SEHK:8601

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Boltek Holdings Limited, an investment holding company, provides engineering consultancy services with a focus on the field of infrastructure developments in Hong Kong. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8601 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

14.3%

8601

-3.8%

HK Construction

-2.6%

HK Market


1 Year Return

-22.6%

8601

-18.4%

HK Construction

-0.3%

HK Market

Return vs Industry: 8601 underperformed the Hong Kong Construction industry which returned -19.3% over the past year.

Return vs Market: 8601 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

8601IndustryMarket
7 Day14.3%-3.8%-2.6%
30 Day27.7%-6.4%-4.2%
90 Day9.6%2.5%0.7%
1 Year-22.6%-22.6%-14.1%-18.4%3.7%-0.3%
3 Yearn/a-34.9%-43.1%-5.1%-15.3%
5 Yearn/a-32.0%-43.7%25.0%4.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Boltek 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: 8601 (HK$0.24) is trading below our estimate of fair value (HK$1.77)

Significantly Below Fair Value: 8601 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8601 is poor value based on its PE Ratio (13.4x) compared to the HK Construction industry average (8.5x).

PE vs Market: 8601 is poor value based on its PE Ratio (13.4x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8601's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8601 is overvalued based on its PB Ratio (1.4x) compared to the HK Construction industry average (0.8x).


Next Steps

Future Growth

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

12.1%

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 Boltek 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 Boltek Holdings performed over the past 5 years?

3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8601 has high quality earnings.

Growing Profit Margin: 8601's current net profit margins (14.5%) are higher than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: 8601's earnings have grown by 3.7% per year over the past 5 years.

Accelerating Growth: 8601's earnings growth over the past year (84.9%) exceeds its 5-year average (3.7% per year).

Earnings vs Industry: 8601 earnings growth over the past year (84.9%) exceeded the Construction industry -5.6%.


Return on Equity

High ROE: 8601's Return on Equity (10.6%) is considered low.


Next Steps

Financial Health

How is Boltek Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8601's short term assets (HK$141.1M) exceed its short term liabilities (HK$10.3M).

Long Term Liabilities: 8601's short term assets (HK$141.1M) exceed its long term liabilities (HK$1.1M).


Debt to Equity History and Analysis

Debt Level: 8601 is debt free.

Reducing Debt: 8601 had no debt 5 years ago.

Debt Coverage: 8601 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 8601 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8601's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 8601's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 8601's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8601'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 8601's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average board tenure


CEO

Kwan Tar Cheung (59 yo)

2.08yrs

Tenure

HK$3,927,000

Compensation

Mr. Cheung Kwan Tar has been the Chairman and Chief Executive Officer of Boltek Holdings Limited since August 20, 2018 and has been its Executive Director since April 18, 2018 and also serves as its Compli ...


CEO Compensation Analysis

Compensation vs Market: Kwan Tar's total compensation ($USD506.70K) is above average for companies of similar size in the Hong Kong market ($USD229.75K).

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


Board Members

NamePositionTenureCompensationOwnership
Kwan Tar Cheung
Executive Chairman2.08yrsHK$3.93m53.25%
HK$ 102.2m
Pak Hung Ng
Executive Director2.42yrsHK$1.77mno data
Wan Fung Chan
Independent Non-Executive Director2.08yrsHK$120.00kno data
Kai Kow Chan
Independent Non-Executive Director2.08yrsHK$120.00kno data
Yu Sum Chan
Independent Non-Executive Director2.08yrsHK$120.00kno data

2.1yrs

Average Tenure

59yo

Average Age

Experienced Board: 8601's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

Company Information

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


Key Information

  • Name: Boltek Holdings Limited
  • Ticker: 8601
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$192.000m
  • Shares outstanding: 800.00m
  • Website: https://www.boltekholdings.com

Number of Employees


Location

  • Boltek Holdings Limited
  • Winning Commercial Building
  • 5th Floor
  • Tsim Sha Tsui
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8601SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2018

Biography

Boltek Holdings Limited, an investment holding company, provides engineering consultancy services with a focus on the field of infrastructure developments in Hong Kong. The company offers engineering consu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 19:27
End of Day Share Price2020/09/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.