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406

Yau Lee HoldingsSEHK:406 Stock Report

Market Cap

HK$639.6m

7D

0%

1Y

53.7%

Updated

17 Oct, 2021

Data

Company Financials
406 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health5/6
Dividends3/6

406 Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for Yau Lee Holdings
Historical stock prices
Current Share PriceHK$1.46
52 Week HighHK$0.86
52 Week LowHK$1.48
Beta0.38
1 Month Change4.29%
3 Month Change8.15%
1 Year Change53.68%
3 Year Change8.15%
5 Year Change41.75%
Change since IPO-72.12%

Recent News & Updates

Aug 18
Increases to CEO Compensation Might Be Put On Hold For Now at Yau Lee Holdings Limited (HKG:406)

Increases to CEO Compensation Might Be Put On Hold For Now at Yau Lee Holdings Limited (HKG:406)

Performance at Yau Lee Holdings Limited ( HKG:406 ) has been reasonably good and CEO Ip Kuen Wong has done a decent job...

May 30
Returns At Yau Lee Holdings (HKG:406) Are On The Way Up

Returns At Yau Lee Holdings (HKG:406) Are On The Way Up

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Shareholder Returns

406HK ConstructionHK Market
7D0%-0.7%1.1%
1Y53.7%16.0%5.3%

Return vs Industry: 406 exceeded the Hong Kong Construction industry which returned 16% over the past year.

Return vs Market: 406 exceeded the Hong Kong Market which returned 5.3% over the past year.

Price Volatility

Is 406's price volatile compared to industry and market?
406 volatility
406 Beta0.38
Industry Beta0.59
Market Beta1

Stable Share Price: 406 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 406's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19583,230Ip Kuen Wonghttps://www.yaulee.com

Yau Lee Holdings Limited, an investment holding company, engages in the construction business in Hong Kong, Macau, Singapore, and Mainland China. It operates through Construction, Electrical and Mechanical Installation, Building Materials Supply, Property Investment and Development, and Hotel Operations segments. The company contracts for various private developers and government institutions; and constructs resorts, hotels, and residential buildings.

Yau Lee Holdings Fundamentals Summary

How do Yau Lee Holdings's earnings and revenue compare to its market cap?
406 fundamental statistics
Market CapHK$639.56m
Earnings (TTM)HK$150.43m
Revenue (TTM)HK$6.79b

4.3x

P/E Ratio

0.09x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
406 income statement (TTM)
RevenueHK$6.79b
Cost of RevenueHK$6.22b
Gross ProfitHK$575.68m
ExpensesHK$425.25m
EarningsHK$150.43m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.34
Gross Margin8.47%
Net Profit Margin2.21%
Debt/Equity Ratio115.6%

How did 406 perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

23%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 406 (HK$1.46) is trading below our estimate of fair value (HK$56.33)

Significantly Below Fair Value: 406 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 406 is good value based on its PE Ratio (4.3x) compared to the Hong Kong Construction industry average (9.8x).

PE vs Market: 406 is good value based on its PE Ratio (4.3x) compared to the Hong Kong market (9.7x).


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).


Future Growth

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

10.6%

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 Yau 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.


Past Performance

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

62.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 406 has high quality earnings.

Growing Profit Margin: 406 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 406 has become profitable over the past 5 years, growing earnings by 62.7% per year.

Accelerating Growth: 406 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 406 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (18.5%).


Return on Equity

High ROE: 406's Return on Equity (10.1%) is considered low.


Financial Health

How is Yau Lee Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 406's short term assets (HK$3.5B) exceed its short term liabilities (HK$2.7B).

Long Term Liabilities: 406's short term assets (HK$3.5B) exceed its long term liabilities (HK$881.0M).


Debt to Equity History and Analysis

Debt Level: 406's debt to equity ratio (115.6%) is considered high.

Reducing Debt: 406's debt to equity ratio has reduced from 155.4% to 115.6% over the past 5 years.

Debt Coverage: 406's debt is well covered by operating cash flow (39.6%).

Interest Coverage: 406 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

5.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 406's dividend (5.34%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 406's dividend (5.34%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.78%).


Stability and Growth of Payments

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 low payout ratio (22.7%), 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

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

27.8yrs

Average board tenure


CEO

Ip Kuen Wong (85 yo)

no data

Tenure

HK$10,121,000

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 experience in the building constructio...


CEO Compensation Analysis

Compensation vs Market: Ip Kuen's total compensation ($USD1.30M) is above average for companies of similar size in the Hong Kong market ($USD230.47K).

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


Board Members

Experienced Board: 406's board of directors are seasoned and experienced ( 27.8 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

Yau Lee Holdings Limited's 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$639.558m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 10:07
End of Day Share Price2021/10/15 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.