SEHK:3816

Stock Analysis Report

Executive Summary

KFM Kingdom Holdings Limited, an investment holding company, manufactures and sells precision metal stamping and metal lathing products in the People’s Republic of China, North America, Europe, Japan, Singapore, and internationally.


Snowflake Analysis

Undervalued with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3816 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

3816

0.3%

HK Machinery

-0.6%

HK Market


1 Year Return

-14.3%

3816

20.1%

HK Machinery

-7.6%

HK Market

Return vs Industry: 3816 underperformed the Hong Kong Machinery industry which returned 20.1% over the past year.

Return vs Market: 3816 underperformed the Hong Kong Market which returned -7.4% over the past year.


Shareholder returns

3816IndustryMarket
7 Day1.4%0.3%-0.6%
30 Day0%3.3%-1.2%
90 Day-2.7%13.1%3.0%
1 Year-14.3%-14.3%23.6%20.1%-4.2%-7.6%
3 Year-60.4%-60.4%59.2%49.2%12.9%1.5%
5 Year-58.6%-58.6%60.6%46.8%13.1%-5.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is KFM Kingdom Holdings undervalued compared to its fair value and its price relative to the market?

32.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3816 (HK$0.36) is trading below our estimate of fair value (HK$0.54)

Significantly Below Fair Value: 3816 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3816 is good value based on its PE Ratio (4.4x) compared to the Machinery industry average (10.3x).

PE vs Market: 3816 is good value based on its PE Ratio (4.4x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3816's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3816 is good value based on its PB Ratio (0.4x) compared to the HK Machinery industry average (1x).


Next Steps

Future Growth

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

14.4%

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 KFM Kingdom 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 KFM Kingdom Holdings performed over the past 5 years?

29.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3816 has a large one-off gain of HK$20.2M impacting its September 30 2019 financial results.

Growing Profit Margin: 3816's current net profit margins (4.9%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: 3816's earnings have grown significantly by 29.1% per year over the past 5 years.

Accelerating Growth: 3816's earnings growth over the past year (24.1%) is below its 5-year average (29.1% per year).

Earnings vs Industry: 3816 earnings growth over the past year (24.1%) exceeded the Machinery industry 7.3%.


Return on Equity

High ROE: 3816's Return on Equity (9.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is KFM Kingdom Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3816's short term assets (HK$775.8M) exceed its short term liabilities (HK$458.6M).

Long Term Liabilities: 3816's short term assets (HK$775.8M) exceed its long term liabilities (HK$102.4M).


Debt to Equity History and Analysis

Debt Level: 3816's debt to equity ratio (39.5%) is considered satisfactory.

Reducing Debt: 3816's debt to equity ratio has increased from 29% to 39.5% over the past 5 years.

Debt Coverage: 3816's debt is well covered by operating cash flow (36.1%).

Interest Coverage: 3816's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet

Inventory Level: 3816 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3816's debt is covered by short term assets (assets are 3.7x debt).


Next Steps

Dividend

What is KFM Kingdom Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 3816's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 3816'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 3816's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3816's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 3816 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 3816'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?

5.7yrs

Average board tenure


CEO

Peter Sun (59yo)

4yrs

Tenure

HK$3,918,000

Compensation

Mr. Kwok Wah Sun, also known as Peter, has been the Chief Executive Officer of KFM Kingdom Holdings Limited since February 3, 2016. Mr. Sun served as the Chairman of KFM Kingdom Holdings Limited since July ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD503.10K) is above average for companies of similar size in the Hong Kong market ($USD225.23K).

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


Board Members

NamePositionTenureCompensationOwnership
Kwok Sun
CEO & Executive Director4yrsHK$3.92mno data
Chi Wong
Executive Director7.4yrsHK$300.00kno data
Kam To Wan
Independent Non-Executive Director7.4yrsHK$325.00kno data
Yue Zhao
Independent Non-Executive Director4yrsHK$150.00kno data
Zheqing Shen
Independent Non-Executive Director4yrsHK$150.00kno data
Haifeng Zhang
Chairman3.3yrsHK$150.00kno data

5.7yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 3816's board of directors are considered experienced (5.7 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.


Ownership Breakdown

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


Top Shareholders

Company Information

KFM Kingdom Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KFM Kingdom Holdings Limited
  • Ticker: 3816
  • Exchange: SEHK
  • Founded: 1987
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$216.000m
  • Shares outstanding: 600.00m
  • Website: https://www.kingdom.com.hk

Number of Employees


Location

  • KFM Kingdom Holdings Limited
  • TML Tower
  • 31st Floor
  • Tsuen Wan
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3816SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2012

Biography

KFM Kingdom Holdings Limited, an investment holding company, manufactures and sells precision metal stamping and metal lathing products in the People’s Republic of China, North America, Europe, Japan, Singapore, and internationally. It also manufactures and sells fine metal products; sells and rents kiosks, and dental products; manufactures, sells, and trades in senor and medical products; and provides management services. In addition, the company offers integrated services, including design engineering solutions; prototyping, computer numerical control (CNC) laser cutting, CNC tooling design and tooling mold design, and lathing or machining parts; hard tooling and soft tooling services; secondary processing services comprising laser welding or robotic argon welding, riveting, tapping, drilling, polishing, sand blasting, etc.; and post-treatment processing services, such as silk screening printing, heat treatment, plating, coating, etc., as well as product assembly and quality testing services. Additionally, it provides packaging solutions. It serves medical and test equipment, finance equipment, consumer electronics, network/data storage, and office automation industries. The company was founded in 1987 and is headquartered in Tsuen Wan, Hong Kong. KFM Kingdom Holdings Limited is a subsidiary of Massive Force Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 13:11
End of Day Share Price2020/02/21 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.