SEHK:242

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Shun Tak Holdings Limited, an investment holding company, engages in property, transportation, hospitality, and investment businesses in Hong Kong, Macau, Mainland China, and internationally.


Snowflake Analysis

Undervalued with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 242 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.6%

242

1.0%

HK Industrials

0.8%

HK Market


1 Year Return

14.9%

242

-22.7%

HK Industrials

5.5%

HK Market

Return vs Industry: 242 exceeded the Hong Kong Industrials industry which returned -22.7% over the past year.

Return vs Market: 242 exceeded the Hong Kong Market which returned 5.5% over the past year.


Shareholder returns

242IndustryMarket
7 Day3.6%1.0%0.8%
30 Day0%-4.2%-2.4%
90 Day7.1%-7.7%7.6%
1 Year22.1%14.9%-18.5%-22.7%9.8%5.5%
3 Year4.9%-9.5%-33.0%-41.0%2.1%-8.9%
5 Year-17.3%-29.3%-40.0%-49.7%12.7%-6.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Shun Tak 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: 242 (HK$2.85) is trading below our estimate of fair value (HK$30.01)

Significantly Below Fair Value: 242 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 242 is good value based on its PE Ratio (2.5x) compared to the HK Industrials industry average (5.5x).

PE vs Market: 242 is good value based on its PE Ratio (2.5x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: 242's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 242 is good value based on its PB Ratio (0.2x) compared to the HK Industrials industry average (0.4x).


Next Steps

Future Growth

How is Shun Tak Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-77.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 242's earnings are forecast to decline over the next 3 years (-77.3% per year).

Earnings vs Market: 242's earnings are forecast to decline over the next 3 years (-77.3% per year).

High Growth Earnings: 242's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 242's revenue is expected to decline over the next 3 years (-92.4% per year).

High Growth Revenue: 242's revenue is forecast to decline over the next 3 years (-92.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 242's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Shun Tak Holdings performed over the past 5 years?

23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 242 has high quality earnings.

Growing Profit Margin: 242's current net profit margins (23%) are lower than last year (67.2%).


Past Earnings Growth Analysis

Earnings Trend: 242's earnings have grown significantly by 23.1% per year over the past 5 years.

Accelerating Growth: 242's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 242 had negative earnings growth (-25.6%) over the past year, making it difficult to compare to the Industrials industry average (-5.9%).


Return on Equity

High ROE: 242's Return on Equity (12.6%) is considered low.


Next Steps

Financial Health

How is Shun Tak Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 242's short term assets (HK$31.7B) exceed its short term liabilities (HK$15.8B).

Long Term Liabilities: 242's short term assets (HK$31.7B) exceed its long term liabilities (HK$9.0B).


Debt to Equity History and Analysis

Debt Level: 242's debt to equity ratio (47.9%) is considered high.

Reducing Debt: 242's debt to equity ratio has increased from 41.8% to 47.9% over the past 5 years.

Debt Coverage: 242's debt is well covered by operating cash flow (30%).

Interest Coverage: 242's interest payments on its debt are well covered by EBIT (11x coverage).


Balance Sheet


Next Steps

Dividend

What is Shun Tak Holdings's current dividend yield, its reliability and sustainability?

6.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 242's dividend (6.32%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 242's dividend (6.32%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.82%).


Stability and Growth of Payments

Stable Dividend: 242's dividend payments have been volatile in the past 10 years.

Growing Dividend: 242's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.7%), 242's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 242's dividends in 3 years are forecast to be well covered by earnings (20.1% payout ratio).


Next Steps

Management

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

14.0yrs

Average management tenure


CEO

Pansy Catilina Ho (57 yo)

21.17yrs

Tenure

HK$12,134,000

Compensation

Ms. Chiu King Ho, also known as Pansy Catilina, JP, has been the Group Executive Chairman of Shun Tak Holdings Limited since June 23, 2017 and as its Managing Director since June 1999 and Executive Directo ...


CEO Compensation Analysis

Compensation vs Market: Pansy Catilina's total compensation ($USD1.57M) is above average for companies of similar size in the Hong Kong market ($USD495.20K).

Compensation vs Earnings: Pansy Catilina's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Chiu Ho
Group Executive Chairman & MD21.17yrsHK$12.13m17.7%
HK$ 1.5b
Chiu Fung Ho
CFO, Deputy MD & Executive Director25.83yrsHK$7.59m7.41%
HK$ 638.4m
Chiu Ha Ho
Head of Strategic Planning & Operations and Executive Director19.17yrsHK$5.90m2.34%
HK$ 201.3m
Hong Kuen Shum
Executive Director16.33yrsHK$4.58m0.19%
HK$ 16.1m
Rogier Johannes Verhoeven
President of the Group Hospitality Division & Executive Director8.5yrsHK$6.64mno data
Mei Chu Tsang
Company Secretaryno datano datano data
Robbert van der Maas
President of AHG7.08yrsno datano data
Jerry Huang
President of AHG Greater China Operations7.08yrsno datano data

14.0yrs

Average Tenure

57yo

Average Age

Experienced Management: 242's management team is seasoned and experienced (14 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chiu Ho
Group Executive Chairman & MD21.17yrsHK$12.13m17.7%
HK$ 1.5b
Chiu Fung Ho
CFO, Deputy MD & Executive Director25.83yrsHK$7.59m7.41%
HK$ 638.4m
Chiu Ha Ho
Head of Strategic Planning & Operations and Executive Director19.17yrsHK$5.90m2.34%
HK$ 201.3m
Hong Kuen Shum
Executive Director16.33yrsHK$4.58m0.19%
HK$ 16.1m
Rogier Johannes Verhoeven
President of the Group Hospitality Division & Executive Director8.5yrsHK$6.64mno data
Tsu Kwok Ho
Independent Non-Executive Director13.75yrsHK$460.00kno data
Zhi Wu
Independent Non-Executive Director11.58yrsHK$560.00kno data
Ka-Kay Yip
Independent Non-Executive Director4.83yrsHK$500.00kno data
Hau Ho
Independent Non-Executive Director15.92yrsHK$580.00kno data

13.8yrs

Average Tenure

57yo

Average Age

Experienced Board: 242's board of directors are seasoned and experienced ( 13.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.9%.


Top Shareholders

Company Information

Shun Tak Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shun Tak Holdings Limited
  • Ticker: 242
  • Exchange: SEHK
  • Founded: 1972
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: HK$8.611b
  • Shares outstanding: 3.02b
  • Website: https://www.shuntakgroup.com

Number of Employees


Location

  • Shun Tak Holdings Limited
  • West Tower
  • Penthouse, 39th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHTG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
XUNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
242SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
242SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
242SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992

Biography

Shun Tak Holdings Limited, an investment holding company, engages in property, transportation, hospitality, and investment businesses in Hong Kong, Macau, Mainland China, and internationally. It develops a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 12:49
End of Day Share Price2020/08/10 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.