SEHK:8402

Stock Analysis Report

GT Steel Construction Group

Executive Summary

GT Steel Construction Group Limited, an investment holding company, designs, supplies, fabricates, and erects structural steel works in Singapore and Malaysia.

Snowflake

Fundamentals

Outstanding track record with excellent balance sheet.

Share Price & News

How has GT Steel Construction Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.2%

8402

0.6%

HK Construction

0.3%

HK Market


1 Year Return

72.1%

8402

-14.9%

HK Construction

1.3%

HK Market

Return vs Industry: 8402 exceeded the Hong Kong Construction industry which returned -14.9% over the past year.

Return vs Market: 8402 exceeded the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

8402IndustryMarket
7 Day-1.2%0.6%0.3%
30 Day-1.2%-4.7%0.5%
90 Day-2.3%-10.5%-4.6%
1 Year72.1%72.1%-11.1%-14.9%4.9%1.3%
3 Yearn/a-25.3%-33.6%15.3%3.7%
5 Yearn/a0.004%-15.1%20.0%-0.006%

Price Volatility Vs. Market

How volatile is GT Steel Construction Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is GT Steel Construction Group undervalued compared to its fair value and its price relative to the market?

39.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8402 (HK$0.42) is trading below our estimate of fair value (HK$0.69)

Significantly Below Fair Value: 8402 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 8402 is good value based on its PE Ratio (5x) compared to the Construction industry average (10.3x).

PE vs Market: 8402 is good value based on its PE Ratio (5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8402's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8402 is overvalued based on its PB Ratio (1.2x) compared to the HK Construction industry average (1.1x).


Next Steps

Future Growth

How is GT Steel Construction Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8402's earnings are forecast to decline over the next 3 years (-2.2% per year).

Earnings vs Market: 8402's earnings are forecast to decline over the next 3 years (-2.2% per year).

High Growth Earnings: 8402's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 8402's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 8402's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 8402's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has GT Steel Construction Group performed over the past 5 years?

35.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 8402's earnings have grown significantly by 35.1% per year over the past 5 years.

Accelerating Growth: 8402's earnings growth over the past year (55.1%) exceeds its 5-year average (35.1% per year).

Earnings vs Industry: 8402 earnings growth over the past year (55.1%) exceeded the Construction industry -12.4%.


Return on Equity

High ROE: 8402's Return on Equity (24.1%) is considered high.


Return on Assets

ROA vs Industry: 8402 has a higher Return on Assets than the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 8402 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is GT Steel Construction Group's financial position?


Financial Position Analysis

Short Term Liabilities: 8402's short term assets (SGD36.3M) exceeds its short term liabilities (SGD9.8M)

Long Term Liabilities: 8402's short term assets (36.3M) exceeds its long term liabilities (1.4M)


Debt to Equity History and Analysis

Debt Level: 8402's debt to equity ratio (12.3%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 8402's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8402's debt is well covered by operating cash flow (29.9%).

Interest Coverage: 8402's interest payments on its debt are well covered by EBIT (48.2x coverage).


Balance Sheet

Inventory Level: 8402 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8402's debt is covered by short term assets (assets are 10.160130x debt).


Next Steps

Dividend

What is GT Steel Construction Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.2%industryaverage4.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 8402's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8402'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 8402's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8402'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 8402'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 GT Steel Construction Group's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average board tenure


CEO

GT Steel Construction Group has no CEO, or we have no data on them.


Board Age and Tenure

2.3yrs

Average Tenure

47yo

Average Age

Experienced Board: 8402'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


Management Team

  • Daniel Chan (44yo)

    Company Secretary

    • Tenure: 2.6yrs
  • Cheng Yew Ong (49yo)

    Founder

    • Tenure: 2.6yrs
    • Compensation: S$132.24k
  • Siew Khing Koh (47yo)

    Executive Director

    • Tenure: 2.7yrs
    • Compensation: S$84.24k
  • Hian Yeong Wee (64yo)

    Operation Director

    • Tenure: 0yrs

Board Members

  • Steve Tan (47yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: S$21.07k
  • Victor Tam (42yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: S$21.07k
  • Cheng Yew Ong (49yo)

    Founder

    • Tenure: 2.6yrs
    • Compensation: S$132.24k
  • Siew Khing Koh (47yo)

    Executive Director

    • Tenure: 2.7yrs
    • Compensation: S$84.24k
  • Pey Nee Chooi (51yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: S$21.07k

Company Information

GT Steel Construction Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GT Steel Construction Group Limited
  • Ticker: 8402
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$201.600m
  • Shares outstanding: 480.00m
  • Website: https://www.gt-steel.com.sg

Number of Employees


Location

  • GT Steel Construction Group Limited
  • 64 Woodlands Industrial Park E9
  • Woodlands Industrial Park E
  • Singapore
  • 757833
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8402SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2017

Biography

GT Steel Construction Group Limited, an investment holding company, designs, supplies, fabricates, and erects structural steel works in Singapore and Malaysia. The company offers steel structures for the c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 13:00
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.