SOCAM Development
Market Cap
HK$572.8m
Last Updated
2020/08/09 12:39 UTC
Data Sources
Company Financials
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.
Rewards
Risk Analysis
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
| 983 | Industry | Market | |
|---|---|---|---|
| 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
2 months ago | Simply Wall St
Is SOCAM Development Limited (HKG:983) Better Than Average At Deploying Capital?3 months ago | Simply Wall St
Does SOCAM Development (HKG:983) Have A Healthy Balance Sheet?5 months ago | Simply Wall St
Introducing SOCAM Development (HKG:983), The Stock That Tanked 71%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
- Examine whether SOCAM Development is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- SOCAM Development competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Capital Goods industry.
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 23.58yrs | HK$10.00k | 0.083% HK$ 477.3k | |
| CEO & Executive Director | 0.83yr | HK$3.71m | no data | |
| Director of Corporate Finance | 1.58yrs | no data | no data | |
| Vice Chairman of the Construction Division | 3yrs | HK$5.67m | no data | |
| Company Secretary | 4.75yrs | no data | no data | |
| Executive Director of Shui On Building Contractors Ltd & Shui On Construction Ltd | no data | no data | no data | |
| Executive Director of Pat Davie Limited | no data | no data | no data | |
| Executive Director of SOCAM Asset Management (Hk) Limited | no data | no data | no data |
2.3yrs
Average Tenure
59yo
Average Age
Experienced Management: 983's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 23.58yrs | HK$10.00k | 0.083% HK$ 477.3k | |
| CEO & Executive Director | 0.83yr | HK$3.71m | no data | |
| Independent Non-Executive Director | 10.58yrs | HK$595.00k | no data | |
| Independent Non-Executive Director | 4.25yrs | HK$504.00k | no data | |
| Independent Non-Executive Director | 12yrs | HK$550.00k | no data | |
| Non-Executive Director | 1.58yrs | HK$299.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SHON.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Feb 1997 |
| 983 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Feb 1997 |
| HU8 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Feb 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/09 12:39 |
| End of Day Share Price | 2020/08/07 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.