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3728

Ching Lee Holdings SEHK:3728 Stock Report

Last Price

HK$0.15

Market Cap

HK$147.9m

7D

-8.2%

1Y

-23.6%

Updated

29 Jun, 2022

Data

Company Financials
3728 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance0/6
Financial Health4/6
Dividends0/6

3728 Stock Overview

Ching Lee Holdings Limited, an investment holding company, engages in the provision of construction, consultancy, and project management services in Hong Kong.

Ching Lee Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ching Lee Holdings
Historical stock prices
Current Share PriceHK$0.15
52 Week HighHK$0.20
52 Week LowHK$0.14
Beta0.65
1 Month Change-10.43%
3 Month Change-12.58%
1 Year Change-23.56%
3 Year Change-31.46%
5 Year Change-63.50%
Change since IPO-93.54%

Recent News & Updates

Jan 05
Ching Lee Holdings (HKG:3728) Is Carrying A Fair Bit Of Debt

Ching Lee Holdings (HKG:3728) Is Carrying A Fair Bit Of Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

3728HK ConstructionHK Market
7D-8.2%2.1%3.1%
1Y-23.6%2.1%-21.2%

Return vs Industry: 3728 underperformed the Hong Kong Construction industry which returned 3% over the past year.

Return vs Market: 3728 underperformed the Hong Kong Market which returned -20.1% over the past year.

Price Volatility

Is 3728's price volatile compared to industry and market?
3728 volatility
3728 Average Weekly Movement6.8%
Construction Industry Average Movement7.1%
Market Average Movement6.9%
10% most volatile stocks in HK Market13.7%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 3728 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 3728's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199894Choi Wah Nghttps://www.chingleeholdings.com

Ching Lee Holdings Limited, an investment holding company, engages in the provision of construction, consultancy, and project management services in Hong Kong. The company undertakes substructure building works; superstructure building works; and repair, maintenance, alteration, and addition works. It is also involved in property holding activities.

Ching Lee Holdings Fundamentals Summary

How do Ching Lee Holdings's earnings and revenue compare to its market cap?
3728 fundamental statistics
Market CapHK$147.90m
Earnings (TTM)-HK$18.16m
Revenue (TTM)HK$536.50m

0.3x

P/S Ratio

-8.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3728 income statement (TTM)
RevenueHK$536.50m
Cost of RevenueHK$512.27m
Gross ProfitHK$24.24m
Other ExpensesHK$42.40m
Earnings-HK$18.16m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.018
Gross Margin4.52%
Net Profit Margin-3.39%
Debt/Equity Ratio65.4%

How did 3728 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is 3728 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3728?

Other financial metrics that can be useful for relative valuation.

3728 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.3x
Enterprise Value/EBITDA-9.4x
PEG Ration/a

Price to Sales Ratio vs Peers

How does 3728's PS Ratio compare to its peers?

3728 PS Ratio vs Peers
The above table shows the PS ratio for 3728 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.4x
1420 Chuan Holdings
0.3xn/aHK$139.9m
1793 Wecon Holdings
0.1xn/aHK$160.0m
1408 Macau E&M Holding
0.9xn/aHK$160.0m
6038 G & M Holdings
0.4xn/aHK$160.0m
3728 Ching Lee Holdings
0.3xn/aHK$147.9m

Price-To-Sales vs Peers: 3728 is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.4x).


Price to Earnings Ratio vs Industry

How does 3728's PE Ratio compare vs other companies in the HK Construction Industry?

Price-To-Sales vs Industry: 3728 is good value based on its Price-To-Sales Ratio (0.3x) compared to the Hong Kong Construction industry average (0.5x)


Price to Sales Ratio vs Fair Ratio

What is 3728's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3728 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 3728's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 3728 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3728 (HK$0.15) is trading below our estimate of fair value (HK$0.24)

Significantly Below Fair Value: 3728 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3728's PEG Ratio to determine if it is good value.


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Future Growth

How is Ching Lee Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.2%

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 Ching Lee 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.


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  • Examine whether Ching Lee Holdings is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • Ching Lee Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Ching Lee Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-46.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3728 is currently unprofitable.

Growing Profit Margin: 3728 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 3728 is unprofitable, and losses have increased over the past 5 years at a rate of 46.6% per year.

Accelerating Growth: Unable to compare 3728's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 3728 is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-1.6%).


Return on Equity

High ROE: 3728 has a negative Return on Equity (-17.34%), as it is currently unprofitable.


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Financial Health

How is Ching Lee Holdings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 3728's short term assets (HK$259.1M) exceed its short term liabilities (HK$216.6M).

Long Term Liabilities: 3728's short term assets (HK$259.1M) exceed its long term liabilities (HK$461.0K).


Debt to Equity History and Analysis

Debt Level: 3728's net debt to equity ratio (34.6%) is considered satisfactory.

Reducing Debt: 3728's debt to equity ratio has increased from 44.2% to 65.4% over the past 5 years.

Debt Coverage: 3728's debt is well covered by operating cash flow (22%).

Interest Coverage: Insufficient data to determine if 3728's interest payments on its debt are well covered by EBIT.


Balance Sheet


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Dividend

What is Ching Lee Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 3728's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 3728's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 3728's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3728's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: 3728 is not paying a notable dividend for the Hong Kong market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 3728 has not reported any payouts.


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Management

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

6.4yrs

Average board tenure


CEO

Choi Wah Ng (55 yo)

6.5yrs

Tenure

HK$9,994,000

Compensation

Mr. Choi Wah Ng has been the Chairman and Chief Executive Officer of Ching Lee Holdigs Limited since December 16, 2015 and has been its Compliance Officer since December 21, 2015. Mr. Ng is the founder of...


CEO Compensation Analysis

Compensation vs Market: Choi Wah's total compensation ($USD1.27M) is above average for companies of similar size in the Hong Kong market ($USD233.43K).

Compensation vs Earnings: Choi Wah's compensation has increased whilst the company is unprofitable.


Board Members

Experienced Board: 3728's board of directors are considered experienced (6.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Ching Lee Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Ching Lee Holdings Limited
  • Ticker: 3728
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Implied Market Cap: HK$147.898m
  • Shares outstanding: 1.01b
  • Website: https://www.chingleeholdings.com

Number of Employees


Location

  • Ching Lee Holdings Limited
  • Hang Bong Commercial Centre
  • Room 203, 2nd Floor
  • Jordan
  • Kowloon
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.