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FSE Services Group

SEHK:331
Snowflake Description

Flawless balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
331
SEHK
HK$1B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

FSE Services Group Limited, an investment holding company, provides mechanical and electrical engineering services in Hong Kong, Mainland China, and Macau. The last earnings update was 130 days ago. More info.


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331 Share Price and Events
7 Day Returns
-2.4%
SEHK:331
0.9%
HK Construction
0.8%
HK Market
1 Year Returns
20.4%
SEHK:331
-10.9%
HK Construction
-4.4%
HK Market
331 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
FSE Services Group (331) -2.4% -0.3% -4.7% 20.4% 51.9% -
HK Construction 0.9% -5.5% -13.3% -10.9% -21.1% -4.4%
HK Market 0.8% 0.3% -7.4% -4.4% 17.8% 1.7%
1 Year Return vs Industry and Market
  • 331 outperformed the Construction industry which returned -10.9% over the past year.
  • 331 outperformed the Market in Hong Kong which returned -4.4% over the past year.
Price Volatility
331
Industry
5yr Volatility vs Market

331 Value

 Is FSE Services Group 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 FSE Services Group 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 FSE Services Group.

SEHK:331 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 8.8%
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:331
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 1.04
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.036 (1 + (1- 25%) (0%))
1.024
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.024 * 6.65%)
8.81%

Discounted Cash Flow Calculation for SEHK:331 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for FSE Services Group 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:331 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 8.81%)
2020 135.20 Est @ -28.28% 124.25
2021 109.25 Est @ -19.19% 92.27
2022 95.23 Est @ -12.83% 73.91
2023 87.24 Est @ -8.38% 62.23
2024 82.65 Est @ -5.27% 54.18
2025 80.10 Est @ -3.09% 48.25
2026 78.85 Est @ -1.56% 43.65
2027 78.46 Est @ -0.49% 39.92
2028 78.66 Est @ 0.26% 36.78
2029 79.28 Est @ 0.78% 34.06
Present value of next 10 years cash flows HK$609.48
SEHK:331 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= HK$79.28 × (1 + 2%) ÷ (8.81% – 2%)
HK$1,187.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$1,187.18 ÷ (1 + 8.81%)10
HK$510.08
SEHK:331 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$609.48 + HK$510.08
HK$1,119.57
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$1,119.57 / 450.00
HK$2.49
SEHK:331 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$2.49
Current discount Discount to share price of HK$3.25
= -1 x (HK$3.25 - HK$2.49) / HK$2.49
-30.6%

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

  • The current share price of FSE Services Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 FSE Services Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are FSE Services Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:331 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.51
SEHK:331 Share Price ** SEHK (2019-07-19) in HKD HK$3.25
Hong Kong Construction Industry PE Ratio Median Figure of 105 Publicly-Listed Construction Companies 10.2x
Hong Kong Market PE Ratio Median Figure of 1,512 Publicly-Listed Companies 10.77x

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

** Primary Listing of FSE Services Group.

SEHK:331 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:331 Share Price ÷ EPS (both in HKD)

= 3.25 ÷ 0.51

6.37x

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

  • FSE Services Group is good value based on earnings compared to the HK Construction industry average.
  • FSE Services Group is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does FSE Services Group's expected growth come at a high price?
Raw Data
SEHK:331 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
-11.1%per year
Hong Kong Construction Industry PEG Ratio Median Figure of 10 Publicly-Listed Construction Companies 0.56x
Hong Kong Market PEG Ratio Median Figure of 481 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 FSE Services Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on FSE Services Group's assets?
Raw Data
SEHK:331 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$1.52
SEHK:331 Share Price * SEHK (2019-07-19) in HKD HK$3.25
Hong Kong Construction Industry PB Ratio Median Figure of 136 Publicly-Listed Construction Companies 1.37x
Hong Kong Market PB Ratio Median Figure of 2,198 Publicly-Listed Companies 0.92x
SEHK:331 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:331 Share Price ÷ Book Value per Share (both in HKD)

= 3.25 ÷ 1.52

2.13x

* Primary Listing of FSE Services Group.

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

  • FSE Services Group is overvalued based on assets compared to the HK Construction industry average.
X
Value checks
We assess FSE Services Group'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. FSE Services Group has a total score of 2/6, 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.

331 Future Performance

 How is FSE Services Group expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover FSE Services Group, 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
-11.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is FSE Services Group expected to grow at an attractive rate?
  • FSE Services Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.
Growth vs Market Checks
  • FSE Services Group's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
  • Unable to compare FSE Services Group's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:331 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:331 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -11.1%
Hong Kong Construction Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
Hong Kong Construction Industry Revenue Growth Rate Market Cap Weighted Average 9.6%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.4%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.5%

*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:331 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 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:331 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 4,836 229 229
2018-09-30 4,881 93 233
2018-06-30 4,927 -44 237
2018-03-31 5,494 6 267
2017-12-31 5,442 40 264
2017-09-30 5,136 116 245
2017-06-30 4,830 192 225
2017-03-31 4,231 278 198
2016-12-31 3,632 364 170
2016-09-30 3,552 436 167
2016-06-30 3,472 509 163
2016-03-31 3,266 351 156

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • FSE Services Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if FSE Services Group 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:331 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from FSE Services Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:331 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.51
2018-09-30 0.52
2018-06-30 0.53
2018-03-31 0.59
2017-12-31 0.59
2017-09-30 0.54
2017-06-30 0.50
2017-03-31 0.44
2016-12-31 0.38
2016-09-30 0.40
2016-06-30 0.43
2016-03-31 0.44

*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 FSE Services Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess FSE Services Group'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.
FSE Services Group has a total score of 0/6, 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.

331 Past Performance

  How has FSE Services Group 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 FSE Services Group'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.
  • FSE Services Group's year on year earnings growth rate has been positive over the past 5 years.
  • FSE Services Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • FSE Services Group's 1-year earnings growth is negative, it can't be compared to the HK Construction industry average.
Earnings and Revenue History
FSE Services Group'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 FSE Services Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:331 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 4,836.48 229.46 328.19
2018-09-30 4,881.50 233.12 325.69
2018-06-30 4,926.52 236.78 323.19
2018-03-31 5,493.50 267.42 356.89
2017-12-31 5,442.06 263.97 349.79
2017-09-30 5,135.84 244.68 323.17
2017-06-30 4,829.62 225.40 296.56
2017-03-31 4,230.76 197.74 244.25
2016-12-31 3,631.91 170.09 191.94
2016-09-30 3,551.91 166.65 188.39
2016-06-30 3,471.91 163.21 184.84
2016-03-31 3,265.72 156.17 185.85
2015-12-31 3,059.54 150.45 184.95
2015-09-30 2,942.32 149.80 182.78
2015-06-30 2,825.11 149.15 180.61
2014-06-30 2,555.02 131.20 153.43
2013-06-30 2,380.58 113.69 139.86

*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.
  • FSE Services Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • FSE Services Group used its assets more efficiently than the HK Construction industry average last year based on Return on Assets.
  • FSE Services Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess FSE Services Group'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.
FSE Services Group has a total score of 4/6, 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.

331 Health

 How is FSE Services Group'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 FSE Services Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • FSE Services Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • FSE Services Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of FSE Services Group'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.
  • FSE Services Group has no debt, it does not need to be covered by short term assets.
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 FSE Services Group Company Filings, last reported 6 months ago.

SEHK:331 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 685.06 0.00 521.88
2018-09-30 685.06 0.00 521.88
2018-06-30 637.35 0.00 407.56
2018-03-31 637.35 0.00 407.56
2017-12-31 970.94 0.00 859.68
2017-09-30 970.94 0.00 859.68
2017-06-30 1,070.72 30.00 1,165.87
2017-03-31 1,070.72 30.00 1,165.87
2016-12-31 846.58 0.00 1,299.98
2016-09-30 846.58 0.00 1,299.98
2016-06-30 822.84 0.00 1,325.93
2016-03-31 901.17 0.00 1,325.93
2015-12-31 835.38 0.00 1,074.79
2015-09-30 835.38 0.00 1,074.79
2015-06-30 496.16 0.00 612.53
2014-06-30 539.55 0.00 734.24
2013-06-30 685.44 0.00 465.66
  • FSE Services Group has no debt.
  • FSE Services Group had no debt 5 years ago.
  • FSE Services Group has no debt, it does not need to be covered by operating cash flow.
  • FSE Services Group has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess FSE Services Group'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. FSE Services Group has a total score of 6/6, 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.

331 Dividends

 What is FSE Services Group'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
7.2%
Current annual income from FSE Services Group dividends.
If you bought HK$2,000 of FSE Services Group shares you are expected to receive HK$144 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?
  • FSE Services Group's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • FSE Services Group's dividend is above the markets top 25% of dividend payers in Hong Kong (5.71%).
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:331 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 43 Stocks 3.9%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
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 5.7%

Industry and Market average data is calculated daily.

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

SEHK:331 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-02-25 0.234 6.987
2018-09-26 0.211 6.543
2017-09-22 0.155 6.020
2016-10-14 0.188 7.654
2016-09-22 0.188 7.591
2016-02-26 0.100 4.738

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

  • Whilst dividend payments have been stable, FSE Services Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but FSE Services Group only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of FSE Services Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x 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 FSE Services Group'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 FSE Services Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. FSE Services Group 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.

331 Management

 What is the CEO of FSE Services Group'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
Rocky Poon
COMPENSATION HK$7,027,000
AGE 63
TENURE AS CEO 3.9 years
CEO Bio

Mr. Lock Kee Poon, also known as Rocky, has been the Chief Executive Officer and Executive Director at FSE Engineering Holdings Limited since August 28, 2015 and August 18, 2015 respectively. Mr. Poon serves as General Manager at FSE Engineering Group Limited and also serves as its Director. Mr. Poon has over 25 years of experience in the building construction industry. He joined FSE Group in February 1989 as a general manager of Young’s Macao and was subsequently promoted to the positions director and general manager of Young’s Engineering in 1998. He also serves as the President of the Macau Air-Conditioning & Refrigeration Chamber of Commerce and the President of the Hong Kong E&M Contractors’ Association Limited. Mr. Poon was appointed as a member of the Appeal Board Panel by the Secretary for the Environment of Hong Kong to hear appeals lodged pursuant to the Electricity Ordinance. Mr. Poon is a member of both the American Society of Mechnical Engineers and a Chartered Engineer of the Engineering Council in the United Kingdom and a fellow of both the Chartered Institution of Building Services Engineers in the United Kingdom and the Hong Kong Institute of Engineers. Mr. Poon is a Council Member of the Hong Kong Federation of Electrical & Mechanical Contractors Limited, a Committee Member of both the Eleventh Chinese People’s Political Consultative Conference in Shaoguan City of the PRC. Mr. Poon obtained a Bachelor’s degree in mechanical engineering from the University of Windsor in Canada in June 1979.

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

Average tenure and age of the FSE Services Group management team in years:

3.9
Average Tenure
56.5
Average Age
  • The tenure for the FSE Services Group management team is about average.
Management Team

Rocky Poon

TITLE
CEO & Executive Director
COMPENSATION
HK$7M
AGE
63
TENURE
3.9 yrs

Patrick Lam

TITLE
Executive Vice Chairman
COMPENSATION
HK$2M
AGE
57

William Doo Junior

TITLE
Executive Director
COMPENSATION
HK$2M
AGE
45

Kweong Wah Soon

TITLE
Executive Director
COMPENSATION
HK$5M
AGE
60

Kwok Bong Lee

TITLE
Joint Company Secretary & Executive Director
COMPENSATION
HK$1M
AGE
48
TENURE
3.9 yrs

Shu Hung Wong

TITLE
GM of the E&M Engineering Section and Executive Director
COMPENSATION
HK$2M
AGE
68

Ju Wai Chan

TITLE
CFO & Joint Company Secretary
AGE
51

Connie Cheung

TITLE
General Manager of Human Resources Department
AGE
56
TENURE
17.5 yrs
Board of Directors Tenure

Average tenure and age of the FSE Services Group board of directors in years:

3.8
Average Tenure
61.5
Average Age
  • The tenure for the FSE Services Group board of directors is about average.
Board of Directors

Henry Cheng

TITLE
Non-Executive Chairman
COMPENSATION
HK$321K
AGE
72
TENURE
3.9 yrs

Rocky Poon

TITLE
CEO & Executive Director
COMPENSATION
HK$7M
AGE
63
TENURE
3.9 yrs

Patrick Lam

TITLE
Executive Vice Chairman
COMPENSATION
HK$2M
AGE
57
TENURE
2.5 yrs

William Doo Junior

TITLE
Executive Director
COMPENSATION
HK$2M
AGE
45
TENURE
3.9 yrs

Kweong Wah Soon

TITLE
Executive Director
COMPENSATION
HK$5M
AGE
60
TENURE
3.9 yrs

Kwok Bong Lee

TITLE
Joint Company Secretary & Executive Director
COMPENSATION
HK$1M
AGE
48
TENURE
4 yrs

Shu Hung Wong

TITLE
GM of the E&M Engineering Section and Executive Director
COMPENSATION
HK$2M
AGE
68
TENURE
1.6 yrs

Gordon Kwong

TITLE
Independent Non-Executive Director
COMPENSATION
HK$267K
AGE
70
TENURE
3.7 yrs

Stephen Hui

TITLE
Independent Non-Executive Director
COMPENSATION
HK$213K
AGE
72
TENURE
3.7 yrs

Eddie Lee

TITLE
Independent Non-Executive Director
COMPENSATION
HK$213K
AGE
54
TENURE
3.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
11. Mar 19 Sell Value Partners Hong Kong Limited Company 06. Mar 19 06. Mar 19 -809,000 HK$3.59 HK$-2,901,398
11. Mar 19 Sell Value Partners Limited Company 06. Mar 19 06. Mar 19 -614,000 HK$3.59 HK$-2,202,541
08. Oct 18 Sell Value Partners Limited Company 03. Oct 18 03. Oct 18 -1,063,000 HK$3.29 HK$-3,492,168
X
Management checks
We assess FSE Services Group'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. FSE Services Group 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.

331 News

Simply Wall St News

Is FSE Services Group Limited's (HKG:331) CEO Paid At A Competitive Rate?

Our data indicates that FSE Services Group Limited is worth HK$1.5b, and total annual CEO compensation is HK$7.0m. … Thus we can conclude that Rocky Poon receives more in total compensation than the median of a group of companies in the same market, and of similar size to FSE Services Group Limited. … I think that the total shareholder return of 95%, over three years, would leave most FSE Services Group Limited shareholders smiling.

Simply Wall St -

Is FSE Services Group Limited's (HKG:331) ROE Of 33% Impressive?

See our latest analysis for FSE Services Group How Do You Calculate Return On Equity? … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for FSE Services Group: 33% = HK$229m ÷ HK$685m (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … FSE Services Group's Debt And Its 33% ROE Shareholders will be pleased to learn that FSE Services Group has not one iota of net debt!

Simply Wall St -

A Look At FSE Services Group Limited's (HKG:331) Exceptional Fundamentals

SEHK:331 Income Statement, May 24th 2019 Next Steps: For FSE Services Group, there are three fundamental factors you should further research: Future Outlook: What are well-informed industry analysts predicting for 331’s future growth? … Take a look at our free research report of analyst consensus for 331’s outlook. … The intrinsic value infographic in our free research report helps visualize whether 331 is currently mispriced by the market.

Simply Wall St -

Do You Know What FSE Services Group Limited's (HKG:331) P/E Ratio Means?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … To keep it practical, we'll show how FSE Services Group Limited's (HKG:331) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Here's What FSE Services Group Limited's (HKG:331) ROCE Can Tell Us

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. … What is Return On Capital Employed (ROCE)? … How Do You Calculate Return On Capital Employed?

Simply Wall St -

Is FSE Services Group Limited (HKG:331) 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. … FSE Services Group Limited (HKG:331) has paid a dividend to shareholders in the last few years. … Check out our latest analysis for FSE Services Group

Simply Wall St -

Is FSE Services Group Limited's (HKG:331) 33% 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. … Our data shows FSE Services Group has a return on equity of 33% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should FSE Services Group Be Disappointed With Their 70% Profit?

For example, FSE Services Group Limited (HKG:331) shareholders have seen the share price rise 70% over three years, well in excess of the market return (56%). … During three years of share price growth, FSE Services Group achieved compound earnings per share growth of 6.0% per year. … It's not unusual to see the market 're-rate' a stock, after a few years of growth.

Simply Wall St -

Does FSE Services Group Limited's (HKG:331) P/E Ratio Signal A Buying Opportunity?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … FSE Services Group has a price to earnings ratio of 6.52, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

What Kind Of Shareholders Own FSE Services Group Limited (HKG:331)?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that used to be publicly owned tend to have lower insider ownership. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

331 Company Info

Description

FSE Services Group Limited, an investment holding company, provides mechanical and electrical engineering services in Hong Kong, Mainland China, and Macau. The company operates through E&M Engineering and Environmental Management Services segments. Its services include installation works for construction projects and maintenance services for buildings and facilities. The company also designs, contracts and installs, tests and commissions, and operates and maintains air-conditioning and mechanical ventilation system, fire service system, plumbing and drainage system, and electrical and ELV system. In addition, it is involved in the provision of environmental engineering services; trading of environmental products, as well as provision of related engineering and consultancy services; trading of ceramic tiles; and trading and retail sale of building materials. Further, the company offers chemical engineering, laundry, plumbing engineering, project management consultancy, and testing and calibration services; and maintenance and fitting out services. The company was formerly known as FSE Engineering Holdings Limited and changed its name to FSE Services Group Limited in April 2018. The company was incorporated in 2015 and is headquartered in Kowloon Bay, Hong Kong. FSE Services Group Limited is a subsidiary of FSE Holdings Limited.

Details
Name: FSE Services Group Limited
331
Exchange: SEHK
Founded: 2015
HK$1,462,500,000
450,000,000
Website: http://www.fseservices.com.hk
Address: FSE Services Group Limited
Chevalier Commercial Centre,
Units 801-810,
Kowloon Bay,
Kowloon, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 331 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 10. Dec 2015
Number of employees
Current staff
Staff numbers
6,404
FSE Services Group employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 01:49
End of day share price update: 2019/07/19 00:00
Last earnings filing: 2019/03/14
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


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.