SEHK:896

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Hanison Construction Holdings

Executive Summary

Hanison Construction Holdings Limited, an investment holding company, engages in the construction business in Hong Kong.


Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 896 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

896

0.5%

HK Construction

2.3%

HK Market


1 Year Return

-18.4%

896

-15.7%

HK Construction

6.9%

HK Market

Return vs Industry: 896 underperformed the Hong Kong Construction industry which returned -15.7% over the past year.

Return vs Market: 896 underperformed the Hong Kong Market which returned 6.9% over the past year.


Shareholder returns

896IndustryMarket
7 Day-1.0%0.5%2.3%
30 Day-1.9%-2.8%-2.2%
90 Day-3.8%-0.3%10.6%
1 Year-13.0%-18.4%-11.2%-15.7%11.3%6.9%
3 Year-2.3%-33.8%-36.4%-44.4%1.8%-9.1%
5 Year-9.2%-50.0%-36.2%-47.1%14.3%-4.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hanison Construction Holdings undervalued compared to its fair value and its price relative to the market?

5.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 896 (HK$1.02) is trading above our estimate of fair value (HK$0.81)

Significantly Below Fair Value: 896 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 896 is good value based on its PE Ratio (5x) compared to the HK Construction industry average (8.1x).

PE vs Market: 896 is good value based on its PE Ratio (5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 896's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 896 is good value based on its PB Ratio (0.3x) compared to the HK Construction industry average (0.8x).


Next Steps

Future Growth

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

10.2%

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

-3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 896 has a large one-off gain of HK$180.8M impacting its March 31 2020 financial results.

Growing Profit Margin: 896's current net profit margins (23.1%) are lower than last year (29.1%).


Past Earnings Growth Analysis

Earnings Trend: 896's earnings have declined by 3.4% per year over the past 5 years.

Accelerating Growth: 896's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 896 had negative earnings growth (-60.8%) over the past year, making it difficult to compare to the Construction industry average (-7.7%).


Return on Equity

High ROE: 896's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

How is Hanison Construction Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 896's short term assets (HK$1.5B) do not cover its short term liabilities (HK$2.5B).

Long Term Liabilities: 896's short term assets (HK$1.5B) exceed its long term liabilities (HK$141.1M).


Debt to Equity History and Analysis

Debt Level: 896's debt to equity ratio (42.5%) is considered high.

Reducing Debt: 896's debt to equity ratio has increased from 37.5% to 42.5% over the past 5 years.

Debt Coverage: 896's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 896's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

7.35%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 896's dividend (7.35%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 896's dividend (7.35%) is in the top 25% of dividend payers in the Hong Kong market (6.88%)


Stability and Growth of Payments

Stable Dividend: 896's dividends per share have been stable in the past 10 years.

Growing Dividend: 896's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37%), 896's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

18.8yrs

Average board tenure


CEO

Stewart Wong (74 yo)

no data

Tenure

HK$26,651,000

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Stewart's total compensation ($USD3.44M) is above average for companies of similar size in the Hong Kong market ($USD232.25K).

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


Board Members

NamePositionTenureCompensationOwnership
Sue Toa Wong
MD & Executive Directorno dataHK$26.65m3.97%
HK$ 43.7m
Sai Ho Tai
GM & Executive Directorno dataHK$13.89m1.59%
HK$ 17.6m
Mou-Daid Cha
Non-Executive Director18.75yrsHK$1.26m0.82%
HK$ 9.1m
Pak Chan
Independent Non Executive Director18.75yrsHK$531.00k0.26%
HK$ 2.9m
Mou-Sing Cha
Non-Executive Chairmanno dataHK$6.31m40.14%
HK$ 442.3m
Tai Lun Sun
Independent Non Executive Director18.75yrsHK$531.00k0.28%
HK$ 3.1m
Tze Lau
Independent Non-Executive Director15.92yrsHK$492.00k0.39%
HK$ 4.2m
Wei Zhang
Non-Executive Director1.17yrsHK$98.00k0.39%
HK$ 4.3m

18.8yrs

Average Tenure

68.5yo

Average Age

Experienced Board: 896's board of directors are seasoned and experienced ( 18.8 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Hanison Construction Holdings Limited
  • Ticker: 896
  • Exchange: SEHK
  • Founded: 1989
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$1.102b
  • Shares outstanding: 1.09b
  • Website: https://www.hanison.com

Number of Employees


Location

  • Hanison Construction Holdings Limited
  • Kings Wing Plaza 1
  • 22nd Floor
  • Sha Tin
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
896SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2002

Biography

Hanison Construction Holdings Limited, an investment holding company, engages in the construction business in Hong Kong. It operates through seven segments: Construction; Interior and Renovation Works; Des ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 12:37
End of Day Share Price2020/08/06 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.