Wecon Holdings Limited, an investment holding company, operates as a construction contractor in Hong Kong. The company operates through two segments, Construction Contracts; and Repair, Maintenance, Alteration and Addition (RMAA) Works Services. It offers building construction services for residential, commercial, and industrial buildings; RMAA works services, such as general upkeep, maintenance, improvement, refurbishment, alteration, and addition of existing facilities and components of buildings and their surroundings.
Wecon Holdings Fundamentals Summary
How do Wecon Holdings's earnings and revenue compare to its market cap?
Is 1793 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
1/6
Valuation Score 1/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 1793?
Other financial metrics that can be useful for relative valuation.
The above table shows the n/a ratio for 1793. This is calculated by dividing 1793's market cap by their current
preferred multiple.
What is 1793's n/a Ratio?
n/a Ratio
0x
n/a
n/a
Market Cap
HK$160.00m
1793 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Price-To-Earnings vs Industry: 1793 is good value based on its Price-To-Earnings Ratio (11.3x) compared to the Hong Kong Construction industry average (12.4x)
Price to Earnings Ratio vs Fair Ratio
What is 1793's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
1793 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio
11.3x
Fair PE Ratio
n/a
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1793's Price-To-Earnings Fair Ratio for valuation analysis.
Share Price vs Fair Value
What is the Fair Price of 1793 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 1793 (HK$0.2) is trading above our estimate of fair value (HK$0.2)
Significantly Below Fair Value: 1793 is trading above our estimate of fair value.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 1793's PEG Ratio to determine if it is good value.
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Future Growth
How is Wecon Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Future Growth Score
0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
11.2%
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 Wecon 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.
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Examine Wecon Holdings's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
Wecon Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.
Past Performance
How has Wecon Holdings performed over the past 5 years?
Past Performance Score
1/6
Past Performance Score 1/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-16.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1793 has high quality earnings.
Growing Profit Margin: 1793's current net profit margins (1.2%) are lower than last year (1.7%).
Past Earnings Growth Analysis
Earnings Trend: 1793's earnings have declined by 16.8% per year over the past 5 years.
Accelerating Growth: 1793's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 1793 had negative earnings growth (-26.2%) over the past year, making it difficult to compare to the Construction industry average (-1.2%).
Return on Equity
High ROE: 1793's Return on Equity (5%) is considered low.
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Financial Health
How is Wecon Holdings's financial position?
Financial Health Score
6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: 1793's short term assets (HK$503.5M) exceed its short term liabilities (HK$241.5M).
Long Term Liabilities: 1793's short term assets (HK$503.5M) exceed its long term liabilities (HK$5.0M).
Debt to Equity History and Analysis
Debt Level: 1793 is debt free.
Reducing Debt: 1793 has no debt compared to 5 years ago when its debt to equity ratio was 95.9%.
Debt Coverage: 1793 has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: 1793 has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
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Dividend
What is Wecon Holdings's current dividend yield, its reliability and sustainability?
Dividend Score
2/6
Dividend Score 2/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
6.00%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 1793's dividend (6%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.75%).
High Dividend: 1793's dividend (6%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.9%).
Stability and Growth of Payments
Stable Dividend: 1793 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 1793 has only been paying a dividend for 3 years, and since then payments have fallen.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (66.7%), 1793's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: 1793 is paying a dividend but the company has no free cash flows.
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Management
How experienced are the management team and are they aligned to shareholders interests?
3.7yrs
Average board tenure
CEO
Ka Yip Tsang (69 yo)
no data
Tenure
HK$2,457,000
Compensation
Mr. Ka Yip Tsang has been Chairman of Wecon Holdings Limited since March 23, 2018 and serves as its Chief Executive Officer. Mr. Tsang joined Wecon Group in October 1983. He has been an Executive Director...
CEO Compensation Analysis
Compensation vs Market: Ka Yip's total compensation ($USD313.02K) is above average for companies of similar size in the Hong Kong market ($USD233.02K).
Compensation vs Earnings: Ka Yip's compensation has been consistent with company performance over the past year.
Board Members
Experienced Board: 1793's board of directors are considered experienced (3.7 years average tenure).
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
Wecon Holdings Limited's employee growth, exchange listings and data sources
All financial data provided by Standard & Poor's Capital IQ.
Data
Last Updated (UTC time)
Company Analysis
2022/06/27 00:00
End of Day Share Price
2022/06/27 00:00
Earnings
2022/03/31
Annual Earnings
2022/03/31
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.