SEHK:2266

Stock Analysis Report

Lai Si Enterprise Holding

Executive Summary

Lai Si Enterprise Holding Limited, an investment holding company, undertakes fitting-out projects in Hong Kong and Macau.

Snowflake

Fundamentals

Flawless balance sheet with limited growth.

Share Price & News

How has Lai Si Enterprise Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.1%

2266

0.6%

HK Construction

0.3%

HK Market


1 Year Return

-10.0%

2266

-14.9%

HK Construction

1.3%

HK Market

Return vs Industry: 2266 exceeded the Hong Kong Construction industry which returned -14.9% over the past year.

Return vs Market: 2266 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

2266IndustryMarket
7 Day-3.1%0.6%0.3%
30 Day10.5%-4.7%0.5%
90 Day5.0%-10.5%-4.6%
1 Year-10.0%-10.0%-11.1%-14.9%4.9%1.3%
3 Yearn/a-25.3%-33.6%15.3%3.7%
5 Yearn/a0.004%-15.1%20.0%-0.006%

Price Volatility Vs. Market

How volatile is Lai Si Enterprise Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lai Si Enterprise Holding undervalued compared to its fair value and its price relative to the market?

19.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 2266's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 2266's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 2266 is poor value based on its PE Ratio (19.5x) compared to the Construction industry average (10.3x).

PE vs Market: 2266 is poor value based on its PE Ratio (19.5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2266's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2266 is overvalued based on its PB Ratio (1.2x) compared to the HK Construction industry average (1.1x).


Next Steps

Future Growth

How is Lai Si Enterprise Holding forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2266's forecast earnings growth (17.1% per year) is above the savings rate (2%).

Earnings vs Market: 2266's earnings (17.1% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Earnings: 2266's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 2266's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 2266's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 2266's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Lai Si Enterprise Holding performed over the past 5 years?

-51.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2266's earnings have declined by -51.8% per year over the past 5 years.

Accelerating Growth: 2266 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 2266 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (-12.4%).


Return on Equity

High ROE: 2266's Return on Equity (6.1%) is considered low.


Return on Assets

ROA vs Industry: 2266's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 2266's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Lai Si Enterprise Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 2266's short term assets (MOP218.1M) exceeds its short term liabilities (MOP107.1M)

Long Term Liabilities: 2266's short term assets (218.1M) exceeds its long term liabilities (15.6M)


Debt to Equity History and Analysis

Debt Level: 2266's debt to equity ratio (25.9%) is considered satisfactory

Reducing Debt: 2266's debt to equity ratio has reduced from 30.8% to 25.9% over the past 5 years.

Debt Coverage: 2266's debt is well covered by operating cash flow (26.9%).

Interest Coverage: 2266's interest payments on its debt are well covered by EBIT (13.1x coverage).


Balance Sheet

Inventory Level: 2266 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2266's debt is covered by short term assets (assets are 3.843580x debt).


Next Steps

Dividend

What is Lai Si Enterprise Holding's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.2%industryaverage4.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 2266's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2266'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 2266's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2266'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 2266'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 Lai Si Enterprise Holding's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Harry Lai (39yo)

3.3yrs

Tenure

MO$1,509,000

Compensation

Mr. Meng San Lai, also known as Harry, is Co-Owner of SHK - Mac Capital Limited. Mr. Lai has been Chief Executive Officer at Lai Si Enterprise Holding Limited since July 18, 2016 and has been its Director  ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Harry's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

Compensation vs Earnings: Harry's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.3yrs

Average Tenure

44.5yo

Average Age

Experienced Management: 2266's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

39yo

Average Age

Experienced Board: 2266's board of directors are considered experienced (3.3 years average tenure).


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

  • Stanley Lai (67yo)

    Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: MO$1.56m
  • Harry Lai (39yo)

    CEO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: MO$1.51m
  • Karen Lai (38yo)

    Executive Director

    • Tenure: 3.3yrs
    • Compensation: MO$1.43m
  • Annie Cheong (40yo)

    Executive Director

    • Tenure: 3.3yrs
    • Compensation: MO$521.00k
  • Hon Lo (52yo)

    Finance Manager & Company Secretary

    • Tenure: 0yrs
  • Kevin Isaacs (49yo)

    General Manager of Hong Kong & China Business

    • Tenure: 0.9yrs

Board Members

  • Chun Sing Chan (39yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: MO$150.00k
  • Stanley Lai (67yo)

    Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: MO$1.56m
  • Harry Lai (39yo)

    CEO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: MO$1.51m
  • Karen Lai (38yo)

    Executive Director

    • Tenure: 3.3yrs
    • Compensation: MO$1.43m
  • Annie Cheong (40yo)

    Executive Director

    • Tenure: 3.3yrs
    • Compensation: MO$521.00k
  • Iok Chan (53yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: MO$50.00k
  • Mei Lam (32yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs

Company Information

Lai Si Enterprise Holding Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lai Si Enterprise Holding Limited
  • Ticker: 2266
  • Exchange: SEHK
  • Founded: 1980
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$252.000m
  • Shares outstanding: 400.00m
  • Website: https://www.lai-si.com

Number of Employees


Location

  • Lai Si Enterprise Holding Limited
  • Macau Lai Si Enterprise Centre
  • Rua Da Ribeira Do Patane No. 54
  • Macau
  • Macau

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2266SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2017

Biography

Lai Si Enterprise Holding Limited, an investment holding company, undertakes fitting-out projects in Hong Kong and Macau. The company also undertakes construction, and repair and maintenance works. It serv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 13:00
End of Day Share Price2019/10/22 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.