SEHK:240

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.

Risks

  • Build King Holdings has significant price volatility in the past 3 months.
  • Build King Holdings is not covered by any analysts.

Share Price & News

How has Build King Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.5%

SEHK:240

4.1%

HK Construction

2.5%

HK Market


1 Year Return

49.2%

SEHK:240

-14.7%

HK Construction

-3.9%

HK Market

240 outperformed the Construction industry which returned -14.7% over the past year.

240 outperformed the Market in Hong Kong which returned -3.9% over the past year.


Share holder returns

240IndustryMarket
7 Day3.5%4.1%2.5%
30 Day2.3%6.6%6.9%
90 Day-22.1%-9.0%0.8%
1 Year54.3%49.2%-11.0%-14.7%-0.4%-3.9%
3 Year193.0%158.8%-19.4%-27.6%19.6%7.6%
5 Year268.4%203.4%3.8%-11.7%17.7%-1.7%

Price Volatility Vs. Market

How volatile is Build King Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Build King 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

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 Based on Earnings

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

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

Build King Holdings is good value based on assets compared to the HK Construction industry average.


Next Steps

Future Growth

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

-9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Build King Holdings is high growth as no revenue estimate data is available.

Build King Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Build King Holdings's revenue growth to the Hong Kong market average as no estimate data is available.

Build King Holdings's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

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%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Build King Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

41.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 is less than its 5-year average (3.1% vs 41.6%)

Build King Holdings's earnings growth has exceeded the HK Construction industry average in the past year (3.1% vs -13.1%).


Return on Equity

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


Return on Assets

Build King Holdings used its assets more efficiently than the HK Construction industry average last year based on Return on Assets.


Return on Capital Employed

Build King Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Build King Holdings's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Build King Holdings's level of debt (28.7%) 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 (37.7% vs 28.7% today).

Debt is well covered by operating cash flow (350.3%, greater than 20% of total debt).

Build King Holdings earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 14.3x debt.


Next Steps

Dividend

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

5.00%

Current Dividend Yield


Dividend Yield and Payments Analysis

Build King Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).

Build King Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.06%).

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 6 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (6.3x 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.


Next Steps

Management

What is the CEO of Build King Holdings's salary, the management and board of directors tenure and is there insider trading?

11.3yrs

Average board tenure


CEO

Derek Zen (66yo)

7.5yrs

Tenure

HK$17,936,000

Compensation

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 t ...


CEO Compensation Analysis

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

Derek's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Board Age and Tenure

11.3yrs

Average Tenure

70yo

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.


Insider Trading

More shares have been bought than sold by Build King Holdings individual insiders in the past 3 months.


Recent Insider Transactions

BuyHK$69,60027 Aug 19
Wei Peu Zen
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares80,000
Max PriceHK$0.87
BuyHK$88,00026 Aug 19
Wei Peu Zen
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares100,000
Max PriceHK$0.88
BuyHK$61,60023 Aug 19
Wei Peu Zen
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares70,000
Max PriceHK$0.88
BuyHK$44,00022 Aug 19
Wei Peu Zen
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares50,000
Max PriceHK$0.88
BuyHK$88,00021 Aug 19
Wei Peu Zen
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares100,000
Max PriceHK$0.88
BuyHK$46,00010 Jul 19
Wei Peu Zen
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares40,000
Max PriceHK$1.15
BuyHK$126,50009 Jul 19
Wei Peu Zen
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares110,000
Max PriceHK$1.15
BuyHK$163,39505 Jul 19
Wei Peu Zen
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares150,000
Max PriceHK$1.09
BuyHK$346,81604 Jul 19
Wei Peu Zen
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares320,000
Max PriceHK$1.08
BuyHK$33,00026 Jun 19
Wei Peu Zen
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares30,000
Max PriceHK$1.10
BuyHK$492,00009 Jan 19
Wai Kee Holdings Limited
EntityCompany
Shares600,000
Max PriceHK$0.82
BuyHK$184,00008 Jan 19
Wai Kee Holdings Limited
EntityCompany
Shares230,000
Max PriceHK$0.80
BuyHK$693,21607 Jan 19
Wai Kee Holdings Limited
EntityCompany
Shares870,000
Max PriceHK$0.80
BuyHK$146,79504 Jan 19
Wai Kee Holdings Limited
EntityCompany
Shares190,000
Max PriceHK$0.77
BuyHK$7,80013 Dec 18
Wai Kee Holdings Limited
EntityCompany
Shares10,000
Max PriceHK$0.78
BuyHK$77,80012 Dec 18
Wai Kee Holdings Limited
EntityCompany
Shares100,000
Max PriceHK$0.78
BuyHK$269,00107 Nov 18
Wai Kee Holdings Limited
EntityCompany
Shares400,000
Max PriceHK$0.67
BuyHK$60,00005 Oct 18
Wai Kee Holdings Limited
EntityCompany
Shares100,000
Max PriceHK$0.60
BuyHK$119,00004 Oct 18
Wai Kee Holdings Limited
EntityCompany
Shares200,000
Max PriceHK$0.59
BuyHK$104,40103 Oct 18
Wai Kee Holdings Limited
EntityCompany
Shares180,000
Max PriceHK$0.58
BuyHK$174,98902 Oct 18
Wai Kee Holdings Limited
EntityCompany
Shares300,000
Max PriceHK$0.58
BuyHK$422,56828 Sep 18
Wai Kee Holdings Limited
EntityCompany
Shares720,000
Max PriceHK$0.59
BuyHK$824,03627 Sep 18
Wai Kee Holdings Limited
EntityCompany
Shares1,400,000
Max PriceHK$0.59
BuyHK$58,00027 Sep 18
Wai Kee Holdings Limited
EntityCompany
Shares100,000
Max PriceHK$0.58

Ownership Breakdown


Management Team

  • Derek Zen (66yo)

    Chairman

    • Tenure: 7.5yrs
    • Compensation: HK$17.94m
  • Desmond Chang (53yo)

    Company Secretary & Executive Director

    • Tenure: 11.3yrs
    • Compensation: HK$3.91m
  • Denis Yeow (48yo)

    Group Financial Controller

    • Tenure: 0yrs

Board Members

  • Eleanor Ling Lee (72yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: HK$198.00k
  • Derek Zen (66yo)

    Chairman

    • Tenure: 7.5yrs
    • Compensation: HK$17.94m
  • Desmond Chang (53yo)

    Company Secretary & Executive Director

    • Tenure: 11.3yrs
    • Compensation: HK$3.91m
  • David Howard Gem (78yo)

    Non-Executive Director

    • Tenure: 15.1yrs
    • Compensation: HK$186.00k
  • David Ho (70yo)

    Independent Non Executive Director

    • Tenure: 15yrs
    • Compensation: HK$216.00k
  • Dantes Lo (73yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • Anthony Chan (46yo)

    Non-Executive Director

    • Tenure: 10.8yrs
    • Compensation: HK$186.00k

Company Information

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


Key Information

  • Name: Build King Holdings Limited
  • Ticker: 240
  • Exchange: SEHK
  • Founded:
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$1.093b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
240SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2004

Biography

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 re ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 12:32
End of Day Share Price2019/09/13 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.