SEHK:8501

Stock Analysis Report

Executive Summary

Sanbase Corporation Limited, an investment holding company, engages in the provision of interior fit-out management and solutions in Hong Kong and the People’s Republic of China.

Snowflake

Fundamentals

Excellent balance sheet and good value.

Risks

  • Sanbase is not covered by any analysts.

Share Price & News

How has Sanbase's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

8501

-1.1%

HK Construction

-2.7%

HK Market


1 Year Return

-15.7%

8501

-20.0%

HK Construction

-9.4%

HK Market

8501 outperformed the Construction industry which returned -20% over the past year.

8501 underperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

8501IndustryMarket
7 Day0%-1.1%-2.7%
30 Day-3.6%3.9%1.8%
90 Day-16.4%-13.4%-5.6%
1 Year-11.8%-15.7%-16.6%-20.0%-6.2%-9.4%
3 Yearn/a-21.9%-29.9%14.3%2.7%
5 Yearn/a1.6%-13.9%16.7%-2.8%

Price Volatility Vs. Market

How volatile is Sanbase's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sanbase undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sanbase's share price is below the future cash flow value, and at a moderate discount (> 20%).

Sanbase's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Sanbase is good value based on earnings compared to the HK Construction industry average.

Sanbase is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Sanbase, we can't assess if its growth is good value.


Price Based on Value of Assets

Sanbase is overvalued based on assets compared to the HK Construction industry average.


Next Steps

Future Growth

How is Sanbase expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

-3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Sanbase is high growth as no revenue estimate data is available.

Sanbase's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Sanbase's revenue growth to the Hong Kong market average as no estimate data is available.

Sanbase's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

Sanbase's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Sanbase will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Sanbase performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sanbase's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Sanbase's 1-year earnings growth exceeds its 5-year average (132.6% vs -1%)

Sanbase's earnings growth has exceeded the HK Construction industry average in the past year (132.6% vs -12.9%).


Return on Equity

Sanbase has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Sanbase used its assets more efficiently than the HK Construction industry average last year based on Return on Assets.


Return on Capital Employed

Sanbase's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sanbase's financial position?


Financial Position Analysis

Sanbase is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sanbase's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Sanbase's level of debt (9.4%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Sanbase's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (357.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 95x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 28.1x debt.


Next Steps

Dividend

What is Sanbase's current dividend yield, its reliability and sustainability?

2.90%

Current Dividend Yield


Dividend Yield and Payments Analysis

Sanbase's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Sanbase's dividend is below the markets top 25% of dividend payers in Hong Kong (6.16%).

It is too early to tell whether Sanbase has stable dividend payments.

Sanbase only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Sanbase's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average board tenure


CEO

Sai Wong (44yo)

0yrs

Tenure

HK$5,162,000

Compensation

Mr. WONG Sai Chuen is the chairman, Compliance officer, chief executive officer and an executive Director of Sanbase Corporation Limited. Mr. Wong is responsible for the strategic planning, business develo ...


CEO Compensation Analysis

Sai's remuneration is higher than average for companies of similar size in Hong Kong.

Sai's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

2.0yrs

Average Tenure

42yo

Average Age

The average tenure for the Sanbase board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Sai Wong (44yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: HK$5.16m
  • Kin Wong (42yo)

    COO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: HK$4.15m
  • Maggie Hui (42yo)

    Executive Director

    • Tenure: 2.2yrs
    • Compensation: HK$1.98m
  • Tsz Li (36yo)

    Senior Finance Manager & Company secretary

    • Tenure: 2.4yrs

Board Members

  • Andrew Fan (40yo)

    Independent non-executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$240.00k
  • Keith Wu (44yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$240.00k
  • Benny Pang (46yo)

    Independent non-executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$240.00k
  • Barry Cheung (40yo)

    Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: HK$352.00k
  • Sai Wong (44yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: HK$5.16m
  • Kin Wong (42yo)

    COO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: HK$4.15m
  • Maggie Hui (42yo)

    Executive Director

    • Tenure: 2.2yrs
    • Compensation: HK$1.98m

Company Information

Sanbase Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sanbase Corporation Limited
  • Ticker: 8501
  • Exchange: SEHK
  • Founded: 2009
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$214.000m
  • Shares outstanding: 200.00m
  • Website: https://www.sanbase.com.hk

Number of Employees


Location

  • Sanbase Corporation Limited
  • Loon Kee Building
  • 16th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8501SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2018

Biography

Sanbase Corporation Limited, an investment holding company, engages in the provision of interior fit-out management and solutions in Hong Kong and the People’s Republic of China. It undertakes bare shell f ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 13:01
End of Day Share Price2019/09/20 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.