SEHK:610

Stock Analysis Report

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Executive Summary

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.


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Wai Kee Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 610 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

610

1.1%

HK Construction

1.2%

HK Market


1 Year Return

-20.7%

610

-15.4%

HK Construction

5.4%

HK Market

Return vs Industry: 610 underperformed the Hong Kong Construction industry which returned -15.4% over the past year.

Return vs Market: 610 underperformed the Hong Kong Market which returned 5.4% over the past year.


Shareholder returns

610IndustryMarket
7 Day-0.8%1.1%1.2%
30 Day-3.3%-0.2%-2.7%
90 Day-11.4%-1.4%6.9%
1 Year-14.3%-20.7%-11.0%-15.4%9.7%5.4%
3 Year38.2%12.8%-35.1%-43.3%3.5%-7.6%
5 Year104.0%48.6%-38.7%-49.2%12.0%-6.8%

Price Volatility Vs. Market

How volatile is Wai Kee Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

2.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 610 (HK$3.79) is trading above our estimate of fair value (HK$3.68)

Significantly Below Fair Value: 610 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 610 is good value based on its PE Ratio (2.4x) compared to the HK Construction industry average (8x).

PE vs Market: 610 is good value based on its PE Ratio (2.4x) compared to the Hong Kong market (10.4x).


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 (0.4x) compared to the HK Construction industry average (0.8x).


Next Steps

Future Growth

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

10.3%

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.


Next Steps

Past Performance

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

23.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 610 has high quality earnings.

Growing Profit Margin: 610's current net profit margins (16%) are lower than last year (18%).


Past Earnings Growth Analysis

Earnings Trend: 610's earnings have grown significantly by 23.9% per year over the past 5 years.

Accelerating Growth: 610's earnings growth over the past year (4.4%) is below its 5-year average (23.9% per year).

Earnings vs Industry: 610 earnings growth over the past year (4.4%) exceeded the Construction industry -6.4%.


Return on Equity

High ROE: 610's Return on Equity (15.4%) is considered low.


Next Steps

Financial Health

How is Wai Kee Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 610's short term assets (HK$5.3B) exceed its short term liabilities (HK$4.6B).

Long Term Liabilities: 610's short term assets (HK$5.3B) exceed its long term liabilities (HK$752.1M).


Debt to Equity History and Analysis

Debt Level: 610's debt to equity ratio (13.2%) is considered satisfactory.

Reducing Debt: 610's debt to equity ratio has increased from 5.1% to 13.2% over the past 5 years.

Debt Coverage: 610's debt is well covered by operating cash flow (39.3%).

Interest Coverage: 610's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Next Steps

Dividend

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

8.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 610's dividend (8.44%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 610's dividend (8.44%) is in the top 25% of dividend payers in the Hong Kong market (6.86%)


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 low payout ratio (20.1%), 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?

15.2yrs

Average management tenure


CEO

Derek Zen (67 yo)

6yrs

Tenure

HK$32,599,000

Compensation

Mr. Wei Peu Zen, also known as Derek has been an Executive Director of Road King Infrastructure Limited since November 07, 2018 and was its Chairman of the Board since its establishment. Mr. Zen has been t ...


CEO Compensation Analysis

Compensation vs Market: Derek's total compensation ($USD4.21M) is above average for companies of similar size in the Hong Kong market ($USD306.13K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Wei Pao Zen
Executive Chairmanno dataHK$1.71m25.93%
HK$ 779.5m
Wei Peu Zen
Vice Chairman & CEO6yrsHK$32.60m25.7%
HK$ 772.6m
Wai Yee Chiu
Company Secretary & Executive Director15.17yrsHK$3.54mno data
Kwan Man Cheung
Group Financial Controller26yrsno datano data

15.2yrs

Average Tenure

65.5yo

Average Age

Experienced Management: 610's management team is seasoned and experienced (15.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wei Pao Zen
Executive Chairmanno dataHK$1.71m25.93%
HK$ 779.5m
Wei Peu Zen
Vice Chairman & CEO6yrsHK$32.60m25.7%
HK$ 772.6m
Wai Yee Chiu
Company Secretary & Executive Director15.17yrsHK$3.54mno data
Man Chung Wong
Independent Non-Executive Director16yrsHK$466.00kno data
Siu Kau Wan
Independent Non-Executive Director18.92yrsHK$466.00kno data
Che Ming Wong
Independent Non Executive Director28.08yrsHK$448.00k0.11%
HK$ 3.4m
Chi Ming Cheng
Non-Executive Director7.5yrsHK$287.00kno data
Chi Hang Ho
Non-Executive Director1.67yrsHK$120.00kno data
Wing Ho Tsang
Director of BKCL and Director of Building King Civilno datano datano data

15.6yrs

Average Tenure

63yo

Average Age

Experienced Board: 610's board of directors are seasoned and experienced ( 15.6 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 company bio, 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$3.006b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WKHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1992
610SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 1992

Biography

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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 12:56
End of Day Share Price2020/08/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.