C Cheng Holdings

SEHK:1486

Snowflake Description

Excellent balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

1486

SEHK

HK$735M

Market Cap

Add to portfolio

Last updated 2019/04/19 12:56

Company description

C Cheng Holdings Limited, an investment holding company, provides architectural and building information modelling (BIM) services in the People’s Republic of China. The last earnings update was 22 days ago. More info.

Find similar companies

Add to Portfolio Compare Print

1486 Share Price and Events

7 Day Returns

-3%

SEHK:1486

-0.7%

HK Professional Services

0.5%

HK Market

1 Year Returns

-32.7%

SEHK:1486

-5.6%

HK Professional Services

-6.1%

HK Market

1486 Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
C Cheng Holdings (1486)	-3%	-2.3%	11.4%	-32.7%	28.8%	147.6%
HK Professional Services	-0.7%	-5.2%	0.9%	-5.6%	-28.5%	10.3%
HK Market	0.5%	1.1%	11.2%	-6.1%	25.9%	19.4%

1 Year Return vs Industry and Market

1486 underperformed the Professional Services industry which returned -5.6% over the past year.
1486 underperformed the Market in Hong Kong which returned -6.1% over the past year.

Price Volatility

1486

Industry

5yr Volatility vs Market

Related Companies

SingAsia Holdings

SEHK:8293

Add Compare

KNK Holdings

SEHK:8039

Add Compare

Kakiko Group

SEHK:2225

Add Compare

1486 Value

Is C Cheng 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 C Cheng 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 C Cheng Holdings.

SEHK:1486 Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Average of 1 Analyst Estimates (S&P Global)	See below
Discount Rate (Cost of Equity)	See below	8.3%
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:1486
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year HK Govt Bond Rate	2%
Equity Risk Premium	S&P Global	6.7%
Professional Services Unlevered Beta	Simply Wall St/ S&P Global	0.87
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 0.867 (1 + (1- 25%) (7.37%))	0.943
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	0.94
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 2% + (0.943 * 6.65%)	8.27%

Discounted Cash Flow Calculation for SEHK:1486 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for C Cheng 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:1486 DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (HKD, Millions)	Source	Present Value Discounted (@ 8.27%)
2019	20.18	Est @ 11.93%	18.64
2020	21.98	Est @ 8.95%	18.75
2021	23.49	Est @ 6.87%	18.51
2022	24.76	Est @ 5.41%	18.02
2023	25.85	Est @ 4.39%	17.37
2024	26.80	Est @ 3.67%	16.63
2025	27.65	Est @ 3.17%	15.85
2026	28.43	Est @ 2.82%	15.05
2027	29.16	Est @ 2.58%	14.26
2028	29.86	Est @ 2.4%	13.49
Present value of next 10 years cash flows			HK$166.57

SEHK:1486 DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₈ × (1 + g) ÷ (Discount Rate – g) = HK$29.86 × (1 + 2%) ÷ (8.27% – 2%)	HK$485.84
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = HK$485.84 ÷ (1 + 8.27%)¹⁰	HK$219.45

SEHK:1486 Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = HK$166.57 + HK$219.45	HK$386.02
Equity Value per Share (HKD)	= Total value / Shares Outstanding = HK$386.02 / 288.26	HK$1.34

SEHK:1486 Discount to Share Price
	Calculation	Result
Value per share (HKD)	From above.	HK$1.34
Current discount	Discount to share price of HK$2.55 = -1 x (HK$2.55 - HK$1.34) / HK$1.34	-90.4%

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

The current share price of C Cheng 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 C Cheng Holdings's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are C Cheng Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

SEHK:1486 PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-12-31) in HKD	HK$0.16
SEHK:1486 Share Price **	SEHK (2019-04-18) in HKD	HK$2.55
Asia Professional Services Industry PE Ratio	Median Figure of 23 Publicly-Listed Professional Services Companies	14.7x
Hong Kong Market PE Ratio	Median Figure of 1,474 Publicly-Listed Companies	12x

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

** Primary Listing of C Cheng Holdings.

SEHK:1486 PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= SEHK:1486 Share Price ÷ EPS (both in HKD) = 2.55 ÷ 0.16	15.65x

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

C Cheng Holdings is overvalued based on earnings compared to the Asia Professional Services industry average.
C Cheng Holdings is overvalued based on earnings compared to the Hong Kong market.

Price based on expected Growth

Does C Cheng Holdings's expected growth come at a high price?

Raw Data

SEHK:1486 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	15.65x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts	6.5%per year
Asia Professional Services Industry PEG Ratio	Median Figure of 5 Publicly-Listed Professional Services Companies	1.69x
Hong Kong Market PEG Ratio	Median Figure of 462 Publicly-Listed Companies	0.86x

*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 C Cheng Holdings, we can't assess if its growth is good value.

Price based on value of assets

What value do investors place on C Cheng Holdings's assets?

Raw Data

SEHK:1486 PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-12-31) in HKD	HK$1.46
SEHK:1486 Share Price *	SEHK (2019-04-18) in HKD	HK$2.55
Hong Kong Professional Services Industry PB Ratio	Median Figure of 12 Publicly-Listed Professional Services Companies	8.2x
Hong Kong Market PB Ratio	Median Figure of 2,149 Publicly-Listed Companies	1.03x

SEHK:1486 PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= SEHK:1486 Share Price ÷ Book Value per Share (both in HKD) = 2.55 ÷ 1.46	1.74x

* Primary Listing of C Cheng Holdings.

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

C Cheng Holdings is good value based on assets compared to the HK Professional Services industry average.

Value checks

We assess C Cheng Holdings's value by looking at:

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. )
Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)

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

1486 Future Performance

How is C Cheng Holdings expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

No analysts cover C Cheng 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!

6.5%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is C Cheng Holdings expected to grow at an attractive rate?

C Cheng Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.

Growth vs Market Checks

C Cheng Holdings's earnings growth is positive but not above the Hong Kong market average.
C Cheng Holdings's revenue growth is expected to exceed the Hong Kong market average.

Annual Growth Rates Comparison

Raw Data

SEHK:1486 Future Growth Rates Data Sources
Data Point	Source	Value (per year)
SEHK:1486 Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts	6.5%
SEHK:1486 Future Revenue Growth Rate	Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts	15.1%
Hong Kong Professional Services Industry Earnings Growth Rate	Market Cap Weighted Average	21.7%
Asia Professional Services Industry Revenue Growth Rate	Market Cap Weighted Average	16.2%
Hong Kong Market Earnings Growth Rate	Market Cap Weighted Average	11.6%
Hong Kong Market Revenue Growth Rate	Market Cap Weighted Average	11.2%

*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:1486 Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (3 months ago)	See Below
Future Estimates	Average of up to 1 Analyst Estimates (S&P Global)	See Below

All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1486 Future Estimates Data
Date (Data in HKD Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts
2020-12-31	915			1
2019-12-31	832			1

SEHK:1486 Past Financials Data
Date (Data in HKD Millions)	Revenue	Cash Flow	Net Income *
2018-12-31	672		47
2018-09-30	629		50
2018-06-30	587	33	54
2018-03-31	522	29	44
2017-12-31	456	25	33
2017-09-30	410	2	23
2017-06-30	364	-21	13
2017-03-31	362	4	17
2016-12-31	359	28	21
2016-09-30	348	19	23
2016-06-30	338	10	24
2016-03-31	343		26

*GAAP earnings excluding extraordinary items.

High Growth Checks

C Cheng Holdings's earnings are expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).
C Cheng Holdings's revenue is expected to grow by 15.1% yearly, however this is not considered high growth (20% yearly).

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:1486 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 1 Analyst Estimates (S&P Global)	See Below

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

SEHK:1486 Future Estimates Data
Date (Data in HKD Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts
2020-12-31
2019-12-31

SEHK:1486 Past Financials Data
Date (Data in HKD Millions)	EPS *
2018-12-31	0.16
2018-09-30	0.18
2018-06-30	0.19
2018-03-31	0.16
2017-12-31	0.13
2017-09-30	0.10
2017-06-30	0.06
2017-03-31	0.08
2016-12-31	0.11
2016-09-30	0.12
2016-06-30	0.13
2016-03-31	0.14

*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 C Cheng Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Future performance checks

We assess C Cheng Holdings's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
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.
C Cheng 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.

1486 Past Performance

How has C Cheng 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 C Cheng Holdings's growth in the last year to its industry (Professional Services).

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.

C Cheng Holdings's year on year earnings growth rate has been positive over the past 5 years.
C Cheng Holdings's 1-year earnings growth exceeds its 5-year average (40.3% vs 19.2%)
C Cheng Holdings's earnings growth has exceeded the Asia Professional Services industry average in the past year (40.3% vs 12.5%).

Earnings and Revenue History

C Cheng 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 C Cheng Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1486 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions)	Revenue	Net Income *	G+A Expenses
2018-12-31	671.60	46.98	131.78
2018-09-30	629.44	50.32	116.15
2018-06-30	587.29	53.66	100.53
2018-03-31	521.53	43.58	89.80
2017-12-31	455.77	33.49	79.06
2017-09-30	410.03	23.03	73.98
2017-06-30	364.30	12.56	68.89
2017-03-31	361.62	16.65	69.38
2016-12-31	358.94	20.75	69.88
2016-09-30	348.47	22.58	66.22
2016-06-30	338.00	24.41	62.56
2016-03-31	342.77	25.98	61.27
2015-12-31	354.80	27.67	62.86
2015-09-30	358.77	28.59	62.48
2015-06-30	382.68	28.85	75.60
2015-03-31	397.05	28.28	78.57
2014-12-31	384.38	28.80	75.07
2014-09-30	396.13	24.97	79.58
2014-06-30	359.08	18.74	66.86
2014-03-31	333.69	11.52	61.62
2013-12-31	324.01	8.98	57.52
2013-09-30	291.44	12.55	39.73
2013-06-30	287.71	19.19	36.08
2013-03-31	275.97	25.22	29.14
2012-12-31	268.28	25.36	24.64

*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.

C Cheng Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
C Cheng Holdings used its assets more efficiently than the Asia Professional Services industry average last year based on Return on Assets.
C Cheng Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

Show me more strong past performing companies in the Professional Services industry

Past performance checks

We assess C Cheng Holdings's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
C Cheng Holdings has a total score of 4/6, 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.

1486 Health

How is C Cheng 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 C Cheng Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

C Cheng Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
C Cheng Holdings's cash and other short term assets cover its long term commitments.

Balance sheet

This treemap shows a more detailed breakdown of C Cheng 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 9.8x 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 C Cheng Holdings Company Filings, last reported 3 months ago.

SEHK:1486 Past Debt and Equity Data
Date (Data in HKD Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2018-12-31	450.74	54.21	192.02
2018-09-30	450.74	54.21	192.02
2018-06-30	431.53	62.40	202.87
2018-03-31	431.53	62.40	202.87
2017-12-31	414.19	35.35	233.81
2017-09-30	414.19	35.35	233.81
2017-06-30	341.66	28.76	192.34
2017-03-31	341.66	28.76	192.34
2016-12-31	198.99	0.31	83.10
2016-09-30	198.99	0.31	83.10
2016-06-30	189.80	0.50	53.02
2016-03-31	189.80	0.50	53.02
2015-12-31	180.33	0.68	58.87
2015-09-30	180.33	0.68	58.87
2015-06-30	145.26	4.85	36.48
2015-03-31
2014-12-31	130.19	1.02	56.22
2014-09-30	116.41	1.19	48.22
2014-06-30	116.41	1.19	48.22
2014-03-31	101.73	4.49	56.93
2013-12-31	101.73	4.49	56.93
2013-09-30
2013-06-30	70.22	3.76	18.53
2013-03-31	56.61	1.76	29.61
2012-12-31	56.61	1.76	29.61

C Cheng Holdings's level of debt (12%) compared to net worth is satisfactory (less than 40%).
The level of debt compared to net worth has increased over the past 5 years (4.4% vs 12% today).
Debt is well covered by operating cash flow (60.1%, greater than 20% of total debt).
C Cheng Holdings earns more interest than it pays, coverage of interest payments is not a concern.

Show me more healthy companies in the Professional Services industry

Financial health checks

We assess C Cheng Holdings's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
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.

1486 Dividends

What is C Cheng 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

1.57%

Current annual income from C Cheng Holdings dividends.

If you bought HK$2,000 of C Cheng Holdings shares you are expected to receive HK$31 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?

C Cheng Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (1.94%).
C Cheng Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.34%).

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:1486 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 1 Analyst Estimates (S&P Global)	See Below
Asia Professional Services Industry Average Dividend Yield	Market Cap Weighted Average of 13 Stocks	2%
Hong Kong Market Average Dividend Yield	Market Cap Weighted Average of 965 Stocks	3.4%
Hong Kong Minimum Threshold Dividend Yield	10th Percentile	1.1%
Hong Kong Bottom 25% Dividend Yield	25th Percentile	1.9%
Hong Kong Top 25% Dividend Yield	75th Percentile	5.3%

Industry and Market average data is calculated daily.

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

SEHK:1486 Future Dividends Estimate Data
Date (Data in HK$)	Dividend per Share (annual)	Avg. No. Analysts
2020-12-31
2019-12-31

SEHK:1486 Past Annualized Dividends Data
Date (Data in HK$)	Dividend per share (annual)	Avg. Yield (%)
2019-03-28	0.040	1.537
2018-09-03	0.060	2.418
2018-08-22	0.060	1.849
2018-04-24	0.040	1.123
2017-05-19	0.030	1.102
2016-04-14	0.020	0.896
2016-03-24	0.020	1.084

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

C Cheng Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
Dividend payments have increased, but C Cheng Holdings only paid a dividend in the past 3 years.

Current Payout to shareholders

What portion of C Cheng Holdings's earnings are paid to the shareholders as a dividend.

Dividends paid are well covered by earnings (3.3x 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.

Income/ dividend checks

We assess C Cheng Holdings's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can C Cheng Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

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

1486 Management

What is the CEO of C Cheng 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

Chin Shing Fu

COMPENSATION	HK$7,912,000
AGE	51
TENURE AS CEO	5.3 years

CEO Bio

Mr. Chin Shing Fu has been the Chief Executive Officer and Executive Director at C Cheng Holdings Limited since December 5, 2013 and serves as its Compliance Officer. Mr. Fu joined C Cheng Holdings Group in 1991 and was promoted to the rank of director in 1998. He is primarily responsible for overseeing the overall operations and strategic planning of C Cheng Holdings Group, managing relationships with clients and exploring new business opportunities. Mr. Fu has over 22 years of experience in the architectural service industry in Hong Kong and the PRC. He has been an authorised person (architect) and a registered architect in Hong Kong since 1993 and a class 1 registered architect in the PRC since 2004. He also holds professional membership in the HKIA since 1992. He graduated from the University of Hong Kong with a bachelor 's degree of arts in architectural studies in 1988 and a bachelor 's degree in architecture in 1991.

CEO Compensation

Chin Shing's compensation has been consistent with company performance over the past year.
Chin Shing's remuneration is higher than average for companies of similar size in Hong Kong.

51

TENURE

5.3 yrs

Lambert Ma

51

Wing Sze Yu

TITLE

CFO & Company Secretary

AGE

41

Board of Directors Tenure

Average tenure and age of the C Cheng Holdings board of directors in years:

5.3

Average Tenure

Average Age

The tenure for the C Cheng Holdings board of directors is about average.

1.9 yrs

Who owns this company?

Recent Insider Trading

More shares have been bought than sold by C Cheng Holdings insiders in the past 3 months.

Show me more companies with insider buying in the Professional Services industry

Recent Insider Transactions

Announced	Type	Name	Entity	Start	End	Shares	Max Price (HK$)	Value (HK$)
13. Feb 19	Buy	Chin Shing Fu	Individual	08. Feb 19	08. Feb 19	50,000	HK$2.26	HK$113,000
19. Sep 18	Buy	Ronald Liang	Individual	17. Sep 18	17. Sep 18	100,000	HK$3.15	HK$314,960
19. Sep 18	Buy	Ronald Liang	Individual	14. Sep 18	14. Sep 18	150,000	HK$3.15	HK$472,365
12. Sep 18	Buy	Ronald Liang	Individual	07. Sep 18	07. Sep 18	200,000	HK$3.10	HK$619,980
13. Sep 18	Buy	Ronald Liang	Individual	12. Sep 18	12. Sep 18	168,000	HK$2.95	HK$495,583
06. Sep 18	Buy	Chin Shing Fu	Individual	05. Sep 18	05. Sep 18	300,000	HK$3.20	HK$960,000
05. Sep 18	Buy	Ronald Liang	Individual	04. Sep 18	04. Sep 18	300,000	HK$3.20	HK$960,001
05. Sep 18	Buy	Chin Shing Fu	Individual	31. Aug 18	31. Aug 18	480,000	HK$3.18	HK$1,526,355
05. Sep 18	Buy	Ronald Liang	Individual	03. Sep 18	03. Sep 18	450,000	HK$3.20	HK$1,439,912
03. Sep 18	Buy	Chin Shing Fu	Individual	30. Aug 18	30. Aug 18	200,000	HK$3.20	HK$639,690
21. May 18	Buy	Chin Shing Fu	Individual	21. May 18	21. May 18	30,000	HK$3.42	HK$102,678
18. May 18	Buy	Chin Shing Fu	Individual	18. May 18	18. May 18	20,000	HK$3.37	HK$67,400
16. May 18	Buy	Chin Shing Fu	Individual	16. May 18	16. May 18	50,000	HK$3.31	HK$165,600
14. May 18	Buy	Chin Shing Fu	Individual	11. May 18	11. May 18	32,000	HK$3.34	HK$106,858

Management checks

We assess C Cheng Holdings's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

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.

1486 News

Simply Wall St News

Is It Time To Consider Buying C Cheng Holdings Limited (HKG:1486)?

C Cheng Holdings Limited (HKG:1486), which is in the professional services business, and is based in Hong Kong,. … So, could the stock still be trading at a low price relative to its actual value. … Let’s take a look at C Cheng Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St - 1 day ago – Full article

Here's What C Cheng Holdings Limited's (HKG:1486) P/E Is Telling Us

We'll show how you can use C Cheng Holdings Limited's (HKG:1486) P/E ratio to inform your assessment of the investment opportunity. … Based on the last twelve months, C Cheng Holdings's P/E ratio is 16.14. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St - 1 week ago – Full article

What Investors Should Know About C Cheng Holdings Limited's (HKG:1486) Financial Strength

However, an important fact which most ignore is: how financially healthy is the business? … Understanding the company's financial health becomes. … Let's work through some financial health checks you may wish to consider if you're interested in this stock.

Simply Wall St - 3 weeks ago – Full article

How Much Did C Cheng Holdings Limited's (HKG:1486) CEO Pocket Last Year?

How Does Chin Shing Fu's Compensation Compare With Similar Sized Companies. … According to our data, C Cheng Holdings Limited has a market capitalization of HK$775m, and pays its CEO total annual compensation worth HK$7.9m. … We examined a group of similar sized companies, with market capitalizations of below HK$1.6b

Simply Wall St - 1 month ago – Full article

Did You Miss C Cheng Holdings's Impressive 150% Share Price Gain?

By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … C Cheng Holdings's earnings per share are down 0.01% per year, despite strong share price performance over five years. … In that case, the company may be sacrificing current earnings per share to drive growth

Simply Wall St - 1 month ago – Full article

Are C Cheng Holdings Limited’s (HKG:1486) Returns Worth Your While?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … How Do You Calculate Return On Capital Employed

Simply Wall St - 2 months ago – Full article

Before You Buy C Cheng Holdings Limited (HKG:1486), Consider Its Volatility

Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St - 2 months ago – Full article

Are Insiders Buying C Cheng Holdings Limited (HKG:1486) Stock?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So shareholders might well want to know whether insiders have been buying or selling shares in C Cheng Holdings Limited (HKG:1486). … Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market.

Simply Wall St - 3 months ago – Full article

What Kind Of Investor Owns Most Of C Cheng Holdings Limited (HKG:1486)?

Every investor in C Cheng Holdings Limited (HKG:1486) should be aware of the most powerful shareholder groups. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … C Cheng Holdings is a smaller company with a market capitalization of HK$669m, so it may still be flying under the radar of many institutional investors.

Simply Wall St - 3 months ago – Full article

Is C Cheng Holdings Limited's (HKG:1486) Balance Sheet A Threat To Its Future?

While small-cap stocks, such as C Cheng Holdings Limited (HKG:1486) with its market cap of HK$646m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Assessing first and foremost the financial health is. … Here are few basic financial health checks you should consider before taking the plunge.

Simply Wall St - 3 months ago – Full article

1486 Company Info

Description

C Cheng Holdings Limited, an investment holding company, provides architectural and building information modelling (BIM) services in the People’s Republic of China. It operates through Comprehensive Architectural Services and BIM Services segments. The Comprehensive Architectural Services segment offers landscape architecture, town planning, interior design, and heritage conservation services. The BIM Services segment provides BIM consultancy, professional training, and software development services. The company also provides repair and fitting out works, as well as operates related mobile application. C Cheng Holdings Limited was founded in 1985 and is headquartered in Tsim Sha Tsui, Hong Kong.

Details

Name:	C Cheng Holdings Limited
Ticker:	1486
Exchange:	SEHK
Founded:	1985
Market Cap:	HK$735,064,989
Shares outstanding:	288,260,780
Website:	http://www.cchengholdings.com
Address:	C Cheng Holdings Limited North Tower, World Finance Centre, Tsim Sha Tsui, Kowloon, Hong Kong

Listings

	Exchange Symbol	Ticker Symbol	Security	Exchange	Country	Currency	Listed on
	SEHK	1486	Ordinary Shares	The Stock Exchange of Hong Kong Ltd.	HK	HKD	20. Dec 2013

Number of employees

Current staff

1,000

C Cheng Holdings employees.

Industry

Industry:	Research and Consulting Services
Sector:	Commercial Services

Company Analysis and Financial Data Status

Area	Date (UTC time)
Company Analysis updated:	2019/04/19 12:56
End of day share price update:	2019/04/18 00:00
Last estimates confirmation:	2019/04/04
Last earnings filing:	2019/03/28
Last earnings reported:	2018/12/31
Last annual earnings reported:	2018/12/31

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.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2019, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2019)