Royal Deluxe Holdings Limited, an investment holding company, provides formwork erection and related ancillary services in Hong Kong.
+ 1 more risk
Flawless balance sheet and undervalued.
Share Price & News
How has Royal Deluxe Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 3789's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: 3789 underperformed the Hong Kong Construction industry which returned -19.9% over the past year.
Return vs Market: 3789 underperformed the Hong Kong Market which returned 0.6% over the past year.
Price Volatility Vs. Market
How volatile is Royal Deluxe Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall StIs Royal Deluxe Holdings Limited's (HKG:3789) P/E Ratio Really That Good?
1 month ago | Simply Wall StWhy You Should Like Royal Deluxe Holdings Limited’s (HKG:3789) ROCE
2 months ago | Simply Wall StIntroducing Royal Deluxe Holdings (HKG:3789), The Stock That Tanked 73%
Is Royal Deluxe Holdings undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 3789 (HK$0.11) is trading below our estimate of fair value (HK$0.45)
Significantly Below Fair Value: 3789 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 3789 is good value based on its PE Ratio (4.9x) compared to the HK Construction industry average (8.6x).
PE vs Market: 3789 is good value based on its PE Ratio (4.9x) compared to the Hong Kong market (10.5x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 3789's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 3789 is good value based on its PB Ratio (0.5x) compared to the HK Construction industry average (0.9x).
How is Royal Deluxe Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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 Royal Deluxe 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.
- Examine whether Royal Deluxe 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.
- Royal Deluxe Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Capital Goods industry.
How has Royal Deluxe Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 3789 has high quality earnings.
Growing Profit Margin: 3789's current net profit margins (3.8%) are lower than last year (7.2%).
Past Earnings Growth Analysis
Earnings Trend: 3789's earnings have declined by -6.2% per year over the past 5 years.
Accelerating Growth: 3789's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 3789 had negative earnings growth (-37.9%) over the past year, making it difficult to compare to the Construction industry average (-10%).
Return on Equity
High ROE: 3789's Return on Equity (10.9%) is considered low.
How is Royal Deluxe Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: 3789's short term assets (HK$351.4M) exceed its short term liabilities (HK$185.6M).
Long Term Liabilities: 3789's short term assets (HK$351.4M) exceed its long term liabilities (HK$2.4M).
Debt to Equity History and Analysis
Debt Level: 3789's debt to equity ratio (17.6%) is considered satisfactory.
Reducing Debt: 3789's debt to equity ratio has reduced from 24.5% to 17.6% over the past 5 years.
Debt Coverage: 3789's debt is well covered by operating cash flow (132.1%).
Interest Coverage: 3789's interest payments on its debt are well covered by EBIT (9.8x coverage).
What is Royal Deluxe Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 3789's dividend (4.12%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).
High Dividend: 3789's dividend (4.12%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.67%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether 3789's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if 3789's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (20%), 3789's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Lai Chao (53yo)
Ms. Chao Lai Heng has been Chief Executive Officer of Royal Deluxe Holdings Ltd. since January 18, 2018. Ms. Chao completed the advanced class of excellent leading in August 2013 and class of chairman of s ...
CEO Compensation Analysis
Compensation vs Market: Lai's total compensation ($USD673.29K) is above average for companies of similar size in the Hong Kong market ($USD230.94K).
Compensation vs Earnings: Lai's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|Executive Chairman||4yrs||HK$17.02m||66.8% HK$87.4m|
|Executive Director||4yrs||HK$1.72m||no data|
|Independent Non-Executive Director||3.5yrs||HK$180.00k||no data|
|Independent Non-Executive Director||3.5yrs||HK$180.00k||no data|
|Independent Non-Executive Director||2.5yrs||HK$180.00k||no data|
Experienced Board: 3789's board of directors are considered experienced (3.5 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Royal Deluxe Holdings Limited's company bio, employee growth, exchange listings and data sources
- Name: Royal Deluxe Holdings Limited
- Ticker: 3789
- Exchange: SEHK
- Founded: 1994
- Industry: Construction and Engineering
- Sector: Capital Goods
- Market Cap: HK$130.800m
- Shares outstanding: 1.20b
- Website: https://www.royal-deluxe.com
Number of Employees
- Royal Deluxe Holdings Limited
- T G Place
- Unit A
- Kwun Tong
- Hong Kong
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|3789||SEHK (The Stock Exchange of Hong Kong Ltd.)||Yes||Ordinary Shares||HK||HKD||Feb 2017|
Royal Deluxe Holdings Limited, an investment holding company, provides formwork erection and related ancillary services in Hong Kong. It undertakes formwork erection works for building construction and civil engineering projects. The company also develops construction technology and related consultancy services. It serves government, public transport operators, and property developers. The Company was founded in 1994 and is headquartered in Kwun Tong, Hong Kong. Royal Deluxe Holdings Limited is a subsidiary of Wang K M Limited.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/07/10 12:52|
|End of Day Share Price||2020/07/09 00:00|
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.