SEHK:2283

Stock Analysis Report

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Executive Summary

TK Group (Holdings) Limited, an investment holding company, engages in the manufacture, sale, subcontracting, fabrication, and modification of molds and plastic components.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has TK Group (Holdings)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2283 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

2283

1.5%

HK Machinery

0.5%

HK Market


1 Year Return

-23.6%

2283

46.9%

HK Machinery

6.6%

HK Market

Return vs Industry: 2283 underperformed the Hong Kong Machinery industry which returned 43.7% over the past year.

Return vs Market: 2283 underperformed the Hong Kong Market which returned 7.2% over the past year.


Shareholder returns

2283IndustryMarket
7 Day1.4%1.5%0.5%
30 Day-3.2%3.7%-0.8%
90 Day-15.9%28.1%9.4%
1 Year-19.3%-23.6%50.8%46.9%11.0%6.6%
3 Year-31.5%-39.9%64.5%52.2%3.2%-7.8%
5 Year19.9%-5.0%97.3%81.2%22.5%1.9%

Price Volatility Vs. Market

How volatile is TK Group (Holdings)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TK Group (Holdings) undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2283 (HK$2.11) is trading below our estimate of fair value (HK$5.4)

Significantly Below Fair Value: 2283 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2283 is good value based on its PE Ratio (5.8x) compared to the HK Machinery industry average (12.3x).

PE vs Market: 2283 is good value based on its PE Ratio (5.8x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: 2283 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 2283 is overvalued based on its PB Ratio (1.5x) compared to the HK Machinery industry average (0.9x).


Next Steps

Future Growth

How is TK Group (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2283's forecast earnings growth (8.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 2283's earnings (8.6% per year) are forecast to grow slower than the Hong Kong market (18.6% per year).

High Growth Earnings: 2283's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2283's revenue (4.8% per year) is forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Revenue: 2283's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2283's Return on Equity is forecast to be high in 3 years time (22%)


Next Steps

  • Explore growth companies in the Capital Goods industry.

Past Performance

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

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2283 has high quality earnings.

Growing Profit Margin: 2283's current net profit margins (13.1%) are lower than last year (15.2%).


Past Earnings Growth Analysis

Earnings Trend: 2283's earnings have grown by 16.5% per year over the past 5 years.

Accelerating Growth: 2283's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2283 had negative earnings growth (-13.8%) over the past year, making it difficult to compare to the Machinery industry average (-8.7%).


Return on Equity

High ROE: 2283's Return on Equity (25.3%) is considered high.


Next Steps

Financial Health

How is TK Group (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: 2283's short term assets (HK$1.5B) exceed its short term liabilities (HK$884.3M).

Long Term Liabilities: 2283's short term assets (HK$1.5B) exceed its long term liabilities (HK$248.8M).


Debt to Equity History and Analysis

Debt Level: 2283's debt to equity ratio (20.3%) is considered satisfactory.

Reducing Debt: 2283's debt to equity ratio has reduced from 25.1% to 20.3% over the past 5 years.

Debt Coverage: 2283's debt is well covered by operating cash flow (183.4%).

Interest Coverage: 2283's interest payments on its debt are well covered by EBIT (263.3x coverage).


Balance Sheet


Next Steps

Dividend

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

6.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2283's dividend (6.64%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.38%).

High Dividend: 2283's dividend (6.64%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.8%).


Stability and Growth of Payments

Stable Dividend: 2283 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 2283's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.6%), 2283's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2283's dividends in 3 years are forecast to be well covered by earnings (41.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Michael Yung (59 yo)

no data

Tenure

HK$5,478,000

Compensation

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 inj ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD706.76K) is above average for companies of similar size in the Hong Kong market ($USD276.95K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Pui Leung Li
Executive Chairmanno dataHK$6.31m10.73%
HK$ 188.6m
Kin Cheung Yung
CEO & Executive Directorno dataHK$5.48m6.67%
HK$ 117.4m
Fong Wa Cheung
CFO, Company Secretary & Executive Director6.75yrsHK$3.85mno data
Leung Yiu Lee
Executive Director7.42yrsHK$3.54m6.44%
HK$ 113.2m
Xie Qin Zeng
Human Resources Director4.42yrsno datano data
Yiu Chung Yue
Corporate Financial Controller6.08yrsno datano data
Carl Thomas Bergstrom
Senior Precision Mold Consultant3.42yrsno datano data

5.3yrs

Average Tenure

59yo

Average Age

Experienced Management: 2283's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pui Leung Li
Executive Chairmanno dataHK$6.31m10.73%
HK$ 188.6m
Kin Cheung Yung
CEO & Executive Directorno dataHK$5.48m6.67%
HK$ 117.4m
Fong Wa Cheung
CFO, Company Secretary & Executive Director6.75yrsHK$3.85mno data
Leung Yiu Lee
Executive Director7.42yrsHK$3.54m6.44%
HK$ 113.2m
Chi-Ping Chung
Independent Non-Executive Director6.75yrsHK$291.00kno data
Wah Kwong Tsang
Independent Non-Executive Director6.75yrsHK$291.00kno data
Wan Chong Leung
Independent Non-Executive Director0.67yrHK$10.00kno data

6.8yrs

Average Tenure

59yo

Average Age

Experienced Board: 2283's board of directors are considered experienced (6.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

TK Group (Holdings) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TK Group (Holdings) Limited
  • Ticker: 2283
  • Exchange: SEHK
  • Founded: 1983
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$1.758b
  • Shares outstanding: 833.26m
  • Website: https://www.tkmold.com

Number of Employees


Location

  • TK Group (Holdings) Limited
  • TK Technology Park
  • Tangjia Community
  • Shenzhen
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2283SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2013

Biography

TK Group (Holdings) Limited, an investment holding company, engages in the manufacture, sale, subcontracting, fabrication, and modification of molds and plastic components. The company operates through two ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 02:12
End of Day Share Price2020/08/13 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.