SEHK:8522

Stock Analysis Report

Executive Summary

Gain Plus Holdings Limited, an investment holding company, operates as a construction contractor for public and private sector projects in Hong Kong.

Snowflake

Fundamentals

Solid track record with excellent balance sheet.

Share Price & News

How has Gain Plus Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.4%

8522

-0.2%

HK Construction

0.9%

HK Market


1 Year Return

65.9%

8522

-17.4%

HK Construction

0.6%

HK Market

Return vs Industry: 8522 exceeded the Hong Kong Construction industry which returned -17.4% over the past year.

Return vs Market: 8522 exceeded the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

8522IndustryMarket
7 Day-1.4%-0.2%0.9%
30 Day-10.4%-2.6%0.4%
90 Day8.1%-11.7%-5.5%
1 Year65.9%65.9%-13.9%-17.4%4.2%0.6%
3 Yearn/a-26.7%-34.7%15.5%3.9%
5 Yearn/a0.5%-14.6%19.9%-0.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Gain Plus Holdings undervalued compared to its fair value and its price relative to the market?

13.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 8522 (HK$1.46) is trading above our estimate of fair value (HK$0.82)

Significantly Undervalued: 8522 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 8522 is poor value based on its PE Ratio (13.2x) compared to the Construction industry average (9.8x).

PE vs Market: 8522 is poor value based on its PE Ratio (13.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 8522's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8522 is overvalued based on its PB Ratio (3.4x) compared to the HK Construction industry average (1.1x).


Next Steps

Future Growth

How is Gain Plus Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8522's earnings are forecast to decline over the next 3 years (-5% per year).

Earnings vs Market: 8522's earnings are forecast to decline over the next 3 years (-5% per year).

High Growth Earnings: 8522's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 8522's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 8522's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 8522's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Gain Plus Holdings performed over the past 5 years?

35.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 8522's earnings have grown significantly by 35.3% per year over the past 5 years.

Accelerating Growth: 8522's earnings growth over the past year (203.9%) exceeds its 5-year average (35.3% per year).

Earnings vs Industry: 8522 earnings growth over the past year (203.9%) exceeded the Construction industry -12.4%.


Return on Equity

High ROE: 8522's Return on Equity (25.8%) is considered high.


Return on Assets

ROA vs Industry: 8522 has a higher Return on Assets than the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 8522's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Gain Plus Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8522's short term assets (HK$278.8M) exceeds its short term liabilities (HK$121.6M)

Long Term Liabilities: 8522's short term assets (278.8M) exceeds its long term liabilities (646.0K)


Debt to Equity History and Analysis

Debt Level: 8522's debt to equity ratio (3.8%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 8522's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8522's debt is well covered by operating cash flow (313%).

Interest Coverage: 8522 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 8522 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8522's debt is covered by short term assets (assets are 46.255140x debt).


Next Steps

Dividend

What is Gain Plus Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 8522's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8522'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 8522's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8522'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 8522'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 Gain Plus Holdings's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average board tenure


CEO

Man Ping Tsang (46yo)

2.3yrs

Tenure

HK$2,295,000

Compensation

Mr. Man Ping Tsang has been Chief Executive Officer and Executive Director at Gain Plus Holdings Ltd since July 27, 2017. 


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Man Ping's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

Compensation vs Earnings: Man Ping's compensation has increased by more than 20% in the past year.


Board Age and Tenure

1.8yrs

Average Tenure

43.5yo

Average Age

Experienced Board: 8522's board of directors are not considered experienced ( 1.8 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

  • Alexander Patrick Lee (37yo)

    Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$618.00k
  • Chiu kwan Tsang (56yo)

    Chairman & Compliance Officer

    • Tenure: 1.8yrs
    • Compensation: HK$2.43m
  • Man Ping Tsang (46yo)

    CEO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$2.30m
  • Alex Kwong (40yo)

    CFO & Company Secretary

    • Tenure: 2.4yrs

Board Members

  • Alexander Patrick Lee (37yo)

    Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$618.00k
  • Yeung Tak Chen (35yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$240.00k
  • Chiu kwan Tsang (56yo)

    Chairman & Compliance Officer

    • Tenure: 1.8yrs
    • Compensation: HK$2.43m
  • Man Ping Tsang (46yo)

    CEO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$2.30m
  • Chun Man So (44yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$240.00k
  • Amanda Li (43yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$240.00k

Company Information

Gain Plus Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gain Plus Holdings Limited
  • Ticker: 8522
  • Exchange: SEHK
  • Founded: 2004
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$543.120m
  • Shares outstanding: 372.00m
  • Website: https://www.doublegain.hk

Number of Employees


Location

  • Gain Plus Holdings Limited
  • Unit 1323A
  • Level 13
  • Sheung Shui
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8522SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2018

Biography

Gain Plus Holdings Limited, an investment holding company, operates as a construction contractor for public and private sector projects in Hong Kong. It offers repair, maintenance, addition, and alteration ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:53
End of Day Share Price2019/10/18 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.