SEHK:8023

Stock Analysis Report

Executive Summary

Kwong Man Kee Group Limited, an investment holding company, provides engineering services to the car park flooring industry in Hong Kong.


Snowflake Analysis

Excellent balance sheet with poor track record.

Share Price & News

How has Kwong Man Kee Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8023 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.6%

8023

-0.2%

HK Construction

-0.6%

HK Market


1 Year Return

-24.1%

8023

-27.4%

HK Construction

-7.6%

HK Market

Return vs Industry: 8023 exceeded the Hong Kong Construction industry which returned -27.4% over the past year.

Return vs Market: 8023 underperformed the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

8023IndustryMarket
7 Day-9.6%-0.2%-0.6%
30 Day-6.6%-2.9%-1.2%
90 Day25.0%-3.3%3.0%
1 Year-22.7%-24.1%-23.9%-27.4%-4.2%-7.6%
3 Year-24.7%-28.0%-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 Kwong Man Kee Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kwong Man Kee Group undervalued compared to its fair value and its price relative to the market?

61.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 8023 (HK$0.43) is trading above our estimate of fair value (HK$0.1)

Significantly Below Fair Value: 8023 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 8023 is poor value based on its PE Ratio (61.1x) compared to the Construction industry average (8.9x).

PE vs Market: 8023 is poor value based on its PE Ratio (61.1x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8023's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8023 is overvalued based on its PB Ratio (3.2x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

How is Kwong Man Kee Group 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 Kwong Man Kee Group 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 Kwong Man Kee Group performed over the past 5 years?

-9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8023 has high quality earnings.

Growing Profit Margin: 8023's current net profit margins (4.2%) are lower than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: 8023's earnings have declined by -9.2% per year over the past 5 years.

Accelerating Growth: 8023's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8023 had negative earnings growth (-61.5%) over the past year, making it difficult to compare to the Construction industry average (-5.4%).


Return on Equity

High ROE: 8023's Return on Equity (5.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kwong Man Kee Group's financial position?


Financial Position Analysis

Short Term Liabilities: 8023's short term assets (HK$69.5M) exceed its short term liabilities (HK$29.0M).

Long Term Liabilities: 8023's short term assets (HK$69.5M) exceed its long term liabilities (HK$748.3K).


Debt to Equity History and Analysis

Debt Level: 8023's debt to equity ratio (13.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 8023's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8023's debt is well covered by operating cash flow (60.4%).

Interest Coverage: 8023's interest payments on its debt are well covered by EBIT (15x coverage).


Balance Sheet

Inventory Level: 8023 has a high level of physical assets or inventory.

Debt Coverage by Assets: 8023's debt is covered by short term assets (assets are 6.7x debt).


Next Steps

Dividend

What is Kwong Man Kee Group's current dividend yield, its reliability and sustainability?

1.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 8023's dividend (1.65%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 8023's dividend (1.65%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).


Stability and Growth of Payments

Stable Dividend: 8023 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 8023 has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (100.6%), 8023's dividend payments are not 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?

3.4yrs

Average board tenure


CEO

Jason Yip (43yo)

0.4yrs

Tenure

HK$1,581,985

Compensation

Mr. Kong Lok Yip, also known as Jason, serves as Chief Executive Officer of Kwong Man Kee Group Limited from September 1, 2019. He has been an Executive Director at Kwong Man Kee Group Limited since August ...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD203.14K) is about average for companies of similar size in the Hong Kong market ($USD226.13K).

Compensation vs Earnings: Insufficient data to compare Jason's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Chi Man Kwong
Chairman of the Board0yrsHK$1.15mno data
Kong Lok Yip
CEO & Executive Director0.4yrsHK$1.58mno data
Wai Man Yip
Executive Director3.7yrsHK$728.93kno data
Pui Cheung Law
Independent Non-Executive Director3.4yrsHK$120.00kno data
Wan Wah Yu
Independent Non-Executive Director3.4yrsHK$120.00kno data
Hiu Yan Wat
Independent Non-Executive Director3.4yrsHK$120.00kno data

3.4yrs

Average Tenure

44.5yo

Average Age

Experienced Board: 8023's board of directors are considered experienced (3.4 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

Kwong Man Kee Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kwong Man Kee Group Limited
  • Ticker: 8023
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$255.000m
  • Shares outstanding: 600.00m
  • Website: https://www.kmk.com.hk

Number of Employees


Location

  • Kwong Man Kee Group Limited
  • The Bedford
  • 21st Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8023SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2016

Biography

Kwong Man Kee Group Limited, an investment holding company, provides engineering services to the car park flooring industry in Hong Kong. The company offers flooring services, including application of proprietary floor coating products for providing a colorful, slip-resistance, and hard wearing surface that is resistant against water and petrochemicals; and ancillary services comprising specialized texture painting and waterproofing works. It also offers screeding and anti-skid surfacing services. The company was founded in 2002 and is headquartered in Kowloon, Hong Kong. Kwong Man Kee Group Limited is a subsidiary of Sage City Investments Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 13:30
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.