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240

Build King Holdings SEHK:240 Stock Report

Last Price

HK$0.80

Market Cap

HK$1.0b

7D

2.6%

1Y

-27.9%

Updated

28 Jun, 2022

Data

Company Financials
240 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance1/6
Financial Health5/6
Dividends2/6

240 Stock Overview

Build King Holdings Limited, an investment holding company, engages in civil engineering works in the People’s Republic of China and the Middle East.

Build King Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Build King Holdings
Historical stock prices
Current Share PriceHK$0.80
52 Week HighHK$1.15
52 Week LowHK$0.73
Beta0.94
1 Month Change-5.88%
3 Month Change-1.23%
1 Year Change-27.93%
3 Year Change-25.23%
5 Year Change53.85%
Change since IPO-35.48%

Recent News & Updates

Apr 28
Why Build King Holdings' (HKG:240) Shaky Earnings Are Just The Beginning Of Its Problems

Why Build King Holdings' (HKG:240) Shaky Earnings Are Just The Beginning Of Its Problems

A lackluster earnings announcement from Build King Holdings Limited ( HKG:240 ) last week didn't sink the stock price...

Shareholder Returns

240HK ConstructionHK Market
7D2.6%-0.1%1.7%
1Y-27.9%1.1%-21.2%

Return vs Industry: 240 underperformed the Hong Kong Construction industry which returned 1.1% over the past year.

Return vs Market: 240 underperformed the Hong Kong Market which returned -21.2% over the past year.

Price Volatility

Is 240's price volatile compared to industry and market?
240 volatility
240 Average Weekly Movement4.2%
Construction Industry Average Movement7.2%
Market Average Movement6.9%
10% most volatile stocks in HK Market13.8%
10% least volatile stocks in HK Market3.4%

Stable Share Price: 240 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 240's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19803,222Derek Zenhttps://www.buildking.hk

Build King Holdings Limited, an investment holding company, engages in civil engineering works in the People’s Republic of China and the Middle East. It constructs institutions/schools, and residential and commercial 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.

Build King Holdings Fundamentals Summary

How do Build King Holdings's earnings and revenue compare to its market cap?
240 fundamental statistics
Market CapHK$1.01b
Earnings (TTM)HK$294.54m
Revenue (TTM)HK$10.03b

3.4x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
240 income statement (TTM)
RevenueHK$10.03b
Cost of RevenueHK$9.29b
Gross ProfitHK$739.60m
Other ExpensesHK$445.06m
EarningsHK$294.54m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.24
Gross Margin7.37%
Net Profit Margin2.94%
Debt/Equity Ratio47.3%

How did 240 perform over the long term?

See historical performance and comparison

Dividends

7.5%

Current Dividend Yield

25%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 240 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 240?

Other financial metrics that can be useful for relative valuation.

240 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 240's PE Ratio compare to its peers?

240 PE Ratio vs Peers
The above table shows the PE ratio for 240 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average38.2x
2195 Unity Enterprise Holdings
38.1xn/aHK$1.0b
9900 Gain Plus Holdings
20.3xn/aHK$643.6m
8170 China All Nation International Holdings Group
72.1xn/aHK$1.6b
1283 Accel Group Holdings
18.5xn/aHK$1.3b
240 Build King Holdings
3.4xn/aHK$1.0b

Price-To-Earnings vs Peers: 240 is good value based on its Price-To-Earnings Ratio (3.4x) compared to the peer average (38.2x).


Price to Earnings Ratio vs Industry

How does 240's PE Ratio compare vs other companies in the HK Construction Industry?

Price-To-Earnings vs Industry: 240 is good value based on its Price-To-Earnings Ratio (3.4x) compared to the Hong Kong Construction industry average (12.2x)


Price to Earnings Ratio vs Fair Ratio

What is 240's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

240 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 240's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 240 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 240 (HK$0.8) is trading below our estimate of fair value (HK$0.99)

Significantly Below Fair Value: 240 is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 240's PEG Ratio to determine if it is good value.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.2%

Forecasted Capital Goods industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Build King Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine whether Build King Holdings is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • Build King Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Build King Holdings performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


13.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 240 has a high level of non-cash earnings.

Growing Profit Margin: 240's current net profit margins (2.9%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: 240's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: 240's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 240 had negative earnings growth (-33.2%) over the past year, making it difficult to compare to the Construction industry average (-1.2%).


Return on Equity

High ROE: 240's Return on Equity (16.2%) is considered low.


Discover strong past performing companies

Financial Health

How is Build King Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 240's short term assets (HK$5.9B) exceed its short term liabilities (HK$5.2B).

Long Term Liabilities: 240's short term assets (HK$5.9B) exceed its long term liabilities (HK$80.0M).


Debt to Equity History and Analysis

Debt Level: 240 has more cash than its total debt.

Reducing Debt: 240's debt to equity ratio has reduced from 71.1% to 47.3% over the past 5 years.

Debt Coverage: 240's debt is not well covered by operating cash flow (2.1%).

Interest Coverage: 240 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Build King Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


7.50%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 240's dividend (7.5%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.7%).

High Dividend: 240's dividend (7.5%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.78%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 240 has been paying a dividend for less than 10 years.

Growing Dividend: 240's dividend payments have increased, but the company has only paid a dividend for 8 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.3%), 240's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 240 is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

5.4yrs

Average management tenure


CEO

Derek Zen (68 yo)

10.25yrs

Tenure

HK$11,719,000

Compensation

Mr. Wei Peu Zen, also known as Derek, MBA, serves as the Chairman of the Board at Road King Infrastructure Limited since January 01, 2021. He has been an Executive Director of Road King Infrastructure Limi...


CEO Compensation Analysis

Compensation vs Market: Derek's total compensation ($USD1.49M) is above average for companies of similar size in the Hong Kong market ($USD232.95K).

Compensation vs Earnings: Derek's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: 240's management team is seasoned and experienced (5.4 years average tenure).


Board Members

Experienced Board: 240's board of directors are seasoned and experienced ( 10.6 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

Build King Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Build King Holdings Limited
  • Ticker: 240
  • Exchange: SEHK
  • Founded: 1980
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Implied Market Cap: HK$1.006b
  • Shares outstanding: 1.24b
  • Website: https://www.buildking.hk

Number of Employees


Location

  • Build King Holdings Limited
  • Units 601-605A, Tower B
  • 6th Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.