| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 0/6 |
| Past Performance | 2/6 |
| Financial Health | 5/6 |
| Dividends | 3/6 |
6038 Stock Overview
G & M Holdings Limited, an investment holding company, provides design and build, and repair and maintenance services in relation to podium facade and curtain wall works in Hong Kong and the People’s Republic of China.
Rewards
Risk Analysis
G & M Holdings Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | HK$0.17 |
| 52 Week High | HK$0.21 |
| 52 Week Low | HK$0.15 |
| Beta | 0.50 |
| 1 Month Change | -4.07% |
| 3 Month Change | -2.94% |
| 1 Year Change | -4.07% |
| 3 Year Change | -19.51% |
| 5 Year Change | -41.07% |
| Change since IPO | -63.74% |
Recent News & Updates
Is G & M Holdings (HKG:6038) Using Too Much Debt?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Shareholder Returns
| 6038 | HK Construction | HK Market | |
|---|---|---|---|
| 7D | 1.9% | 1.1% | 0.3% |
| 1Y | -4.1% | -11.4% | -21.6% |
Return vs Industry: 6038 exceeded the Hong Kong Construction industry which returned -12% over the past year.
Return vs Market: 6038 exceeded the Hong Kong Market which returned -22% over the past year.
Price Volatility
| 6038 volatility | |
|---|---|
| 6038 Average Weekly Movement | 5.7% |
| Construction Industry Average Movement | 7.1% |
| Market Average Movement | 6.5% |
| 10% most volatile stocks in HK Market | 12.6% |
| 10% least volatile stocks in HK Market | 3.2% |
Stable Share Price: 6038 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: 6038's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1993 | 108 | Chi Hung Lee | https://www.gm-eng.com.hk |
G & M Holdings Limited, an investment holding company, provides design and build, and repair and maintenance services in relation to podium facade and curtain wall works in Hong Kong and the People’s Republic of China. It also designs aluminum and glass curtain wall, as well as aluminum claddings. G & M Holdings Limited was founded in 1993 and is headquartered in Kwai Chung, Hong Kong.
G & M Holdings Fundamentals Summary
| 6038 fundamental statistics | |
|---|---|
| Market Cap | HK$165.00m |
| Earnings (TTM) | HK$36.80m |
| Revenue (TTM) | HK$403.21m |
4.5x
P/E Ratio0.4x
P/S RatioIs 6038 overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| 6038 income statement (TTM) | |
|---|---|
| Revenue | HK$403.21m |
| Cost of Revenue | HK$310.35m |
| Gross Profit | HK$92.86m |
| Other Expenses | HK$56.06m |
| Earnings | HK$36.80m |
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
Aug 25, 2022
| Earnings per share (EPS) | 0.037 |
| Gross Margin | 23.03% |
| Net Profit Margin | 9.13% |
| Debt/Equity Ratio | 6.2% |
How did 6038 perform over the long term?
See historical performance and comparisonDividends
13.3%
Current Dividend Yield45%
Payout RatioValuation
Is 6038 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 6038?
Other financial metrics that can be useful for relative valuation.
| What is 6038's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | HK$165.00m |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.2x |
| Enterprise Value/EBITDA | 1.6x |
| PEG Ratio | n/a |
Price to Earnings Ratio vs Peers
How does 6038's PE Ratio compare to its peers?
| 6038 PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 14.6x | ||
3789 Royal Deluxe Holdings | 23x | n/a | HK$156.0m |
2663 KPa-BM Holdings | 14.3x | n/a | HK$165.0m |
1408 Macau E&M Holding | 5.6x | n/a | HK$142.5m |
1420 Chuan Holdings | 15.3x | n/a | HK$130.6m |
6038 G & M Holdings | 4.5x | n/a | HK$165.0m |
Price-To-Earnings vs Peers: 6038 is good value based on its Price-To-Earnings Ratio (4.5x) compared to the peer average (14.6x).
Price to Earnings Ratio vs Industry
How does 6038's PE Ratio compare vs other companies in the HK Construction Industry?
Price-To-Earnings vs Industry: 6038 is good value based on its Price-To-Earnings Ratio (4.5x) compared to the Hong Kong Construction industry average (11.5x)
Price to Earnings Ratio vs Fair Ratio
What is 6038's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 4.5x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6038's Price-To-Earnings Fair Ratio for valuation analysis.
Share Price vs Fair Value
What is the Fair Price of 6038 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 6038 (HK$0.17) is trading below our estimate of fair value (HK$0.37)
Significantly Below Fair Value: 6038 is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Insufficient data to show price forecast.
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Future Growth
How is G & M Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Future Growth Score
0/6Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
11.8%
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 G & M 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.
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- Examine whether G & M 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.
- G & M Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.
Past Performance
How has G & M Holdings performed over the past 5 years?
Past Performance Score
2/6Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-15.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 6038 has a high level of non-cash earnings.
Growing Profit Margin: 6038's current net profit margins (9.1%) are lower than last year (9.6%).
Past Earnings Growth Analysis
Earnings Trend: 6038's earnings have declined by 15.6% per year over the past 5 years.
Accelerating Growth: 6038's earnings growth over the past year (57.9%) exceeds its 5-year average (-15.6% per year).
Earnings vs Industry: 6038 earnings growth over the past year (57.9%) exceeded the Construction industry -13.2%.
Return on Equity
High ROE: 6038's Return on Equity (14.3%) is considered low.
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Financial Health
How is G & M Holdings's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: 6038's short term assets (HK$390.7M) exceed its short term liabilities (HK$142.9M).
Long Term Liabilities: 6038's short term assets (HK$390.7M) exceed its long term liabilities (HK$8.3M).
Debt to Equity History and Analysis
Debt Level: 6038 has more cash than its total debt.
Reducing Debt: 6038's debt to equity ratio has reduced from 11.6% to 6.2% over the past 5 years.
Debt Coverage: 6038's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: 6038's interest payments on its debt are well covered by EBIT (60.6x coverage).
Balance Sheet
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Dividend
What is G & M Holdings's current dividend yield, its reliability and sustainability?
Dividend Score
3/6Dividend Score 3/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
13.33%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 6038's dividend (13.33%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.87%).
High Dividend: 6038's dividend (13.33%) is in the top 25% of dividend payers in the Hong Kong market (8.25%)
Stability and Growth of Payments
Stable Dividend: 6038 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 6038 has only been paying a dividend for 4 years, and since then payments have fallen.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (44.8%), 6038's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: 6038 is paying a dividend but the company has no free cash flows.
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Management
How experienced are the management team and are they aligned to shareholders interests?
5.3yrs
Average management tenure
CEO
Chi Hung Lee (56 yo)
no data
Tenure
HK$4,008,000
Compensation
Mr. Lee Chi Hung is a Co-Owner of Luxury Booming Limited. Mr. Lee serves as the Chairman of the Board and Chief Executive Officer of G & M Holdings Limited and has been its Executive Director since Novembe...
CEO Compensation Analysis
Compensation vs Market: Chi Hung's total compensation ($USD510.97K) is above average for companies of similar size in the Hong Kong market ($USD246.27K).
Compensation vs Earnings: Chi Hung's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: 6038's management team is seasoned and experienced (5.3 years average tenure).
Board Members
Experienced Board: 6038's board of directors are considered experienced (5.3 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
G & M Holdings Limited's employee growth, exchange listings and data sources
Key Information
- Name: G & M Holdings Limited
- Ticker: 6038
- Exchange: SEHK
- Founded: 1993
- Industry: Construction and Engineering
- Sector: Capital Goods
- Implied Market Cap: HK$165.000m
- Shares outstanding: 1.00b
- Website: https://www.gm-eng.com.hk
Number of Employees
Location
- G & M Holdings Limited
- Magnet Place, Tower 1
- 11th Floor
- Kwai Chung
- New Territories
- Hong Kong
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/12 00:00 |
| End of Day Share Price | 2022/08/12 00:00 |
| Earnings | 2021/12/31 |
| Annual Earnings | 2021/12/31 |
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.