SEHK:1897

Stock Analysis Report

Million Hope Industries Holdings

Executive Summary

Million Hope Industries Holdings Limited, an investment holding company, engages in the design, supply, and installation of facade and curtain wall systems in Hong Kong, Mainland China, and Saipan.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Million Hope Industries Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1897 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.3%

1897

2.4%

HK Building

0.3%

HK Market


1 Year Return

n/a

1897

93.9%

HK Building

-5.1%

HK Market

Return vs Industry: Insufficient data to determine how 1897 performed against the Hong Kong Building industry.

Return vs Market: Insufficient data to determine how 1897 performed against the Hong Kong Market.


Shareholder returns

1897IndustryMarket
7 Day5.3%2.4%0.3%
30 Day2.6%3.8%-3.9%
90 Day19.4%31.5%4.4%
1 Yearn/a100.9%93.9%-1.6%-5.1%
3 Yearn/a39.3%29.7%13.4%1.9%
5 Yearn/a107.2%85.1%15.6%-3.6%

Price Volatility Vs. Market

How volatile is Million Hope Industries Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Million Hope Industries Holdings undervalued compared to its fair value and its price relative to the market?

8.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1897 (HK$0.8) is trading above our estimate of fair value (HK$0.28)

Significantly Below Fair Value: 1897 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1897 is good value based on its PE Ratio (8.8x) compared to the Building industry average (9x).

PE vs Market: 1897 is good value based on its PE Ratio (8.8x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1897's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1897 is good value based on its PB Ratio (0.7x) compared to the HK Building industry average (1x).


Next Steps

Future Growth

How is Million Hope Industries Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.9%

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 Million Hope Industries 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

Past Performance

How has Million Hope Industries Holdings performed over the past 5 years?

-6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1897 has a high level of non-cash earnings.

Growing Profit Margin: 1897's current net profit margins (11.1%) are higher than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: 1897's earnings have declined by -6.7% per year over the past 5 years.

Accelerating Growth: 1897's earnings growth over the past year (9.2%) exceeds its 5-year average (-6.7% per year).

Earnings vs Industry: 1897 earnings growth over the past year (9.2%) underperformed the Building industry 14.9%.


Return on Equity

High ROE: 1897's Return on Equity (7.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Million Hope Industries Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1897's short term assets (HK$459.9M) exceed its short term liabilities (HK$57.8M).

Long Term Liabilities: 1897's short term assets (HK$459.9M) exceed its long term liabilities (HK$59.1M).


Debt to Equity History and Analysis

Debt Level: 1897 is debt free.

Reducing Debt: 1897 had no debt 5 years ago.

Debt Coverage: 1897 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1897 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1897 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1897's debt is covered by short term assets (assets are 1.6567986424359E+19x debt).


Next Steps

Dividend

What is Million Hope Industries Holdings's current dividend yield, its reliability and sustainability?

3.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1897's dividend (3%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1897's dividend (3%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.28%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1897's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1897's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.1%), 1897'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?

5.1yrs

Average management tenure


CEO

Kin Lun Chuk (68yo)

1.5yrs

Tenure

HK$5,167,000

Compensation

Mr. Chuk Kin Lun appointed as an Executive Director and Joint Managing Director of Million Hope Industries Holdings Limited on 9 August 2018. He serves as the Director of the Building Materials, Constructi ...


CEO Compensation Analysis

Compensation vs Market: Kin Lun's total compensation ($USD664.89K) is above average for companies of similar size in the Hong Kong market ($USD226.20K).

Compensation vs Earnings: Kin Lun's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kin Lun Chuk
Joint MD & Executive Director1.5yrsHK$5.17m0.38% HK$1.3m
Cheuk Hung Lee
Joint MD & Executive Director1.5yrsHK$3.85m0.13% HK$448.0k
Wing Fai Kwok
Senior Accounting Manager & Company Secretary1.7yrsno datano data
Wai Ming Cheong
Senior Design Manager7.1yrsno datano data
Chun Keung Chung
Senior Manager of Contracts8.1yrsno datano data
Siu Cheung Jarn
Senior Project Manager5.1yrsno datano data
Yuen On Wong
Senior Project Manager9.1yrsno datano data

5.1yrs

Average Tenure

49yo

Average Age

Experienced Management: 1897's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kin Lun Chuk
Joint MD & Executive Director1.5yrsHK$5.17m0.38% HK$1.3m
Cheuk Hung Lee
Joint MD & Executive Director1.5yrsHK$3.85m0.13% HK$448.0k
Sai Ho Tai
Non-Executive Director2yrsHK$493.00k1.59% HK$5.6m
Mou-Sing Cha
Non-Executive Chairman1.5yrsHK$610.00k4.33% HK$15.1m
Sue Toa Wong
Deputy Chairman1.5yrsHK$910.00k4.21% HK$14.7m
Sam Tin Chung
Non-Executive Director0.6yrsno data0.022% HK$75.1k
Wei Zhang
Alternate Director0yrsno data0.39% HK$1.4m
Yan Ki Ho
Independent Non-Executive Director1yrsHK$21.00kno data
Kan Young Poon
Independent Non-Executive Director1yrsHK$21.00kno data
Kai Yung Yip
Independent Non-Executive Director1yrsHK$21.00kno data

1.5yrs

Average Tenure

67.5yo

Average Age

Experienced Board: 1897's board of directors are not considered experienced ( 1.5 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: 1897 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: 1897 only recently listed within the past 12 months.


Top Shareholders

Company Information

Million Hope Industries Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Million Hope Industries Holdings Limited
  • Ticker: 1897
  • Exchange: SEHK
  • Founded: 1990
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: HK$349.066m
  • Shares outstanding: 436.33m
  • Website: https://www.millionhope.com.hk

Number of Employees


Location

  • Million Hope Industries Holdings Limited
  • Office A, Kings Wing Plaza 1
  • 20th Floor
  • Shatin
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1897SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinay SharesHKHKDMar 2019

Biography

Million Hope Industries Holdings Limited, an investment holding company, engages in the design, supply, and installation of facade and curtain wall systems in Hong Kong, Mainland China, and Saipan. The company offers aluminum curtain walls, windows, doors, claddings, and features primarily to contractors and property developers. It also invests in properties. The company was founded in 1990 and is headquartered in Shatin, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 13:14
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
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.