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KPa-BM Holdings

SEHK:2663
Snowflake Description

Undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2663
SEHK
HK$159M
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

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. The last earnings update was 176 days ago. More info.


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  • KPa-BM Holdings has significant price volatility in the past 3 months.
2663 Share Price and Events
7 Day Returns
-7%
SEHK:2663
-0%
HK Construction
-1.6%
HK Market
1 Year Returns
-59.2%
SEHK:2663
-20.2%
HK Construction
-16.6%
HK Market
2663 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
KPa-BM Holdings (2663) -7% -17.2% -17.2% -59.2% -11.7% -
HK Construction -0% -10% -10.9% -20.2% -13.2% 6.3%
HK Market -1.6% -9.5% -5.2% -16.6% 24.8% 7.3%
1 Year Return vs Industry and Market
  • 2663 underperformed the Construction industry which returned -20.2% over the past year.
  • 2663 underperformed the Market in Hong Kong which returned -16.6% over the past year.
Price Volatility
2663
Industry
5yr Volatility vs Market

2663 Value

 Is KPa-BM Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of KPa-BM Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for KPa-BM Holdings.

SEHK:2663 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:2663
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Construction Unlevered Beta Simply Wall St/ S&P Global 0.98
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.983 (1 + (1- 25%) (3.63%))
1.007
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.007 * 6.65%)
8.7%

Discounted Cash Flow Calculation for SEHK:2663 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for KPa-BM Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:2663 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 8.7%)
2019 85.77 Est @ 83.58% 78.90
2020 136.46 Est @ 59.1% 115.49
2021 193.74 Est @ 41.97% 150.85
2022 251.83 Est @ 29.98% 180.39
2023 306.19 Est @ 21.59% 201.78
2024 354.31 Est @ 15.71% 214.80
2025 395.40 Est @ 11.6% 220.54
2026 429.89 Est @ 8.72% 220.58
2027 458.71 Est @ 6.71% 216.54
2028 483.00 Est @ 5.29% 209.76
Present value of next 10 years cash flows HK$1,809.63
SEHK:2663 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$483.00 × (1 + 2%) ÷ (8.7% – 2%)
HK$7,358.38
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$7,358.38 ÷ (1 + 8.7%)10
HK$3,195.57
SEHK:2663 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$1,809.63 + HK$3,195.57
HK$5,005.20
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$5,005.20 / 600.00
HK$8.34
SEHK:2663 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$8.34
Current discount Discount to share price of HK$0.27
= -1 x (HK$0.27 - HK$8.34) / HK$8.34
96.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price KPa-BM Holdings is available for.
Intrinsic value
>50%
Share price is HK$0.27 vs Future cash flow value of HK$8.34
Current Discount Checks
For KPa-BM Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • KPa-BM Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • KPa-BM Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for KPa-BM Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are KPa-BM Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:2663 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in HKD HK$0.04
SEHK:2663 Share Price ** SEHK (2019-05-21) in HKD HK$0.27
Hong Kong Construction Industry PE Ratio Median Figure of 107 Publicly-Listed Construction Companies 11.27x
Hong Kong Market PE Ratio Median Figure of 1,478 Publicly-Listed Companies 11.06x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of KPa-BM Holdings.

SEHK:2663 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:2663 Share Price ÷ EPS (both in HKD)

= 0.27 ÷ 0.04

6.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • KPa-BM Holdings is good value based on earnings compared to the HK Construction industry average.
  • KPa-BM Holdings is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does KPa-BM Holdings's expected growth come at a high price?
Raw Data
SEHK:2663 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.16x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
1%per year
Hong Kong Construction Industry PEG Ratio Median Figure of 9 Publicly-Listed Construction Companies 0.49x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for KPa-BM Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on KPa-BM Holdings's assets?
Raw Data
SEHK:2663 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in HKD HK$0.29
SEHK:2663 Share Price * SEHK (2019-05-21) in HKD HK$0.27
Hong Kong Construction Industry PB Ratio Median Figure of 133 Publicly-Listed Construction Companies 1.41x
Hong Kong Market PB Ratio Median Figure of 2,157 Publicly-Listed Companies 0.97x
SEHK:2663 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:2663 Share Price ÷ Book Value per Share (both in HKD)

= 0.27 ÷ 0.29

0.91x

* Primary Listing of KPa-BM Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • KPa-BM Holdings is good value based on assets compared to the HK Construction industry average.
X
Value checks
We assess KPa-BM Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. KPa-BM Holdings has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

2663 Future Performance

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

  • No analysts cover KPa-BM Holdings, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is KPa-BM Holdings expected to grow at an attractive rate?
  • KPa-BM Holdings's earnings growth is positive but not above the low risk savings rate of 2%.
Growth vs Market Checks
  • KPa-BM Holdings's earnings growth is expected to exceed the Hong Kong market average.
  • Unable to compare KPa-BM Holdings's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:2663 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:2663 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 1%
Hong Kong Construction Industry Earnings Growth Rate Market Cap Weighted Average 12.6%
Hong Kong Construction Industry Revenue Growth Rate Market Cap Weighted Average 9.9%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average -5.7%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:2663 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:2663 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-09-30 391 49 26
2018-06-30 389 26
2018-03-31 378 20 26
2017-12-31 363 26
2017-09-30 351 4 29
2017-06-30 355 31
2017-03-31 381 20 31
2016-12-31 402 37
2016-09-30 394 8 36
2016-06-30 375 27
2016-03-31 344 3 25
2015-12-31 304 21

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • KPa-BM Holdings's earnings are expected to grow by 1% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if KPa-BM Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:2663 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from KPa-BM Holdings Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2663 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-09-30 0.04
2018-06-30 0.04
2018-03-31 0.04
2017-12-31 0.04
2017-09-30 0.05
2017-06-30 0.05
2017-03-31 0.05
2016-12-31 0.06
2016-09-30 0.06
2016-06-30 0.05
2016-03-31 0.05
2015-12-31 0.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if KPa-BM Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess KPa-BM Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
KPa-BM Holdings has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

2663 Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare KPa-BM Holdings's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • KPa-BM Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • KPa-BM Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • KPa-BM Holdings's 1-year earnings growth is negative, it can't be compared to the HK Construction industry average.
Earnings and Revenue History
KPa-BM Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from KPa-BM Holdings Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2663 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 390.82 25.83 40.43
2018-06-30 388.52 26.22 40.49
2018-03-31 378.43 26.22 39.89
2017-12-31 363.36 25.71 39.16
2017-09-30 350.82 28.74 34.60
2017-06-30 355.44 31.44 32.46
2017-03-31 381.39 30.96 30.14
2016-12-31 401.69 36.64 35.61
2016-09-30 393.84 36.14 26.43
2016-06-30 374.87 26.83 22.74
2016-03-31 343.81 24.96 25.69
2015-12-31 304.09 20.70 25.95
2015-09-30 262.36 13.95 24.14
2015-06-30 230.64 14.87 25.11
2015-03-31 197.44 11.92 20.26
2014-03-31 205.29 9.73 16.23

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • KPa-BM Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • KPa-BM Holdings used its assets more efficiently than the HK Construction industry average last year based on Return on Assets.
  • KPa-BM Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess KPa-BM Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
KPa-BM Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

2663 Health

 How is KPa-BM Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up KPa-BM Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • KPa-BM Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • KPa-BM Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of KPa-BM Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 43.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from KPa-BM Holdings Company Filings, last reported 7 months ago.

SEHK:2663 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 175.08 5.77 54.96
2018-06-30 175.08 5.77 54.96
2018-03-31 171.54 18.47 42.62
2017-12-31 171.54 18.47 42.62
2017-09-30 158.88 39.77 34.92
2017-06-30 154.81 20.42 37.90
2017-03-31 154.81 20.42 37.90
2016-12-31 124.07 27.35 31.99
2016-09-30 124.07 27.35 31.99
2016-06-30 117.30 34.57 48.04
2016-03-31 117.30 34.57 48.04
2015-12-31
2015-09-30 57.06 46.74 24.05
2015-06-30 66.75 22.88 5.96
2015-03-31 66.75 22.88 5.96
2014-03-31 55.19 13.46 10.93
  • KPa-BM Holdings's level of debt (3.3%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if KPa-BM Holdings's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (857.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 46.3x coverage).
X
Financial health checks
We assess KPa-BM Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. KPa-BM Holdings has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

2663 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.04%
Current annual income from KPa-BM Holdings dividends.
If you bought HK$2,000 of KPa-BM Holdings shares you are expected to receive HK$121 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • KPa-BM Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • KPa-BM Holdings's dividend is above the markets top 25% of dividend payers in Hong Kong (5.8%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:2663 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Construction Industry Average Dividend Yield Market Cap Weighted Average of 42 Stocks 3.8%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 968 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:2663 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2018-07-18 0.016 4.471
2017-06-22 0.016 2.898
2016-06-27 0.015 3.063
2016-06-23 0.015 4.689

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, KPa-BM Holdings has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but KPa-BM Holdings only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of KPa-BM Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.7x 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.
X
Income/ dividend checks
We assess KPa-BM Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can KPa-BM Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. KPa-BM Holdings has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

2663 Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Yat Kin Wai
COMPENSATION HK$3,576,000
AGE 58
TENURE AS CEO 3.9 years
CEO Bio

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 strategic planning, management and administration of the Group's business operations. Prior to founding KPa-BM Group, Mr. Wai was employed by Tak Cheong (Yau Kee) Engineering Limited as a sales manager for the department of waterproofing product and skylight and metal work product during November 1988 to January 1992. Mr. Wai has handled and overseen numerous construction projects undertaken by the Group and he has extensive knowledge in business development of building material products. He has more than 25 years of experience in the structural engineering and construction industry. He serves as a Director of AcouSystem Limited, BuildMax Limited, KPa Contracting Limited, KPa Engineering Limited, KPa Engineering (HK) Limited, Light Dimension Limited, Sun Pool Engineering Limited and Youkang Limited. He served as a Director of KPa-BM Holdings Limited since May 15, 2015 until June 26, 2015. Mr. Wai completed his secondary education in Hong Kong in 1978.

CEO Compensation
  • Yat Kin's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Yat Kin's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the KPa-BM Holdings management team in years:

3.9
Average Tenure
54.5
Average Age
  • The tenure for the KPa-BM Holdings management team is about average.
Management Team

Pak Hung Yip

TITLE
Chairman & Compliance Officer
COMPENSATION
HK$4M
AGE
59
TENURE
3.9 yrs

Yat Kin Wai

TITLE
CEO & Executive Director
COMPENSATION
HK$4M
AGE
58
TENURE
3.9 yrs

Ngai Fan Chan

TITLE
Financial Controller
AGE
38
TENURE
4 yrs

Sun Kwong Chan

TITLE
Company Secretary
AGE
51
TENURE
3.9 yrs
Board of Directors Tenure

Average tenure and age of the KPa-BM Holdings board of directors in years:

3.7
Average Tenure
59
Average Age
  • The tenure for the KPa-BM Holdings board of directors is about average.
Board of Directors

Pak Hung Yip

TITLE
Chairman & Compliance Officer
COMPENSATION
HK$4M
AGE
59
TENURE
3.9 yrs

Yat Kin Wai

TITLE
CEO & Executive Director
COMPENSATION
HK$4M
AGE
58
TENURE
4 yrs

Peggy Lai

TITLE
Independent Non-Executive Director
COMPENSATION
HK$205K
AGE
54
TENURE
3.7 yrs

Peter Lam

TITLE
Independent Non-Executive Director
COMPENSATION
HK$205K
AGE
59
TENURE
3.7 yrs

Kit Ming Yeung

TITLE
Independent Non-Executive Director
COMPENSATION
HK$205K
AGE
60
TENURE
3.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
21. Jan 19 Sell Bun Lui Individual 17. Jan 19 17. Jan 19 -9,000,000 HK$0.31 HK$-2,790,005
21. Jan 19 Buy Pak Hung Yip Individual 17. Jan 19 17. Jan 19 4,500,000 HK$0.31 HK$1,395,003
21. Jan 19 Buy Yat Kin Wai Individual 17. Jan 19 17. Jan 19 4,500,000 HK$0.31 HK$1,395,003
X
Management checks
We assess KPa-BM Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. KPa-BM Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

2663 News

Simply Wall St News

Is KPa-BM Holdings Limited's (HKG:2663) 15% ROE Better Than Average?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every HK$1 worth of shareholders' equity, it generated HK$0.15 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

The KPa-BM Holdings (HKG:2663) Share Price Is Down 47% So Some Shareholders Are Getting Worried

Unfortunately the KPa-BM Holdings Limited (HKG:2663) share price slid 47% over twelve months. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … The share price decline of 47% is actually more than the EPS drop.

Simply Wall St -

Does KPa-BM Holdings Limited's (HKG:2663) CEO Salary Compare Well With Others?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Yat Kin Wai's Compensation Compare With Similar Sized Companies. … Our data indicates that KPa-BM Holdings Limited is worth HK$192m, and total annual CEO compensation is HK$3.6m.

Simply Wall St -

A Close Look At KPa-BM Holdings Limited’s (HKG:2663) 19% ROCE

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

What Kind Of Shareholders Own KPa-BM Holdings Limited (HKG:2663)?

Every investor in KPa-BM Holdings Limited (HKG:2663) should be aware of the most powerful shareholder groups. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … KPa-BM Holdings is a smaller company with a market capitalization of HK$207m, so it may still be flying under the radar of many institutional investors.

Simply Wall St -

Is KPa-BM Holdings Limited's (HKG:2663) ROE Of 15% Impressive?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows KPa-BM Holdings has a return on equity of 15% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Does KPa-BM Holdings Limited's (HKG:2663) P/E Ratio Signal A Buying Opportunity?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll look at KPa-BM Holdings Limited's (HKG:2663) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Does KPa-BM Holdings Limited's (HKG:2663) CEO Pay Compare Well With Peers?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Yat Kin Wai's Compensation Compare With Similar Sized Companies. … According to our data, KPa-BM Holdings Limited has a market capitalization of HK$207m, and pays its CEO total annual compensation worth HK$3.6m.

Simply Wall St -

Is KPa-BM Holdings Limited (HKG:2663) A Smart Choice For Dividend Investors?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … KPa-BM Holdings Limited (HKG:2663) has recently paid dividends to shareholders, and currently yields 4.3%. … Let's dig deeper into whether KPa-BM Holdings should have a place in your portfolio.

Simply Wall St -

Do Directors Own KPa-BM Holdings Limited (HKG:2663) Shares?

KPa-BM Holdings is a smaller company with a market capitalization of HK$228m, so it may still be flying under the radar of many institutional investors. … Our analysis of the ownership of the company, below, shows that. … Check out our latest analysis for KPa-BM Holdings

Simply Wall St -

2663 Company Info

Description

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 based in Tsuen Wan, Hong Kong.

Details
Name: KPa-BM Holdings Limited
2663
Exchange: SEHK
Founded: 1991
HK$159,000,000
600,000,000
Website: http://www.kpa-bm.com.hk
Address: KPa-BM Holdings Limited
The Octagon,
27th Floor,
Tsuen Wan,
New Territories, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 2663 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 08. Oct 2015
Number of employees
Current staff
Staff numbers
90
KPa-BM Holdings employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/22 13:01
End of day share price update: 2019/05/21 00:00
Last earnings filing: 2018/11/27
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.