SEHK:8217

Stock Analysis Report

Luen Wong Group Holdings

Executive Summary

Luen Wong Group Holdings Limited, an investment holding company, operates as a subcontractor in civil engineering works in Hong Kong.

Snowflake

Fundamentals

Mediocre balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

10.7%

8217

-0.1%

HK Construction

0.8%

HK Market


1 Year Return

-14.4%

8217

-17.4%

HK Construction

0.5%

HK Market

Return vs Industry: 8217 exceeded the Hong Kong Construction industry which returned -17.4% over the past year.

Return vs Market: 8217 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

8217IndustryMarket
7 Day10.7%-0.1%0.8%
30 Day-2.4%-4.0%-0.5%
90 Day-16.2%-11.7%-5.6%
1 Year-14.4%-14.4%-13.9%-17.4%4.1%0.5%
3 Year-99.5%-99.5%-26.8%-34.8%15.5%3.9%
5 Yearn/a0.2%-14.8%19.9%-0.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Luen Wong Group Holdings undervalued compared to its fair value and its price relative to the market?

1.26x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate 8217's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate 8217's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8217 is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: 8217 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 8217's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8217 is overvalued based on its PB Ratio (1.3x) compared to the HK Construction industry average (1.1x).


Next Steps

Future Growth

How is Luen Wong Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

44.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8217 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 8217 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 8217 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if 8217's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 8217's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 8217's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Luen Wong Group Holdings performed over the past 5 years?

-51.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 8217 is unprofitable, and losses have increased over the past 5 years at a rate of -51% per year.

Accelerating Growth: Unable to compare 8217's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8217 is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-12.4%).


Return on Equity

High ROE: 8217 has a negative Return on Equity (-33.26%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 8217 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 8217 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Luen Wong Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8217's short term assets (HK$226.0M) exceeds its short term liabilities (HK$176.0M)

Long Term Liabilities: 8217's short term assets (226.0M) exceeds its long term liabilities (4.6M)


Debt to Equity History and Analysis

Debt Level: 8217's debt to equity ratio (161.2%) is considered high

Reducing Debt: 8217 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: 8217's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 8217's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 8217 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8217's debt is covered by short term assets (assets are 1.700830x debt).


Next Steps

Dividend

What is Luen Wong Group Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 8217's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8217's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 8217's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8217'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 8217's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Luen Wong Group Holdings's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Luen Wong Group Holdings has no CEO, or we have no data on them.


Management Age and Tenure

1.5yrs

Average Tenure

35yo

Average Age

Experienced Management: 8217's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

1.9yrs

Average Tenure

37yo

Average Age

Experienced Board: 8217's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Kwok Hung So (37yo)

    Chairman & Compliance Officer

    • Tenure: 1.4yrs
    • Compensation: HK$180.00k
  • Xiao Yu (38yo)

    Executive Director

    • Tenure: 1.9yrs
    • Compensation: HK$68.00k
  • Pan So (33yo)

    Company Secretary

    • Tenure: 1.4yrs
  • Ka Law (26yo)

    Financial Controller

    • Tenure: 1.9yrs

Board Members

  • Chi Wong (33yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: HK$120.00k
  • Tai Henry (33yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: HK$120.00k
  • Kwok Hung So (37yo)

    Chairman & Compliance Officer

    • Tenure: 1.4yrs
    • Compensation: HK$180.00k
  • Honghao Liao (59yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: HK$102.00k
  • Xiao Yu (38yo)

    Executive Director

    • Tenure: 1.9yrs
    • Compensation: HK$68.00k

Company Information

Luen Wong Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Luen Wong Group Holdings Limited
  • Ticker: 8217
  • Exchange: SEHK
  • Founded: 2015
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$103.584m
  • Shares outstanding: 1.25b
  • Website: https://www.luenwong.hk

Number of Employees


Location

  • Luen Wong Group Holdings Limited
  • Gee Tuck Building
  • 7th Floor
  • Sheung Wan
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8217SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2016

Biography

Luen Wong Group Holdings Limited, an investment holding company, operates as a subcontractor in civil engineering works in Hong Kong. It undertakes civil engineering works, including roads and drainage wor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:50
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.