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 Analysis

Undervalued with excellent balance sheet.

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

Stable Share Price: 240 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.8%

240

3.2%

HK Construction

3.6%

HK Market


1 Year Return

-52.4%

240

-32.2%

HK Construction

-18.5%

HK Market

Return vs Industry: 240 underperformed the Hong Kong Construction industry which returned -34.3% over the past year.

Return vs Market: 240 underperformed the Hong Kong Market which returned -20.6% over the past year.


Shareholder returns

240IndustryMarket
7 Day6.8%3.2%3.6%
30 Day1.3%-4.8%-3.8%
90 Day-13.3%-13.2%-13.2%
1 Year-50.8%-52.4%-28.7%-32.2%-15.5%-18.5%
3 Year57.7%39.3%-43.8%-49.7%0.7%-9.5%
5 Year105.9%69.6%-55.0%-61.6%-14.0%-27.8%

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 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: 240 (HK$0.78) is trading below our estimate of fair value (HK$12.81)

Significantly Below Fair Value: 240 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 240 is good value based on its PE Ratio (3.3x) compared to the Construction industry average (8.3x).

PE vs Market: 240 is good value based on its PE Ratio (3.3x) compared to the Hong Kong market (9.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: 240 is good value based on its PB Ratio (0.8x) compared to the HK Construction industry average (0.9x).


Next Steps

Future Growth

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

9.6%

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.


Next Steps

Past Performance

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

34.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 240 has high quality earnings.

Growing Profit Margin: 240's current net profit margins (3.9%) are lower than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: 240's earnings have grown significantly by 34.8% 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 (-28.1%) over the past year, making it difficult to compare to the Construction industry average (-15.1%).


Return on Equity

High ROE: 240's Return on Equity (25.1%) is considered high.


Next Steps

Financial Health

How is Build King Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 240's short term assets (HK$4.7B) exceed its short term liabilities (HK$4.0B).

Long Term Liabilities: 240's short term assets (HK$4.7B) exceed its long term liabilities (HK$44.7M).


Debt to Equity History and Analysis

Debt Level: 240's debt to equity ratio (32.4%) is considered satisfactory.

Reducing Debt: 240's debt to equity ratio has increased from 30.5% to 32.4% over the past 5 years.

Debt Coverage: 240's debt is well covered by operating cash flow (274.6%).

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


Balance Sheet


Next Steps

Dividend

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

6.15%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 240's dividend (6.15%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.56%).

High Dividend: 240's dividend (6.15%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.14%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.1%), 240's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

11.8yrs

Average board tenure


CEO

Derek Zen (66yo)

8.08s

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

Compensation vs Market: Derek's total compensation ($USD2.31M) is above average for companies of similar size in the Hong Kong market ($USD232.26K).

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


Board Members

NamePositionTenureCompensationOwnership
Wei Peu Zen
Chairman8.08yrsHK$17.94m9.96% HK$94.0m
Kam Chuen Chang
Company Secretary & Executive Director11.83yrsHK$3.91m0.12% HK$1.1m
Ching Man Ling Lee
Independent Non-Executive Director5.58yrsHK$198.00kno data
David Howard Gem
Non-Executive Director15.67yrsHK$186.00k0.072% HK$684.0k
Tai Wai Ho
Independent Non Executive Director15.58yrsHK$216.00kno data
Yiu Ching Lo
Independent Non-Executive Director1.42yrsno datano data
Chi Hung Chan
Non-Executive Director11.33yrsHK$186.00kno data

11.8yrs

Average Tenure

70yo

Average Age

Experienced Board: 240's board of directors are seasoned and experienced ( 11.8 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

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$943.827m
  • 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 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 12:35
End of Day Share Price2020/04/09 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.