TK Group (Holdings)

SEHK:2283

Snowflake Description

Flawless balance sheet and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

2283

SEHK

HK$3B

Market Cap

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Last updated 2019/07/20 12:59

Company description

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TK Group (Holdings) has significant price volatility in the past 3 months.

2283 Share Price and Events

7 Day Returns

-2.3%

SEHK:2283

2.4%

HK Machinery

0.8%

HK Market

1 Year Returns

-38.7%

SEHK:2283

9.3%

HK Machinery

-4.4%

HK Market

2283 Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
TK Group (Holdings) (2283)	-2.3%	-2.6%	-31.4%	-38.7%	90%	261.9%
HK Machinery	2.4%	0.3%	-10%	9.3%	60.7%	41.8%
HK Market	0.8%	1.5%	-7.4%	-4.4%	17.7%	1.6%

1 Year Return vs Industry and Market

2283 underperformed the Machinery industry which returned 9.3% over the past year.
2283 underperformed the Market in Hong Kong which returned -4.4% over the past year.

Price Volatility

2283

Industry

5yr Volatility vs Market

Related Companies

Sorry, no analysis for TK Group (Holdings)'s competitors could be found in our database.

2283 Value

Is TK Group (Holdings) undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Here we compare the current share price of TK Group (Holdings) to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for TK Group (Holdings).

SEHK:2283 Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Average of 7 Analyst Estimates (S&P Global)	See below
Discount Rate (Cost of Equity)	See below	8.6%
Perpetual Growth Rate	10-Year HK Government Bond Rate	2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:2283
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year HK Govt Bond Rate	2%
Equity Risk Premium	S&P Global	6%
Machinery Unlevered Beta	Simply Wall St/ S&P Global	1.08
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 1.081 (1 + (1- 25%) (10.81%))	1.113
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	1.11
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 2% + (1.113 * 5.96%)	8.64%

Discounted Cash Flow Calculation for SEHK:2283 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for TK Group (Holdings) is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:2283 DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (HKD, Millions)	Source	Present Value Discounted (@ 8.64%)
2020	316.13	Analyst x4	290.99
2021	451.65	Analyst x4	382.69
2022	492.96	Est @ 9.15%	384.48
2023	527.48	Est @ 7%	378.70
2024	556.51	Est @ 5.5%	367.77
2025	581.29	Est @ 4.45%	353.61
2026	602.91	Est @ 3.72%	337.60
2027	622.22	Est @ 3.2%	320.71
2028	639.91	Est @ 2.84%	303.61
2029	656.50	Est @ 2.59%	286.71
Present value of next 10 years cash flows			HK$3,406.88

SEHK:2283 DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₉ × (1 + g) ÷ (Discount Rate – g) = HK$656.50 × (1 + 2%) ÷ (8.64% – 2%)	HK$10,093.89
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = HK$10,093.89 ÷ (1 + 8.64%)¹⁰	HK$4,408.33

SEHK:2283 Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = HK$3,406.88 + HK$4,408.33	HK$7,815.21
Equity Value per Share (HKD)	= Total value / Shares Outstanding = HK$7,815.21 / 833.26	HK$9.38

SEHK:2283 Discount to Share Price
	Calculation	Result
Value per share (HKD)	From above.	HK$9.38
Current discount	Discount to share price of HK$3.80 = -1 x (HK$3.80 - HK$9.38) / HK$9.38	59.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount

Amount off the current price TK Group (Holdings) is available for.

^>50%

Share price is HK$3.8 vs Future cash flow value of HK$9.38

Current Discount Checks

For TK Group (Holdings) to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.

TK Group (Holdings)'s share price is below the future cash flow value, and at a moderate discount (> 20%).
TK Group (Holdings)'s share price is below the future cash flow value, and at a substantial discount (> 40%).

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for TK Group (Holdings)'s earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are TK Group (Holdings)'s earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

SEHK:2283 PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-12-31) in HKD	HK$0.42
SEHK:2283 Share Price **	SEHK (2019-07-19) in HKD	HK$3.8
Hong Kong Machinery Industry PE Ratio	Median Figure of 37 Publicly-Listed Machinery Companies	9.04x
Hong Kong Market PE Ratio	Median Figure of 1,511 Publicly-Listed Companies	10.76x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of TK Group (Holdings).

SEHK:2283 PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= SEHK:2283 Share Price ÷ EPS (both in HKD) = 3.8 ÷ 0.42	9.04x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

TK Group (Holdings) is good value based on earnings compared to the HK Machinery industry average.
TK Group (Holdings) is good value based on earnings compared to the Hong Kong market.

Price based on expected Growth

Does TK Group (Holdings)'s expected growth come at a high price?

Raw Data

SEHK:2283 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	9.04x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts	12.5%per year
Hong Kong Machinery Industry PEG Ratio	Median Figure of 12 Publicly-Listed Machinery Companies	0.71x
Hong Kong Market PEG Ratio	Median Figure of 480 Publicly-Listed Companies	0.8x

*Line of best fit is calculated by linear regression .

SEHK:2283 PEG (Price to Earnings to Growth) Ratio Calculation
	Calculation	Outcome
PEG Ratio	= PE Ratio ÷ Net Income Annual Growth Rate = 9.04x ÷ 12.5%	0.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

TK Group (Holdings) is good value based on expected growth next year.

Price based on value of assets

What value do investors place on TK Group (Holdings)'s assets?

Raw Data

SEHK:2283 PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-12-31) in HKD	HK$1.29
SEHK:2283 Share Price *	SEHK (2019-07-19) in HKD	HK$3.8
Hong Kong Machinery Industry PB Ratio	Median Figure of 50 Publicly-Listed Machinery Companies	0.99x
Hong Kong Market PB Ratio	Median Figure of 2,197 Publicly-Listed Companies	0.92x

SEHK:2283 PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= SEHK:2283 Share Price ÷ Book Value per Share (both in HKD) = 3.8 ÷ 1.29	2.94x

* Primary Listing of TK Group (Holdings).

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

TK Group (Holdings) is overvalued based on assets compared to the HK Machinery industry average.

Show me more potentially undervalued companies in the Machinery industry

Value checks

We assess TK Group (Holdings)'s value by looking at:

Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

2283 Future Performance

How is TK Group (Holdings) expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!

12.5%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is TK Group (Holdings) expected to grow at an attractive rate?

TK Group (Holdings)'s earnings growth is expected to exceed the low risk savings rate of 2%.

Growth vs Market Checks

TK Group (Holdings)'s earnings growth is expected to exceed the Hong Kong market average.
TK Group (Holdings)'s revenue growth is expected to exceed the Hong Kong market average.

Annual Growth Rates Comparison

Raw Data

SEHK:2283 Future Growth Rates Data Sources
Data Point	Source	Value (per year)
SEHK:2283 Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts	12.5%
SEHK:2283 Future Revenue Growth Rate	Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts	11.7%
Hong Kong Machinery Industry Earnings Growth Rate	Market Cap Weighted Average	13.3%
Hong Kong Machinery Industry Revenue Growth Rate	Market Cap Weighted Average	10.5%
Hong Kong Market Earnings Growth Rate	Market Cap Weighted Average	11.3%
Hong Kong Market Revenue Growth Rate	Market Cap Weighted Average	10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations

Raw Data

SEHK:2283 Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (6 months ago)	See Below
Future Estimates	Average of up to 7 Analyst Estimates (S&P Global)	See Below

All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2283 Future Estimates Data
Date (Data in HKD Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts
2021-12-31	3,264	625	499	6
2020-12-31	2,912	481	433	6
2019-12-31	2,568	477	365	6

SEHK:2283 Past Financials Data
Date (Data in HKD Millions)	Revenue	Cash Flow	Net Income *
2018-12-31	2,299	491	350
2018-09-30	2,184	439	341
2018-06-30	2,070	387	332
2018-03-31	1,966	394	317
2017-12-31	1,861	400	302
2017-09-30	1,791	359	270
2017-06-30	1,722	317	237
2017-03-31	1,674	281	222
2016-12-31	1,627	245	206
2016-09-30	1,610	243	200
2016-06-30	1,594	241	195
2016-03-31	1,600	261	191

*GAAP earnings excluding extraordinary items.

High Growth Checks

TK Group (Holdings)'s earnings are expected to grow by 12.5% yearly, however this is not considered high growth (20% yearly).
TK Group (Holdings)'s revenue is expected to grow by 11.7% yearly, however this is not considered high growth (20% yearly).

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

SEHK:2283 Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (6 months ago)	See Below
Future Estimates	Average of up to 7 Analyst Estimates (S&P Global)	See Below

All data from TK Group (Holdings) Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2283 Future Estimates Data
Date (Data in HKD Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts
2021-12-31	0.60	0.67	0.52	6.00
2020-12-31	0.52	0.58	0.45	6.00
2019-12-31	0.44	0.49	0.39	6.00

SEHK:2283 Past Financials Data
Date (Data in HKD Millions)	EPS *
2018-12-31	0.42
2018-09-30	0.41
2018-06-30	0.40
2018-03-31	0.38
2017-12-31	0.36
2017-09-30	0.33
2017-06-30	0.29
2017-03-31	0.27
2016-12-31	0.25
2016-09-30	0.24
2016-06-30	0.24
2016-03-31	0.23

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

TK Group (Holdings) is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).

Show me more growth companies in the Machinery industry

Future performance checks

We assess TK Group (Holdings)'s future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
TK Group (Holdings) has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

2283 Past Performance

How has TK Group (Holdings) performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.

Past earnings growth

Below we compare TK Group (Holdings)'s growth in the last year to its industry (Machinery).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

TK Group (Holdings) has delivered over 20% year on year earnings growth in the past 5 years.
TK Group (Holdings)'s 1-year earnings growth is less than its 5-year average (16% vs 21.2%)
TK Group (Holdings)'s earnings growth has not exceeded the HK Machinery industry average in the past year (16% vs 18%).

Earnings and Revenue History

TK Group (Holdings)'s revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from TK Group (Holdings) Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2283 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions)	Revenue	Net Income *	G+A Expenses
2018-12-31	2,298.61	350.19	346.07
2018-09-30	2,184.45	340.96	335.85
2018-06-30	2,070.30	331.74	325.62
2018-03-31	1,965.60	316.79	312.69
2017-12-31	1,860.90	301.83	299.76
2017-09-30	1,791.23	269.59	294.56
2017-06-30	1,721.55	237.34	289.36
2017-03-31	1,674.08	221.52	278.61
2016-12-31	1,626.61	205.70	267.87
2016-09-30	1,610.30	200.24	251.46
2016-06-30	1,594.00	194.77	235.06
2016-03-31	1,600.10	190.93	232.43
2015-12-31	1,606.21	187.09	229.81
2015-09-30	1,575.04	179.56	227.33
2015-06-30	1,543.88	172.03	224.85
2015-03-31	1,441.40	162.98	210.80
2014-12-31	1,338.92	153.92	196.75
2014-09-30	1,297.36	144.77	187.42
2014-06-30	1,255.80	135.62	178.09
2014-03-31	1,226.83	128.48	184.61
2013-12-31	1,197.85	121.35	191.13
2013-09-30	1,147.99	130.98	200.39
2013-06-30	1,098.14	140.61	209.64
2013-03-31	1,097.06	137.90	203.94
2012-12-31	1,095.99	135.19	198.24

*GAAP earnings excluding extraordinary items.

Performance last year

We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.

TK Group (Holdings) has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
TK Group (Holdings) used its assets more efficiently than the HK Machinery industry average last year based on Return on Assets.
TK Group (Holdings)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

Past performance checks

We assess TK Group (Holdings)'s performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
TK Group (Holdings) has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

2283 Health

How is TK Group (Holdings)'s financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up TK Group (Holdings)'s finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

TK Group (Holdings) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
TK Group (Holdings)'s cash and other short term assets cover its long term commitments.

Balance sheet

This treemap shows a more detailed breakdown of TK Group (Holdings)'s finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.
Debt is covered by short term assets, assets are 4.6x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.

Raw Data

All data from TK Group (Holdings) Company Filings, last reported 6 months ago.

SEHK:2283 Past Debt and Equity Data
Date (Data in HKD Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2018-12-31	1,075.46	342.23	753.81
2018-09-30	1,075.46	342.23	753.81
2018-06-30	954.55	167.53	406.47
2018-03-31	954.55	167.53	406.47
2017-12-31	911.52	97.92	540.82
2017-09-30	911.52	97.92	540.82
2017-06-30	744.57	130.32	357.95
2017-03-31	744.57	130.32	357.95
2016-12-31	685.01	199.29	381.31
2016-09-30	685.01	199.29	381.31
2016-06-30	619.93	223.86	314.13
2016-03-31	619.93	223.86	314.13
2015-12-31	605.50	205.34	319.95
2015-09-30	605.50	205.34	319.95
2015-06-30	550.23	236.58	289.70
2015-03-31	550.23	236.58	289.70
2014-12-31	526.73	131.36	266.53
2014-09-30	526.73	131.36	266.53
2014-06-30	436.23	129.24	305.13
2014-03-31	436.23	129.24	305.13
2013-12-31	370.27	170.42	332.59
2013-09-30	370.27	170.42	332.59
2013-06-30	195.70	7.53	86.29
2013-03-31	195.70	7.53	86.29
2012-12-31	276.37	214.31	118.75

TK Group (Holdings)'s level of debt (31.8%) compared to net worth is satisfactory (less than 40%).
The level of debt compared to net worth has been reduced over the past 5 years (45.8% vs 31.8% today).
Debt is well covered by operating cash flow (143.6%, greater than 20% of total debt).
TK Group (Holdings) earns more interest than it pays, coverage of interest payments is not a concern.

Show me more healthy companies in the Machinery industry

Financial health checks

We assess TK Group (Holdings)'s financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)

Full details on the Health part of the Simply Wall St company analysis model.

2283 Dividends

What is TK Group (Holdings)'s current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.

Annual Dividend Income

5.26%

Current annual income from TK Group (Holdings) dividends. Estimated to be 6.52% next year.

If you bought HK$2,000 of TK Group (Holdings) shares you are expected to receive HK$105 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

TK Group (Holdings)'s pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
TK Group (Holdings)'s dividend is below the markets top 25% of dividend payers in Hong Kong (5.71%).

Annualized Historical and Future Dividends

It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.

Raw Data

SEHK:2283 Annualized Past and Future Dividends
Data Point	Source	Value
Past Annualized Dividend Yield	S&P Global Market Data	See Below
Past Dividends per Share	Company Filings/ Annualized Dividend Payments	See Below
Future Dividends per Share Estimates	Average of up to 7 Analyst Estimates (S&P Global)	See Below
Hong Kong Machinery Industry Average Dividend Yield	Market Cap Weighted Average of 26 Stocks	3.1%
Hong Kong Market Average Dividend Yield	Market Cap Weighted Average of 978 Stocks	3.6%
Hong Kong Minimum Threshold Dividend Yield	10th Percentile	1.2%
Hong Kong Bottom 25% Dividend Yield	25th Percentile	2.1%
Hong Kong Top 25% Dividend Yield	75th Percentile	5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:2283 Future Dividends Estimate Data
Date (Data in HK$)	Dividend per Share (annual)	Avg. No. Analysts
2021-12-31	0.29	3.00
2020-12-31	0.25	3.00
2019-12-31	0.21	3.00

SEHK:2283 Past Annualized Dividends Data
Date (Data in HK$)	Dividend per share (annual)	Avg. Yield (%)
2019-03-11	0.200	4.577
2018-08-14	0.180	4.039
2018-03-12	0.170	2.726
2017-08-14	0.150	3.447
2017-05-10	0.140	4.426
2016-04-12	0.100	4.642
2016-03-15	0.100	5.018
2015-08-13	0.080	3.823
2015-04-20	0.100	4.095
2014-09-23	0.040	2.291
2014-08-28	0.040	3.159
2014-04-16	0.018	1.583
2014-03-25	0.018	1.425

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

TK Group (Holdings) has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
Dividend payments have increased, but TK Group (Holdings) only paid a dividend in the past 5 years.

Current Payout to shareholders

What portion of TK Group (Holdings)'s earnings are paid to the shareholders as a dividend.

Dividends paid are well covered by earnings (2.1x coverage).

Future Payout to shareholders

Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).

Income/ dividend checks

We assess TK Group (Holdings)'s dividend by checking for:

Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can TK Group (Holdings) afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

2283 Management

What is the CEO of TK Group (Holdings)'s salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

Michael Yung

COMPENSATION	HK$7,113,000
AGE	58

CEO Bio

Mr. Kin Cheung Yung, also known as Michael, serves as the Chief Executive Officer at TK Group Holdings Limited. Mr. Yung has approximately 25 years of experience in plastic mold fabrication and plastic injection molding. He is responsible for formulation and implementation of the business plan. Prior to joining TK Group Holdings, Mr. Yung acted as a buyer in National Semiconductor Hong Kong Ltd. from May 1985 to August 1987. He was promoted to Component Engineer in May 1987. From August 1987 to February 1989, he served at AST Research (Far East) Ltd. as Procurement Engineer. Mr. Yung served as General Manager of TK Group Holdings Ltd since 1989 and was primarily responsible for operation management for the molding business. He served as the Managing Director of TK Group Holdings Ltd since 2000, mainly responsible for business development and the daily operations of the Group's business. He served as an Executive Director of TK Group Holdings Limited since March 28, 2013. Mr. Yung graduated from the Department of Industrial Engineering of the University of Hong Kong with a bachelor's degree of Science in Engineering in November 1983. He also graduated from the Centre of Buddhist Studies of the Faculty of Social Sciences of the University of Hong Kong with a Master's Degree in Buddhist Studies in November 2008.

CEO Compensation

Michael's compensation has been consistent with company performance over the past year, both up more than 20%.
Michael's remuneration is higher than average for companies of similar size in Hong Kong.

Management Team Tenure

Average tenure and age of the TK Group (Holdings) management team in years:

Average Tenure

57.5

Average Age

The average tenure for the TK Group (Holdings) management team is over 5 years, this suggests they are a seasoned and experienced team.

2.3 yrs

Board of Directors Tenure

Average tenure and age of the TK Group (Holdings) board of directors in years:

5.7

Average Tenure

Average Age

The tenure for the TK Group (Holdings) board of directors is about average.

Recent Insider Trading

No 3 month individual insider trading information.

Recent Insider Transactions

Announced	Type	Name	Entity	Start	End	Shares	Max Price (HK$)	Value (HK$)
04. Jun 19	Buy	FMR LLC	Company	30. May 19	30. May 19	4,000,000	HK$4.04	HK$16,160,008
07. Dec 18	Buy	FMR LLC	Company	04. Dec 18	04. Dec 18	18,000	HK$4.45	HK$80,179
02. Nov 18	Sell	Value Partners Hong Kong Limited	Company	30. Oct 18	30. Oct 18	-3,000,000	HK$4.00	HK$-12,001,799
01. Nov 18	Buy	Eastern Mix Company Limited	Company	01. Nov 18	01. Nov 18	44,000	HK$3.98	HK$175,120
30. Oct 18	Buy	Eastern Mix Company Limited	Company	30. Oct 18	30. Oct 18	1,066,000	HK$3.95	HK$4,213,902
29. Oct 18	Buy	Eastern Mix Company Limited	Company	29. Oct 18	29. Oct 18	26,000	HK$3.99	HK$103,688
19. Oct 18	Sell	FMR LLC	Company	15. Oct 18	15. Oct 18	-1,656,000	HK$4.00	HK$-6,625,989
04. Oct 18	Buy	FMR LLC	Company	28. Sep 18	28. Sep 18	534,000	HK$4.96	HK$2,646,449
26. Sep 18	Sell	FMR LLC	Company	20. Sep 18	20. Sep 18	-162,000	HK$5.13	HK$-830,363
24. Sep 18	Buy	FMR LLC	Company	19. Sep 18	19. Sep 18	94,000	HK$5.00	HK$470,000
19. Sep 18	Sell	FMR LLC	Company	14. Sep 18	14. Sep 18	-42,000	HK$5.08	HK$-213,499
14. Sep 18	Buy	FMR LLC	Company	11. Sep 18	11. Sep 18	146,000	HK$4.94	HK$720,686
12. Sep 18	Sell	FMR LLC	Company	07. Sep 18	07. Sep 18	-154,000	HK$5.82	HK$-896,280
24. Aug 18	Buy	FMR LLC	Company	21. Aug 18	21. Aug 18	16,000	HK$6.00	HK$95,941

Management checks

We assess TK Group (Holdings)'s management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

2283 News

Simply Wall St News

Is TK Group (Holdings) Limited (HKG:2283) Undervalued After Accounting For Its Future Growth?

TK Group (Holdings) Limited (HKG:2283) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of HK$3.8 is based on unrealistic expectations. … Analysts are predicting good growth prospects for TK Group (Holdings) over the next couple of years. … But, to properly examine the value of a high-growth stock such as TK Group (Holdings), we must reflect its earnings growth into the valuation.

Simply Wall St - 14 hours ago – Full article

Does TK Group (Holdings) Limited's (HKG:2283) Recent Track Record Look Strong?

See our latest analysis for TK Group (Holdings) How 2283 fared against its long-term earnings performance and its industry 2283's trailing twelve-month earnings (from 31 December 2018) of HK$350m has jumped 16% compared to the previous year. … Furthermore, its return on assets (ROA) of 16% exceeds the HK Machinery industry of 6.1%, indicating TK Group (Holdings) has used its assets more efficiently. … I suggest you continue to research TK Group (Holdings) to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for 2283’s future growth?

Simply Wall St - 1 week ago – Full article

What Does TK Group (Holdings) Limited's (HKG:2283) Share Price Indicate?

TK Group (Holdings) Limited (HKG:2283), which is in the machinery business, and is based in China, saw significant share price movement during recent months on the SEHK, rising to highs of HK$5.63 and falling to the lows of HK$3.71. … I find that TK Group (Holdings)’s ratio of 9.61x is trading slightly below its industry peers’ ratio of 9.68x, which means if you buy TK Group (Holdings) today, you’d be paying a fair price for it. … And if you believe TK Group (Holdings) should be trading in this range, then there isn’t much room for the share price grow beyond where it’s currently trading.

Simply Wall St - 2 weeks ago – Full article

What Type Of Shareholder Owns TK Group (Holdings) Limited's (HKG:2283)?

Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. … View our latest analysis for TK Group (Holdings) SEHK:2283 Ownership Summary, June 19th 2019 What Does The Institutional Ownership Tell Us About TK Group (Holdings)? … As you can see, institutional investors own 21% of TK Group (Holdings).

Simply Wall St - 1 month ago – Full article

TK Group (Holdings) Limited (HKG:2283): Will The Growth Last?

TK Group (Holdings) Limited's (HKG:2283) latest earnings update in December 2018 showed that the business benefited from a strong tailwind, leading to a double-digit earnings growth of 16%. … Today I want to provide a brief commentary on how market analysts perceive TK Group (Holdings)'s earnings growth trajectory over the next few years and whether the future looks even brighter than the past. … View our latest analysis for TK Group (Holdings) Market analysts' prospects for the upcoming year seems buoyant, with earnings rising by a robust 11%.

Simply Wall St - 1 month ago – Full article

Should You Be Tempted To Sell TK Group (Holdings) Limited (HKG:2283) Because Of Its P/E Ratio?

See our latest analysis for TK Group (Holdings) How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for TK Group (Holdings): P/E of 9.68 = HK$4.07 ÷ HK$0.42 (Based on the year to December 2018.) Is A High P/E Ratio Good? … The Bottom Line On TK Group (Holdings)'s P/E Ratio TK Group (Holdings) trades on a P/E ratio of 9.7, which is below the HK market average of 11.

Simply Wall St - 1 month ago – Full article

Does The Data Make TK Group (Holdings) Limited (HKG:2283) An Attractive Investment?

Flawless balance sheet and good value 2283 has a strong track record of performance. … In the previous year, 2283 delivered an impressive double-digit return of 33% Unsurprisingly, 2283 surpassed the Machinery industry return of 8.5%, which gives us more confidence of the company's capacity to drive earnings going forward. … SEHK:2283 Historical Debt, May 11th 2019 Next Steps: For TK Group (Holdings), I've compiled three relevant factors you should look at: Valuation: What is 2283 worth today?

Simply Wall St - 2 months ago – Full article

Here's How We Evaluate TK Group (Holdings) Limited's (HKG:2283) Dividend

Today we'll take a closer look at TK Group (Holdings) Limited (HKG:2283) from a dividend investor's perspective. … Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. … With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if TK Group (Holdings) is a new dividend aristocrat in the making..

Simply Wall St - 2 months ago – Full article

Are TK Group (Holdings) Limited’s (HKG:2283) High Returns Really That Great?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St - 2 months ago – Full article

If You Like EPS Growth Then Check Out TK Group (Holdings) (HKG:2283) Before It's Too Late

TK Group (Holdings)'s Earnings Per Share Are Growing. … Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. … While we note TK Group (Holdings)'s EBIT margins were flat over the last year, revenue grew by a solid 24% to HK$2.3b.

Simply Wall St - 3 months ago – Full article

2283 Company Info

Description

TK Group (Holdings) Limited, an investment holding company, engages in the manufacture, sale, subcontracting, fabrication, and modification of molds and plastic components in the People’s Republic of China, South East Asia, Europe, the United States, Mexico, and internationally. The company operates through two segments, Mold Fabrication and Plastic Components Manufacturing. It provides precision, standard, special decoration, and medical molds. The company serves customers in various markets, including mobile phones and wearable devices, commercial telecommunications equipment, automobile, medical and health care, smart home, household electrical appliances, digital devices, and others. The company was founded in 1983 and is headquartered in Shenzhen, Hong Kong.

Details

Name:	TK Group (Holdings) Limited
Ticker:	2283
Exchange:	SEHK
Founded:	1983
Market Cap:	HK$3,166,388,000
Shares outstanding:	833,260,000
Website:	http://www.tkmold.com
Address:	TK Group (Holdings) Limited TK Technology Park, Tangjia Community, Shenzhen, Guangdong Province, China

Listings

	Exchange Symbol	Ticker Symbol	Security	Exchange	Country	Currency	Listed on
	SEHK	2283	Ordinary Shares	The Stock Exchange of Hong Kong Ltd.	HK	HKD	20. Dec 2013

Number of employees

Current staff

3,564

TK Group (Holdings) employees.

Industry

Industry:	Industrial Machinery
Sector:	Capital Goods

Company Analysis and Financial Data Status

Area	Date (UTC time)
Company Analysis updated:	2019/07/20 12:59
End of day share price update:	2019/07/19 00:00
Last estimates confirmation:	2019/07/15
Last earnings filing:	2019/04/08
Last earnings reported:	2018/12/31
Last annual earnings reported:	2018/12/31

All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

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