SEHK:3728

Stock Analysis Report

Executive Summary

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

Risk Analysis

Earnings have declined by -7.89% per year over past 5 years

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Profit margins (1.2%) are lower than last year (2.1%)

+ 1 more risk


Snowflake Analysis

Mediocre balance sheet with poor track record.

Share Price & News

How has Ching Lee Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3728's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.6%

3728

-2.9%

HK Construction

-4.3%

HK Market


1 Year Return

9.3%

3728

-19.8%

HK Construction

-0.7%

HK Market

Return vs Industry: 3728 exceeded the Hong Kong Construction industry which returned -16.2% over the past year.

Return vs Market: 3728 exceeded the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

3728IndustryMarket
7 Day-4.6%-2.9%-4.3%
30 Day-0.8%-1.4%-0.2%
90 Day21.0%-0.7%4.1%
1 Year11.1%9.3%-15.9%-19.8%3.0%-0.7%
3 Year-29.8%-33.0%-29.3%-37.1%20.2%8.0%
5 Yearn/a-20.0%-31.8%18.7%-1.1%

Price Volatility Vs. Market

How volatile is Ching Lee Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ching Lee Holdings undervalued compared to its fair value and its price relative to the market?

29.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3728 (HK$0.25) is trading above our estimate of fair value (HK$0.04)

Significantly Below Fair Value: 3728 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3728 is poor value based on its PE Ratio (30.2x) compared to the Construction industry average (9.9x).

PE vs Market: 3728 is poor value based on its PE Ratio (30.2x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: 3728 is overvalued based on its PB Ratio (2.1x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

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

11.1%

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.


Next Steps

Past Performance

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

-7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3728 has high quality earnings.

Growing Profit Margin: 3728's current net profit margins (1.2%) are lower than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: 3728's earnings have declined by -7.9% per year over the past 5 years.

Accelerating Growth: 3728's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3728 had negative earnings growth (-58.7%) over the past year, making it difficult to compare to the Construction industry average (-12.3%).


Return on Equity

High ROE: 3728's Return on Equity (6.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ching Lee Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3728's short term assets (HK$520.9M) exceed its short term liabilities (HK$455.8M).

Long Term Liabilities: 3728's short term assets (HK$520.9M) exceed its long term liabilities (HK$4.2M).


Debt to Equity History and Analysis

Debt Level: 3728's debt to equity ratio (163.4%) is considered high.

Reducing Debt: 3728's debt to equity ratio has reduced from 368.9% to 163.4% over the past 5 years.

Debt Coverage: 3728's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 3728's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet

Inventory Level: 3728 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 3728's debt is covered by short term assets (assets are 2.6x debt).


Next Steps

Dividend

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

1.21%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%2.2%markettop25%6.2%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 3728's dividend (1.2%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 3728's dividend (1.2%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).


Stability and Growth of Payments

Stable Dividend: 3728 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 3728 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3728's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Ching Lee Holdings's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average board tenure


CEO

Choi Ng (53yo)

4.1yrs

Tenure

HK$7,882,000

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's total compensation ($USD1.01M) is above average for companies of similar size in the Hong Kong market ($USD228.16K).

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


Board Age and Tenure

4.0yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 3728's board of directors are considered experienced (4 years average tenure).


Insider Trading

Insider Buying: 3728 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$88,40021 Jan 20
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares340,000
Max PriceHK$0.26
BuyHK$132,30121 Jan 20
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares500,000
Max PriceHK$0.26
BuyHK$76,50015 Jan 20
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares300,000
Max PriceHK$0.26
BuyHK$129,59915 Jan 20
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares500,000
Max PriceHK$0.26
BuyHK$134,30009 Jan 20
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares500,000
Max PriceHK$0.27
BuyHK$128,90106 Jan 20
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares500,000
Max PriceHK$0.26
BuyHK$125,19802 Jan 20
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares500,000
Max PriceHK$0.25
BuyHK$125,30130 Dec 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares500,000
Max PriceHK$0.25
BuyHK$125,10230 Dec 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares500,000
Max PriceHK$0.25
BuyHK$131,40624 Dec 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares520,000
Max PriceHK$0.25
BuyHK$99,95923 Dec 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares400,000
Max PriceHK$0.25
BuyHK$228,96019 Dec 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares960,000
Max PriceHK$0.24
BuyHK$124,48819 Dec 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares520,000
Max PriceHK$0.24
BuyHK$242,20216 Dec 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,000,000
Max PriceHK$0.24
BuyHK$181,71116 Dec 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares820,000
Max PriceHK$0.22
BuyHK$191,61012 Dec 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares900,000
Max PriceHK$0.21
BuyHK$220,00212 Dec 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,000,000
Max PriceHK$0.22
BuyHK$93,61712 Dec 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares420,000
Max PriceHK$0.22
BuyHK$359,72010 Dec 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,840,000
Max PriceHK$0.20
BuyHK$151,37106 Dec 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares840,000
Max PriceHK$0.18
BuyHK$93,00112 Sep 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares400,000
Max PriceHK$0.23
BuyHK$388,80530 Aug 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,620,000
Max PriceHK$0.24
BuyHK$221,50928 Aug 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares840,000
Max PriceHK$0.26
BuyHK$127,97423 Aug 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares520,000
Max PriceHK$0.25
BuyHK$131,09023 Aug 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares520,000
Max PriceHK$0.25
BuyHK$244,49721 Aug 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,000,000
Max PriceHK$0.24
BuyHK$127,29521 Aug 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares520,000
Max PriceHK$0.24
BuyHK$303,10221 Aug 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,280,000
Max PriceHK$0.24
BuyHK$276,60315 Aug 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,200,000
Max PriceHK$0.23
BuyHK$107,63915 Aug 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares460,000
Max PriceHK$0.23
BuyHK$118,10215 Aug 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares500,000
Max PriceHK$0.24
BuyHK$214,59807 Aug 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,000,000
Max PriceHK$0.21
BuyHK$169,99307 Aug 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares720,000
Max PriceHK$0.24
BuyHK$324,52007 Aug 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,400,000
Max PriceHK$0.23
BuyHK$181,46807 Aug 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares820,000
Max PriceHK$0.22
BuyHK$195,59505 Aug 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares920,000
Max PriceHK$0.21
SellHK$197,69919 Jun 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,000,000
Max PriceHK$0.20
BuyHK$206,19719 Jun 19
Choi Ng
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,000,000
Max PriceHK$0.21

Ownership Breakdown

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


Management Team

  • Wing Tak Tsui (37yo)

    Company Secretary

    • Tenure: 2.4yrs
  • Choi Ng (53yo)

    Chairman

    • Tenure: 4.1yrs
    • Compensation: HK$7.88m
  • Yiu Lui (47yo)

    Executive Director

    • Tenure: 4.1yrs
    • Compensation: HK$2.38m
  • Ka Lam (46yo)

    Executive Director

    • Tenure: 4.1yrs
    • Compensation: HK$2.06m

Board Members

  • Donald Chau (56yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$289.00k
  • Choi Ng (53yo)

    Chairman

    • Tenure: 4.1yrs
    • Compensation: HK$7.88m
  • Yiu Lui (47yo)

    Executive Director

    • Tenure: 4.1yrs
    • Compensation: HK$2.38m
  • Ka Lam (46yo)

    Executive Director

    • Tenure: 4.1yrs
    • Compensation: HK$2.06m
  • Onyx Wai (58yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$289.00k
  • Paul Tong (81yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$289.00k

Company Information

Ching Lee Holdings Limited's company bio, 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
  • Market Cap: HK$251.224m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3728SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2016

Biography

Ching Lee Holdings Limited, an investment holding company, engages in the provision of construction and consultancy works, 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. The company was founded in 1998 and is headquartered in Jordan, Hong Kong. Ching Lee Holdings Limited operates as a subsidiary of JT Glory Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/24 13:08
End of Day Share Price2020/01/23 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.