SEHK:2663

Stock Analysis Report

Executive Summary

KPa-BM Holdings Limited, an investment holding company, provides structural engineering works with a focus on design and build projects to the private and public sectors primarily in Hong Kong, Macau, the United Kingdom, and internationally.

Rewards

PE ratio (4x) is below the Hong Kong market (10.5x)

Earnings grew by 59.4% over the past year

Risk Analysis

Unstable dividend track record

Does not have a meaningful market cap (HK$165M)



Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

How has KPa-BM Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2663 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.3%

2663

-0.8%

HK Construction

-1.4%

HK Market


1 Year Return

-15.0%

2663

-18.0%

HK Construction

3.5%

HK Market

Return vs Industry: 2663 exceeded the Hong Kong Construction industry which returned -16.2% over the past year.

Return vs Market: 2663 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

2663IndustryMarket
7 Day-7.3%-0.8%-1.4%
30 Day-3.8%-0.9%1.8%
90 Day-1.9%0.01%6.0%
1 Year-9.2%-15.0%-14.0%-18.0%7.3%3.5%
3 Year-51.9%-58.2%-28.4%-36.2%23.3%10.8%
5 Yearn/a-20.8%-32.5%19.2%-0.7%

Price Volatility Vs. Market

How volatile is KPa-BM Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is KPa-BM Holdings undervalued compared to its fair value and its price relative to the market?

3.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2663 (HK$0.28) is trading above our estimate of fair value (HK$0.2)

Significantly Below Fair Value: 2663 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2663 is good value based on its PE Ratio (4x) compared to the Construction industry average (9.9x).

PE vs Market: 2663 is good value based on its PE Ratio (4x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2663's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2663 is good value based on its PB Ratio (0.8x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

How is KPa-BM Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.8%

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 KPa-BM 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 KPa-BM Holdings performed over the past 5 years?

13.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2663 has high quality earnings.

Growing Profit Margin: 2663's current net profit margins (6.5%) are lower than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: 2663's earnings have grown by 13.3% per year over the past 5 years.

Accelerating Growth: 2663's earnings growth over the past year (59.4%) exceeds its 5-year average (13.3% per year).

Earnings vs Industry: 2663 earnings growth over the past year (59.4%) exceeded the Construction industry -12.3%.


Return on Equity

High ROE: 2663's Return on Equity (20.2%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is KPa-BM Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2663's short term assets (HK$386.3M) exceed its short term liabilities (HK$220.1M).

Long Term Liabilities: 2663's short term assets (HK$386.3M) exceed its long term liabilities (HK$9.4M).


Debt to Equity History and Analysis

Debt Level: 2663 is debt free.

Reducing Debt: 2663 has no debt compared to 5 years ago when its debt to equity ratio was 28.6%.

Debt Coverage: 2663 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 2663 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 2663 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2663's debt is not covered by short term assets (assets are -2.1746418930693E+17x debt).


Next Steps

Dividend

What is KPa-BM Holdings's current dividend yield, its reliability and sustainability?

6.27%

Current Dividend Yield


Dividend Yield vs Market

company6.3%marketbottom25%2.2%markettop25%6.1%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 2663's dividend (5.82%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 2663's dividend (6.27%) is in the top 25% of dividend payers in the Hong Kong market (6.06%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 2663 has been paying a dividend for less than 10 years.

Growing Dividend: 2663's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.3%), 2663'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

What is the CEO of KPa-BM Holdings's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Yat Kin Wai (59yo)

4.6yrs

Tenure

HK$3,485,000

Compensation

Mr. Yat Kin Wai has been the Chief Executive Officer and Executive Director of KPa-BM Holdings Limited since June 26, 2015 and May 15, 2015 respectively. Mr. Wai is primarily responsible for the overall st ...


CEO Compensation Analysis

Compensation vs Market: Yat Kin's total compensation ($USD448.21K) is above average for companies of similar size in the Hong Kong market ($USD228.16K).

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


Management Age and Tenure

4.6yrs

Average Tenure

55.5yo

Average Age

Experienced Management: 2663's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

60yo

Average Age

Experienced Board: 2663's board of directors are considered experienced (4.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Sun Kwong Chan (52yo)

    Company Secretary

    • Tenure: 4.6yrs
  • Yat Kin Wai (59yo)

    CEO & Executive Director

    • Tenure: 4.6yrs
    • Compensation: HK$3.49m
  • Pak Hung Yip (60yo)

    Chairman & Compliance Officer

    • Tenure: 4.6yrs
    • Compensation: HK$3.49m
  • Ngai Fan Chan (39yo)

    Financial Controller

    • Tenure: 4.7yrs

Board Members

  • Peggy Lai (55yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$240.00k
  • Peter Lam (60yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$240.00k
  • Yat Kin Wai (59yo)

    CEO & Executive Director

    • Tenure: 4.6yrs
    • Compensation: HK$3.49m
  • Pak Hung Yip (60yo)

    Chairman & Compliance Officer

    • Tenure: 4.6yrs
    • Compensation: HK$3.49m
  • Kit Ming Yeung (61yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$240.00k

Company Information

KPa-BM Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KPa-BM Holdings Limited
  • Ticker: 2663
  • Exchange: SEHK
  • Founded: 1991
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$153.000m
  • Shares outstanding: 600.00m
  • Website: https://www.kpa-bm.com.hk

Number of Employees


Location

  • KPa-BM Holdings Limited
  • The Octagon
  • 27th Floor
  • Tsuen Wan
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2663SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2015

Biography

KPa-BM Holdings Limited, an investment holding company, provides structural engineering works with a focus on design and build projects to the private and public sectors primarily in Hong Kong, Macau, the United Kingdom, and internationally. It is also involved in the design, supply, trading, and installation of building material products; and property investment and trademark holding related activities. In addition, the company offers fabrication drawing and management services. KPa-BM Holdings Limited was founded in 1991 and is headquartered in Tsuen Wan, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/22 13:04
End of Day Share Price2020/01/21 00:00
Earnings2019/09/30
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.