SEHK:1891

Stock Analysis Report

Executive Summary

Heng Hup Holdings Limited, an investment holding company, operates as a scrap ferrous metal trader in Malaysia.

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.5%

1891

7.5%

HK Trade Distributors

0.9%

HK Market


1 Year Return

n/a

1891

11.6%

HK Trade Distributors

0.6%

HK Market

Return vs Industry: Insufficient data to determine how 1891 performed against the Hong Kong Trade Distributors industry.

Return vs Market: Insufficient data to determine how 1891 performed against the Hong Kong Market.


Shareholder returns

1891IndustryMarket
7 Day2.5%7.5%0.9%
30 Day-7.3%-7.8%0.4%
90 Day-5.6%8.2%-5.5%
1 Yearn/a15.0%11.6%4.2%0.6%
3 Yearn/a-7.8%-16.2%15.5%3.9%
5 Yearn/a-38.4%-50.5%19.9%-0.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate 1891's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate 1891's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1891 is good value based on its PE Ratio (5x) compared to the Trade Distributors industry average (9.1x).

PE vs Market: 1891 is good value based on its PE Ratio (5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 1891's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1891 is good value based on its PB Ratio (0.6x) compared to the HK Trade Distributors industry average (0.6x).


Next Steps

Future Growth

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

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1891's forecast earnings growth (0.3% per year) is below the savings rate (2%).

Earnings vs Market: 1891's earnings (0.3% per year) are forecast to grow slower than the Hong Kong market (11.4% per year).

High Growth Earnings: 1891's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1891's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1891'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 1891's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Heng Hup Holdings performed over the past 5 years?

17.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1891's earnings have grown by 17.5% per year over the past 5 years.

Accelerating Growth: 1891's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1891 had negative earnings growth (-23.2%) over the past year, making it difficult to compare to the Trade Distributors industry average (1%).


Return on Equity

High ROE: 1891's Return on Equity (11.9%) is considered low.


Return on Assets

ROA vs Industry: 1891 has a higher Return on Assets than the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: 1891's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Heng Hup Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1891's short term assets (MYR190.4M) exceeds its short term liabilities (MYR31.8M)

Long Term Liabilities: 1891's short term assets (190.4M) exceeds its long term liabilities (6.4M)


Debt to Equity History and Analysis

Debt Level: 1891's debt to equity ratio (4.9%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 1891's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1891's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1891's interest payments on its debt are well covered by EBIT (73.7x coverage).


Balance Sheet

Inventory Level: 1891 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1891's debt is covered by short term assets (assets are 21.788410x debt).


Next Steps

Dividend

What is Heng Hup Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage3.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1891's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1891'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 1891's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1891'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 1891'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 Heng Hup Holdings's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average board tenure


CEO

Kok Chin Sia (45yo)

1.3yrs

Tenure

0

Mr. Sia Kok Chin has been a Director of Heng Hup Holdings Limited since April 2018 and was appointed as the Chairman of the Board, Chief Executive Officer, and designated as Executive Director since June 2 ...


Board Age and Tenure

1.4yrs

Average Tenure

48yo

Average Age

Experienced Board: 1891'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

  • Wing Ng

    Company Secretary

    • Tenure: 1.3yrs
  • Kok Chin Sia (45yo)

    Chairman of the Board & CEO

    • Tenure: 1.3yrs
  • Keng Leong Sia (55yo)

    Executive Director

    • Tenure: 1.5yrs
  • Kok Chong Sia (53yo)

    Executive Director

    • Tenure: 1.5yrs
  • Kok Seng Sia (49yo)

    Executive Director

    • Tenure: 1.5yrs
  • Kok Heong Sia (43yo)

    Executive Director

    • Tenure: 1.5yrs
  • Heng Lee (38yo)

    Finance Manager

    • Tenure: 0yrs

Board Members

  • Kok Chin Sia (45yo)

    Chairman of the Board & CEO

    • Tenure: 1.3yrs
  • Keng Leong Sia (55yo)

    Executive Director

    • Tenure: 1.5yrs
  • Kok Chong Sia (53yo)

    Executive Director

    • Tenure: 1.5yrs
  • Kok Seng Sia (49yo)

    Executive Director

    • Tenure: 1.5yrs
  • Kok Heong Sia (43yo)

    Executive Director

    • Tenure: 1.5yrs
  • Shiow Sai (36yo)

    Independent Non Executive Director

    • Tenure: 0.7yrs
  • Chin Puar (48yo)

    Independent Non Executive Director

    • Tenure: 0.7yrs
  • Kheh Chu (48yo)

    Independent Non Executive Director

    • Tenure: 0.7yrs

Company Information

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


Key Information

  • Name: Heng Hup Holdings Limited
  • Ticker: 1891
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$202.000m
  • Shares outstanding: 1.00b
  • Website: https://www.henghup.com

Number of Employees


Location

  • Heng Hup Holdings Limited
  • No. 264, Jalan Satu A
  • Kampung Baru Subang
  • Shah Alam
  • Selangor
  • Malaysia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1891SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2019

Biography

Heng Hup Holdings Limited, an investment holding company, operates as a scrap ferrous metal trader in Malaysia. It purchases scrap ferrous metals from various sources, and processes and sells them to steel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 13:06
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.