SEHK:8423

Stock Analysis Report

Chi Ho Development Holdings

Executive Summary

Chi Ho Development Holdings Limited, through its subsidiaries, engages in renovation and maintenance, alteration and addition, and fitting-out works in Hong Kong.

Rewards

Earnings grew by 1.9% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Unstable dividend track record

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Acceptable track record with mediocre balance sheet.

Share Price & News

How has Chi Ho Development Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8423's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.7%

8423

-0.8%

HK Construction

-1.4%

HK Market


1 Year Return

-79.9%

8423

-18.0%

HK Construction

3.5%

HK Market

Return vs Industry: 8423 underperformed the Hong Kong Construction industry which returned -16.2% over the past year.

Return vs Market: 8423 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

8423IndustryMarket
7 Day-3.7%-0.8%-1.4%
30 Day-4.9%-0.9%1.8%
90 Day-23.5%0.01%6.0%
1 Year-79.7%-79.9%-14.0%-18.0%7.3%3.5%
3 Yearn/a-28.4%-36.2%23.3%10.8%
5 Yearn/a-20.8%-32.5%19.2%-0.7%

Price Volatility Vs. Market

How volatile is Chi Ho Development Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Chi Ho Development Holdings undervalued compared to its fair value and its price relative to the market?

15.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 8423 (HK$0.42) is trading above our estimate of fair value (HK$0.13)

Significantly Below Fair Value: 8423 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 8423 is poor value based on its PE Ratio (16.3x) compared to the Construction industry average (9.9x).

PE vs Market: 8423 is poor value based on its PE Ratio (16.3x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8423's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8423 is overvalued based on its PB Ratio (3.3x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

How is Chi Ho Development Holdings 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 Chi Ho Development 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 Chi Ho Development Holdings performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8423 has a high level of non-cash earnings.

Growing Profit Margin: 8423's current net profit margins (6.1%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: 8423's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: 8423's earnings growth over the past year (1.9%) is below its 5-year average (14% per year).

Earnings vs Industry: 8423 earnings growth over the past year (1.9%) exceeded the Construction industry -12.3%.


Return on Equity

High ROE: 8423's Return on Equity (20%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Chi Ho Development Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8423's short term assets (HK$286.9M) exceed its short term liabilities (HK$195.3M).

Long Term Liabilities: 8423's short term assets (HK$286.9M) exceed its long term liabilities (HK$386.0K).


Debt to Equity History and Analysis

Debt Level: 8423's debt to equity ratio (65.5%) is considered high.

Reducing Debt: Insufficient data to determine if 8423's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8423's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 8423's interest payments on its debt are well covered by EBIT (16.2x coverage).


Balance Sheet

Inventory Level: 8423 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8423's debt is covered by short term assets (assets are 4.3x debt).


Next Steps

Dividend

What is Chi Ho Development Holdings's current dividend yield, its reliability and sustainability?

2.56%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%2.2%markettop25%6.1%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 8423's dividend (2.41%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 8423's dividend (2.41%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 8423's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 8423's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.7%), 8423's dividend payments are well covered by earnings.


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

What is the CEO of Chi Ho Development Holdings's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average board tenure


CEO

Raymond Leung (50yo)

3.1yrs

Tenure

HK$1,998,000

Compensation

Mr. Ka Ho Leung, also known as Raymond, has been the Chairman and Chief Executive Officer of Chi Ho Development Holdings Limited since December 15, 2016. Mr. Leung has been Compliance Officer of Chi Ho Dev ...


CEO Compensation Analysis

Compensation vs Market: Raymond's total compensation ($USD256.97K) is about average for companies of similar size in the Hong Kong market ($USD228.16K).

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


Board Age and Tenure

2.9yrs

Average Tenure

46yo

Average Age

Experienced Board: 8423's board of directors are not considered experienced ( 2.9 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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Raymond Leung (50yo)

    Chairman

    • Tenure: 3.1yrs
    • Compensation: HK$2.00m
  • Chi Ho (46yo)

    Executive Director

    • Tenure: 3.3yrs
    • Compensation: HK$2.00m
  • Kiu Chung (33yo)

    Financial Controller & Company Secretary


    Board Members

    • Sze Yau (41yo)

      Independent Non-Executive Director

      • Tenure: 2.9yrs
      • Compensation: HK$144.00k
    • Matthew Moy (40yo)

      Independent Non-Executive Director

      • Tenure: 2.9yrs
      • Compensation: HK$144.00k
    • Derrick Leung (50yo)

      Independent Non-Executive Director

      • Tenure: 2.9yrs
      • Compensation: HK$144.00k
    • Raymond Leung (50yo)

      Chairman

      • Tenure: 3.1yrs
      • Compensation: HK$2.00m
    • Chi Ho (46yo)

      Executive Director

      • Tenure: 3.3yrs
      • Compensation: HK$2.00m

    Company Information

    Chi Ho Development Holdings Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Chi Ho Development Holdings Limited
    • Ticker: 8423
    • Exchange: SEHK
    • Founded: 2016
    • Industry: Construction and Engineering
    • Sector: Capital Goods
    • Market Cap: HK$312.000m
    • Shares outstanding: 800.00m
    • Website: https://www.chdev.com.hk

    Number of Employees


    Location

    • Chi Ho Development Holdings Limited
    • Yip Fung Industrial Building
    • Unit B1, 8th Floor
    • Kwai Chung
    • New Territories
    • Hong Kong

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    8423SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2017

    Biography

    Chi Ho Development Holdings Limited, through its subsidiaries, engages in renovation and maintenance, alteration and addition, and fitting-out works in Hong Kong. Its renovation and maintenance works include general upkeep, restoration, and enhancement of existing facilities and components of buildings, as well as their surroundings. The company’s alteration and addition works, and fitting-out works comprise alteration and addition of building layouts, structural works, and decoration works to the interior spaces and to the existing premises. Chi Ho Development Holdings Limited was founded in 2016 and is headquartered in Kwai Chung, Hong Kong. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/23 13:04
    End of Day Share Price2020/01/22 00:00
    Earnings2019/09/30
    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.