SEHK:8445

Stock Analysis Report

Noble Engineering Group Holdings

Executive Summary

Noble Engineering Group Holdings Limited, an investment holding company, principally provides wet trade work services in Hong Kong.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8445 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

8445

-0.8%

HK Construction

-1.4%

HK Market


1 Year Return

-65.0%

8445

-18.0%

HK Construction

3.5%

HK Market

Return vs Industry: 8445 underperformed the Hong Kong Construction industry which returned -16.2% over the past year.

Return vs Market: 8445 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

8445IndustryMarket
7 Day-1.9%-0.8%-1.4%
30 Day6.1%-0.9%1.8%
90 Day-4.5%0.01%6.0%
1 Year-65.0%-65.0%-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 Noble Engineering Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Noble Engineering Group 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: 8445 (HK$0.09) is trading below our estimate of fair value (HK$1.09)

Significantly Below Fair Value: 8445 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8445 is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: 8445 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8445's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8445 is good value based on its PB Ratio (0.4x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

How is Noble Engineering Group 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 Noble Engineering Group 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 Noble Engineering Group Holdings performed over the past 5 years?

-2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8445 is currently unprofitable.

Growing Profit Margin: 8445 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8445 is unprofitable, and losses have increased over the past 5 years at a rate of -2.8% per year.

Accelerating Growth: Unable to compare 8445's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8445 is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-12.3%).


Return on Equity

High ROE: 8445 has a negative Return on Equity (-2.87%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Noble Engineering Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8445's short term assets (HK$131.4M) exceed its short term liabilities (HK$12.7M).

Long Term Liabilities: 8445's short term assets (HK$131.4M) exceed its long term liabilities (HK$130.0K).


Debt to Equity History and Analysis

Debt Level: 8445 is debt free.

Reducing Debt: 8445 had no debt 5 years ago.

Debt Coverage: 8445 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 8445 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 8445 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 8445's debt is covered by short term assets.


Next Steps

Dividend

What is Noble Engineering Group Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.1%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8445's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8445'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 8445's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8445'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 8445'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 Noble Engineering Group Holdings's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average board tenure


CEO

CK Tse (67yo)

1.3yrs

Tenure

HK$875,000

Compensation

Mr. Chun Kuen Tse, also known as CK, has been Executive Director of Noble Engineering Group Holdings Limited since April 12, 2017 and its Chief executive officer since September 10, 2018 and served as its  ...


CEO Compensation Analysis

Compensation vs Market: CK's total compensation ($USD112.54K) is below average for companies of similar size in the Hong Kong market ($USD228.16K).

Compensation vs Earnings: CK's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

2.3yrs

Average Tenure

51yo

Average Age

Experienced Board: 8445'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 not been meaningfully diluted in the past year.


Management Team

  • Eric Tse (70yo)

    Chairman of the Board & Compliance Officer

    • Tenure: 2.3yrs
    • Compensation: HK$875.00k
  • CK Tse (67yo)

    CEO & Executive Director

    • Tenure: 1.3yrs
    • Compensation: HK$875.00k
  • Chi Hei Tsoi (32yo)

    Financial Controller & Company Secretary


    Board Members

    • MaryAnne Chung (57yo)

      Independent Non-Executive Director

      • Tenure: 2.3yrs
      • Compensation: HK$180.00k
    • Chi Wai Tang (45yo)

      Independent Non-Executive Director

      • Tenure: 2.3yrs
      • Compensation: HK$180.00k
    • Wai Lung Chan (38yo)

      No-Executive Director

      • Tenure: 1.4yrs
      • Compensation: HK$116.00k
    • Eric Tse (70yo)

      Chairman of the Board & Compliance Officer

      • Tenure: 2.3yrs
      • Compensation: HK$875.00k
    • CK Tse (67yo)

      CEO & Executive Director

      • Tenure: 1.3yrs
      • Compensation: HK$875.00k
    • Kenji Wong (38yo)

      Independent Non-Executive Director

      • Tenure: 2.3yrs
      • Compensation: HK$180.00k

    Company Information

    Noble Engineering Group Holdings Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Noble Engineering Group Holdings Limited
    • Ticker: 8445
    • Exchange: SEHK
    • Founded: 1981
    • Industry: Construction and Engineering
    • Sector: Capital Goods
    • Market Cap: HK$55.800m
    • Shares outstanding: 600.00m
    • Website: https://www.nobleengineering.com.hk

    Number of Employees


    Location

    • Noble Engineering Group Holdings Limited
    • CRE Centre
    • Room 9
    • Cheung Sha Wan
    • Kowloon
    • Hong Kong

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    8445SEHK (The Stock Exchange of Hong Kong Ltd.)YesShare CapitalHKHKDSep 2017

    Biography

    Noble Engineering Group Holdings Limited, an investment holding company, principally provides wet trade work services in Hong Kong. The company undertakes tile and brick laying, plastering, floor screeding, and marble works. It offers wet trade services for various building construction projects, including residential, community facility, public housing, and commercial development projects in the private and public sectors. The company was formerly known as Noble Engineering Holdings Limited and changed its name to Noble Engineering Group Holdings Limited in August 2017. The company was founded in 1981 and is headquartered in Cheung Sha Wan, Hong Kong. Noble Engineering Group Holdings Limited is a subsidiary of Land Noble Holdings Limited. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/21 13:09
    End of Day Share Price2020/01/21 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.