%
90 Day0%-12.0%-5.6%
1 Year-39.3%-39.3%-15.7%-19.0%4.0%0.4%
3 Yearn/a-25.9%-34.0%15.1%3.5%
5 Yearn/a0.8%-14.3%20.3%0.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.09x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate 1757's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate 1757's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1757 is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: 1757 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 1757's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1757 is overvalued based on its PB Ratio (2.1x) compared to the HK Construction industry average (1.1x).


Next Steps

Future Growth

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

48.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1757 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 1757 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 1757 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if 1757's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1757's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 1757's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Affluent Foundation Holdings performed over the past 5 years?

-49.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1757 is unprofitable, and losses have increased over the past 5 years at a rate of -49.3% per year.

Accelerating Growth: Unable to compare 1757's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1757 is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-12.8%).


Return on Equity

High ROE: 1757 has a negative Return on Equity (-66.34%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 1757 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 1757 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Affluent Foundation Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1757's short term assets (HK$172.1M) exceeds its short term liabilities (HK$86.5M)

Long Term Liabilities: 1757's short term assets (172.1M) exceeds its long term liabilities (6.0M)


Debt to Equity History and Analysis

Debt Level: 1757's debt to equity ratio (25.7%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 1757's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1757's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 1757's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 1757 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1757's debt is covered by short term assets (assets are 6.498730x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage4.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1757's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1757'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 1757's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1757'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 1757'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 Affluent Foundation Holdings's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average board tenure


CEO

Siu Chan (63yo)

1.4yrs

Tenure

HK$454,000

Compensation

Mr. Siu Cheong Chan has been Chairman of the Board, Chief Executive Officer and Executive Director of Affluent Foundation Holdings Limited since May 14, 2018. Mr. Chan is responsible for overall management ...


CEO Compensation Analysis

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

Compensation vs Earnings: Siu's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

1.4yrs

Average Tenure

45yo

Average Age

Experienced Board: 1757's board of directors are not considered experienced ( 1.4 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


Management Team

  • Siu Chan (63yo)

    Chairman of the Board & CEO

    • Tenure: 1.4yrs
    • Compensation: HK$454.00k
  • Ka Sin (61yo)

    Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$273.00k
  • Yuen Ping Woo (33yo)

    Company Secretary

    • Tenure: 0.5yrs

Board Members

  • Chi Wai Ho (45yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: HK$150.00k
  • Wilfred Cheung (40yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: HK$150.00k
  • Siu Chan (63yo)

    Chairman of the Board & CEO

    • Tenure: 1.4yrs
    • Compensation: HK$454.00k
  • Ka Sin (61yo)

    Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$273.00k
  • Leong Lau (35yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: HK$150.00k

Company Information

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


Key Information

  • Name: Affluent Foundation Holdings Limited
  • Ticker: 1757
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$214.800m
  • Shares outstanding: 1.20b
  • Website: https://www.hcho.com.hk

Number of Employees


Location

  • Affluent Foundation Holdings Limited
  • Unit 903-905, The Octagon
  • 9th Floor
  • Tsuen Wan
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1757SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2018

Biography

Affluent Foundation Holdings Limited, an investment holding company, provides services related to foundation works in Hong Kong. It offers excavation and lateral support services; pile caps construction se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:56
End of Day Share Price2019/10/14 00:00
Earnings2019/03/31
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.