SEHK:983

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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 Analysis

Fair value with questionable track record.


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

Stable Share Price: 983 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

983

1.1%

HK Construction

1.2%

HK Market


1 Year Return

-19.5%

983

-15.4%

HK Construction

5.4%

HK Market

Return vs Industry: 983 underperformed the Hong Kong Construction industry which returned -15.4% over the past year.

Return vs Market: 983 underperformed the Hong Kong Market which returned 5.4% over the past year.


Shareholder returns

983IndustryMarket
7 Day-1.3%1.1%1.2%
30 Day-6.7%-2.9%-4.4%
90 Day-16.8%-1.0%7.6%
1 Year-19.5%-19.5%-11.0%-15.4%9.7%5.4%
3 Year-23.5%-23.5%-35.1%-43.3%3.5%-7.6%
5 Year-72.7%-72.7%-38.7%-49.2%12.0%-6.8%

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 compared to its fair value and its price relative to the market?

35.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 983 (HK$1.53) is trading below our estimate of fair value (HK$2.36)

Significantly Below Fair Value: 983 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 983 is poor value based on its PE Ratio (83.7x) compared to the HK Construction industry average (8x).

PE vs Market: 983 is poor value based on its PE Ratio (83.7x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 983's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 983 is good value based on its PB Ratio (0.2x) compared to the HK Construction industry average (0.8x).


Next Steps

Future Growth

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

10.3%

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 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?

38.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 983 has a large one-off gain of HK$140.0M impacting its December 31 2019 financial results.

Growing Profit Margin: 983 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 983 has become profitable over the past 5 years, growing earnings by 38.2% per year.

Accelerating Growth: 983 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 983 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (-6.4%).


Return on Equity

High ROE: 983's Return on Equity (2.6%) is considered low.


Next Steps

Financial Health

How is SOCAM Development's financial position?


Financial Position Analysis

Short Term Liabilities: 983's short term assets (HK$4.6B) do not cover its short term liabilities (HK$5.5B).

Long Term Liabilities: 983's short term assets (HK$4.6B) exceed its long term liabilities (HK$997.0M).


Debt to Equity History and Analysis

Debt Level: 983's debt to equity ratio (101.9%) is considered high.

Reducing Debt: 983's debt to equity ratio has increased from 84.3% to 101.9% over the past 5 years.

Debt Coverage: 983's debt is not well covered by operating cash flow (11.1%).

Interest Coverage: 983's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 983's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 983'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 983's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 983's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 983 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 983'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?

2.3yrs

Average management tenure


CEO

Freddy Lee (58 yo)

0.83

Tenure

HK$3,711,000

Compensation

Mr. Chun Kong Lee, also known as Freddy, has been Chief Executive Officer and Executive Director of SOCAM Development Limited since October 1, 2019. He served as the Chief Executive Officer of Shui On Land ...


CEO Compensation Analysis

Compensation vs Market: Freddy's total compensation ($USD478.82K) is above average for companies of similar size in the Hong Kong market ($USD230.44K).

Compensation vs Earnings: Insufficient data to compare Freddy's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Hong Sui Lo
Executive Chairman23.58yrsHK$10.00k0.083%
HK$ 477.3k
Chun Kong Lee
CEO & Executive Director0.83yrHK$3.71mno data
Kwok Kong Lam
Director of Corporate Finance1.58yrsno datano data
Yuk Keung Choi
Vice Chairman of the Construction Division3yrsHK$5.67mno data
Yeuk Ho Chan
Company Secretary4.75yrsno datano data
Ngai Shing Chan
Executive Director of Shui On Building Contractors Ltd & Shui On Construction Ltdno datano datano data
Yat Hon Ng
Executive Director of Pat Davie Limitedno datano datano data
Shing Chuen Wong
Executive Director of SOCAM Asset Management (Hk) Limitedno datano datano data

2.3yrs

Average Tenure

59yo

Average Age

Experienced Management: 983's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hong Sui Lo
Executive Chairman23.58yrsHK$10.00k0.083%
HK$ 477.3k
Chun Kong Lee
CEO & Executive Director0.83yrHK$3.71mno data
Kay-Cheung Chan
Independent Non-Executive Director10.58yrsHK$595.00kno data
William Timothy Addison
Independent Non-Executive Director4.25yrsHK$504.00kno data
Hoi Lun Li
Independent Non-Executive Director12yrsHK$550.00kno data
Bo Yue Lo
Non-Executive Director1.58yrsHK$299.00kno data

7.4yrs

Average Tenure

65.5yo

Average Age

Experienced Board: 983's board of directors are considered experienced (7.4 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.


Ownership Breakdown

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


Top Shareholders

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$572.826m
  • Shares outstanding: 374.40m
  • Website: https://www.socam.com

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 Analysis2020/08/09 12:39
End of Day Share Price2020/08/07 00:00
Earnings2019/12/31
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.