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KML Technology Group

SEHK:8065
Snowflake Description

Flawless balance sheet and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
8065
SEHK
HK$106M
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

KML Technology Group Limited, an investment holding company, provides electrical and mechanical (E&M) engineering solutions and services in Hong Kong, Singapore, Taiwan, Canada, and internationally. The last earnings update was 20 days ago. More info.


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8065 Share Price and Events
7 Day Returns
0%
SEHK:8065
1%
HK Construction
1.5%
HK Market
1 Year Returns
-23.2%
SEHK:8065
-10.9%
HK Construction
-4.7%
HK Market
8065 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
KML Technology Group (8065) 0% 0% -5.4% -23.2% - -
HK Construction 1% -4.3% -13.7% -10.9% -21.2% -2%
HK Market 1.5% 3.9% -8.2% -4.7% 18.3% 3.4%
1 Year Return vs Industry and Market
  • 8065 underperformed the Construction industry which returned -10.9% over the past year.
  • 8065 underperformed the Market in Hong Kong which returned -4.7% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

8065 Value

 Is KML Technology Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of KML Technology Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for KML Technology Group.

SEHK:8065 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:8065
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Construction Unlevered Beta Simply Wall St/ S&P Global 1.04
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.042 (1 + (1- 25%) (0%))
1.028
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.028 * 6.65%)
8.84%

Discounted Cash Flow Calculation for SEHK:8065 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for KML Technology Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:8065 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 8.84%)
2020 28.20 Est @ 29.81% 25.91
2021 34.25 Est @ 21.47% 28.91
2022 39.60 Est @ 15.63% 30.72
2023 44.18 Est @ 11.54% 31.48
2024 48.01 Est @ 8.68% 31.43
2025 51.22 Est @ 6.68% 30.81
2026 53.92 Est @ 5.27% 29.80
2027 56.23 Est @ 4.29% 28.55
2028 58.26 Est @ 3.61% 27.18
2029 60.08 Est @ 3.13% 25.75
Present value of next 10 years cash flows HK$290.52
SEHK:8065 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= HK$60.08 × (1 + 2%) ÷ (8.84% – 2%)
HK$896.12
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$896.12 ÷ (1 + 8.84%)10
HK$384.06
SEHK:8065 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$290.52 + HK$384.06
HK$674.58
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$674.58 / 400.00
HK$1.69
SEHK:8065 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$1.69
Current discount Discount to share price of HK$0.27
= -1 x (HK$0.27 - HK$1.69) / HK$1.69
84.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price KML Technology Group is available for.
Intrinsic value
>50%
Share price is HK$0.27 vs Future cash flow value of HK$1.69
Current Discount Checks
For KML Technology Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • KML Technology Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • KML Technology Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for KML Technology Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are KML Technology Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:8065 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in HKD HK$0.05
SEHK:8065 Share Price ** SEHK (2019-07-17) in HKD HK$0.27
Hong Kong Construction Industry PE Ratio Median Figure of 105 Publicly-Listed Construction Companies 10.15x
Hong Kong Market PE Ratio Median Figure of 1,510 Publicly-Listed Companies 10.75x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of KML Technology Group.

SEHK:8065 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:8065 Share Price ÷ EPS (both in HKD)

= 0.27 ÷ 0.05

5.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • KML Technology Group is good value based on earnings compared to the HK Construction industry average.
  • KML Technology Group is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does KML Technology Group's expected growth come at a high price?
Raw Data
SEHK:8065 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
5.7%per year
Hong Kong Construction Industry PEG Ratio Median Figure of 10 Publicly-Listed Construction Companies 0.56x
Hong Kong Market PEG Ratio Median Figure of 479 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for KML Technology Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on KML Technology Group's assets?
Raw Data
SEHK:8065 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in HKD HK$0.36
SEHK:8065 Share Price * SEHK (2019-07-17) in HKD HK$0.27
Hong Kong Construction Industry PB Ratio Median Figure of 136 Publicly-Listed Construction Companies 1.4x
Hong Kong Market PB Ratio Median Figure of 2,197 Publicly-Listed Companies 0.92x
SEHK:8065 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:8065 Share Price ÷ Book Value per Share (both in HKD)

= 0.27 ÷ 0.36

0.74x

* Primary Listing of KML Technology Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • KML Technology Group is good value based on assets compared to the HK Construction industry average.
X
Value checks
We assess KML Technology Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. KML Technology Group has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

8065 Future Performance

 How is KML Technology Group expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover KML Technology Group, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is KML Technology Group expected to grow at an attractive rate?
  • KML Technology Group's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • KML Technology Group's earnings growth is expected to exceed the Hong Kong market average.
  • Unable to compare KML Technology Group's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:8065 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:8065 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 5.7%
Hong Kong Construction Industry Earnings Growth Rate Market Cap Weighted Average 7.1%
Hong Kong Construction Industry Revenue Growth Rate Market Cap Weighted Average 9.6%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average -7.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:8065 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:8065 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2019-03-31 211 24 19
2018-12-31 204 16
2018-09-30 198 16 11
2018-06-30 200 -1
2018-03-31 194 -18 -2
2017-12-31 208 4
2017-09-30 197 -19 5
2017-06-30 184 17
2017-03-31 171 9 13

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • KML Technology Group's earnings are expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if KML Technology Group is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:8065 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from KML Technology Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:8065 Past Financials Data
Date (Data in HKD Millions) EPS *
2019-03-31 0.05
2018-12-31 0.05
2018-09-30 0.03
2018-06-30 0.00
2018-03-31 -0.01
2017-12-31 0.01
2017-09-30 0.02
2017-06-30 0.06
2017-03-31 0.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if KML Technology Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess KML Technology Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
KML Technology Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

8065 Past Performance

  How has KML Technology Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare KML Technology Group's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if KML Technology Group's year on year earnings growth rate was positive over the past 5 years.
  • KML Technology Group has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • KML Technology Group has become profitable in the last year making it difficult to compare the HK Construction industry average.
Earnings and Revenue History
KML Technology Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from KML Technology Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:8065 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 210.60 19.26 43.55
2018-12-31 203.53 16.28 42.40
2018-09-30 197.52 11.44 42.20
2018-06-30 200.23 -0.97 40.73
2018-03-31 193.97 -2.15 40.07
2017-12-31 207.78 3.90 43.80
2017-09-30 196.74 4.99 41.44
2017-06-30 184.02 16.87 40.06
2017-03-31 171.12 13.33 39.18
2016-03-31 163.82 22.15 35.62

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • KML Technology Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • KML Technology Group used its assets more efficiently than the HK Construction industry average last year based on Return on Assets.
  • KML Technology Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess KML Technology Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
KML Technology Group has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

8065 Health

 How is KML Technology Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up KML Technology Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • KML Technology Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • KML Technology Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of KML Technology Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • KML Technology Group has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from KML Technology Group Company Filings, last reported 3 months ago.

SEHK:8065 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 144.14 0.00 77.07
2018-12-31 132.57 0.00 86.84
2018-09-30 132.57 0.00 86.84
2018-06-30 123.80 0.00 60.27
2018-03-31 123.80 0.00 60.27
2017-12-31
2017-09-30 69.59 0.00 24.34
2017-06-30 99.40 0.00 59.27
2017-03-31 99.40 0.00 59.27
2016-03-31 96.07 0.00 57.09
  • KML Technology Group has no debt.
  • KML Technology Group has not taken on any debt in the past 5 years.
  • KML Technology Group has no debt, it does not need to be covered by operating cash flow.
  • KML Technology Group has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess KML Technology Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. KML Technology Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

8065 Dividends

 What is KML Technology Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from KML Technology Group dividends.
If you bought HK$2,000 of KML Technology Group shares you are expected to receive HK$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate KML Technology Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate KML Technology Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:8065 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Construction Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 3.9%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as KML Technology Group has not reported any payouts.
  • Unable to verify if KML Technology Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of KML Technology Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as KML Technology Group has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess KML Technology Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can KML Technology Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. KML Technology Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

8065 Management

 What is the CEO of KML Technology Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Philip Chan
COMPENSATION HK$2,060,000
AGE 57
CEO Bio

Mr. Chan Chak Lun, also known as Philip, serves as the Chief Executive Officer of KML Technology Group Limited and has been its Executive Director since June 09, 2017. Mr. Chan is responsible for overseeing the daily operations and overall general management of KML Technology Group. He has been the Managing Director of KML Engineering since April 2017. He served as Operation Director of KML Engineering from October 2009 to March 2017. Mr. Chan has more than 30 years of experience in E&M engineering, specialised in designing and developing automatic fare collection and railway transportation control systems. Mr. Chan served as an apprentice and later as a Junior Engineer Draughtsman in United Dockyards from July 1981 to September 1984, responsible for repairing ship engines and machineries, preparing drawings required for repair or conversion of ships, engineering structures or fabrications, etc. He also worked in G.E.C (Hong Kong) Limited from November 1984 to August 1985. Mr. Chan joined KML Engineering in October 1987 as a Mechanical Engineer and was subsequently promoted to Manager of Mechanical Division in January 1991 and General Manager of Advanced Products Department in May 2002. Mr. Chan has been a Director of KML Engineering since June 1991. He is a Technical Director and one of the authorised signatories appointed by KML Engineering for its qualification as a Registered Minor Works Contractor for Type A and Type C of Class I, II & III under the Buildings Ordinance since September 2011. He is a member of The Institution of Electrical Engineers (currently known as the Institution of Engineering and Technology), the United Kingdom and registered as a Chartered Engineer (CEng) by the Engineering Council (UK) in April 2003. He was elected as a member of the Institution of Mechanical Engineers, the United Kingdom, in October 2016. Mr. Chan was awarded a diploma in Shipbuilding and Ship Repair from Hong Kong Education Department (currently known as the Education Bureau of Hong Kong) in July 1981. He obtained a Higher Certificate in Mechanical Engineering from Hong Kong Polytechnic University, Hong Kong, in November 1983 and a certificate of completion of apprenticeship from United Dockyards in July 1984. He obtained a degree of Bachelor of Engineering with first class honours in mechanical engineering from the University of Newcastle, the United Kingdom, in July 1987 and a degree of Master of Science in Engineering from The University of Hong Kong, Hong Kong, in November 1993. Mr. Chan was admitted as graduate of the Hong Kong Institution of Engineers in March 1988.

CEO Compensation
  • Philip's compensation has increased in line with KML Technology Group recently becoming profitable.
  • Philip's remuneration is about average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the KML Technology Group management team in years:

9.3
Average Tenure
48
Average Age
  • The average tenure for the KML Technology Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Kam Ming Luk

TITLE
Chairman of the Board
COMPENSATION
HK$1M
AGE
72

Philip Chan

TITLE
CEO & Executive Director
COMPENSATION
HK$2M
AGE
57

Yin Cheung Luk

TITLE
Compliance Officer & Executive Director
COMPENSATION
HK$796K
AGE
40

Kwai Lung Luk

TITLE
Executive Director
COMPENSATION
HK$808K
AGE
42

Siu Wai Woo

TITLE
Company Secretary
AGE
39
TENURE
2.1 yrs

Shuk Ming Law

TITLE
Chief Accountant
AGE
48
TENURE
16.3 yrs

Tsz On Tung

TITLE
Chief Engineer
AGE
50
TENURE
9.3 yrs
Board of Directors Tenure

Average tenure and age of the KML Technology Group board of directors in years:

2
Average Tenure
53
Average Age
  • The average tenure for the KML Technology Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Kam Ming Luk

TITLE
Chairman of the Board
COMPENSATION
HK$1M
AGE
72

Philip Chan

TITLE
CEO & Executive Director
COMPENSATION
HK$2M
AGE
57
TENURE
2.1 yrs

Yin Cheung Luk

TITLE
Compliance Officer & Executive Director
COMPENSATION
HK$796K
AGE
40
TENURE
2.2 yrs

Kwai Lung Luk

TITLE
Executive Director
COMPENSATION
HK$808K
AGE
42
TENURE
2.2 yrs

Andrew Lau

TITLE
Independent Non-Executive Director
COMPENSATION
HK$144K
AGE
53
TENURE
1.8 yrs

Chi Kong Tse

TITLE
Independent Non-Executive Director
COMPENSATION
HK$144K
AGE
54
TENURE
1.8 yrs

Stephen Law

TITLE
Independent Non-Executive Director
COMPENSATION
HK$144K
AGE
48
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess KML Technology Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. KML Technology Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

8065 News

Simply Wall St News

Are KML Technology Group Limited’s (HKG:8065) Returns On Investment Worth Your While?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for KML Technology Group: 0.16 = HK$23m ÷ (HK$189m - HK$45m) (Based on the trailing twelve months to March 2019.) Therefore, KML Technology Group has an ROCE of 16%. … Do KML Technology Group's Current Liabilities Skew Its ROCE? … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Do Directors Own KML Technology Group Limited (HKG:8065) Shares?

If you want to know who really controls KML Technology Group Limited (HKG:8065), then you'll have to look at the makeup of its share registry. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … KML Technology Group is a smaller company with a market capitalization of HK$112m, so it may still be flying under the radar of many institutional investors.

Simply Wall St -

The KML Technology Group (HKG:8065) Share Price Is Down 34% So Some Shareholders Are Getting Worried

For example, the KML Technology Group Limited (HKG:8065) share price is down 34% in the last year. … During the last year KML Technology Group grew its earnings per share, moving from a loss to a profit. … When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

Simply Wall St -

Do You Know About KML Technology Group Limited’s (HKG:8065) ROCE?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Can We See Significant Insider Ownership On The KML Technology Group Limited (HKG:8065) Share Register?

The big shareholder groups in KML Technology Group Limited (HKG:8065) have power over the company. … With a market capitalization of HK$120m, KML Technology Group is a small cap stock, so it might not be well known by many institutional investors. … See our latest analysis for KML Technology Group

Simply Wall St -

Is KML Technology Group Limited (HKG:8065) A Financially Sound Company?

However, it also faces higher cost of capital given interest cost is generally lower than equity. … Does 8065's growth rate justify its decision for financial flexibility over lower cost of capital … There are well-known benefits of including debt in capital structure, primarily a lower cost of capital.

Simply Wall St -

Does KML Technology Group Limited's (HKG:8065) PE Ratio Warrant A Sell?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for 8065 Price per share = HK$0.37 Earnings per share = HK$0.006 ∴ Price-Earnings Ratio = HK$0.37 ÷ HK$0.006 = 57x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you inadvertently compared riskier firms with 8065, then investors would naturally value 8065 at a higher price since it is a less risky investment. … Similarly, if you accidentally compared lower growth firms with 8065, investors would also value 8065 at a higher price since it is a higher growth investment.

Simply Wall St -

KML Technology Group Limited (HKG:8065): Does The Earnings Decline Make It An Underperformer?

After reading KML Technology Group Limited's (SEHK:8065) latest earnings update (31 December 2017), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … See our latest analysis for KML Technology Group Despite a decline, did 8065 underperform the long-term trend and the industry? … In some cases, companies that endure a prolonged period of decline in earnings are going through some sort of reinvestment phase Though if the whole industry is struggling to grow over time, it may be a sign of a structural shift, which makes KML Technology Group and its peers a higher risk investment.

Simply Wall St -

Why KML Technology Group Limited (HKG:8065) May Not Be As Efficient As Its Industry

KML Technology Group Limited (SEHK:8065) generated a below-average return on equity of 5.60% in the past 12 months, while its industry returned 13.77%. … View our latest analysis for KML Technology Group Peeling the layers of ROE – trisecting a company’s profitability Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Since KML Technology Group’s return does not cover its cost, with a difference of -2.78%, this means its current use of equity is not efficient and not sustainable.

Simply Wall St -

Who Are The Top Investors In KML Technology Group Limited (HKG:8065)?

In this article, I'm going to take a look at KML Technology Group Limited’s (SEHK:8065) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Check out our latest analysis for KML Technology Group SEHK:8065 Ownership_summary Feb 15th 18 Insider Ownership I find insiders are another important group of stakeholders, who are directly involved in making key decisions related to the use of capital. … However, a higher level of insider ownership has been linked to management executing on high-returning projects instead of expansion projects for the sake of apparent growth.

Simply Wall St -

8065 Company Info

Description

KML Technology Group Limited, an investment holding company, provides electrical and mechanical (E&M) engineering solutions and services in Hong Kong, Singapore, Taiwan, Canada, and internationally. It operates through E&M Engineering Solutions and Services; E&M Engineering Design and Fabrication Services; E&M Engineering Maintenance Services; and Sales of Parts and Components segments. The company provides electrical and mechanical engineering solutions and services for transportation mission critical system solutions, such as automatic fare collection system, electronic payment and ticketing system, road and tunnel toll collection system, traffic control and surveillance system, and railway signaling communication and control system. It also offers security and access control system services; railway station electrical and mechanical engineering services, and architectural works, including services in relation to air-conditioning and mechanical ventilation system, fire service system, plumbing and drainage system, and electrical system; and trackside and depot electrical and mechanical engineering works. In addition, the company provides engineering design and fabrication services for the fabrication of made-to-order products, such as control room consoles, public access kiosks and terminals, relay racks, test rigs, control room technical furniture, and industrial enclosures and instrument cabinets. Further, it offers rolling stock refurbishment and modification services; and railway and road transport infrastructure project services, as well as sells railway signaling parts and components. The company serves transportation companies, engineering companies, and governmental departments. KML Technology Group Limited was founded in 1977 and is headquartered in Shatin, Hong Kong.

Details
Name: KML Technology Group Limited
8065
Exchange: SEHK
Founded: 1977
HK$106,000,000
400,000,000
Website: http://www.kml.com.hk
Address: KML Technology Group Limited
Shatin Industrial Centre,
Ground Floor,
Shatin,
New Territories, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 8065 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 16. Oct 2017
Number of employees
Current staff
Staff numbers
202
KML Technology Group employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 13:13
End of day share price update: 2019/07/17 00:00
Last earnings filing: 2019/06/27
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.