Wecon Holdings
Market Cap
HK$141.6m
Last Updated
2020/02/21 13:16 UTC
Data Sources
Company Financials
Executive Summary
Wecon Holdings Limited, an investment holding company, operates as a construction contractor in Hong Kong.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with excellent balance sheet.
Share Price & News
How has Wecon Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1793's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
0.5%
1793
1.1%
HK Construction
0.6%
HK Market
1 Year Return
n/a
1793
-26.1%
HK Construction
-5.7%
HK Market
Return vs Industry: Insufficient data to determine how 1793 performed against the Hong Kong Construction industry.
Return vs Market: Insufficient data to determine how 1793 performed against the Hong Kong Market.
Shareholder returns
| 1793 | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | 1.1% | 0.6% |
| 30 Day | -20.3% | -2.7% | -0.8% |
| 90 Day | -26.4% | -2.4% | 4.1% |
| 1 Year | n/a | -22.6%-26.1% | -2.2%-5.7% |
| 3 Year | n/a | -36.0%-42.8% | 13.8%2.3% |
| 5 Year | n/a | -26.3%-37.2% | 14.8%-4.2% |
Price Volatility Vs. Market
How volatile is Wecon Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
What Can We Make Of Wecon Holdings Limited’s (HKG:1793) High Return On Capital?1 month ago | Simply Wall St
Should Wecon Holdings Limited (HKG:1793) Be Part Of Your Dividend Portfolio?2 months ago | Simply Wall St
Do Institutions Own Wecon Holdings Limited (HKG:1793) Shares?Valuation
Is Wecon 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: 1793 (HK$0.18) is trading below our estimate of fair value (HK$0.76)
Significantly Below Fair Value: 1793 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 1793 is good value based on its PE Ratio (2.9x) compared to the Construction industry average (8.9x).
PE vs Market: 1793 is good value based on its PE Ratio (2.9x) compared to the Hong Kong market (10.2x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 1793's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 1793 is good value based on its PB Ratio (0.6x) compared to the HK Construction industry average (1x).
Next Steps
Future Growth
How is Wecon Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
10.9%
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.
Next Steps
- Examine whether Wecon Holdings is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Wecon Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Capital Goods industry.
Past Performance
How has Wecon Holdings performed over the past 5 years?
16.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1793 has high quality earnings.
Growing Profit Margin: 1793's current net profit margins (4.3%) are higher than last year (4%).
Past Earnings Growth Analysis
Earnings Trend: 1793's earnings have grown by 16.2% per year over the past 5 years.
Accelerating Growth: 1793's earnings growth over the past year (14.8%) is below its 5-year average (16.2% per year).
Earnings vs Industry: 1793 earnings growth over the past year (14.8%) exceeded the Construction industry -5.4%.
Return on Equity
High ROE: 1793's Return on Equity (18.1%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Wecon Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: 1793's short term assets (HK$548.8M) exceed its short term liabilities (HK$315.5M).
Long Term Liabilities: 1793's short term assets (HK$548.8M) exceed its long term liabilities (HK$3.1M).
Debt to Equity History and Analysis
Debt Level: 1793's debt to equity ratio (2%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if 1793's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: 1793's debt is well covered by operating cash flow (1042.4%).
Interest Coverage: 1793 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: 1793 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 1793's debt is covered by short term assets (assets are 109.8x debt).
Next Steps
Dividend
What is Wecon Holdings's current dividend yield, its reliability and sustainability?
7.61%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 1793's dividend (7.61%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).
High Dividend: 1793's dividend (7.61%) is in the top 25% of dividend payers in the Hong Kong market (6.33%)
Stability and Growth of Payments
Stable Dividend: Too early to tell whether 1793's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if 1793's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (22.3%), 1793's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.4yrs
Average board tenure
CEO
Ka Yip Tsang (66yo)
1.9yrs
Tenure
HK$1,903,000
Compensation
Mr. Ka Yip Tsang has been Chairman and Chief Executive Officer of Wecon Holdings Limited since March 23, 2018. Mr. Tsang joined Wecon Group in October 1983. Mr. Tsang is a Managing Director of all the subs ...
CEO Compensation Analysis
Compensation vs Market: Ka Yip's total compensation ($USD244.50K) is about average for companies of similar size in the Hong Kong market ($USD226.09K).
Compensation vs Earnings: Ka Yip's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 1.9yrs | HK$1.90m | 75% HK$106.2m | |
| Executive Director | 1.7yrs | HK$700.00k | no data | |
| Executive Director | 1.7yrs | HK$545.00k | no data | |
| Independent Non-Executive Director | 1.1yrs | HK$16.00k | no data | |
| Independent Non-Executive Director | 1.1yrs | HK$16.00k | no data | |
| Independent Non-Executive Director | 1.1yrs | HK$16.00k | no data | |
| Director of Wecon Construction Management Limited | 0yrs | HK$2.59m | no data | |
| Director of Wecon Group | 0yrs | HK$180.00k | no data | |
| Director of Wecon Group | 0yrs | no data | no data |
1.4yrs
Average Tenure
60yo
Average Age
Experienced Board: 1793's board of directors are not considered experienced ( 1.4 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: 1793 only recently listed within the past 12 months, with total shares outstanding growing by 17.9% in the past year..
Top Shareholders
Company Information
Wecon Holdings Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Wecon Holdings Limited
- Ticker: 1793
- Exchange: SEHK
- Founded: 1974
- Industry: Construction and Engineering
- Sector: Capital Goods
- Market Cap: HK$141.600m
- Shares outstanding: 800.00m
- Website: https://www.wecon.com.hk
Number of Employees
Location
- Wecon Holdings Limited
- Tung Hip Commercial Building
- 18th Floor
- Central
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1793 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Feb 2019 |
Biography
Wecon Holdings Limited, an investment holding company, operates as a construction contractor in Hong Kong. The company operates through Building Construction Contracts; and Repair, Maintenance, Alteration, and Addition Works Services segments. It undertakes building construction projects for industry, residence, commence, educational institution, and hospital; provides building maintenance and improvement works to public housings; and offers renovation works, including alteration and addition, and fitting out works. The company was founded in 1974 and is headquartered in Central, Hong Kong.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/21 13:16 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
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.