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G & M Holdings

SEHK:6038
Snowflake Description

Excellent balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
6038
SEHK
HK$255M
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

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. The last earnings update was 55 days ago. More info.


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6038 Share Price and Events
7 Day Returns
-3.8%
SEHK:6038
-2.7%
HK Construction
-2%
HK Market
1 Year Returns
-42.7%
SEHK:6038
-16.6%
HK Construction
-13.2%
HK Market
6038 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
G & M Holdings (6038) -3.8% 0% -10.5% -42.7% - -
HK Construction -2.7% -0.8% -13% -16.6% -16.6% 5.9%
HK Market -2% -2.7% -9.8% -13.2% 18.1% 4.3%
1 Year Return vs Industry and Market
  • 6038 underperformed the Construction industry which returned -16.6% over the past year.
  • 6038 underperformed the Market in Hong Kong which returned -13.2% over the past year.
Price Volatility
6038
Industry
5yr Volatility vs Market

Value

 Is G & M Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of G & M Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for G & M Holdings.

SEHK:6038 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:6038
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Construction Unlevered Beta Simply Wall St/ S&P Global 1.01
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.011 (1 + (1- 25%) (3.23%))
1.024
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.024 * 6.65%)
8.81%

Discounted Cash Flow Calculation for SEHK:6038 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for G & M Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:6038 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 8.81%)
2019 6.96 Est @ 12% 6.40
2020 7.59 Est @ 9% 6.41
2021 8.11 Est @ 6.9% 6.29
2022 8.55 Est @ 5.43% 6.10
2023 8.93 Est @ 4.4% 5.85
2024 9.26 Est @ 3.68% 5.58
2025 9.55 Est @ 3.18% 5.29
2026 9.82 Est @ 2.83% 5.00
2027 10.07 Est @ 2.58% 4.71
2028 10.32 Est @ 2.41% 4.43
Present value of next 10 years cash flows HK$56.05
SEHK:6038 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$10.32 × (1 + 2%) ÷ (8.81% – 2%)
HK$154.53
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$154.53 ÷ (1 + 8.81%)10
HK$66.41
SEHK:6038 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$56.05 + HK$66.41
HK$122.46
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$122.46 / 1,000.00
HK$0.12
SEHK:6038 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$0.12
Current discount Discount to share price of HK$0.26
= -1 x (HK$0.26 - HK$0.12) / HK$0.12
-108.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of G & M Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for G & M Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are G & M Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:6038 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.04
SEHK:6038 Share Price ** SEHK (2019-06-18) in HKD HK$0.26
Hong Kong Construction Industry PE Ratio Median Figure of 105 Publicly-Listed Construction Companies 10.8x
Hong Kong Market PE Ratio Median Figure of 1,488 Publicly-Listed Companies 10.66x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of G & M Holdings.

SEHK:6038 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:6038 Share Price ÷ EPS (both in HKD)

= 0.26 ÷ 0.04

6.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • G & M Holdings is good value based on earnings compared to the HK Construction industry average.
  • G & M Holdings is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does G & M Holdings's expected growth come at a high price?
Raw Data
SEHK:6038 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
-2.2%per year
Hong Kong Construction Industry PEG Ratio Median Figure of 9 Publicly-Listed Construction Companies 0.54x
Hong Kong Market PEG Ratio Median Figure of 467 Publicly-Listed Companies 0.75x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for G & M Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on G & M Holdings's assets?
Raw Data
SEHK:6038 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$0.22
SEHK:6038 Share Price * SEHK (2019-06-18) in HKD HK$0.26
Hong Kong Construction Industry PB Ratio Median Figure of 133 Publicly-Listed Construction Companies 1.3x
Hong Kong Market PB Ratio Median Figure of 2,170 Publicly-Listed Companies 0.93x
SEHK:6038 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:6038 Share Price ÷ Book Value per Share (both in HKD)

= 0.26 ÷ 0.22

1.16x

* Primary Listing of G & M Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • G & M Holdings is good value based on assets compared to the HK Construction industry average.
X
Value checks
We assess G & M Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. G & M Holdings has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is G & M Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover G & M Holdings, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-2.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is G & M Holdings expected to grow at an attractive rate?
  • G & M Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.
Growth vs Market Checks
  • G & M Holdings's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
  • Unable to compare G & M Holdings's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:6038 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:6038 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -2.2%
Hong Kong Construction Industry Earnings Growth Rate Market Cap Weighted Average 12.5%
Hong Kong Construction Industry Revenue Growth Rate Market Cap Weighted Average 10.1%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:6038 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:6038 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 365 9 37
2018-09-30 357 5 44
2018-06-30 349 1 50
2018-03-31 332 -9 51
2017-12-31 316 -19 52
2017-09-30 295 7 45
2017-06-30 282 -5 48
2017-03-31 278 0 49
2016-12-31 274 5 50
2016-09-30 272 12 52

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • G & M Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if G & M Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:6038 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from G & M Holdings Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:6038 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.04
2018-09-30 0.04
2018-06-30 0.05
2018-03-31 0.05
2017-12-31 0.06
2017-09-30 0.04
2017-06-30 0.06
2017-03-31 0.07
2016-12-31 0.07
2016-09-30 0.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if G & M Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess G & M Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
G & M Holdings has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has G & M Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare G & M Holdings's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • G & M Holdings's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • G & M Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • G & M Holdings's 1-year earnings growth is negative, it can't be compared to the HK Construction industry average.
Earnings and Revenue History
G & M Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from G & M Holdings Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:6038 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 365.44 36.94 39.52
2018-09-30 357.02 43.71 32.94
2018-06-30 348.61 50.48 26.36
2018-03-31 332.18 51.37 26.31
2017-12-31 315.75 52.27 26.25
2017-09-30 295.25 45.39 27.38
2017-06-30 281.59 48.45 24.34
2017-03-31 277.75 49.25 21.71
2016-12-31 273.91 50.05 19.08
2016-09-30 271.53 52.17 15.42
2015-12-31 218.82 46.17 12.02
2014-12-31 151.30 30.75 11.75

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • G & M Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • G & M Holdings used its assets more efficiently than the HK Construction industry average last year based on Return on Assets.
  • G & M Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess G & M Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
G & M Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is G & M Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up G & M Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • G & M Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • G & M Holdings has no long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of G & M Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 36.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from G & M Holdings Company Filings, last reported 5 months ago.

SEHK:6038 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 219.02 8.23 105.47
2018-09-30 219.02 8.23 105.47
2018-06-30 204.12 7.85 145.84
2018-03-31 204.12 7.85 145.84
2017-12-31 208.09 19.48 141.37
2017-09-30 208.09 19.48 141.37
2017-06-30 177.63 8.94 155.46
2017-03-31 177.63 8.94 155.46
2016-12-31 82.95 10.21 82.74
2016-09-30 84.65 20.05 72.76
2015-12-31 85.84 7.99 118.80
2014-12-31 68.09 11.90 56.37
  • G & M Holdings's level of debt (3.8%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if G & M Holdings's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (114.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 152.9x coverage).
X
Financial health checks
We assess G & M Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. G & M Holdings has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.06%
Current annual income from G & M Holdings dividends.
If you bought HK$2,000 of G & M Holdings shares you are expected to receive HK$141 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • G & M Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.1%).
  • G & M Holdings's dividend is above the markets top 25% of dividend payers in Hong Kong (5.95%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:6038 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Construction Industry Average Dividend Yield Market Cap Weighted Average of 42 Stocks 3.8%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:6038 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-04-25 0.018 6.864
2018-04-26 0.024 7.664
2018-03-19 0.024 6.280

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether G & M Holdings has stable dividend payments.
  • G & M Holdings only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of G & M Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.1x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess G & M Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can G & M Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. G & M Holdings has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of G & M Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chi Hung Lee
COMPENSATION HK$3,859,000
AGE 52
CEO Bio

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 November 29, 2016. Mr. Lee is a Co-founder of G & M Holdings and is primarily responsible for the overall management of its operations and business development. In November 1993, Mr. Lee is a co-founder of G & M Engineering. He has over 23 years of experience in the construction industry in Hong Kong since joining G & M. He also serves as a Director of Join Forward, G & M Maintenance, G & M Engineering, G & M Contracting and G & M Design. Mr. Lee obtained an endorsement to higher certificate in mechanical engineering from The Hong Kong Polytechnic (now known as The Hong Kong Polytechnic University) in November 1988.

CEO Compensation
  • Chi Hung's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Chi Hung's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the G & M Holdings management team in years:

2.4
Average Tenure
51
Average Age
  • The tenure for the G & M Holdings management team is about average.
Management Team

Chi Hung Lee

TITLE
Chairman of the Board & CEO
COMPENSATION
HK$4M
AGE
52

Wai Yin Chan

TITLE
Executive Director
COMPENSATION
HK$2M
AGE
51

Shuk Man Huen

TITLE
Financial Controller & Joint Company Secretary
AGE
33
TENURE
2.4 yrs

Yau Choi

TITLE
Chief Operating Officer
AGE
58
TENURE
1.8 yrs

Baldwin Lee

TITLE
Joint Company Secretary
AGE
45
TENURE
2.4 yrs
Board of Directors Tenure

Average tenure and age of the G & M Holdings board of directors in years:

2.1
Average Tenure
54.5
Average Age
  • The average tenure for the G & M Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Chi Hung Lee

TITLE
Chairman of the Board & CEO
COMPENSATION
HK$4M
AGE
52

Wai Yin Chan

TITLE
Executive Director
COMPENSATION
HK$2M
AGE
51
TENURE
2.4 yrs

Alexander Tai

TITLE
Independent Non-Executive Director
COMPENSATION
HK$240K
AGE
61
TENURE
2.1 yrs

Cheuk Kui Kwan

TITLE
Independent Non-Executive Director
COMPENSATION
HK$240K
AGE
53
TENURE
2.1 yrs

Ping Kwan Leung

TITLE
Non-Executive Director
COMPENSATION
HK$784K
AGE
56
TENURE
2.4 yrs

Roderick Wong

TITLE
Independent Non-Executive Director
COMPENSATION
HK$240K
AGE
73
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess G & M Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. G & M Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

G & M Holdings Limited (HKG:6038) Investors Should Think About This Before Buying It For Its Dividend

Today we'll take a closer look at G & M Holdings Limited (HKG:6038) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. G & M Holdings has only been paying a dividend for a year or so, so investors might be curious about its 6.8% yield. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … G & M Holdings paid out less in dividends than it reported in profits, but unfortunately it didn't generate enough free cash flow to cover the dividend. … However, it's also important to assess if earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. Over the past five years, it looks as though G & M Holdings's EPS have declined at around 2.1% a year. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

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Here's What G & M Holdings Limited's (HKG:6038) P/E Ratio Is Telling Us

We'll look at G & M Holdings Limited's (HKG:6038) P/E ratio and reflect on what it tells us about the company's share price. … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for G & M Holdings: P/E of 7.04 = HK$0.26 ÷ HK$0.037 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Growth Rates Impact P/E Ratios When earnings fall, the 'E' decreases, over time.

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Should We Be Delighted With G & M Holdings Limited's (HKG:6038) ROE Of 17%?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each HK$1 of shareholders' equity it has, the company made HK$0.17 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

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Are G & M Holdings Limited’s (HKG:6038) High Returns Really That Great?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

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Did You Manage To Avoid G & M Holdings's (HKG:6038) 38% Share Price Drop?

That downside risk was realized by G & M Holdings Limited (HKG:6038) shareholders over the last year, as the share price declined 38%. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … This reduction in EPS is not as bad as the 38% share price fall.

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What To Know Before Buying G & M Holdings Limited (HKG:6038) For Its Dividend

G & M Holdings Limited (HKG:6038) has started paying a dividend to shareholders. … Does G & M Holdings tick all the boxes of a great dividend stock? … 5 checks you should use to assess a dividend stock

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Does G & M Holdings Limited's (HKG:6038) P/E Ratio Signal A Buying Opportunity?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … That corresponds to an earnings yield of approximately 19%. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

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Why G & M Holdings Limited (HKG:6038) Looks Like A Quality Company

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows G & M Holdings has a return on equity of 25% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

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G & M Holdings Limited (HKG:6038): A Look At Solid Capital Returns

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Therefore, looking at how efficiently G & M Holdings is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

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How Does G & M Holdings Limited (HKG:6038) Fare As A Dividend Stock?

Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. … Check out our latest analysis for G & M Holdings … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

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Company Info

Description

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. It undertakes design and build project works, such as developing facade or curtain wall system design, structural calculation and shop drawings, sourcing and procurement of materials, arrangement for material fabrication and processing, installation works, and post-completion maintenance services. The company also offers repair and maintenance, and inspection and consultancy services. G & M Holdings Limited was founded in 1993 and is headquartered in Kwai Chung, Hong Kong.

Details
Name: G & M Holdings Limited
6038
Exchange: SEHK
Founded: 1993
HK$255,000,000
1,000,000,000
Website: http://www.gm-eng.com.hk
Address: G & M Holdings Limited
Manhattan Centre,
Units 1709-14,
Kwai Chung,
New Territories, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 6038 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 13. Jun 2017
Number of employees
Current staff
Staff numbers
95
G & M Holdings employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/19 13:06
End of day share price update: 2019/06/18 00:00
Last earnings filing: 2019/04/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.