SEHK:255

Stock Analysis Report

Lung Kee (Bermuda) Holdings

Executive Summary

Lung Kee (Bermuda) Holdings Limited, an investment holding company, manufactures and markets mold bases and related products in the People’s Republic of China and internationally.

Snowflake

Fundamentals

Flawless balance sheet and fair value.

Share Price & News

How has Lung Kee (Bermuda) Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.1%

255

5.7%

HK Machinery

2.4%

HK Market


1 Year Return

-25.8%

255

17.4%

HK Machinery

0.4%

HK Market

Return vs Industry: 255 underperformed the Hong Kong Machinery industry which returned 17.4% over the past year.

Return vs Market: 255 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

255IndustryMarket
7 Day6.1%5.7%2.4%
30 Day-3.2%-2.1%-2.6%
90 Day-14.7%-3.9%-5.6%
1 Year-19.2%-25.8%20.8%17.4%4.0%0.4%
3 Year26.6%-6.5%52.8%43.5%15.1%3.5%
5 Year67.4%3.8%72.0%54.1%20.3%0.3%

Price Volatility Vs. Market

How volatile is Lung Kee (Bermuda) Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lung Kee (Bermuda) 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

Undervalued: 255 (HK$2.44) is trading below our estimate of fair value (HK$8.47)

Significantly Undervalued: 255 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 255 is poor value based on its PE Ratio (13.2x) compared to the Machinery industry average (9.6x).

PE vs Market: 255 is poor value based on its PE Ratio (13.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 255's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 255 is good value based on its PB Ratio (0.7x) compared to the HK Machinery industry average (0.8x).


Next Steps

Future Growth

How is Lung Kee (Bermuda) Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 255's forecast earnings growth (9% per year) is above the savings rate (2%).

Earnings vs Market: 255's earnings (9% per year) are forecast to grow slower than the Hong Kong market (11.2% per year).

High Growth Earnings: 255's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 255's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 255's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 255's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Lung Kee (Bermuda) Holdings performed over the past 5 years?

9.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 255's earnings have grown by 9.5% per year over the past 5 years.

Accelerating Growth: 255's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 255 had negative earnings growth (-53.4%) over the past year, making it difficult to compare to the Machinery industry average (7.4%).


Return on Equity

High ROE: 255's Return on Equity (5.4%) is considered low.


Return on Assets

ROA vs Industry: 255's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: 255's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Lung Kee (Bermuda) Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 255's short term assets (HK$1.6B) exceeds its short term liabilities (HK$320.5M)

Long Term Liabilities: 255's short term assets (1.6B) exceeds its long term liabilities (130.4M)


Debt to Equity History and Analysis

Debt Level: 255 is debt free.

Reducing Debt: 255 has no debt compared to 5 years ago when its debt to equity ratio was 7.4%.

Debt Coverage: 255 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 255 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 255 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 255's debt is covered by short term assets.


Next Steps

Dividend

What is Lung Kee (Bermuda) Holdings's current dividend yield, its reliability and sustainability?

9.02%

Current Dividend Yield


Dividend Yield vs Market

company9.0%marketbottom25%2.3%markettop25%6.3%industryaverage3.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 255's dividend (9.02%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 255's dividend (9.02%) is in the top 25% of dividend payers in the Hong Kong market (6.33%)

Stable Dividend: 255's dividend payments have been volatile in the past 10 years.

Growing Dividend: 255's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (124.4%), 255's dividend payments are not 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

What is the CEO of Lung Kee (Bermuda) Holdings's salary, the management and board of directors tenure and is there insider trading?

15.1yrs

Average board tenure


CEO

Yuk Lung Siu (65yo)

26.8yrs

Tenure

HK$10,824,000

Compensation

Mr. Yuk Lung Siu has been the Managing Director of Lung Kee Bermuda Holdings Ltd., since December 1992. Mr. Siu Co-founded Lung Kee Bermuda Holdings Ltd. He serves as the Managing Director of Lung Kee Meta ...


CEO Compensation Analysis

Compensation vs. Market: Yuk Lung's total compensation ($USD1.38M) is about average for companies of similar size in the Hong Kong market ($USD281.84K).

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


Board Age and Tenure

15.1yrs

Average Tenure

63yo

Average Age

Experienced Board: 255's board of directors are seasoned and experienced ( 15.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$190,96018 Dec 18
David Webb
EntityIndividual
Shares56,000
Max PriceHK$3.41

Ownership Breakdown


Management Team

  • Yuk Lung Siu (65yo)

    Co-Founder

    • Tenure: 26.8yrs
    • Compensation: HK$10.82m
  • Tit Lung Siu (69yo)

    Co-Founder

    • Tenure: 26.8yrs
    • Compensation: HK$10.82m
  • Lung Shing Wai (57yo)

    Director of Finance & Administration

    • Tenure: 26.8yrs
    • Compensation: HK$8.93m
  • Chung Ho Ting (65yo)

    Executive Director

    • Tenure: 11.5yrs
    • Compensation: HK$6.85m
  • Leo Siu (39yo)

    Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$4.02m
  • Ivan Siu (39yo)

    Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$4.13m

Board Members

  • Joo Hai Lee (63yo)

    Independent Non-Executive Director

    • Tenure: 15.1yrs
    • Compensation: HK$407.00k
  • Yuk Lung Siu (65yo)

    Co-Founder

    • Tenure: 26.8yrs
    • Compensation: HK$10.82m
  • Tit Lung Siu (69yo)

    Co-Founder

    • Tenure: 26.8yrs
    • Compensation: HK$10.82m
  • Tat Yee Lee (71yo)

    Independent Non-Executive Director

    • Tenure: 26.8yrs
    • Compensation: HK$422.00k
  • Lung Shing Wai (57yo)

    Director of Finance & Administration

    • Tenure: 26.8yrs
    • Compensation: HK$8.93m
  • Chung Ho Ting (65yo)

    Executive Director

    • Tenure: 11.5yrs
    • Compensation: HK$6.85m
  • Leo Siu (39yo)

    Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$4.02m
  • Ivan Siu (39yo)

    Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$4.13m
  • Hak Kun Wong (62yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: HK$291.00k

Company Information

Lung Kee (Bermuda) Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lung Kee (Bermuda) Holdings Limited
  • Ticker: 255
  • Exchange: SEHK
  • Founded:
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$1.497b
  • Shares outstanding: 631.68m
  • Website: https://null

Number of Employees


Location

  • Lung Kee (Bermuda) Holdings Limited
  • Unit A, Kings Wing Plaza 2
  • 15th Floor
  • Sha Tin
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
L09SGX (Singapore Exchange)YesOrdinary SharesSGSGDMar 1993
255SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 1993

Biography

Lung Kee (Bermuda) Holdings Limited, an investment holding company, manufactures and markets mold bases and related products in the People’s Republic of China and internationally. It also holds and license ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:38
End of Day Share Price2019/10/15 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.