SEHK:8305

Stock Analysis Report

Executive Summary

Tong Kee (Holding) Limited operates as a multi-disciplinary contractor in the construction industry.

Rewards

PE ratio (3.9x) is below the Hong Kong market (10.5x)

Earnings grew by 405.2% over the past year

Risk Analysis

High level of non-cash earnings

Does not have a meaningful market cap (HK$73M)

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record with adequate balance sheet.

Share Price & News

How has Tong Kee (Holding)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8305 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

8305

-1.8%

HK Construction

-3.1%

HK Market


1 Year Return

-25.4%

8305

-17.9%

HK Construction

2.3%

HK Market

Return vs Industry: 8305 underperformed the Hong Kong Construction industry which returned -16.2% over the past year.

Return vs Market: 8305 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

8305IndustryMarket
7 Day0%-1.8%-3.1%
30 Day13.8%-2.2%0.5%
90 Day-17.3%0.5%5.3%
1 Year-25.4%-25.4%-13.9%-17.9%6.1%2.3%
3 Yearn/a-29.3%-37.0%22.2%9.8%
5 Yearn/a-21.7%-33.2%18.0%-1.7%

Price Volatility Vs. Market

How volatile is Tong Kee (Holding)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tong Kee (Holding) undervalued compared to its fair value and its price relative to the market?

3.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8305's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8305's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8305 is good value based on its PE Ratio (3.9x) compared to the Construction industry average (9.9x).

PE vs Market: 8305 is good value based on its PE Ratio (3.9x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8305's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8305 is good value based on its PB Ratio (0.8x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

How is Tong Kee (Holding) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.8%

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 Tong Kee (Holding) 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 Tong Kee (Holding) performed over the past 5 years?

23.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8305 has a high level of non-cash earnings.

Growing Profit Margin: 8305's current net profit margins (7.8%) are higher than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: 8305's earnings have grown significantly by 23.4% per year over the past 5 years.

Accelerating Growth: 8305's earnings growth over the past year (405.2%) exceeds its 5-year average (23.4% per year).

Earnings vs Industry: 8305 earnings growth over the past year (405.2%) exceeded the Construction industry -12.3%.


Return on Equity

High ROE: 8305's Return on Equity (21.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tong Kee (Holding)'s financial position?


Financial Position Analysis

Short Term Liabilities: 8305's short term assets (HK$152.5M) exceed its short term liabilities (HK$81.9M).

Long Term Liabilities: 8305's short term assets (HK$152.5M) exceed its long term liabilities (HK$2.7M).


Debt to Equity History and Analysis

Debt Level: 8305's debt to equity ratio (26.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 8305's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8305's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 8305's interest payments on its debt are well covered by EBIT (21.3x coverage).


Balance Sheet

Inventory Level: 8305 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8305's debt is covered by short term assets (assets are 6.6x debt).


Next Steps

Dividend

What is Tong Kee (Holding)'s current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.2%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8305's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8305'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 8305's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8305'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 8305'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 Tong Kee (Holding)'s salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average board tenure


CEO

Tong Kee (Holding) has no CEO, or we have no data on them.


Board Age and Tenure

2.3yrs

Average Tenure

48yo

Average Age

Experienced Board: 8305's board of directors are not considered experienced ( 2.3 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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.9%.


Management Team

  • Chung Sum Heung (62yo)

    CEO, Chairman & Compliance Officer

    • Tenure: 2.3yrs
  • Alan Chan (56yo)

    Executive Director

    • Tenure: 2.3yrs
  • Yun Cheung Chau (34yo)

    Financial Controller

    • Tenure: 2.5yrs

Board Members

  • Wai Hung Ip (62yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
  • Chi Hang Chan (42yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
  • Chung Sum Heung (62yo)

    CEO, Chairman & Compliance Officer

    • Tenure: 2.3yrs
  • Alan Chan (56yo)

    Executive Director

    • Tenure: 2.3yrs
  • Joe Yee Heung (33yo)

    Non-Executive Director

    • Tenure: 2.3yrs
  • Joe Tung Heung (30yo)

    Non-Executive Director

    • Tenure: 2.3yrs
  • Wilson Ko (48yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs

Company Information

Tong Kee (Holding) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tong Kee (Holding) Limited
  • Ticker: 8305
  • Exchange: SEHK
  • Founded: 1994
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$72.800m
  • Shares outstanding: 800.00m
  • Website: https://www.tongkee.com.hk

Number of Employees


Location

  • Tong Kee (Holding) Limited
  • Office Nos. 7 & 8, Shatin Galleria
  • 8th Floor
  • Sha Tin
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8305SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2018

Biography

Tong Kee (Holding) Limited operates as a multi-disciplinary contractor in the construction industry. It is involved in the repair, alteration and addition, maintenance, modification, rehabilitation, steel, civil, and demolition works in various venues, such as residential buildings, commercial buildings, carparks, roads, footbridges, and theme parks. The company also undertakes new construction works projects, including noise mitigation works, architectural metal works, bus shelters, and dangerous goods store building, as well as innovative and creative structure comprising air balloons. In addition, it engages in the installation of cathodic protection systems consisting of sacrificial anodes protection and impressed current systems. The company was founded in 1994 and is headquartered in Sha Tin, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/22 13:11
End of Day Share Price2020/01/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.