SEHK:659

Stock Analysis Report

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Executive Summary

NWS Holdings Limited engages in infrastructure and services businesses in Hong Kong, Mainland China, and internationally. More Details


Snowflake Analysis

Moderate growth potential second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 659 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 659's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-5.0%

659

0.2%

HK Industrials

1.4%

HK Market


1 Year Return

-29.1%

659

-23.8%

HK Industrials

11.5%

HK Market

Return vs Industry: 659 underperformed the Hong Kong Industrials industry which returned -23.8% over the past year.

Return vs Market: 659 underperformed the Hong Kong Market which returned 11.5% over the past year.


Shareholder returns

659IndustryMarket
7 Day-5.0%0.2%1.4%
30 Day8.1%14.6%8.1%
90 Day14.6%2.7%6.1%
1 Year-23.9%-29.1%-19.9%-23.8%16.0%11.5%
3 Year-37.6%-47.0%-32.1%-40.2%1.7%-8.8%
5 Year-8.0%-32.5%-33.1%-44.3%33.3%10.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is NWS 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: 659 (HK$7.44) is trading below our estimate of fair value (HK$15.96)

Significantly Below Fair Value: 659 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 659 is poor value based on its PE Ratio (114.9x) compared to the HK Industrials industry average (6.1x).

PE vs Market: 659 is poor value based on its PE Ratio (114.9x) compared to the Hong Kong market (11.3x).


Price to Earnings Growth Ratio

PEG Ratio: 659 is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: 659's PB Ratio (0.5x) is in line with the HK Industrials industry average.


Next Steps

Future Growth

How is NWS Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

43.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 659's forecast earnings growth (43% per year) is above the savings rate (1.6%).

Earnings vs Market: 659's earnings (43% per year) are forecast to grow faster than the Hong Kong market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 659's revenue (8.6% per year) is forecast to grow slower than the Hong Kong market (13.7% per year).

High Growth Revenue: 659's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 659's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has NWS Holdings performed over the past 5 years?

-9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 659 has a large one-off loss of HK$523.6M impacting its June 30 2020 financial results.

Growing Profit Margin: 659's current net profit margins (1%) are lower than last year (15.1%).


Past Earnings Growth Analysis

Earnings Trend: 659's earnings have declined by 9.9% per year over the past 5 years.

Accelerating Growth: 659's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 659 had negative earnings growth (-93.7%) over the past year, making it difficult to compare to the Industrials industry average (-26.8%).


Return on Equity

High ROE: 659's Return on Equity (1.4%) is considered low.


Next Steps

Financial Health

How is NWS Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 659's short term assets (HK$39.8B) do not cover its short term liabilities (HK$46.9B).

Long Term Liabilities: 659's short term assets (HK$39.8B) do not cover its long term liabilities (HK$45.7B).


Debt to Equity History and Analysis

Debt Level: 659's debt to equity ratio (51.2%) is considered high.

Reducing Debt: 659's debt to equity ratio has increased from 36.7% to 51.2% over the past 5 years.

Debt Coverage: 659's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 659 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

7.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 659's dividend (7.8%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.21%).

High Dividend: 659's dividend (7.8%) is in the top 25% of dividend payers in the Hong Kong market (6.57%)


Stability and Growth of Payments

Stable Dividend: 659's dividend payments have been volatile in the past 10 years.

Growing Dividend: 659's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (895.9%), 659's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 659's dividends in 3 years are forecast to be covered by earnings (58% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Siu Cheung Ma (57 yo)

1.83yrs

Tenure

HK$12,160,000

Compensation

Mr. Siu Cheung Ma, GBS, JP, serves an Executive Director of NWS Holdings Ltd since July 09, 2018 and has been its Chief Executive Officer since January 01, 2019. He served as Chief Operating Officer of NWS...


CEO Compensation Analysis

Compensation vs Market: Siu Cheung's total compensation ($USD1.57M) is above average for companies of similar size in the Hong Kong market ($USD659.21K).

Compensation vs Earnings: Siu Cheung's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kar Shun Cheng
Chairman of the Board19.67yrsHK$16.82m0.78%
HK$ 225.8m
Siu Cheung Ma
CEO & Executive Director1.83yrsHK$12.16mno data
Chin Cheung Cheung
Executive Director17.08yrsHK$9.42mno data
Chi Ming Cheng
Executive Director11.33yrsHK$9.49mno data
Chi Hang Ho
Executive Director2.33yrsHK$10.87mno data
Chi-Kong Cheng
Executive Director1.08yrsHK$5.41mno data
Tak Wing Chow
Company Secretary & Executive Director2.33yrsHK$9.87mno data
Chi Leong Cheng
Director of Corporate Development & Investment Departmentno datano datano data
Clement Chow
Head – Investor Relationsno datano datano data
Tat Chi Chu
Managing Director of Hip Hing Construction Company Limitedno datano datano data
Yuk Har Lee
Managing Director of Hong Kong Convention & Exhibition Centre (Management) Limitedno datano datano data
Tze Kei Au
Chief Executive Officer of Anway Limited & Sky Connection Limitedno datano datano data

2.1yrs

Average Tenure

55yo

Average Age

Experienced Management: 659's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kar Shun Cheng
Chairman of the Board19.67yrsHK$16.82m0.78%
HK$ 225.8m
Siu Cheung Ma
CEO & Executive Director1.83yrsHK$12.16mno data
Chin Cheung Cheung
Executive Director17.08yrsHK$9.42mno data
Chi Ming Cheng
Executive Director11.33yrsHK$9.49mno data
Chi Hang Ho
Executive Director2.33yrsHK$10.87mno data
Chi-Kong Cheng
Executive Director1.08yrsHK$5.41mno data
Tak Wing Chow
Company Secretary & Executive Director2.33yrsHK$9.87mno data
Che Keung Kwong
Independent Non-Executive Director18.08yrsHK$730.00k0.031%
HK$ 9.0m
Hing-Chiu Lai
Non-Executive Director18.25yrsHK$520.00kno data
Lai Him Shek
Independent Non-Executive Director16.17yrsHK$610.00kno data
Wai-Chee Cheng
Independent Non-Executive Director17.83yrsHK$550.00k0.074%
HK$ 21.4m
Lin Fang
Executive Vice-Chairman of FTLife Insurance Company Limited0.83yrno datano data

13.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 659's board of directors are seasoned and experienced ( 13.8 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.


Ownership Breakdown

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


Top Shareholders

Company Information

NWS Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NWS Holdings Limited
  • Ticker: 659
  • Exchange: SEHK
  • Founded:
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: HK$29.099b
  • Shares outstanding: 3.91b
  • Website: https://www.nws.com.hk

Number of Employees


Location

  • NWS Holdings Limited
  • New World Tower
  • 28th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NWSZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 1997
659SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 1997
NWSDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 1997
659SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDApr 1997
659SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDApr 1997
NWSG.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDApr 2010

Biography

NWS Holdings Limited engages in infrastructure and services businesses in Hong Kong, Mainland China, and internationally. The company operates through Roads, Aviation, Construction, Insurance, Environment,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 10:01
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.