SEHK:8535

Stock Analysis Report

Executive Summary

Vistar Holdings Limited, an investment holding company, provides electrical and mechanical engineering services in Hong Kong.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-7.4%

8535

0.6%

HK Construction

0.3%

HK Market


1 Year Return

-25.0%

8535

-14.9%

HK Construction

1.3%

HK Market

Return vs Industry: 8535 underperformed the Hong Kong Construction industry which returned -14.9% over the past year.

Return vs Market: 8535 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

8535IndustryMarket
7 Day-7.4%0.6%0.3%
30 Day16.0%-4.7%0.5%
90 Day-33.1%-10.5%-4.6%
1 Year-25.0%-25.0%-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 Vistar Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vistar 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: 8535 (HK$0.09) is trading below our estimate of fair value (HK$0.32)

Significantly Below Fair Value: 8535 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8535 is good value based on its PE Ratio (5.4x) compared to the Construction industry average (10.3x).

PE vs Market: 8535 is good value based on its PE Ratio (5.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8535's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8535 is good value based on its PB Ratio (1x) compared to the HK Construction industry average (1.1x).


Next Steps

Future Growth

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

1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8535's forecast earnings growth (1.4% per year) is below the savings rate (2%).

Earnings vs Market: 8535's earnings (1.4% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 8535's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 8535's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 8535'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 8535's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Vistar Holdings performed over the past 5 years?

27.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 8535's earnings have grown significantly by 27.5% per year over the past 5 years.

Accelerating Growth: 8535's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8535 had negative earnings growth (-24.7%) over the past year, making it difficult to compare to the Construction industry average (-12.4%).


Return on Equity

High ROE: 8535's Return on Equity (17.9%) is considered low.


Return on Assets

ROA vs Industry: 8535 has a higher Return on Assets than the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 8535's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Vistar Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8535's short term assets (HK$185.3M) exceeds its short term liabilities (HK$81.7M)

Long Term Liabilities: 8535's short term assets (185.3M) exceeds its long term liabilities (166.0K)


Debt to Equity History and Analysis

Debt Level: 8535's debt to equity ratio (1.7%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 8535's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8535's debt is well covered by operating cash flow (1305%).

Interest Coverage: 8535's interest payments on its debt are well covered by EBIT (306.1x coverage).


Balance Sheet

Inventory Level: 8535 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8535's debt is covered by short term assets (assets are 99.354950x debt).


Next Steps

Dividend

What is Vistar 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 8535's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8535'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 8535's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8535'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 8535'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 Vistar Holdings's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average board tenure


CEO

Keung Poon (61yo)

2.3yrs

Tenure

HK$1,153,000

Compensation

Mr. Poon Ken Ching, also known as Keung, has been Chairman and Chief Executive Officer of Vistar Holdings Ltd since July 17, 2017 and also has been its Executive Director since June 27, 2017. Mr. Poon also ...


CEO Compensation Analysis

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

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


Board Age and Tenure

2.3yrs

Average Tenure

52yo

Average Age

Experienced Board: 8535'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


Management Team

  • Garry Ng (56yo)

    Financial Controller

    • Tenure: 0yrs
  • Keung Poon (61yo)

    Chairman

    • Tenure: 2.3yrs
    • Compensation: HK$1.15m
  • Tommy Poon (52yo)

    Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$943.00k
  • Kwok Wai Ng (51yo)

    Senior Project Manager & Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$863.00k
  • Seky Or (38yo)

    Company Secretary

    • Tenure: 1.8yrs

Board Members

  • Odilia Poon (59yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$176.00k
  • Keung Poon (61yo)

    Chairman

    • Tenure: 2.3yrs
    • Compensation: HK$1.15m
  • Tommy Poon (52yo)

    Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$943.00k
  • Kwok Wai Ng (51yo)

    Senior Project Manager & Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$863.00k
  • Chung Hing Yung (58yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$120.00k
  • Chung Wai Lam (39yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$120.00k
  • Stephen Chan (36yo)

    Independent Non-Executive Director

    • Tenure: 0.08yrs

Company Information

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


Key Information

  • Name: Vistar Holdings Limited
  • Ticker: 8535
  • Exchange: SEHK
  • Founded: 2017
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$104.400m
  • Shares outstanding: 1.20b
  • Website: https://www.vistarholdings.com

Number of Employees


Location

  • Vistar Holdings Limited
  • Tak King Industrial Building
  • 13th Floor
  • Chai Wan
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8535SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2018

Biography

Vistar Holdings Limited, an investment holding company, provides electrical and mechanical engineering services in Hong Kong. The company operates through three segments: Installation Work, Alteration and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:54
End of Day Share Price2019/10/22 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.