SEHK:6829

Stock Analysis Report

Dragon Rise Group Holdings

Executive Summary

Dragon Rise Group Holdings Limited, an investment holding company, provides foundation works services as a subcontractor in Hong Kong.

Risk Analysis

Earnings have declined by -21.86% per year over past 5 years

Shareholders have been diluted in the past year

Does not have a meaningful market cap (HK$234M)



Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6829 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.4%

6829

2.2%

HK Construction

2.9%

HK Market


1 Year Return

-17.6%

6829

-25.9%

HK Construction

-3.8%

HK Market

Return vs Industry: 6829 exceeded the Hong Kong Construction industry which returned -25.9% over the past year.

Return vs Market: 6829 underperformed the Hong Kong Market which returned -3.8% over the past year.


Shareholder returns

6829IndustryMarket
7 Day3.4%2.2%2.9%
30 Day6.1%-4.7%-4.1%
90 Day-8.7%-2.3%2.9%
1 Year-17.6%-17.6%-22.4%-25.9%-0.2%-3.8%
3 Yearn/a-34.1%-41.3%15.3%3.7%
5 Yearn/a-22.3%-33.8%16.8%-2.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Dragon Rise Group Holdings undervalued compared to its fair value and its price relative to the market?

0.89x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 6829's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 6829's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 6829 is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: 6829 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6829's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6829 is good value based on its PB Ratio (0.9x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

How is Dragon Rise 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 Dragon Rise 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 Dragon Rise Group Holdings performed over the past 5 years?

-21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6829 is currently unprofitable.

Growing Profit Margin: 6829 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 6829 is unprofitable, and losses have increased over the past 5 years at a rate of -21.9% per year.

Accelerating Growth: Unable to compare 6829's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 6829 is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-5.4%).


Return on Equity

High ROE: 6829 has a negative Return on Equity (-1.64%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dragon Rise Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 6829's short term assets (HK$284.4M) exceed its short term liabilities (HK$70.6M).

Long Term Liabilities: 6829's short term assets (HK$284.4M) exceed its long term liabilities (HK$4.7M).


Debt to Equity History and Analysis

Debt Level: 6829's debt to equity ratio (7.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 6829's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 6829 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 6829's debt is covered by short term assets (assets are 13.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 6829 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: 6829 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Dragon Rise Group Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.3%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 6829's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 6829'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 6829's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6829's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6829'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?

2.1yrs

Average board tenure


CEO

Yuk-Kit Yip (63yo)

2.9yrs

Tenure

HK$816,000

Compensation

Mr. Yip Yuk Kit serves as chairman of the Board and chief executive officer at Dragon Rise Group Holdings Ltd. Mr. Yip has been Director of Dragon Rise Group Holdings Ltd since 22 February 2017 and re-desi ...


CEO Compensation Analysis

Compensation vs Market: Yuk-Kit's total compensation ($USD105.04K) is below average for companies of similar size in the Hong Kong market ($USD225.53K).

Compensation vs Earnings: Yuk-Kit's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Yuk-Kit Yip
Founder2.9yrsHK$816.00k74.17% HK$173.6m
Chun Fai Cheung
Executive Director2.9yrsHK$816.00kno data
Ka Yu Chan
Independent Non-Executive Director2.1yrsHK$180.00kno data
Chi Wang Lo
Independent Non-Executive Director2.1yrsHK$180.00kno data
Kwok Lun Lee
Independent Non-Executive Director2.1yrsHK$180.00kno data
Wa Shing Chan
Independent Non-Executive Director0.9yrsno datano data

2.1yrs

Average Tenure

45yo

Average Age

Experienced Board: 6829's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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 9.8%.


Top Shareholders

Company Information

Dragon Rise Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dragon Rise Group Holdings Limited
  • Ticker: 6829
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$234.000m
  • Shares outstanding: 1.20b
  • Website: https://www.kitkee.com.hk

Number of Employees


Location

  • Dragon Rise Group Holdings Limited
  • Office K
  • 12th Floor
  • Shatin
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6829SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2018

Biography

Dragon Rise Group Holdings Limited, an investment holding company, provides foundation works services as a subcontractor in Hong Kong. Its activities include excavation and lateral support works, and pile cap construction works; disposal of excavated materials from piling; and ancillary services, including dismantling of shoring, site formation, steel fixing, and site clearance. The company was founded in 1993 and is headquartered in Shatin, Hong Kong. Dragon Rise Group Holdings Limited is a subsidiary of Fame Circle Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 13:31
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.