SEHK:2863

Stock Analysis Report

Golden Faith Group Holdings

Executive Summary

Golden Faith Group Holdings Limited, an investment holding company, engages in the provision of electrical and mechanical engineering services in Hong Kong.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2863's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.2%

2863

-1.2%

HK Construction

-3.3%

HK Market


1 Year Return

-24.0%

2863

-28.4%

HK Construction

-9.6%

HK Market

Return vs Industry: 2863 exceeded the Hong Kong Construction industry which returned -30.5% over the past year.

Return vs Market: 2863 underperformed the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

2863IndustryMarket
7 Day-9.2%-1.2%-3.3%
30 Day-12.2%-3.7%-3.8%
90 Day-12.2%-4.3%-0.2%
1 Year-24.0%-24.0%-24.9%-28.4%-6.3%-9.6%
3 Yearn/a-37.6%-44.3%11.2%-0.05%
5 Yearn/a-26.0%-36.9%12.7%-6.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

34.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2863 (HK$0.4) is trading below our estimate of fair value (HK$0.6)

Significantly Below Fair Value: 2863 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2863 is poor value based on its PE Ratio (9.8x) compared to the Construction industry average (8.4x).

PE vs Market: 2863 is good value based on its PE Ratio (9.8x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2863's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2863 is overvalued based on its PB Ratio (1x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

How is Golden Faith Group 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 Golden Faith 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 Golden Faith Group Holdings performed over the past 5 years?

1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2863 has high quality earnings.

Growing Profit Margin: 2863's current net profit margins (5.8%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: 2863's earnings have grown by 1.5% per year over the past 5 years.

Accelerating Growth: 2863's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2863 had negative earnings growth (-19.2%) over the past year, making it difficult to compare to the Construction industry average (-5.4%).


Return on Equity

High ROE: 2863's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is Golden Faith Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2863's short term assets (HK$281.9M) exceed its short term liabilities (HK$73.0M).

Long Term Liabilities: 2863's short term assets (HK$281.9M) exceed its long term liabilities (HK$616.0K).


Debt to Equity History and Analysis

Debt Level: 2863's debt to equity ratio (2.2%) is considered satisfactory.

Reducing Debt: 2863's debt to equity ratio has reduced from 80.3% to 2.2% over the past 5 years.

Debt Coverage: 2863's debt is well covered by operating cash flow (652.3%).

Interest Coverage: 2863 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 2863 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2863's debt is covered by short term assets (assets are 61.8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2863's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2863'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 2863's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2863'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 2863's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average board tenure


CEO

Golden Faith Group Holdings has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Kar Fai Li
Group CFO3.3yrsHK$1.73m0.67% HK$1.4m
Chun Hay Ko
Executive Director1.1yrsHK$2.64m56.54% HK$121.4m
Wing Fai Chan
Independent Non-Executive Director2.6yrsHK$120.00kno data
On Wah Yung
Chairman3.3yrsHK$4.21m6.77% HK$14.5m
Cho Chak Chan
Independent Non-Executive Director2.6yrsHK$120.00kno data
Wai Lung Yeung
Independent Non-Executive Director2.6yrsHK$120.00kno data
Cheuk Wai Wong
Non-Executive Director1.1yrsHK$127.00kno data

2.6yrs

Average Tenure

55yo

Average Age

Experienced Board: 2863's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 2863 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Golden Faith Group Holdings Limited
  • Ticker: 2863
  • Exchange: SEHK
  • Founded: 1987
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$214.730m
  • Shares outstanding: 543.62m
  • Website: https://www.goldenfaith.hk

Number of Employees


Location

  • Golden Faith Group Holdings Limited
  • Honest Building
  • 15th Floor
  • Causeway Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2863SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 2017

Biography

Golden Faith Group Holdings Limited, an investment holding company, engages in the provision of electrical and mechanical engineering services in Hong Kong. The company provides engineering services, including electrical and extra-low voltage (ELV) system works, and ventilation and air-conditioning system works. It also offers management installation, supervising, and testing of the electrical and ELV installation services. In addition, the company undertakes projects in public and private sectors, which comprise residential and commercial buildings, institutional buildings, government buildings, hotels, and hospitals. Golden Faith Group Holdings Limited was founded in 1987 and is headquartered in Causeway Bay, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 13:17
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.