SEHK:6189

Stock Analysis Report

Guangdong Adway Construction (Group) Holdings

Executive Summary

Guangdong Adway Construction (Group) Holdings Company Limited, together with its subsidiaries, provides interior and exterior building decoration and design services in the People’s Republic of China.


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

How has Guangdong Adway Construction (Group) Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6189's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.4%

6189

-0.2%

HK Construction

-0.6%

HK Market


1 Year Return

-71.7%

6189

-27.4%

HK Construction

-7.6%

HK Market

Return vs Industry: 6189 underperformed the Hong Kong Construction industry which returned -27.4% over the past year.

Return vs Market: 6189 underperformed the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

6189IndustryMarket
7 Day1.4%-0.2%-0.6%
30 Day-2.3%-3.1%-1.4%
90 Day-91.0%-4.9%2.0%
1 Year-71.7%-71.7%-23.9%-27.4%-4.2%-7.6%
3 Year-58.2%-58.4%-35.5%-42.4%12.9%1.5%
5 Yearn/a-26.9%-37.7%13.1%-5.6%

Price Volatility Vs. Market

How volatile is Guangdong Adway Construction (Group) Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Guangdong Adway Construction (Group) Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6189 (HK$2.12) is trading below our estimate of fair value (HK$6.86)

Significantly Below Fair Value: 6189 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6189 is good value based on its PE Ratio (3.1x) compared to the Construction industry average (8.9x).

PE vs Market: 6189 is good value based on its PE Ratio (3.1x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6189's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6189 is good value based on its PB Ratio (0.4x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

How is Guangdong Adway Construction (Group) Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.9%

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 Guangdong Adway Construction (Group) 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 Guangdong Adway Construction (Group) Holdings performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6189 has high quality earnings.

Growing Profit Margin: 6189's current net profit margins (7.2%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: 6189's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: 6189's earnings growth over the past year (12.5%) exceeds its 5-year average (9.4% per year).

Earnings vs Industry: 6189 earnings growth over the past year (12.5%) exceeded the Construction industry -5.4%.


Return on Equity

High ROE: 6189's Return on Equity (11.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Guangdong Adway Construction (Group) Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 6189's short term assets (CN¥2.6B) exceed its short term liabilities (CN¥1.6B).

Long Term Liabilities: 6189's short term assets (CN¥2.6B) exceed its long term liabilities (CN¥2.6M).


Debt to Equity History and Analysis

Debt Level: 6189's debt to equity ratio (38.7%) is considered satisfactory.

Reducing Debt: 6189's debt to equity ratio has reduced from 54.3% to 38.7% over the past 5 years.

Debt Coverage: 6189's debt is not well covered by operating cash flow (7.3%).

Interest Coverage: 6189's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet

Inventory Level: 6189 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 6189's debt is covered by short term assets (assets are 5.8x debt).


Next Steps

Dividend

What is Guangdong Adway Construction (Group) Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 6189's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 6189's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 6189's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6189's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 6189 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6189's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure


CEO

Yujing Ye (52yo)

7.8yrs

Tenure

CN¥712,000

Compensation

Mr. Yujing Ye has been the Chief Executive Officer at Guangdong Adway Construction (Group) Holdings Company Limited since April 10, 2012. Mr. Ye is primarily responsible for our Group's development, strate ...


CEO Compensation Analysis

Compensation vs Market: Yujing's total compensation ($USD101.30K) is below average for companies of similar size in the Hong Kong market ($USD226.90K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yujing Ye
Chairman & CEO7.8yrsCN¥712.00k28.1% CN¥145.5m
Yilun Liu
VP, Joint Company Secretary & Executive Director4.4yrsCN¥450.00kno data
Xiujin Ye
Executive Director11.6yrsCN¥134.00k6.44% CN¥33.3m
Guofeng Ye
VP & Executive Director6.6yrsCN¥399.00kno data
Niangting Ye
VP & Executive Director5.8yrsCN¥420.00kno data
Yue Kou
CFO , VP & Joint Company Secretary4.4yrsno datano data

5.1yrs

Average Tenure

46yo

Average Age

Experienced Management: 6189's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yujing Ye
Chairman & CEO7.8yrsCN¥712.00k28.1% CN¥145.5m
Yilun Liu
VP, Joint Company Secretary & Executive Director4.4yrsCN¥450.00kno data
Xiujin Ye
Executive Director11.6yrsCN¥134.00k6.44% CN¥33.3m
Guofeng Ye
VP & Executive Director6.6yrsCN¥399.00kno data
Niangting Ye
VP & Executive Director5.8yrsCN¥420.00kno data
Wen Tian
Supervisor0.9yrsCN¥80.00kno data
Zhiyang Lin
Independent Non-Executive Director4.5yrsCN¥80.00kno data
Wai Yeung Cheung
Independent Non-Executive Director1.5yrsCN¥30.00kno data
Yuan Li
Non-Executive Director0.9yrsno datano data
Xin Zhai
Independent Non-Executive Director0.7yrsno datano data

4.5yrs

Average Tenure

44yo

Average Age

Experienced Board: 6189's board of directors are considered experienced (4.5 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 been diluted in the past year, with total shares outstanding growing by 2.8%.


Top Shareholders

Company Information

Guangdong Adway Construction (Group) Holdings Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Guangdong Adway Construction (Group) Holdings Company Limited
  • Ticker: 6189
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$518.001m
  • Shares outstanding: 240.93m
  • Website: https://www.aidewei.cn

Number of Employees


Location

  • Guangdong Adway Construction (Group) Holdings Company Limited
  • No. 1 Building
  • 3rd Floor, Pengyi Garden
  • Shenzhen
  • Guangdong Province
  • 518029
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6189SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDNov 2016

Biography

Guangdong Adway Construction (Group) Holdings Company Limited, together with its subsidiaries, provides interior and exterior building decoration and design services in the People’s Republic of China. The company offers building decoration, electrical and mechanical installation, curtain wall engineering, and fire safety engineering works. It is also involved in the development and construction of an industrial park; and design and sale of mobile and fixed furniture for use in the construction decoration works, as well as soft decoration products. The company’s projects comprise a range of building and property categories, including commercial buildings, office buildings, industrial buildings, residential buildings, public buildings, and infrastructures and hotels. It serves public and private customers, such as state-owned enterprises, government authorities and institutions, listed companies, foreign-funded enterprises, property developers, and property management companies. Guangdong Adway Construction (Group) Holdings Company Limited was founded in 1996 and is headquartered in Shenzhen, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 13:13
End of Day Share Price2020/02/24 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.