company background image
6038

G & M Holdings SEHK:6038 Stock Report

Last Price

HK$0.17

Market Cap

HK$165.0m

7D

1.9%

1Y

-4.1%

Updated

12 Aug, 2022

Data

Company Financials
6038 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends3/6

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.

G & M Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for G & M Holdings
Historical stock prices
Current Share PriceHK$0.17
52 Week HighHK$0.21
52 Week LowHK$0.15
Beta0.50
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

Jun 14
Is G & M Holdings (HKG:6038) Using Too Much Debt?

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

6038HK ConstructionHK Market
7D1.9%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

Is 6038's price volatile compared to industry and market?
6038 volatility
6038 Average Weekly Movement5.7%
Construction Industry Average Movement7.1%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.6%
10% least volatile stocks in HK Market3.2%

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

FoundedEmployeesCEOWebsite
1993108Chi Hung Leehttps://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

How do G & M Holdings's earnings and revenue compare to its market cap?
6038 fundamental statistics
Market CapHK$165.00m
Earnings (TTM)HK$36.80m
Revenue (TTM)HK$403.21m

4.5x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6038 income statement (TTM)
RevenueHK$403.21m
Cost of RevenueHK$310.35m
Gross ProfitHK$92.86m
Other ExpensesHK$56.06m
EarningsHK$36.80m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 25, 2022

Earnings per share (EPS)0.037
Gross Margin23.03%
Net Profit Margin9.13%
Debt/Equity Ratio6.2%

How did 6038 perform over the long term?

See historical performance and comparison

Dividends

13.3%

Current Dividend Yield

45%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 6038 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation 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.

6038 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.2x
Enterprise Value/EBITDA1.6x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 6038's PE Ratio compare to its peers?

6038 PE Ratio vs Peers
The above table shows the PE ratio for 6038 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.6x
3789 Royal Deluxe Holdings
23xn/aHK$156.0m
2663 KPa-BM Holdings
14.3xn/aHK$165.0m
1408 Macau E&M Holding
5.6xn/aHK$142.5m
1420 Chuan Holdings
15.3xn/aHK$130.6m
6038 G & M Holdings
4.5xn/aHK$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.

6038 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.5x
Fair PE Ration/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.


Discover undervalued companies

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

0/6

Future 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.


Discover growth companies

  • 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

2/6

Past 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.


Discover strong past performing companies

Financial Health

How is G & M Holdings's financial position?

Financial Health Score

5/6

Financial 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


Discover healthy companies

Dividend

What is G & M Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend 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.


Discover strong dividend paying companies

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/12 00:00
End of Day Share Price2022/08/12 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.