company background image
1793

Wecon Holdings SEHK:1793 Stock Report

Last Price

HK$0.20

Market Cap

HK$160.0m

7D

-2.9%

1Y

-5.7%

Updated

27 Jun, 2022

Data

Company Financials
1793 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance1/6
Financial Health6/6
Dividends2/6

1793 Stock Overview

Wecon Holdings Limited, an investment holding company, operates as a construction contractor in Hong Kong.

Wecon Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Wecon Holdings
Historical stock prices
Current Share PriceHK$0.20
52 Week HighHK$0.24
52 Week LowHK$0.14
Beta1.05
1 Month Change8.11%
3 Month Change9.29%
1 Year Change-5.66%
3 Year Change-32.20%
5 Year Changen/a
Change since IPO-69.23%

Recent News & Updates

Jun 27
Wecon Holdings' (HKG:1793) Dividend Will Be HK$0.012

Wecon Holdings' (HKG:1793) Dividend Will Be HK$0.012

The board of Wecon Holdings Limited ( HKG:1793 ) has announced that it will pay a dividend on the 19th of September...

May 17
Here's What's Concerning About Wecon Holdings' (HKG:1793) Returns On Capital

Here's What's Concerning About Wecon Holdings' (HKG:1793) Returns On Capital

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Amongst other...

Shareholder Returns

1793HK ConstructionHK Market
7D-2.9%-0.1%1.7%
1Y-5.7%1.1%-21.2%

Return vs Industry: 1793 underperformed the Hong Kong Construction industry which returned 1.9% over the past year.

Return vs Market: 1793 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 1793's price volatile compared to industry and market?
1793 volatility
1793 Average Weekly Movement5.9%
Construction Industry Average Movement7.2%
Market Average Movement6.9%
10% most volatile stocks in HK Market13.8%
10% least volatile stocks in HK Market3.4%

Stable Share Price: 1793 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 1793's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1974224Ka Yip Tsanghttps://www.wecon.com.hk

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?
1793 fundamental statistics
Market CapHK$160.00m
Earnings (TTM)HK$14.21m
Revenue (TTM)HK$1.15b

11.3x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1793 income statement (TTM)
RevenueHK$1.15b
Cost of RevenueHK$1.10b
Gross ProfitHK$53.65m
Other ExpensesHK$39.44m
EarningsHK$14.21m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.018
Gross Margin4.65%
Net Profit Margin1.23%
Debt/Equity Ratio0%

How did 1793 perform over the long term?

See historical performance and comparison

Dividends

6.0%

Current Dividend Yield

67%

Payout Ratio

Does 1793 pay a reliable dividends?

See 1793 dividend history and benchmarks
When do you need to buy 1793 by to receive an upcoming dividend?
Wecon Holdings dividend dates
Ex Dividend DateAug 23 2022
Dividend Pay DateSep 19 2022
Days until Ex dividend56 days
Days until Dividend pay date83 days

Does 1793 pay a reliable dividends?

See 1793 dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

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.

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.
Key Statistics
Enterprise Value/Revenue0.06x
Enterprise Value/EBITDA5.3x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 1793's PE Ratio compare to its peers?

1793 PE Ratio vs Peers
The above table shows the PE ratio for 1793 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average6x
1647 Grandshores Technology Group
5.7xn/aHK$155.4m
6038 G & M Holdings
4.2xn/aHK$154.0m
2193 Man King Holdings
4.4xn/aHK$159.5m
8268 Smart City Development Holdings
9.8xn/aHK$150.0m
1793 Wecon Holdings
11.3xn/aHK$160.0m

Price-To-Earnings vs Peers: 1793 is expensive based on its Price-To-Earnings Ratio (11.3x) compared to the peer average (6x).


Price to Earnings Ratio vs Industry

How does 1793's PE Ratio compare vs other companies in the HK Construction Industry?

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 Ratio11.3x
Fair PE Ration/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.


Discover undervalued companies

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.


Discover growth companies

  • 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.


Discover strong past performing companies

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


Discover healthy companies

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

TodayJun 28 2022Ex Dividend DateAug 23 2022Dividend Pay DateSep 19 202227 days from Ex DividendBuy in the next 56 days to receive the upcoming dividend

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.


Discover strong dividend paying companies

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


Key Information

  • Name: Wecon Holdings Limited
  • Ticker: 1793
  • Exchange: SEHK
  • Founded: 1974
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Implied Market Cap: HK$160.000m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.