SEHK:2448

Stock Analysis Report

Executive Summary

Space Group Holdings Limited, an investment holding company, engages in the fitting-out and building construction works in Macau, Hong Kong, and China.


Snowflake Analysis

Mediocre balance sheet with poor track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2448 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.7%

2448

0.4%

HK Construction

1.6%

HK Market


1 Year Return

66.2%

2448

-15.9%

HK Construction

6.0%

HK Market

Return vs Industry: 2448 exceeded the Hong Kong Construction industry which returned -16.2% over the past year.

Return vs Market: 2448 exceeded the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

2448IndustryMarket
7 Day-1.7%0.4%1.6%
30 Day-6.3%0.4%4.4%
90 Day-5.6%2.2%8.6%
1 Year66.2%66.2%-11.8%-15.9%9.9%6.0%
3 Yearn/a-26.8%-34.8%27.7%14.7%
5 Yearn/a-20.3%-32.1%21.7%1.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Space Group Holdings undervalued compared to its fair value and its price relative to the market?

13.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 2448's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 2448's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 2448 is poor value based on its PE Ratio (14.1x) compared to the Construction industry average (9.9x).

PE vs Market: 2448 is poor value based on its PE Ratio (14.1x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2448's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2448 is overvalued based on its PB Ratio (2.5x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

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

12.1%

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 Space Group 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 Space Group Holdings performed over the past 5 years?

15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2448 has a high level of non-cash earnings.

Growing Profit Margin: 2448's current net profit margins (15.1%) are lower than last year (16.8%).


Past Earnings Growth Analysis

Earnings Trend: 2448's earnings have grown by 15.7% per year over the past 5 years.

Accelerating Growth: 2448's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2448 had negative earnings growth (-18%) over the past year, making it difficult to compare to the Construction industry average (-12.3%).


Return on Equity

High ROE: 2448's Return on Equity (17.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Space Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2448's short term assets (MOP543.8M) exceed its short term liabilities (MOP278.4M).

Long Term Liabilities: 2448's short term assets (MOP543.8M) exceed its long term liabilities (MOP3.4M).


Debt to Equity History and Analysis

Debt Level: 2448's debt to equity ratio (58.1%) is considered high.

Reducing Debt: Insufficient data to determine if 2448's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 2448's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 2448's interest payments on its debt are well covered by EBIT (12.2x coverage).


Balance Sheet

Inventory Level: 2448 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2448's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

What is Space Group Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.0%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 2448's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2448's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2448's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2448's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2448's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

2.1yrs

Average board tenure


CEO

Keith Ng 0

0.3yrs

Tenure

0

Mr. Kim Fai Ng, also known as Keith serves as General Manager of Space Group Holdings Limited since October 18, 209. He was a general manager in the project development department of K. Wah International H ...


Board Age and Tenure

2.1yrs

Average Tenure

43yo

Average Age

Experienced Board: 2448's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

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 14.5%.


Management Team

  • Yee Sang Wan (56yo)

    Executive Director

    • Tenure: 2.8yrs
  • Chan U Che (37yo)

    Chairman

    • Tenure: 2.1yrs
  • Soi Kun Lei (60yo)

    Executive Director

    • Tenure: 2.8yrs
  • Kwong Yu Ho (33yo)

    CFO & Company Secretary

    • King To Ho (38yo)

      Senior Finance & Accounting Manager

      • Keith Ng

        General Manager

        • Tenure: 0.3yrs

      Board Members

      • Yee Sang Wan (56yo)

        Executive Director

        • Tenure: 2.8yrs
      • Chan U Che (37yo)

        Chairman

        • Tenure: 2.1yrs
      • Soi Kun Lei (60yo)

        Executive Director

        • Tenure: 2.8yrs
      • Andrew Fan (40yo)

        Independent Non-Executive Director

        • Tenure: 2.1yrs
      • José Eulógio dos Remédios (42yo)

        Independent Non-Executive Director

        • Tenure: 2.1yrs
      • Iat Lun Leong (44yo)

        Independent Non-Executive Director

        • Tenure: 2.1yrs

      Company Information

      Space Group Holdings Limited's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Space Group Holdings Limited
      • Ticker: 2448
      • Exchange: SEHK
      • Founded: 2007
      • Industry: Construction and Engineering
      • Sector: Capital Goods
      • Market Cap: HK$904.400m
      • Shares outstanding: 760.00m
      • Website: https://www.spacegroup.com.mo

      Number of Employees


      Location

      • Space Group Holdings Limited
      • Edificio Centro Comercial Chong Fok 8C
      • Avenida de Marciano Baptista 18
      • Macau
      • Macau

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      2448SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2018

      Biography

      Space Group Holdings Limited, an investment holding company, engages in the fitting-out and building construction works in Macau, Hong Kong, and China. It undertakes fitting-out projects, such as hotels and casinos, restaurants and retail shops, and other properties; and structural building construction works. The company was founded in 2007 and is headquartered in Macau. Space Group Holdings Limited is a subsidiary of Space Investment (BVI) Ltd. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/20 13:09
      End of Day Share Price2020/01/20 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.