SEHK:8142

Stock Analysis Report

Tak Lee Machinery Holdings

Executive Summary

Tak Lee Machinery Holdings Limited, an investment holding company, engages in the sale and leasing of new and used earthmoving equipment in Hong Kong.


Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8142's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.9%

8142

3.1%

HK Trade Distributors

0.2%

HK Market


1 Year Return

-16.2%

8142

-37.1%

HK Trade Distributors

-22.0%

HK Market

Return vs Industry: 8142 exceeded the Hong Kong Trade Distributors industry which returned -37.8% over the past year.

Return vs Market: 8142 exceeded the Hong Kong Market which returned -21.6% over the past year.


Shareholder returns

8142IndustryMarket
7 Day0.9%3.1%0.2%
30 Day-6.7%-22.4%-10.8%
90 Day-11.2%-28.2%-16.5%
1 Year-10.6%-16.2%-34.7%-37.1%-19.1%-22.0%
3 Yearn/a-34.4%-40.0%-3.7%-13.4%
5 Yearn/a-65.6%-70.9%-15.2%-28.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tak Lee Machinery 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: 8142 (HK$0.22) is trading below our estimate of fair value (HK$1.84)

Significantly Below Fair Value: 8142 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8142 is good value based on its PE Ratio (4.7x) compared to the Trade Distributors industry average (8.5x).

PE vs Market: 8142 is good value based on its PE Ratio (4.7x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8142's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8142 is overvalued based on its PB Ratio (0.6x) compared to the HK Trade Distributors industry average (0.4x).


Next Steps

Future Growth

How is Tak Lee Machinery Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.9%

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 Tak Lee Machinery 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 Tak Lee Machinery Holdings performed over the past 5 years?

24.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8142 has high quality earnings.

Growing Profit Margin: 8142's current net profit margins (7.3%) are lower than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: 8142's earnings have grown significantly by 24.3% per year over the past 5 years.

Accelerating Growth: 8142's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8142 had negative earnings growth (-15.3%) over the past year, making it difficult to compare to the Trade Distributors industry average (-1.1%).


Return on Equity

High ROE: 8142's Return on Equity (12.1%) is considered low.


Next Steps

Financial Health

How is Tak Lee Machinery Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8142's short term assets (HK$393.5M) exceed its short term liabilities (HK$137.3M).

Long Term Liabilities: 8142's short term assets (HK$393.5M) exceed its long term liabilities (HK$23.2M).


Debt to Equity History and Analysis

Debt Level: 8142's debt to equity ratio (26.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 8142's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8142's debt is well covered by operating cash flow (22.7%).

Interest Coverage: 8142's interest payments on its debt are well covered by EBIT (10.6x coverage).


Balance Sheet

Inventory Level: 8142 has a high level of physical assets or inventory.

Debt Coverage by Assets: 8142's debt is covered by short term assets (assets are 3.7x debt).


Next Steps

Dividend

What is Tak Lee Machinery Holdings's current dividend yield, its reliability and sustainability?

2.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 8142's dividend (2.25%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.57%).

High Dividend: 8142's dividend (2.25%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.33%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 8142's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 8142's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: Unable to calculate sustainability of dividends as 8142 has not reported any payouts.


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?

3.3yrs

Average board tenure


CEO

Luen Fat Chow (45yo)

no data

Tenure

HK$2,989,000

Compensation

Mr. Luen Fat Chow is a co-owner at Generous Way Limited. Mr. Chow serves as the chairman of the Board and the chief executive officer at Tak Lee Machinery Holdings Limited and has been its Executive Direct ...


CEO Compensation Analysis

Compensation vs Market: Luen Fat's total compensation ($USD385.59K) is above average for companies of similar size in the Hong Kong market ($USD227.09K).

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


Board Members

NamePositionTenureCompensationOwnership
Luen Fat Chow
Chairman & CEOno dataHK$2.99mno data
Wai Ying Ng
CFO, Compliance Officer3.67yrsHK$940.00kno data
Shuk Yee Liu
Executive Director3.67yrsHK$593.00kno data
Man Hin Wong
Independent Non-Executive Director2.83yrsHK$180.00kno data
Siu Man Kwok
Independent Non-Executive Director2.83yrsHK$180.00kno data
Tze Lun Law
Independent Non-Executive Director2.83yrsHK$180.00kno data
Ju Wen Cheng
Non-Executive Director19.08yrsHK$2.90mno data

3.3yrs

Average Tenure

46yo

Average Age

Experienced Board: 8142's board of directors are considered experienced (3.3 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

Tak Lee Machinery Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tak Lee Machinery Holdings Limited
  • Ticker: 8142
  • Exchange: SEHK
  • Founded: 2015
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$222.000m
  • Shares outstanding: 1.00b
  • Website: https://www.tlmc-hk.com

Number of Employees


Location

  • Tak Lee Machinery Holdings Limited
  • Lot No.117, D.D.111
  • Sheung Che Village
  • Yuen Long
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8142SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2017

Biography

Tak Lee Machinery Holdings Limited, an investment holding company, engages in the sale and leasing of new and used earthmoving equipment in Hong Kong. The company operates through Sales of Heavy Equipment and Spare Parts, Lease of Heavy Equipment, and Maintenance and Ancillary Services segments. It sells and leases heavy equipment, such as excavators, bulldozers, lifting cranes, hydraulic breakers, and others; and sells spare parts. In addition, it provides maintenance and ancillary services; and motor vehicles services. The company was incorporated in 2015 and is headquartered in Yuen Long, Hong Kong. Tak Lee Machinery Holdings Limited is a subsidiary of Generous Way Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 13:49
End of Day Share Price2020/04/03 00:00
Earnings2020/01/31
Annual Earnings2019/07/31


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.