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Hanison Construction Holdings

SEHK:896
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
896
SEHK
HK$1B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

Hanison Construction Holdings Limited, an investment holding company, engages in the construction businesses in the People’s Republic of China. The last earnings update was 22 days ago. More info.


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896 Share Price and Events
7 Day Returns
0.7%
SEHK:896
1%
HK Construction
1.5%
HK Market
1 Year Returns
-1.4%
SEHK:896
-10.9%
HK Construction
-4.7%
HK Market
896 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hanison Construction Holdings (896) 0.7% 7% 0.7% -1.4% 10.5% 63.1%
HK Construction 1% -4.3% -13.7% -10.9% -21.2% -2%
HK Market 1.5% 3.9% -8.2% -4.7% 18.3% 3.4%
1 Year Return vs Industry and Market
  • 896 outperformed the Construction industry which returned -10.9% over the past year.
  • 896 outperformed the Market in Hong Kong which returned -4.7% over the past year.
Price Volatility
896
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hanison Construction Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hanison Construction Holdings.

SEHK:896 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9.7%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:896
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Construction Unlevered Beta Simply Wall St/ S&P Global 1.04
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.042 (1 + (1- 25%) (24.01%))
1.154
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.15
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.154 * 6.65%)
9.68%

Discounted Cash Flow Calculation for SEHK:896 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hanison Construction Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:896 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 9.68%)
2020 91.32 Est @ 7.34% 83.26
2021 96.56 Est @ 5.74% 80.27
2022 101.01 Est @ 4.62% 76.56
2023 104.89 Est @ 3.83% 72.48
2024 108.33 Est @ 3.28% 68.26
2025 111.47 Est @ 2.9% 64.04
2026 114.40 Est @ 2.63% 59.92
2027 117.20 Est @ 2.44% 55.97
2028 119.91 Est @ 2.31% 52.21
2029 122.57 Est @ 2.22% 48.66
Present value of next 10 years cash flows HK$661.62
SEHK:896 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= HK$122.57 × (1 + 2%) ÷ (9.68% – 2%)
HK$1,628.85
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$1,628.85 ÷ (1 + 9.68%)10
HK$646.65
SEHK:896 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$661.62 + HK$646.65
HK$1,308.28
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$1,308.28 / 1,090.85
HK$1.2
SEHK:896 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$1.20
Current discount Discount to share price of HK$1.37
= -1 x (HK$1.37 - HK$1.20) / HK$1.20
-14.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Hanison Construction Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hanison Construction Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hanison Construction Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:896 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in HKD HK$0.55
SEHK:896 Share Price ** SEHK (2019-07-17) in HKD HK$1.37
Hong Kong Construction Industry PE Ratio Median Figure of 105 Publicly-Listed Construction Companies 10.15x
Hong Kong Market PE Ratio Median Figure of 1,510 Publicly-Listed Companies 10.75x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hanison Construction Holdings.

SEHK:896 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:896 Share Price ÷ EPS (both in HKD)

= 1.37 ÷ 0.55

2.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hanison Construction Holdings is good value based on earnings compared to the HK Construction industry average.
  • Hanison Construction Holdings is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Hanison Construction Holdings's expected growth come at a high price?
Raw Data
SEHK:896 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 2.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
2.5%per year
Hong Kong Construction Industry PEG Ratio Median Figure of 10 Publicly-Listed Construction Companies 0.56x
Hong Kong Market PEG Ratio Median Figure of 479 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Hanison Construction Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Hanison Construction Holdings's assets?
Raw Data
SEHK:896 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in HKD HK$3.46
SEHK:896 Share Price * SEHK (2019-07-17) in HKD HK$1.37
Hong Kong Construction Industry PB Ratio Median Figure of 136 Publicly-Listed Construction Companies 1.4x
Hong Kong Market PB Ratio Median Figure of 2,197 Publicly-Listed Companies 0.92x
SEHK:896 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:896 Share Price ÷ Book Value per Share (both in HKD)

= 1.37 ÷ 3.46

0.4x

* Primary Listing of Hanison Construction Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hanison Construction Holdings is good value based on assets compared to the HK Construction industry average.
X
Value checks
We assess Hanison Construction Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. Hanison Construction Holdings has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

  • No analysts cover Hanison Construction Holdings, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hanison Construction Holdings expected to grow at an attractive rate?
  • Hanison Construction Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Hanison Construction Holdings's earnings growth is expected to exceed the Hong Kong market average.
  • Unable to compare Hanison Construction Holdings's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:896 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:896 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 2.5%
Hong Kong Construction Industry Earnings Growth Rate Market Cap Weighted Average 7.1%
Hong Kong Construction Industry Revenue Growth Rate Market Cap Weighted Average 9.6%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average -7.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:896 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:896 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SEHK:896 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,948 566
2018-09-30 2,778 -833 829
2018-06-30 2,814 -365 723
2018-03-31 2,850 102 616
2017-12-31 2,943 147 581
2017-09-30 3,037 191 546
2017-06-30 3,127 179 531
2017-03-31 3,216 166 517
2016-12-31 3,030 216 532
2016-09-30 2,844 266 547
2016-06-30 2,734 517 592

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hanison Construction Holdings's earnings are expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Hanison Construction Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:896 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Hanison Construction Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:896 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SEHK:896 Past Financials Data
Date (Data in HKD Millions) EPS *
2019-03-31 0.55
2018-09-30 0.83
2018-06-30 0.73
2018-03-31 0.62
2017-12-31 0.59
2017-09-30 0.55
2017-06-30 0.53
2017-03-31 0.51
2016-12-31 0.55
2016-09-30 0.59
2016-06-30 0.69

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Hanison Construction Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Hanison Construction Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hanison Construction Holdings has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Hanison Construction Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hanison Construction Holdings's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hanison Construction Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • Hanison Construction Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Hanison Construction Holdings's 1-year earnings growth is negative, it can't be compared to the HK Construction industry average.
Earnings and Revenue History
Hanison Construction Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hanison Construction Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:896 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,948.12 566.22 261.07
2018-09-30 2,778.35 829.39 338.80
2018-06-30 2,813.92 722.84 319.98
2018-03-31 2,849.50 616.30 301.17
2017-12-31 2,943.49 580.96 293.32
2017-09-30 3,037.47 545.63 285.46
2017-06-30 3,126.77 531.28 270.44
2017-03-31 3,216.08 516.94 255.43
2016-12-31 3,030.19 532.17 257.50
2016-09-30 2,844.31 547.39 259.57
2016-06-30 2,733.68 591.55 276.54
2016-03-31 2,623.04 635.70 293.50
2015-12-31 2,633.47 541.79 294.47
2015-09-30 2,643.90 447.89 295.45
2015-06-30 2,369.53 433.55 265.73
2015-03-31 2,095.15 419.20 236.00
2014-12-31 1,858.60 325.36 198.70
2014-09-30 1,622.05 231.52 161.39
2014-06-30 1,624.29 193.61 159.74
2014-03-31 1,626.53 155.70 158.09
2013-12-31 1,566.41 141.96 151.04
2013-09-30 1,506.29 128.21 144.00
2013-06-30 1,530.39 158.24 155.13
2013-03-31 1,554.48 188.27 166.26
2012-12-31 1,582.18 193.82 164.87
2012-09-30 1,609.89 199.38 163.48

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hanison Construction Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hanison Construction Holdings used its assets more efficiently than the HK Construction industry average last year based on Return on Assets.
  • It is difficult to establish if Hanison Construction Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Hanison Construction Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hanison Construction Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Hanison Construction Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hanison Construction Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hanison Construction Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hanison Construction Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Hanison Construction Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hanison Construction Holdings Company Filings, last reported 3 months ago.

SEHK:896 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 3,779.44 351.00 870.03
2018-09-30 3,970.05 1,208.21 500.26
2018-06-30 3,970.05 1,208.21 500.26
2018-03-31 3,725.75 395.51 1,081.17
2017-12-31 3,725.75 395.51 1,081.17
2017-09-30 3,166.07 1,385.87 710.46
2017-06-30 3,166.07 1,385.87 710.46
2017-03-31 3,066.62 822.16 846.63
2016-12-31 3,066.62 822.16 846.63
2016-09-30 2,691.95 622.12 1,083.68
2016-06-30 2,691.95 622.12 1,083.68
2016-03-31 2,697.24 764.78 1,230.12
2015-12-31 2,697.24 764.78 1,230.12
2015-09-30 1,892.19 263.50 464.72
2015-06-30 1,892.19 263.50 464.72
2015-03-31 1,817.06 691.26 319.87
2014-12-31 1,817.06 691.26 319.87
2014-09-30 1,485.28 811.30 310.09
2014-06-30 1,485.28 811.30 310.09
2014-03-31 1,353.25 770.26 333.56
2013-12-31 1,353.25 770.26 333.56
2013-09-30 1,264.65 874.46 319.03
2013-06-30 1,264.65 874.46 319.03
2013-03-31 1,216.39 874.30 304.50
2012-12-31 1,216.39 874.30 304.50
2012-09-30 1,154.49 663.30 226.82
  • Hanison Construction Holdings's level of debt (9.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (56.9% vs 9.3% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Unable to confirm if the interest payments on Hanison Construction Holdings's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Hanison Construction Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hanison Construction Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.47%
Current annual income from Hanison Construction Holdings dividends.
If you bought HK$2,000 of Hanison Construction Holdings shares you are expected to receive HK$109 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hanison Construction Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Hanison Construction Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.75%).
Upcoming dividend payment

Purchase Hanison Construction Holdings before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:896 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Construction Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 3.9%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:896 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
SEHK:896 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-06-25 0.075 5.584
2018-11-20 0.075 5.420
2018-07-19 0.072 5.235
2018-06-26 0.072 5.183
2017-07-20 0.072 4.987
2017-06-13 0.072 4.817
2016-07-22 0.075 5.469
2016-06-08 0.075 6.014
2015-07-27 0.044 3.211
2015-06-23 0.044 1.966
2014-07-28 0.040 3.558
2014-06-24 0.040 4.807
2013-07-29 0.040 4.866
2013-06-25 0.040 4.749
2012-11-20 0.033 3.568
2012-06-19 0.031 4.316
2011-11-22 0.031 4.752
2011-06-21 0.031 4.457
2010-06-23 0.033 4.325
2009-12-03 0.017 2.317
2009-06-22 0.010 1.978
2008-12-01 0.020 8.089

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Hanison Construction Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (7.3x 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.
X
Income/ dividend checks
We assess Hanison Construction Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hanison Construction Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hanison Construction Holdings has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Stewart Wong
COMPENSATION HK$38,139,000
AGE 73
CEO Bio

Mr. Sue Toa Wong, also known as Stewart, serves as the Managing Director of Hanison Construction Holdings Ltd. Mr. Wong joined Hanison Construction Holdings Ltd. in 1989. He has extensive experience in the construction and real estate fields. He has been Executive Director of Hanison Construction Holdings Ltd. since 1989. He served as Director for several listed companies and served as Director of HKRI until his resignation in December 2001. Mr. Wong holds a Bachelor Degree in Science from San Diego State University and a master degree of science in civil engineering from Carnegie-Mellon University in the United States of America.

CEO Compensation
  • Stewart's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Stewart's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team

Stewart Wong

TITLE
MD & Executive Director
COMPENSATION
HK$38M
AGE
73

Casey Lo

TITLE
Financial Controller
COMPENSATION
HK$3M
AGE
68
TENURE
23.5 yrs

David Tai

TITLE
GM & Executive Director
COMPENSATION
HK$20M
AGE
68
Board of Directors Tenure

Average tenure and age of the Hanison Construction Holdings board of directors in years:

17.7
Average Tenure
68
Average Age
  • The average tenure for the Hanison Construction Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Payson Cha

TITLE
Non-Executive Chairman
COMPENSATION
HK$12M
AGE
76

Stewart Wong

TITLE
MD & Executive Director
COMPENSATION
HK$38M
AGE
73
TENURE
30.5 yrs

Casey Lo

TITLE
Financial Controller
COMPENSATION
HK$3M
AGE
68
TENURE
1.6 yrs

David Tai

TITLE
GM & Executive Director
COMPENSATION
HK$20M
AGE
68

Pak Chan

TITLE
Independent Non Executive Director
COMPENSATION
HK$2M
AGE
66
TENURE
17.7 yrs

Dennis Sun

TITLE
Independent Non Executive Director
COMPENSATION
HK$2M
AGE
68
TENURE
17.7 yrs

Peter Lau

TITLE
Independent Non-Executive Director
COMPENSATION
HK$1M
AGE
60
TENURE
14.8 yrs

Johnson Cha

TITLE
Non-Executive Director
COMPENSATION
HK$7M
AGE
67
TENURE
17.7 yrs

Wei Zhang

TITLE
Non-Executive Director
AGE
64
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Hanison Construction Holdings individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
28. Jun 19 Buy Mou Sing Cha Individual 28. Jun 19 28. Jun 19 1,000,000 HK$1.35 HK$1,347,596
28. Jun 19 Buy Mou Sing Cha Individual 27. Jun 19 27. Jun 19 250,000 HK$1.34 HK$334,550
27. Jun 19 Buy Kai Lo Individual 26. Jun 19 26. Jun 19 100,000 HK$1.31 HK$131,000
27. Jun 19 Buy Kai Lo Individual 27. Jun 19 27. Jun 19 400,000 HK$1.33 HK$529,001
29. Mar 19 Buy Kai Lo Individual 28. Mar 19 28. Mar 19 180,000 HK$1.33 HK$239,400
29. Mar 19 Buy Kai Lo Individual 27. Mar 19 27. Mar 19 48,000 HK$1.32 HK$63,360
05. Mar 19 Buy Mou Sing Cha Individual 28. Feb 19 28. Feb 19 1,000,000 HK$1.69 HK$1,690,003
21. Mar 19 Buy Kai Lo Individual 20. Mar 19 20. Mar 19 106,000 HK$1.32 HK$139,920
07. Mar 19 Buy Kai Lo Individual 05. Mar 19 05. Mar 19 632,000 HK$1.32 HK$829,918
06. Mar 19 Buy Mou Sing Cha Individual 01. Mar 19 01. Mar 19 956,000 HK$1.67 HK$1,596,523
01. Mar 19 Buy Mou Sing Cha Individual 26. Feb 19 26. Feb 19 1,000,000 HK$1.73 HK$1,729,999
28. Feb 19 Buy Mou Sing Cha Individual 25. Feb 19 25. Feb 19 426,000 HK$1.70 HK$724,200
X
Management checks
We assess Hanison Construction Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hanison Construction Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why Hanison Construction Holdings Limited's (HKG:896) CEO Pay Matters To You

According to our data, Hanison Construction Holdings Limited has a market capitalization of HK$1.5b, and pays its CEO total annual compensation worth HK$38m. … Thus we can conclude that Stewart Wong receives more in total compensation than the median of a group of companies in the same market, and of similar size to Hanison Construction Holdings Limited. … We compared total CEO remuneration at Hanison Construction Holdings Limited with the amount paid at companies with a similar market capitalization.

Simply Wall St -

Do You Like Hanison Construction Holdings Limited (HKG:896) At This P/E Ratio?

See our latest analysis for Hanison Construction Holdings How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Hanison Construction Holdings: P/E of 2.49 = HK$1.36 ÷ HK$0.55 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … SEHK:896 Price Estimation Relative to Market, July 3rd 2019 Its relatively low P/E ratio indicates that Hanison Construction Holdings shareholders think it will struggle to do as well as other companies in its industry classification.

Simply Wall St -

How Do Hanison Construction Holdings Limited’s (HKG:896) Returns Compare To Its Industry?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Hanison Construction Holdings: 0.013 = HK$52m ÷ (HK$6.5b - HK$2.3b) (Based on the trailing twelve months to September 2018.) Therefore, Hanison Construction Holdings has an ROCE of 1.3%. … How Hanison Construction Holdings's Current Liabilities Impact Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … With a medium level of current liabilities boosting the ROCE a little, Hanison Construction Holdings's low ROCE is unappealing.

Simply Wall St -

Do Hanison Construction Holdings's (HKG:896) Earnings Warrant Your Attention?

In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Hanison Construction Holdings (HKG:896). … Hanison Construction Holdings's Earnings Per Share Are Growing. … I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats).

Simply Wall St -

Does The Hanison Construction Holdings Limited (HKG:896) Share Price Tend To Follow The Market?

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider.

Simply Wall St -

Should Hanison Construction Holdings (HKG:896) Be Disappointed With Their 68% Profit?

For example, the Hanison Construction Holdings Limited (HKG:896) share price is up 68% in the last 5 years, clearly besting than the market return of around 18% (ignoring dividends). … Over half a decade, Hanison Construction Holdings managed to grow its earnings per share at 34% a year. … It might be well worthwhile taking a look at our free report on Hanison Construction Holdings's earnings, revenue and cash flow.

Simply Wall St -

Do Institutions Own Hanison Construction Holdings Limited (HKG:896) Shares?

A look at the shareholders of Hanison Construction Holdings Limited (HKG:896) can tell us which group is most powerful. … With a market capitalization of HK$1.5b, Hanison Construction Holdings is a small cap stock, so it might not be well known by many institutional investors. … Check out our latest analysis for Hanison Construction Holdings

Simply Wall St -

How Much Are Hanison Construction Holdings Limited (HKG:896) Insiders Spending On Buying Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Hanison Construction Holdings Limited (HKG:896). … The Last 12 Months Of Insider Transactions At Hanison Construction Holdings. … In total, Hanison Construction Holdings insiders bought more than they sold over the last year

Simply Wall St -

Does Hanison Construction Holdings Limited's (HKG:896) CEO Pay Reflect Performance?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Stewart Wong's Compensation Compare With Similar Sized Companies. … Our data indicates that Hanison Construction Holdings Limited is worth HK$1.5b, and total annual CEO compensation is HK$38m.

Simply Wall St -

How Do Hanison Construction Holdings Limited’s (HKG:896) Returns Compare To Its Industry?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … How Do You Calculate Return On Capital Employed?

Simply Wall St -

Company Info

Description

Hanison Construction Holdings Limited, an investment holding company, engages in the construction businesses in the People’s Republic of China. It operates through seven segments: Construction, Interior and Renovation Works, Supply and Installation of Building Materials, Sale of Health Products, Property Investment, Property Development, and Provision of Property Agency and Management Services. The company operates as a builder for residential, commercial, and industrial properties, as well as educational and recreational facilities; and provides design-and-build services. It is also involved in supplying and installing building materials, such as kitchen cabinets, timber flooring, engineering flooring, suspended ceiling systems, firex boards, and poly boards to developers and main contractors; and supplying plumbing pipes and tubes, fittings, and other related accessories, including galvanized pipes, black pipes, stainless steel pipes and tubes, and polyethylene pipes. In addition, the company engages in the maintenance and renovation of clubhouses, shopping arcades, office premises, residential properties, industrial buildings, and institutional facilities; and property/project development consisting of land acquisition/feasibility study, design, construction, sales, and marketing services. Further, it provides property agency and management services, such as property management, rental collection, agency, and leasing services; and sells health supplements, health care equipment, and traditional Chinese medicine. Additionally, the company manufactures and sells building materials; and provides plant maintenance services. As of March 31, 2018, it operated 10 retail outlets under the HealthPlus name. Hanison Construction Holdings Limited was founded in 1989 and is headquartered in Shatin, Hong Kong.

Details
Name: Hanison Construction Holdings Limited
896
Exchange: SEHK
Founded: 1989
HK$1,461,733,071
1,090,845,576
Website: http://www.hanison.com
Address: Hanison Construction Holdings Limited
Kings Wing Plaza 1,
22nd Floor,
Shatin,
New Territories, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 896 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 10. Jan 2002
OTCPK HACO.F Ordinary Shares Pink Sheets LLC US USD 10. Jan 2002
Number of employees
Current staff
Staff numbers
611
Hanison Construction Holdings employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 12:38
End of day share price update: 2019/07/17 00:00
Last estimates confirmation: 2018/06/26
Last earnings filing: 2019/06/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.