SEHK:1867

Stock Analysis Report

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Executive Summary

LKS Holding Group Limited, an investment holding company, engages in interior fitting-out and renovation, and alteration and addition works for residential, industrial, and commercial properties in Hong Kong.


Snowflake Analysis

Adequate balance sheet with questionable track record.

Share Price & News

How has LKS Holding Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1867's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.3%

1867

2.9%

HK Commercial Services

0.7%

HK Market


1 Year Return

-44.9%

1867

68.0%

HK Commercial Services

0.4%

HK Market

Return vs Industry: 1867 underperformed the Hong Kong Commercial Services industry which returned 68% over the past year.

Return vs Market: 1867 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

1867IndustryMarket
7 Day-11.3%2.9%0.7%
30 Day27.5%18.5%-1.0%
90 Day-18.4%21.2%9.6%
1 Year-44.9%-44.9%71.7%68.0%4.5%0.4%
3 Year-5.6%-5.6%-35.3%-40.0%0.2%-10.6%
5 Yearn/a-59.8%-63.5%9.9%-8.5%

Price Volatility Vs. Market

How volatile is LKS Holding Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is LKS Holding Group undervalued compared to its fair value and its price relative to the market?

109.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1867's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1867's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1867 is poor value based on its PE Ratio (109.6x) compared to the HK Commercial Services industry average (13x).

PE vs Market: 1867 is poor value based on its PE Ratio (109.6x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1867's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1867 is overvalued based on its PB Ratio (1x) compared to the HK Commercial Services industry average (0.9x).


Next Steps

Future Growth

How is LKS Holding Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

29.0%

Forecasted Commercial Services 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 LKS Holding Group 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 LKS Holding Group performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1867 has high quality earnings.

Growing Profit Margin: 1867's current net profit margins (0.4%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: 1867's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: 1867's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1867 had negative earnings growth (-93.5%) over the past year, making it difficult to compare to the Commercial Services industry average (-0.7%).


Return on Equity

High ROE: 1867's Return on Equity (0.9%) is considered low.


Next Steps

Financial Health

How is LKS Holding Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1867's short term assets (HK$153.5M) exceed its short term liabilities (HK$42.5M).

Long Term Liabilities: 1867 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 1867's debt to equity ratio (28%) is considered satisfactory.

Reducing Debt: 1867's debt to equity ratio has increased from 16.1% to 28% over the past 5 years.

Debt Coverage: 1867's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1867's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

What is LKS Holding Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1867's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1867'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 1867's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1867's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1867'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?

3.7yrs

Average board tenure


CEO

Shui Wah Lam (43 yo)

no data

Tenure

HK$1,938,000

Compensation

Mr. Shui Wah Lam serves as Chief Executive Officer of LKS Holding Group Limited. Mr. Lam has been Executive Director at LKS Holding Group Ltd since May 5, 2016 and as its Director from February 11, 2016 to ...


CEO Compensation Analysis

Compensation vs Market: Shui Wah's total compensation ($USD250.06K) is about average for companies of similar size in the Hong Kong market ($USD232.25K).

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


Board Members

NamePositionTenureCompensationOwnership
Wan Sze Wong
Chairman & Compliance Officerno dataHK$1.09mno data
Shui Wah Lam
Co-Founderno dataHK$1.94m37.5%
HK$ 42.8m
Man Wai Ng
Independent Non-Executive Director3.67yrsHK$150.00kno data
Wai Ki Wu
Independent Non-Executive Director3.67yrsHK$150.00kno data
Ngo Yin Tsang
Independent Non-Executive Director3.67yrsHK$150.00kno data

3.7yrs

Average Tenure

43yo

Average Age

Experienced Board: 1867's board of directors are considered experienced (3.7 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

LKS Holding Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LKS Holding Group Limited
  • Ticker: 1867
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: HK$114.240m
  • Shares outstanding: 1.12b
  • Website: https://www.lksholding.com

Number of Employees


Location

  • LKS Holding Group Limited
  • Po Shau Centre
  • 21st Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1867SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2017

Biography

LKS Holding Group Limited, an investment holding company, engages in interior fitting-out and renovation, and alteration and addition works for residential, industrial, and commercial properties in Hong Ko ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/02 12:50
End of Day Share Price2020/07/31 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.