SEHK:2283

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Undervalued with reasonable growth potential.

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


Market Performance


7 Day Return

-5.0%

2283

-4.5%

HK Machinery

-2.7%

HK Market


1 Year Return

-29.8%

2283

-4.1%

HK Machinery

-9.4%

HK Market

2283 underperformed the Machinery industry which returned -4.1% over the past year.

2283 underperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

2283IndustryMarket
7 Day-5.0%-4.5%-2.7%
30 Day5.3%2.1%2.4%
90 Day-7.3%-5.7%-5.6%
1 Year-26.5%-29.8%-1.5%-4.1%-6.2%-9.4%
3 Year87.7%65.7%50.8%42.0%14.3%2.7%
5 Year237.6%173.3%59.9%43.7%16.7%-2.8%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

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


Price Based on Value of Assets

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


Next Steps

Future Growth

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

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

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

TK Group (Holdings)'s earnings are expected to grow by 18.2% yearly, however this is not considered high growth (20% yearly).

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

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

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


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

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

19.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

TK Group (Holdings)'s year on year earnings growth rate has been positive over the past 5 years.

TK Group (Holdings)'s 1-year earnings growth is negative, it can't be compared to the 5-year average.

TK Group (Holdings)'s 1-year earnings growth is negative, it can't be compared to the HK Machinery industry average.


Return on Equity

TK Group (Holdings) has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

TK Group (Holdings) used its assets more efficiently than the HK Machinery industry average last year based on Return on Assets.


Return on Capital Employed

TK Group (Holdings)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

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.


Debt to Equity History and Analysis

TK Group (Holdings)'s level of debt (52.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (29.6% vs 52.2% today).

Debt is well covered by operating cash flow (78.7%, greater than 20% of total debt).

TK Group (Holdings) earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3x debt.


Next Steps

Dividend

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

6.74%

Expected Dividend Yield


Dividend Yield and Payments Analysis

TK Group (Holdings)'s pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

TK Group (Holdings)'s dividend is below the markets top 25% of dividend payers in Hong Kong (6.17%).

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

Dividends paid are well covered by earnings (2x coverage).


Future Payout to Shareholders

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


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Michael Yung (58yo)

0yrs

Tenure

HK$7,113,000

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

Michael's remuneration is higher than average for companies of similar size in Hong Kong.

Michael's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.2yrs

Average Tenure

57.5yo

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.


Board Age and Tenure

5.8yrs

Average Tenure

58yo

Average Age

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


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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Value Partners Hong Kong Limited
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BuyHK$175,12001 Nov 18
Eastern Mix Company Limited
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Shares44,000
Max PriceHK$3.98
BuyHK$4,213,90230 Oct 18
Eastern Mix Company Limited
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Max PriceHK$3.95
BuyHK$103,68829 Oct 18
Eastern Mix Company Limited
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Shares26,000
Max PriceHK$3.99
SellHK$6,625,98919 Oct 18
FMR LLC
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Shares1,656,000
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BuyHK$2,646,44904 Oct 18
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Shares534,000
Max PriceHK$4.96

Ownership Breakdown


Management Team

  • Alan Li (60yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: HK$9.08m
  • Michael Yung (58yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$7.11m
  • Leung Lee (58yo)

    Executive Director

    • Tenure: 6.5yrs
    • Compensation: HK$4.48m
  • Franky Cheung (57yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$5.16m
  • Samuel Lok (43yo)

    Chief Marketing Director of the Plastic Components Manufacturing Division

    • Tenure: 10.1yrs
  • Carl Thomas Bergstrom (66yo)

    Senior Precision Mold Consultant

    • Tenure: 2.5yrs
  • Yiu Yue (52yo)

    Corporate Financial Controller

    • Tenure: 5.2yrs
  • Xie Zeng (44yo)

    Human Resources Director

    • Tenure: 3.5yrs

Board Members

  • Roy Chung (66yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$290.00k
  • WK Tsang (67yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$290.00k
  • Kenneth Ho (54yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$290.00k
  • Alan Li (60yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: HK$9.08m
  • Michael Yung (58yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$7.11m
  • Leung Lee (58yo)

    Executive Director

    • Tenure: 6.5yrs
    • Compensation: HK$4.48m
  • Franky Cheung (57yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$5.16m

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$2.983b
  • 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 in the People’s Republic of China ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/22 12:52
End of Day Share Price2019/09/20 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.