SEHK:262

Stock Analysis Report

Deson Development International Holdings

Executive Summary

Deson Development International Holdings Limited, an investment holding company, primarily engages in the property development and investment businesses in Hong Kong, Mainland China, and Macau.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.

Risks

  • Deson Development International Holdings is not covered by any analysts.

Share Price & News

How has Deson Development International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.5%

SEHK:262

1.1%

HK Construction

0.8%

HK Market


1 Year Return

-29.1%

SEHK:262

-11.1%

HK Construction

-4.4%

HK Market

262 underperformed the Construction industry which returned -11.4% over the past year.

262 underperformed the Market in Hong Kong which returned -4.5% over the past year.


Share holder returns

262IndustryMarket
7 Day-0.5%1.1%0.8%
30 Day2.6%-4.7%1.5%
90 Day-13.3%-13.3%-7.4%
1 Year-25.7%-29.1%-7.7%-11.1%-1.0%-4.4%
3 Year-39.6%-43.5%-12.9%-21.2%30.8%17.7%
5 Year-53.2%-66.9%11.7%-4.5%22.0%1.6%

Price Volatility Vs. Market

How volatile is Deson Development International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Deson Development International 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

Deson Development International Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

Deson Development International Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Deson Development International Holdings is good value based on earnings compared to the HK Construction industry average.

Deson Development International Holdings is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Deson Development International Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Deson Development International Holdings is good value based on assets compared to the HK Construction industry average.


Next Steps

Future Growth

How is Deson Development International Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

30.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Deson Development International Holdings is high growth as no revenue estimate data is available.

Deson Development International Holdings's earnings are expected to grow significantly at over 20% yearly.

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

Deson Development International Holdings's earnings growth is expected to exceed the Hong Kong market average.

Deson Development International Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Deson Development International Holdings performed over the past 5 years?

-31.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Deson Development International Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Deson Development International Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Deson Development International Holdings's 1-year earnings growth is negative, it can't be compared to the HK Construction industry average.


Return on Equity

Deson Development International Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Deson Development International Holdings used its assets less efficiently than the HK Construction industry average last year based on Return on Assets.


Return on Capital Employed

Deson Development International Holdings has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Deson Development International Holdings's financial position?


Financial Position Analysis

Deson Development International Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Deson Development International Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Deson Development International Holdings's level of debt (25.5%) 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 (47.1% vs 25.5% today).

Debt is well covered by operating cash flow (24.3%, greater than 20% of total debt).

Deson Development International Holdings earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.8x debt.


Next Steps

Dividend

What is Deson Development International Holdings's current dividend yield, its reliability and sustainability?

2.56%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Deson Development International Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Deson Development International Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.09%).

Deson Development International Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.74%).

Deson Development International Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Deson Development International Holdings has only been paying a dividend for 9 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.6x 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 Deson Development International Holdings's salary, the management and board of directors tenure and is there insider trading?

12.8yrs

Average board tenure


CEO

Boen Sien Tjia (75yo)

HK$2,776,000

Compensation

Mr. Boen Sien Tjia is a co-founder of Deson Development International Holdings Ltd. and serves as its Managing Director, Deputy Chairman and Director of Overall Corporate Strategy. Mr. Tjia has over 26 yea ...


CEO Compensation Analysis

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

Boen Sien's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

12.8yrs

Average Tenure

63yo

Average Age

The average tenure for the Deson Development International Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Boen Sien Tjia (75yo)

    Co-Founder

    • Compensation: HK$2.78m
  • Jing Ning Wang (63yo)

    Director of Managing the Groups Projects - the PRC & Executive Director

    • Compensation: HK$1.36m
  • Angus Lam (43yo)

    Financial Controller & Company Secretary

  • Quanzhang Lu (63yo)

    Executive Chairman

    • Compensation: HK$302.00k
  • William Tjia (43yo)

    Executive Director

    • Compensation: HK$832.00k

Board Members

  • Boen Sien Tjia (75yo)

    Co-Founder

    • Compensation: HK$2.78m
  • Siu Man Po (81yo)

    Independent Non-Executive Director

    • Tenure: 17.8yrs
    • Compensation: HK$121.00k
  • Jing Ning Wang (63yo)

    Director of Managing the Groups Projects - the PRC & Executive Director

    • Tenure: 25.8yrs
    • Compensation: HK$1.36m
  • Raymond Ho (80yo)

    Independent Non-Executive Director

    • Tenure: 25.8yrs
    • Compensation: HK$121.00k
  • Kam Chau Siu (54yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: HK$121.00k
  • Quanzhang Lu (63yo)

    Executive Chairman

    • Tenure: 7.7yrs
    • Compensation: HK$302.00k
  • William Tjia (43yo)

    Executive Director

    • Tenure: 4.5yrs
    • Compensation: HK$832.00k

Company Information

Deson Development International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Deson Development International Holdings Limited
  • Ticker: 262
  • Exchange: SEHK
  • Founded: 1988
  • Industry: construction and engineering
  • Sector: capital goods
  • Market Cap: HK$190.687m
  • Shares outstanding: 977.88m
  • Website: Click here

Number of Employees


Location

  • Deson Development International Holdings Limited
  • Nanyang Plaza
  • 11th Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
262SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 1997

Biography

Deson Development International Holdings Limited, an investment holding company, primarily engages in the property development and investment businesses in Hong Kong, Mainland China, and Macau. It invests  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/19 12:43
End of Day Share Price2019/07/19 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.