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Build King Holdings

SEHK:240
Snowflake Description

Outstanding track record and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
240
SEHK
HK$2B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

Build King Holdings Limited, an investment holding company, engages in civil engineering works in the People’s Republic of China, Hong Kong, and the Middle East. The last earnings update was 96 days ago. More info.


Add to Portfolio Compare Print
  • Build King Holdings has significant price volatility in the past 3 months.
240 Share Price and Events
7 Day Returns
5.1%
SEHK:240
-1.4%
HK Construction
0.6%
HK Market
1 Year Returns
117.5%
SEHK:240
-12.3%
HK Construction
-5.9%
HK Market
240 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Build King Holdings (240) 5.1% 11.7% -21.5% 117.5% 320.3% 404.1%
HK Construction -1.4% -5.6% -14.7% -12.3% -23% -1.8%
HK Market 0.6% 3.7% -8.2% -5.9% 17.2% 4.8%
1 Year Return vs Industry and Market
  • 240 outperformed the Construction industry which returned -12.3% over the past year.
  • 240 outperformed the Market in Hong Kong which returned -5.9% over the past year.
Price Volatility
240
Industry
5yr Volatility vs Market

Value

 Is Build King 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 Build King 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 Build King Holdings.

SEHK:240 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9.8%
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:240
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Construction Unlevered Beta Simply Wall St/ S&P Global 1.04
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.043 (1 + (1- 25%) (26.07%))
1.165
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.165 * 6.65%)
9.75%

Discounted Cash Flow Calculation for SEHK:240 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Build King 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:240 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 9.75%)
2020 639.16 Est @ 26.33% 582.36
2021 760.80 Est @ 19.03% 631.60
2022 866.73 Est @ 13.92% 655.59
2023 956.41 Est @ 10.35% 659.14
2024 1,031.43 Est @ 7.84% 647.68
2025 1,094.27 Est @ 6.09% 626.07
2026 1,147.50 Est @ 4.87% 598.19
2027 1,193.48 Est @ 4.01% 566.87
2028 1,234.12 Est @ 3.41% 534.08
2029 1,270.95 Est @ 2.98% 501.15
Present value of next 10 years cash flows HK$6,002.73
SEHK:240 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= HK$1,270.95 × (1 + 2%) ÷ (9.75% – 2%)
HK$16,727.84
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$16,727.84 ÷ (1 + 9.75%)10
HK$6,595.91
SEHK:240 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$6,002.73 + HK$6,595.91
HK$12,598.64
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$12,598.64 / 1,241.88
HK$10.14
SEHK:240 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$10.14
Current discount Discount to share price of HK$1.24
= -1 x (HK$1.24 - HK$10.14) / HK$10.14
87.8%

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

Current Discount
Amount off the current price Build King Holdings is available for.
Intrinsic value
>50%
Share price is HK$1.24 vs Future cash flow value of HK$10.14
Current Discount Checks
For Build King Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Build King Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Build King 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 Build King Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Build King Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:240 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.33
SEHK:240 Share Price ** SEHK (2019-07-16) in HKD HK$1.24
Hong Kong Construction Industry PE Ratio Median Figure of 105 Publicly-Listed Construction Companies 9.77x
Hong Kong Market PE Ratio Median Figure of 1,503 Publicly-Listed Companies 10.71x

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

** Primary Listing of Build King Holdings.

SEHK:240 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:240 Share Price ÷ EPS (both in HKD)

= 1.24 ÷ 0.33

3.74x

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

  • Build King Holdings is good value based on earnings compared to the HK Construction industry average.
  • Build King Holdings is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Build King Holdings's expected growth come at a high price?
Raw Data
SEHK:240 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
-13.2%per year
Hong Kong Construction Industry PEG Ratio Median Figure of 10 Publicly-Listed Construction Companies 0.55x
Hong Kong Market PEG Ratio Median Figure of 477 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for Build King Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Build King Holdings's assets?
Raw Data
SEHK:240 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$0.76
SEHK:240 Share Price * SEHK (2019-07-16) in HKD HK$1.24
Hong Kong Construction Industry PB Ratio Median Figure of 136 Publicly-Listed Construction Companies 1.39x
Hong Kong Market PB Ratio Median Figure of 2,190 Publicly-Listed Companies 0.92x
SEHK:240 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:240 Share Price ÷ Book Value per Share (both in HKD)

= 1.24 ÷ 0.76

1.64x

* Primary Listing of Build King Holdings.

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

  • Build King Holdings is overvalued based on assets compared to the HK Construction industry average.
X
Value checks
We assess Build King Holdings's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. Build King Holdings has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

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

Future Performance

 How is Build King Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Build King Holdings, future earnings growth has been estimated based on fundamentals.
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!
Annual Growth Rate
-13.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Build King Holdings expected to grow at an attractive rate?
  • Build King Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.
Growth vs Market Checks
  • Build King Holdings's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
  • Unable to compare Build King Holdings's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:240 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:240 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -13.2%
Hong Kong Construction Industry Earnings Growth Rate Market Cap Weighted Average 6.4%
Hong Kong Construction Industry Revenue Growth Rate Market Cap Weighted Average 9.6%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.5%

*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:240 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:240 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SEHK:240 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 6,305 653 412
2018-09-30 6,345 629 373
2018-06-30 6,385 605 335
2018-03-31 6,186 547 259
2017-12-31 5,986 488 184
2017-09-30 5,667 376 180
2017-06-30 5,348 263 175
2017-03-31 5,110 199 163
2016-12-31 4,871 135 151
2016-09-30 4,700 156 131
2016-06-30 4,529 176 112
2016-03-31 4,550 293 103

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Build King Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if Build King Holdings is high growth as no revenue estimate data is available.
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:240 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 0 Analyst Estimates (S&P Global) See Below

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

SEHK:240 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SEHK:240 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.33
2018-09-30 0.30
2018-06-30 0.27
2018-03-31 0.21
2017-12-31 0.15
2017-09-30 0.14
2017-06-30 0.14
2017-03-31 0.13
2016-12-31 0.12
2016-09-30 0.11
2016-06-30 0.09
2016-03-31 0.08

*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.
  • Unable to establish if Build King Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Build King Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. 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.
Build King Holdings has a total score of 0/6, 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.

Past Performance

  How has Build King 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 Build King Holdings's growth in the last year to its industry (Construction).
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.
  • Build King Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Build King Holdings's 1-year earnings growth exceeds its 5-year average (123.7% vs 46%)
  • Build King Holdings's earnings growth has exceeded the HK Construction industry average in the past year (123.7% vs -13.1%).
Earnings and Revenue History
Build King 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 Build King Holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:240 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 6,305.35 412.19 333.14
2018-09-30 6,345.23 373.38 288.26
2018-06-30 6,385.11 334.58 243.37
2018-03-31 6,185.75 259.40 234.51
2017-12-31 5,986.38 184.23 225.64
2017-09-30 5,667.20 179.60 214.22
2017-06-30 5,348.01 174.97 202.79
2017-03-31 5,109.75 162.74 199.59
2016-12-31 4,871.49 150.51 196.38
2016-09-30 4,700.22 131.07 200.12
2016-06-30 4,528.94 111.63 203.87
2016-03-31 4,550.28 102.97 192.26
2015-12-31 4,571.63 94.31 180.66
2015-09-30 4,380.34 81.47 176.76
2015-06-30 4,189.05 68.64 172.86
2015-03-31 3,713.19 61.92 167.01
2014-12-31 3,237.34 55.20 161.16
2014-09-30 2,883.53 47.87 154.07
2014-06-30 2,529.71 40.54 146.99
2014-03-31 2,361.41 30.94 133.40
2013-12-31 2,193.10 21.33 119.81
2013-09-30 2,279.13 16.12 116.63
2013-06-30 2,365.16 10.91 113.46
2013-03-31 2,253.60 15.79 110.34
2012-12-31 2,142.04 20.67 107.23
2012-09-30 1,579.20 22.93 111.22

*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.
  • Build King Holdings made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Build King Holdings used its assets more efficiently than the HK Construction industry average last year based on Return on Assets.
  • Build King Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Build King Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
Build King Holdings has a total score of 6/6, 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.

Health

 How is Build King 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 Build King Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Build King Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Build King Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Build King 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.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 9.4x 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 Build King Holdings Company Filings, last reported 6 months ago.

SEHK:240 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 944.59 404.70 1,431.57
2018-09-30 944.59 404.70 1,431.57
2018-06-30 769.07 410.14 1,180.63
2018-03-31 769.07 410.14 1,180.63
2017-12-31 712.56 384.69 994.45
2017-09-30 712.56 384.69 994.45
2017-06-30 602.24 438.14 799.77
2017-03-31 602.24 438.14 799.77
2016-12-31 546.83 392.93 851.01
2016-09-30 546.83 392.93 851.01
2016-06-30 458.80 264.61 724.19
2016-03-31 458.80 264.61 724.19
2015-12-31 422.34 227.42 827.45
2015-09-30 422.34 227.42 827.45
2015-06-30 373.25 193.45 672.69
2015-03-31 373.25 193.45 672.69
2014-12-31 346.90 105.00 436.68
2014-09-30 346.90 105.00 436.68
2014-06-30 319.87 120.80 434.32
2014-03-31 319.87 120.80 434.32
2013-12-31 303.05 101.72 344.03
2013-09-30 303.05 101.72 344.03
2013-06-30 298.08 86.77 104.04
2013-03-31 298.08 86.77 104.04
2012-12-31 292.04 124.06 196.12
2012-09-30 292.04 82.63 96.36
  • Build King Holdings's level of debt (42.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (33.6% vs 42.8% today).
  • Debt is well covered by operating cash flow (161.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 113.1x coverage).
X
Financial health checks
We assess Build King Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Build King Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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.

Dividends

 What is Build King 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
Dividend payments
3.55%
Current annual income from Build King Holdings dividends.
If you bought HK$2,000 of Build King Holdings shares you are expected to receive HK$71 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?
  • Build King Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Build King Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.74%).
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:240 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 0 Analyst Estimates (S&P Global) See Below
Hong Kong Construction Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 3.9%
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:240 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
SEHK:240 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-03-19 0.044 3.500
2018-03-27 0.030 4.352
2018-03-08 0.030 5.130
2017-03-13 0.025 4.563
2016-04-13 0.015 4.504
2016-03-18 0.015 4.571
2015-04-01 0.010 2.635
2015-03-12 0.010 2.386
2014-04-01 0.005 1.703
2014-03-10 0.005 2.428

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

  • Whilst dividend payments have been stable, Build King Holdings has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Build King Holdings only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Build King Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (7.5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Build King Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Build King Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Build King Holdings has a total score of 2/6, see the detailed checks below.


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

Management

 What is the CEO of Build King 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
Derek Zen
COMPENSATION HK$17,936,000
AGE 66
TENURE AS CEO 7.3 years
CEO Bio

Mr. Wei Peu Zen, also known as Derek has been an Executive Director of Road King Infrastructure Limited since November 07, 2018 and was its Chairman of the Board since its establishment. Mr. Zen has been the Chief Executive Officer of Wai Kee Holdings Ltd. since August 15, 2014 and serves as its Vice Chairman and Head of Overall Management, Operations of Construction and Quarrying Divisions. Mr. Zen has been the Chief Executive Officer and Managing Director of Build King Holdings Ltd. since March 22, 2012. He is responsible for the overall management of Build King Holdings Ltd. and oversees the operations of Wai Kee Holdings's construction and Quarrying Divisions. He has over 40 years experience in Civil Engineering. He serves as Vice Chairman at Wai Kee Holdings Limited. He serves as the Chairman of Chai-Na-Ta Corp. He has been the Chairman of Build King Holdings Ltd. He served as Chairman at I-China Holdings Limited since April 23, 2004. Mr. Zen has been an Executive Director of Wai Kee Holdings Ltd. since July 23, 1992. He has been a Director of Emmaus Life Sciences, Inc. since June 13, 2018. He has been a Director of Chai-Na-Ta Corp., since November 23, 2006. He serves as a Director of Road King Infrastructure Finance (2012) Ltd. and RKP Overseas Finance 2016 (A) Limited. He serves as a Director of RKI Overseas Finance 2017 (A) Limited. He is a Chartered Engineer. He was also the Honorary Treasurer of Hong Kong Construction Association from 2007 to 2009. He is a Member of both the Institution of Civil Engineers and the Hong Kong Institution of Engineers and a Fellow Member of the Institution of Quarrying, UK. Mr. Zen holds a Bachelor of Science degree in Civil Engineering from The University of Hong Kong and a Master degree of Business Administration from The Chinese University of Hong Kong.

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

Derek Zen

TITLE
Chairman
COMPENSATION
HK$18M
AGE
66
TENURE
7.3 yrs

Desmond Chang

TITLE
Company Secretary & Executive Director
COMPENSATION
HK$4M
AGE
53
TENURE
14.2 yrs

Denis Yeow

TITLE
Group Financial Controller
AGE
48
Board of Directors Tenure

Average tenure and age of the Build King Holdings board of directors in years:

11.1
Average Tenure
70
Average Age
  • The average tenure for the Build King Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Derek Zen

TITLE
Chairman
COMPENSATION
HK$18M
AGE
66
TENURE
15.3 yrs

Desmond Chang

TITLE
Company Secretary & Executive Director
COMPENSATION
HK$4M
AGE
53
TENURE
11.1 yrs

David Ho

TITLE
Independent Non Executive Director
COMPENSATION
HK$216K
AGE
70
TENURE
14.8 yrs

Eleanor Ling Lee

TITLE
Independent Non-Executive Director
COMPENSATION
HK$198K
AGE
72
TENURE
4.8 yrs

Dantes Lo

TITLE
Independent Non-Executive Director
AGE
73
TENURE
0.7 yrs

David Howard Gem

TITLE
Non-Executive Director
COMPENSATION
HK$186K
AGE
78
TENURE
14.9 yrs

Anthony Chan

TITLE
Non-Executive Director
COMPENSATION
HK$186K
AGE
46
TENURE
10.6 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Build King Holdings individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
10. Jul 19 Buy Wei Peu Zen Individual 09. Jul 19 09. Jul 19 40,000 HK$1.15 HK$46,000
09. Jul 19 Buy Wei Peu Zen Individual 08. Jul 19 08. Jul 19 110,000 HK$1.15 HK$126,500
05. Jul 19 Buy Wei Peu Zen Individual 04. Jul 19 04. Jul 19 150,000 HK$1.09 HK$163,395
04. Jul 19 Buy Wei Peu Zen Individual 03. Jul 19 03. Jul 19 320,000 HK$1.08 HK$346,816
26. Jun 19 Buy Wei Peu Zen Individual 24. Jun 19 24. Jun 19 30,000 HK$1.10 HK$33,000
09. Jan 19 Buy Wai Kee Holdings Limited Company 08. Jan 19 08. Jan 19 600,000 HK$0.82 HK$492,000
08. Jan 19 Buy Wai Kee Holdings Limited Company 07. Jan 19 07. Jan 19 230,000 HK$0.80 HK$184,000
07. Jan 19 Buy Wai Kee Holdings Limited Company 04. Jan 19 04. Jan 19 870,000 HK$0.80 HK$693,216
04. Jan 19 Buy Wai Kee Holdings Limited Company 03. Jan 19 03. Jan 19 190,000 HK$0.77 HK$146,795
13. Dec 18 Buy Wai Kee Holdings Limited Company 12. Dec 18 12. Dec 18 10,000 HK$0.78 HK$7,800
12. Dec 18 Buy Wai Kee Holdings Limited Company 11. Dec 18 11. Dec 18 100,000 HK$0.78 HK$77,800
07. Nov 18 Buy Wai Kee Holdings Limited Company 06. Nov 18 06. Nov 18 400,000 HK$0.67 HK$269,001
05. Oct 18 Buy Wai Kee Holdings Limited Company 04. Oct 18 04. Oct 18 100,000 HK$0.60 HK$60,000
04. Oct 18 Buy Wai Kee Holdings Limited Company 03. Oct 18 03. Oct 18 200,000 HK$0.59 HK$119,000
03. Oct 18 Buy Wai Kee Holdings Limited Company 02. Oct 18 02. Oct 18 180,000 HK$0.58 HK$104,401
02. Oct 18 Buy Wai Kee Holdings Limited Company 28. Sep 18 28. Sep 18 300,000 HK$0.58 HK$174,989
28. Sep 18 Buy Wai Kee Holdings Limited Company 27. Sep 18 27. Sep 18 720,000 HK$0.59 HK$422,568
27. Sep 18 Buy Wai Kee Holdings Limited Company 24. Sep 18 24. Sep 18 1,400,000 HK$0.59 HK$824,036
27. Sep 18 Buy Wai Kee Holdings Limited Company 26. Sep 18 26. Sep 18 100,000 HK$0.58 HK$58,000
X
Management checks
We assess Build King Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Build King Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


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.

News

Simply Wall St News

Build King Holdings's (HKG:240) Wonderful 354% Share Price Increase Shows How Capitalism Can Build Wealth

Build King Holdings Limited (HKG:240) shareholders have seen the share price descend 12% over the month. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During five years of share price growth, Build King Holdings achieved compound earnings per share (EPS) growth of 81% per year.

Simply Wall St -

Is Build King Holdings Limited's (HKG:240) 44% ROE Better Than Average?

Our data shows Build King Holdings has a return on equity of 44% for the last year. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Build King Holdings: 44% = HK$412m ÷ HK$945m (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Build King Holdings's Debt And Its 44% ROE Build King Holdings has a debt to equity ratio of 0.43, which is far from excessive.

Simply Wall St -

Do Institutions Own Build King Holdings Limited (HKG:240) Shares?

As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' Build King Holdings is a smaller company with a market capitalization of HK$1.5b, so it may still be flying under the radar of many institutional investors. … See our latest analysis for Build King Holdings SEHK:240 Ownership Summary, May 13th 2019 What Does The Lack Of Institutional Ownership Tell Us About Build King Holdings? … Insider Ownership Of Build King Holdings While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

Here's What Build King Holdings Limited's (HKG:240) ROCE Can Tell Us

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Is Build King Holdings Limited (HKG:240) Potentially Underrated?

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Build King Holdings Limited (HKG:240) due to its excellent fundamentals in more than one area.

Simply Wall St -

Shareholders Are Raving About How The Build King Holdings Share Price Increased 575%

Then look at the Build King Holdings Limited (HKG:240) share price. … By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During five years of share price growth, Build King Holdings achieved compound earnings per share (EPS) growth of 98% per year.

Simply Wall St -

Should We Be Delighted With Build King Holdings Limited's (HKG:240) ROE Of 44%?

We'll use ROE to examine Build King Holdings Limited (HKG:240), by way of a worked example. … That means that for every HK$1 worth of shareholders' equity, it generated HK$0.44 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Percentage Of Build King Holdings Limited (HKG:240) Shares Do Insiders Own?

The big shareholder groups in Build King Holdings Limited (HKG:240) have power over the company. … With a market capitalization of HK$994m, Build King Holdings is a small cap stock, so it might not be well known by many institutional investors. … Check out our latest analysis for Build King Holdings

Simply Wall St -

Does Build King Holdings Limited's (HKG:240) CEO Salary Reflect Performance?

In 2012 Derek Zen was appointed CEO of Build King Holdings Limited (HKG:240). … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … According to our data, Build King Holdings Limited has a market capitalization of HK$1.0b, and pays its CEO total annual compensation worth HK$4.6m.

Simply Wall St -

Build King Holdings Limited (HKG:240): Time For A Financial Health Check

While small-cap stocks, such as Build King Holdings Limited (HKG:240) with its market cap of HK$1.0b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is. … Here are few basic financial health checks you should consider before taking the plunge.

Simply Wall St -

Company Info

Description

Build King Holdings Limited, an investment holding company, engages in civil engineering works in the People’s Republic of China, Hong Kong, and the Middle East. It constructs institutions, schools, and residential buildings, as well as undertakes fitting out, improvement, and alteration works for buildings. The company also undertakes environmental projects; foundation works; general civil works, including airport, drainage and water, landscaping, site formation, sports ground and park, and road and bridge works; marine works comprising general marine works and submarine pipelines; railway infrastructure and track works; structural steel works; and tunnel works. In addition, it provides construction; marine engineering and transportation; sewage treatment; environmental engineering; and marine construction contracting services. The company is based in Kwun Tong, Hong Kong. Build King Holdings Limited is a subsidiary of Wai Kee Holdings Limited.

Details
Name: Build King Holdings Limited
240
Exchange: SEHK
Founded:
HK$1,552,347,490
1,241,877,992
Website: http://www.buildking.hk
Address: Build King Holdings Limited
Units 601-605A, Tower B,
6th Floor,
Kwun Tong,
Kowloon, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 240 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 26. Apr 2004
Number of employees
Current staff
Staff numbers
2,065
Build King Holdings employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 12:33
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2018/03/08
Last earnings filing: 2019/04/11
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.