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610

Wai Kee HoldingsSEHK:610 Stock Report

Market Cap

HK$3.0b

7D

-2.9%

1Y

0.5%

Updated

19 Oct, 2021

Data

Company Financials
610 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends4/6

610 Overview

Wai Kee Holdings Limited, an investment holding company, operates in the construction and infrastructure industry in Hong Kong and the People’s Republic of China.

Wai Kee Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Wai Kee Holdings
Historical stock prices
Current Share PriceHK$3.74
52 Week HighHK$3.58
52 Week LowHK$4.43
Beta0.76
1 Month Change-1.58%
3 Month Change-8.11%
1 Year Change0.54%
3 Year Change1.08%
5 Year Change49.60%
Change since IPO167.14%

Recent News & Updates

Aug 21
Wai Kee Holdings (HKG:610) Is Reducing Its Dividend To HK$0.07

Wai Kee Holdings (HKG:610) Is Reducing Its Dividend To HK$0.07

Wai Kee Holdings Limited ( HKG:610 ) has announced it will be reducing its dividend payable on the 7th of October to...

May 30
Returns At Wai Kee Holdings (HKG:610) Are On The Way Up

Returns At Wai Kee Holdings (HKG:610) Are On The Way Up

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

May 04
Wai Kee Holdings (HKG:610) Has A Rock Solid Balance Sheet

Wai Kee Holdings (HKG:610) Has A Rock Solid Balance Sheet

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

610HK ConstructionHK Market
7D-2.9%2.5%0.7%
1Y0.5%17.3%5.7%

Return vs Industry: 610 underperformed the Hong Kong Construction industry which returned 17.3% over the past year.

Return vs Market: 610 underperformed the Hong Kong Market which returned 5.7% over the past year.

Price Volatility

Is 610's price volatile compared to industry and market?
610 volatility
610 Beta0.76
Industry Beta0.59
Market Beta1

Stable Share Price: 610 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 610's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19703,097Derek Zenhttps://www.waikee.com

Wai Kee Holdings Limited, an investment holding company, operates in the construction and infrastructure industry in Hong Kong and the People’s Republic of China. The company operates through Construction, Sewage Treatment and Steam Fuel; Construction Materials; Quarrying; and Property Development and Investment, Toll Road, Investment and Asset Management segments. It is involved in the construction of civil engineering and building projects; and operates sewage treatment and steam fuel plants.

Wai Kee Holdings Fundamentals Summary

How do Wai Kee Holdings's earnings and revenue compare to its market cap?
610 fundamental statistics
Market CapHK$2.97b
Earnings (TTM)HK$941.27m
Revenue (TTM)HK$8.92b

3.2x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
610 income statement (TTM)
RevenueHK$8.92b
Cost of RevenueHK$8.15b
Gross ProfitHK$765.48m
Expenses-HK$175.79m
EarningsHK$941.27m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.19
Gross Margin8.58%
Net Profit Margin10.55%
Debt/Equity Ratio22.3%

How did 610 perform over the long term?

See historical performance and comparison

Dividends

8.3%

Current Dividend Yield

26%

Payout Ratio

Valuation

Is Wai Kee Holdings undervalued compared to its fair value and its price relative to the market?

25.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 610 (HK$3.74) is trading below our estimate of fair value (HK$5.03)

Significantly Below Fair Value: 610 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 610 is good value based on its PE Ratio (3.2x) compared to the Hong Kong Construction industry average (9.6x).

PE vs Market: 610 is good value based on its PE Ratio (3.2x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 610's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 610 is good value based on its PB Ratio (0.3x) compared to the HK Construction industry average (1.1x).


Future Growth

How is Wai Kee 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 Wai Kee 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 Wai Kee Holdings performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 610 has high quality earnings.

Growing Profit Margin: 610's current net profit margins (10.6%) are lower than last year (15.8%).


Past Earnings Growth Analysis

Earnings Trend: 610's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: 610's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 610 had negative earnings growth (-25.9%) over the past year, making it difficult to compare to the Construction industry average (18.5%).


Return on Equity

High ROE: 610's Return on Equity (10.1%) is considered low.


Financial Health

How is Wai Kee Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 610's short term assets (HK$6.3B) exceed its short term liabilities (HK$5.0B).

Long Term Liabilities: 610's short term assets (HK$6.3B) exceed its long term liabilities (HK$1.1B).


Debt to Equity History and Analysis

Debt Level: 610's debt to equity ratio (22.3%) is considered satisfactory.

Reducing Debt: 610's debt to equity ratio has increased from 18.4% to 22.3% over the past 5 years.

Debt Coverage: 610's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 610's interest payments on its debt are well covered by EBIT (561.4x coverage).


Balance Sheet


Dividend

What is Wai Kee Holdings's current dividend yield, its reliability and sustainability?

8.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 610's dividend (8.29%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 610's dividend (8.29%) is in the top 25% of dividend payers in the Hong Kong market (6.77%)


Stability and Growth of Payments

Stable Dividend: 610's dividend payments have been volatile in the past 10 years.

Growing Dividend: 610's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.1%), 610'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?

16.3yrs

Average management tenure


CEO

Derek Zen (68 yo)

7.17yrs

Tenure

HK$11,472,000

Compensation

Mr. Wei Peu Zen, also known as Derek, MBA, serves as the Chairman of the Board at Road King Infrastructure Limited since January 01, 2021. He has been an Executive Director of Road King Infrastructure Limi...


CEO Compensation Analysis

Compensation vs Market: Derek's total compensation ($USD1.47M) is above average for companies of similar size in the Hong Kong market ($USD348.14K).

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


Leadership Team

Experienced Management: 610's management team is seasoned and experienced (16.3 years average tenure).


Board Members

Experienced Board: 610's board of directors are seasoned and experienced ( 16.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Wai Kee Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Wai Kee Holdings Limited
  • Ticker: 610
  • Exchange: SEHK
  • Founded: 1970
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$2.966b
  • Shares outstanding: 793.12m
  • Website: https://www.waikee.com

Number of Employees


Location

  • Wai Kee Holdings Limited
  • East Ocean Centre
  • 11th Floor
  • Tsim Sha Tsui
  • 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 Analysis2021/10/19 15:33
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.