SEHK:8523

Stock Analysis Report

Executive Summary

Sheung Moon Holdings Limited, an investment holding company, engages in the business of civil engineering construction works in Hong Kong.

Snowflake

Fundamentals

Solid track record with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.7%

8523

0.6%

HK Construction

0.3%

HK Market


1 Year Return

28.1%

8523

-14.9%

HK Construction

1.3%

HK Market

Return vs Industry: 8523 exceeded the Hong Kong Construction industry which returned -14.9% over the past year.

Return vs Market: 8523 exceeded the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

8523IndustryMarket
7 Day-5.7%0.6%0.3%
30 Day-4.7%-4.7%0.5%
90 Day-21.2%-10.5%-4.6%
1 Year28.1%28.1%-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 Sheung Moon Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sheung Moon Holdings undervalued compared to its fair value and its price relative to the market?

5.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8523's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8523's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8523 is good value based on its PE Ratio (5.6x) compared to the Construction industry average (10.3x).

PE vs Market: 8523 is good value based on its PE Ratio (5.6x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8523's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8523 is overvalued based on its PB Ratio (1.2x) compared to the HK Construction industry average (1.1x).


Next Steps

Future Growth

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

-3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8523's earnings are forecast to decline over the next 3 years (-3.3% per year).

Earnings vs Market: 8523's earnings are forecast to decline over the next 3 years (-3.3% per year).

High Growth Earnings: 8523's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 8523's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 8523'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 8523's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sheung Moon Holdings performed over the past 5 years?

44.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 8523's earnings have grown significantly by 44.3% per year over the past 5 years.

Accelerating Growth: 8523's earnings growth over the past year (114.8%) exceeds its 5-year average (44.3% per year).

Earnings vs Industry: 8523 earnings growth over the past year (114.8%) exceeded the Construction industry -12.4%.


Return on Equity

High ROE: 8523's Return on Equity (21.7%) is considered high.


Return on Assets

ROA vs Industry: 8523 has a higher Return on Assets than the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 8523's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Sheung Moon Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8523's short term assets (HK$181.8M) exceeds its short term liabilities (HK$117.6M)

Long Term Liabilities: 8523's short term assets (181.8M) exceeds its long term liabilities (13.0M)


Debt to Equity History and Analysis

Debt Level: 8523's debt to equity ratio (40%) is considered high

Reducing Debt: Insufficient data to determine if 8523's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8523's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 8523's interest payments on its debt are well covered by EBIT (12.7x coverage).


Balance Sheet

Inventory Level: 8523 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8523's debt is covered by short term assets (assets are 3.367700x debt).


Next Steps

Dividend

What is Sheung Moon Holdings'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 8523's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8523'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 8523's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8523'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 8523'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 Sheung Moon Holdings's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average board tenure


CEO

Yung Sang Lai (50yo)

0yrs

Tenure

HK$1,318,000

Compensation

Mr. Lai Yung Sang is Chief Executive Officer at Sheung Moon Holdings Limited and has been its Executive Director July 12, 2017. Mr. Lai is primarily responsible for general operations and construction proj ...


CEO Compensation Analysis

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

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


Board Age and Tenure

1.8yrs

Average Tenure

54yo

Average Age

Experienced Board: 8523'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

  • Sze Wo Tang (57yo)

    Chairman & Compliance Officer

    • Tenure: 2.4yrs
    • Compensation: HK$1.97m
  • Hing Ling Chau (44yo)

    Company Secretary

    • Tenure: 0yrs
  • Yung Sang Lai (50yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$1.32m
  • Wai Kit Sek (37yo)

    Senior Accounting Manager

    • Tenure: 0yrs

Board Members

  • Chris Wong (60yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$48.00k
  • Choi Chak Wong (54yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$48.00k
  • Sze Wo Tang (57yo)

    Chairman & Compliance Officer

    • Tenure: 2.4yrs
    • Compensation: HK$1.97m
  • Yung Sang Lai (50yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$1.32m
  • Kim Hong Leung (39yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$48.00k

Company Information

Sheung Moon Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sheung Moon Holdings Limited
  • Ticker: 8523
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$164.000m
  • Shares outstanding: 400.00m
  • Website: https://www.smcl.com.hk

Number of Employees


Location

  • Sheung Moon Holdings Limited
  • Kings Tower
  • Room A
  • Cheung Sha Wan
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8523SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2018

Biography

Sheung Moon Holdings Limited, an investment holding company, engages in the business of civil engineering construction works in Hong Kong. It undertakes site formation works, road and drainage works, and s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 13:03
End of Day Share Price2019/10/21 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.