SEHK:983

Stock Analysis Report

Executive Summary

SOCAM Development Limited, an investment holding company, engages in the property and construction businesses in the People’s Republic of China and Hong Kong.

Snowflake

Fundamentals

Adequate balance sheet and overvalued.

Risks

  • SOCAM Development is not covered by any analysts.

Similar Companies

Share Price & News

How has SOCAM Development's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

SEHK:983

1.1%

HK Construction

0.8%

HK Market


1 Year Return

-6.9%

SEHK:983

-11.1%

HK Construction

-4.4%

HK Market

983 outperformed the Construction industry which returned -11.1% over the past year.

983 underperformed the Market in Hong Kong which returned -4.4% over the past year.


Share holder returns

983IndustryMarket
7 Day0%1.1%0.8%
30 Day9.1%-4.7%1.5%
90 Day2.0%-13.3%-7.4%
1 Year-6.9%-6.9%-7.7%-11.1%-1.0%-4.4%
3 Year-43.1%-43.1%-12.9%-21.2%30.8%17.7%
5 Year-75.1%-75.1%11.7%-4.5%22.0%1.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SOCAM Development undervalued based on future cash flows and its price relative to the stock market?

0.27x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for SOCAM Development to establish if it is available at moderate discount.

Unable to calculate intrinsic value for SOCAM Development to establish if it is available at substantial discount.


Price Based on Earnings

SOCAM Development is loss making, we can't compare its value to the HK Construction industry average.

SOCAM Development is loss making, we can't compare the value of its earnings to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for SOCAM Development, we can't assess if its growth is good value.


Price Based on Value of Assets

SOCAM Development is good value based on assets compared to the HK Construction industry average.


Next Steps

Future Growth

How is SOCAM Development expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.8%

Forecasted Construction 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 SOCAM Development 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 SOCAM Development performed over the past 5 years?

16.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

SOCAM Development does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare SOCAM Development's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare SOCAM Development's 1-year growth to the HK Construction industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if SOCAM Development has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

SOCAM Development used its assets less efficiently than the HK Construction industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if SOCAM Development improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is SOCAM Development's financial position?


Financial Position Analysis

SOCAM Development is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

SOCAM Development's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

SOCAM Development's level of debt (130.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (87.3% vs 130.2% today).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.3x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

SOCAM Development has sufficient cash runway for more than 3 years based on current free cash flow.

SOCAM Development has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -79.7% each year.


Next Steps

Dividend

What is SOCAM Development's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate SOCAM Development's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate SOCAM Development's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as SOCAM Development has not reported any payouts.

Unable to verify if SOCAM Development's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as SOCAM Development has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of SOCAM Development's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Frankie Wong (70yo)

2.5yrs

Tenure

HK$6,990,000

Compensation

Mr. Yuet Leung Wong, also known as Frankie, has been the Chief Executive Officer and Managing Director of Shui On Holdings Ltd. since 1991. Mr. Yuet has been Chief Executive Officer, Chief Financial Office ...


CEO Compensation Analysis

Frankie's remuneration is higher than average for companies of similar size in Hong Kong.

Frankie's compensation has increased whilst company is loss making.


Management Age and Tenure

2.2yrs

Average Tenure

64yo

Average Age

The tenure for the SOCAM Development management team is about average.


Board Age and Tenure

6.3yrs

Average Tenure

68yo

Average Age

The tenure for the SOCAM Development board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Vincent Lo (71yo)

    Executive Chairman

    • Compensation: HK$30.00k
  • David Chan (64yo)

    Executive Director of Shui On Building Contractors Ltd & Shui On Construction Ltd

  • Frankie Wong (70yo)

    CEO, CFO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: HK$6.99m
  • Lawrence Choi (66yo)

    Vice Chairman of the Construction Division

    • Tenure: 1.9yrs
    • Compensation: HK$5.67m
  • Gilbert Ng (58yo)

    Executive Director of Pat Davie Limited

  • Leonard Wong (58yo)

    Executive Director of SOCAM Asset Management (Hk) Limited

  • Karen Chan

    Company Secretary

    • Tenure: 3.7yrs
  • Wilson Lam (48yo)

    Director of Corporate Finance

    • Tenure: 0.5yrs

Board Members

  • Vincent Lo (71yo)

    Executive Chairman

    • Tenure: 22.5yrs
    • Compensation: HK$30.00k
  • Frankie Wong (70yo)

    CEO, CFO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: HK$6.99m
  • Kay-Cheung Chan (73yo)

    Independent Non-Executive Director

    • Tenure: 9.5yrs
    • Compensation: HK$595.00k
  • William Timothy Addison (66yo)

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: HK$455.00k
  • Helen Li (63yo)

    Independent Non-Executive Director

    • Tenure: 10.9yrs
    • Compensation: HK$523.00k
  • Stephanie Lo (36yo)

    Non-Executive Director

    • Tenure: 0.5yrs

Company Information

SOCAM Development Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SOCAM Development Limited
  • Ticker: 983
  • Exchange: SEHK
  • Founded:
  • Industry: construction and engineering
  • Sector: capital goods
  • Market Cap: HK$779.167m
  • Shares outstanding: 383.83m
  • Website: Click here

Number of Employees


Location

  • SOCAM Development Limited
  • Shui On Centre
  • 34th Floor
  • Hong Kong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHON.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 1997
983SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 1997
HU8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 1997

Biography

SOCAM Development Limited, an investment holding company, engages in the property and construction businesses in the People’s Republic of China and Hong Kong. It operates through Property, Construction and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/20 12:40
End of Day Share Price2019/07/19 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


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.