SEHK:406

Stock Analysis Report

Executive Summary

Yau Lee Holdings Limited, an investment holding company, engages in the construction business in Hong Kong, Macau, Singapore, and Mainland China.

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

406

0.6%

HK Construction

0.3%

HK Market


1 Year Return

-2.2%

406

-14.9%

HK Construction

1.3%

HK Market

Return vs Industry: 406 exceeded the Hong Kong Construction industry which returned -14.9% over the past year.

Return vs Market: 406 matched the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

406IndustryMarket
7 Day0%0.6%0.3%
30 Day-4.3%-4.7%0.5%
90 Day-5.7%-10.5%-4.6%
1 Year-0.04%-2.2%-11.1%-14.9%4.9%1.3%
3 Year38.1%30.7%-25.3%-33.6%15.3%3.7%
5 Year-15.0%-21.4%0.004%-15.1%20.0%-0.006%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

19.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 406 (HK$1.32) is trading above our estimate of fair value (HK$0.63)

Significantly Below Fair Value: 406 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 406 is poor value based on its PE Ratio (19.2x) compared to the Construction industry average (10.3x).

PE vs Market: 406 is poor value based on its PE Ratio (19.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 406's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 406 is good value based on its PB Ratio (0.4x) compared to the HK Construction industry average (1.1x).


Next Steps

Future Growth

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

30.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 406's forecast earnings growth (30.2% per year) is above the savings rate (2%).

Earnings vs Market: 406's earnings (30.2% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if 406's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 406's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 406's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

1.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 406's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: 406's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 406 had negative earnings growth (-42.7%) over the past year, making it difficult to compare to the Construction industry average (-12.4%).


Return on Equity

High ROE: 406's Return on Equity (2.2%) is considered low.


Return on Assets

ROA vs Industry: 406's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 406's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Yau Lee Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 406's short term assets (HK$3.3B) exceeds its short term liabilities (HK$2.5B)

Long Term Liabilities: 406's short term assets (3.3B) exceeds its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: 406's debt to equity ratio (169%) is considered high

Reducing Debt: 406's debt to equity ratio has increased from 158.7% to 169% over the past 5 years.

Debt Coverage: 406's debt is not well covered by operating cash flow (7.7%).

Interest Coverage: 406's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet

Inventory Level: 406 has a high level of physical assets or inventory.

Debt Coverage by Assets: 406's debt is covered by short term assets (assets are 1.431440x debt).


Next Steps

Dividend

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

2.27%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%2.3%markettop25%6.2%industryaverage4.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 406's dividend (2.27%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 406's dividend (2.27%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: 406's dividend payments have been volatile in the past 10 years.

Growing Dividend: 406's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.7%), 406'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.


Next Steps

Management

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

25.8yrs

Average board tenure


CEO

Ip Wong (83yo)

0yrs

Tenure

HK$10,101,000

Compensation

Mr. Ip Kuen Wong serves as the Chairman and Chief Executive Officer of Yau Lee Holdings Ltd., the holding company of Ryoden Engineering Company Limited. Mr. Wong has over 50 years of experience in the bui ...


CEO Compensation Analysis

Compensation vs. Market: Ip's total compensation ($USD1.29M) is about average for companies of similar size in the Hong Kong market ($USD215.97K).

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


Board Age and Tenure

25.8yrs

Average Tenure

58yo

Average Age

Experienced Board: 406's board of directors are seasoned and experienced ( 25.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Chan Sing Lam

    Head of Health & Safety Department

    • Tenure: 0yrs
  • Ip Wong (83yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: HK$10.10m
  • Chi Kin Yu

    Head of Quality Department

    • Tenure: 0yrs
  • Man Ho Kwan

    Head of Machinery & Logistics Department

    • Tenure: 0yrs
  • Tin Wong (55yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: HK$5.02m
  • Chun Sun (58yo)

    Executive Director

    • Tenure: 25.8yrs
    • Compensation: HK$2.90m
  • Rosana Wong (53yo)

    Head of Corporate Development Department & Executive Director

    • Tenure: 11.3yrs
    • Compensation: HK$4.29m
  • Man Ching Cheung

    Head of Legal

    • Tenure: 0yrs
  • Kwok Lam (53yo)

    CFO & Company Secretary

    • Tenure: 0yrs
  • Mun Ling Chan

    Head of Administration Department

    • Tenure: 0yrs

Board Members

  • King Cheong Wu (68yo)

    Independent Non-Executive Director

    • Tenure: 25.8yrs
    • Compensation: HK$324.00k
  • Bernard Chan (54yo)

    Independent Non-Executive Director

    • Tenure: 19.8yrs
    • Compensation: HK$324.00k
  • Eric Yeung (73yo)

    Independent Non-Executive Director

    • Tenure: 26.8yrs
    • Compensation: HK$324.00k
  • Ip Wong (83yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: HK$10.10m
  • Tin Wong (55yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: HK$5.02m
  • Chun Sun (58yo)

    Executive Director

    • Tenure: 25.8yrs
    • Compensation: HK$2.90m
  • Rosana Wong (53yo)

    Head of Corporate Development Department & Executive Director

    • Tenure: 11.3yrs
    • Compensation: HK$4.29m

Company Information

Yau Lee Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yau Lee Holdings Limited
  • Ticker: 406
  • Exchange: SEHK
  • Founded: 1958
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$578.231m
  • Shares outstanding: 438.05m
  • Website: https://www.yaulee.com

Number of Employees


Location

  • Yau Lee Holdings Limited
  • Tower 1
  • 10th Floor
  • Kowloon Bay
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
406SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Yau Lee Holdings Limited, an investment holding company, engages in the construction business in Hong Kong, Macau, Singapore, and Mainland China. It operates in Construction, Electrical and Mechanical Inst ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:36
End of Day Share Price2019/10/21 00:00
Earnings2019/03/31
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.