SEHK:8072

Stock Analysis Report

Executive Summary

Roma Group Limited, an investment holding company, provides valuation and technical advisory services in Hong Kong.


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8072's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.6%

8072

2.7%

HK Professional Services

-0.6%

HK Market


1 Year Return

-64.8%

8072

-25.9%

HK Professional Services

-7.6%

HK Market

Return vs Industry: 8072 underperformed the Hong Kong Professional Services industry which returned -25.9% over the past year.

Return vs Market: 8072 underperformed the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

8072IndustryMarket
7 Day1.6%2.7%-0.6%
30 Day3.3%0.05%-1.4%
90 Day44.2%20.1%2.0%
1 Year-64.8%-64.8%-25.8%-25.9%-4.2%-7.6%
3 Year-90.9%-91.4%-42.9%-43.5%12.9%1.5%
5 Year-92.4%-92.8%-33.5%-35.0%13.1%-5.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.079x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8072's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8072's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8072 is unprofitable, so we can't compare its PE Ratio to the Professional Services industry average.

PE vs Market: 8072 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8072's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8072 is good value based on its PB Ratio (0.1x) compared to the HK Professional Services industry average (2.8x).


Next Steps

Future Growth

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

16.4%

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 Roma 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 Roma Group performed over the past 5 years?

-69.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8072 is currently unprofitable.

Growing Profit Margin: 8072 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8072 is unprofitable, and losses have increased over the past 5 years at a rate of -69% per year.

Accelerating Growth: Unable to compare 8072's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8072 is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (11.3%).


Return on Equity

High ROE: 8072 has a negative Return on Equity (-12.12%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Roma Group's financial position?


Financial Position Analysis

Short Term Liabilities: 8072's short term assets (HK$599.2M) exceed its short term liabilities (HK$256.5M).

Long Term Liabilities: 8072's short term assets (HK$599.2M) exceed its long term liabilities (HK$2.5M).


Debt to Equity History and Analysis

Debt Level: 8072's debt to equity ratio (18.9%) is considered satisfactory.

Reducing Debt: 8072's debt to equity ratio has increased from 12.5% to 18.9% over the past 5 years.


Balance Sheet

Inventory Level: 8072 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8072's debt is covered by short term assets (assets are 6x 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.

Stable Cash Runway: 8072 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: 8072 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Roma Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8072's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8072's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 8072's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8072'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 8072'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?

5.9yrs

Average management tenure


CEO

Ken Yue (54yo)

2.8yrs

Tenure

HK$3,831,000

Compensation

Mr. Kwai Wa Yue, also known as Ken, AICPA, has been Chairman of the Board at Roma Group Limited since December 18, 2017, Chief Executive Officer since October 1, 2017 and as its Compliance Officer and Com ...


CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD491.93K) is above average for companies of similar size in the Hong Kong market ($USD226.13K).

Compensation vs Earnings: Ken's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Kwai Wa Yue
Chairman2.8yrsHK$3.83m11.11% HK$4.6m
Sheung Him Li
Project Director & Executive Director1.8yrsHK$2.29mno data
Kam Sau Cheng
Accounts and Administrative Officer0yrsno datano data
Huen Ling Luk
Head of Marketing Department9yrsno datano data
Chung Nga Kwan
Head of Business Valuation10.5yrsno datano data
Kam Hong Wong
Chief Strategy Officer2.7yrsno datano data
Frank Wong
Director and Head of Property Valuation & Corporate Advisory0.4yrsno datano data
Wing Yue Lam
Senior Analyst0yrsno datano data

5.9yrs

Average Tenure

41yo

Average Age

Experienced Management: 8072's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kwai Wa Yue
Chairman2.8yrsHK$3.83m11.11% HK$4.6m
Sheung Him Li
Project Director & Executive Director1.8yrsHK$2.29mno data
Wai Lun Ko
Independent Non-Executive Director5.9yrsHK$120.00kno data
Wai Lun Man
Independent Non-Executive Director0.9yrsHK$7.00kno data
Tak Yin Li
Independent Non-Executive Director2.4yrsHK$120.00kno data

2.2yrs

Average Tenure

46yo

Average Age

Experienced Board: 8072's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Roma Group Limited
  • Ticker: 8072
  • Exchange: SEHK
  • Founded:
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: HK$41.181m
  • Shares outstanding: 135.02m
  • Website: https://www.romagroup.com

Number of Employees


Location

  • Roma Group Limited
  • China Overseas Building
  • 22nd Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8072SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2013

Biography

Roma Group Limited, an investment holding company, provides valuation and technical advisory services in Hong Kong. The company offers valuation services for business and intangible assets, such as business contracts, mining and exploration rights, customer relationships, franchises, distribution and publicity rights, technology and software applications, trademarks, patents, copyrights, domain names, Websites, and publication rights; and natural resources valuation and technical advisory services, including exploration planning, project feasibility study, resource estimation, evaluation, environmental and social, and risk management services. It also provides valuation services for financial instruments comprising accumulators/decumulators, call and put options, convertible bonds, convertible preference shares, equity-linked investments, financial guarantees, forward/futures contracts, share options, structured products, swap contracts, and warrants; property valuation services for various types of properties; credit and risk evaluation services; biological assets valuation services; and purchase price allocation services, as well as various services for clients’ antiques, work of art, and collectables. In addition, the company offers machineries and equipment valuation services for manufacturing processes and industrial facility installations; various technical advisory services; and corporate advisory services, such as business planning, feasibility studies, fairness opinions, risk control and management, alliance with other professional parties, advisory before issuance of financial instruments, and advisory on regulatory and accounting standards, as well as valuation-related consultancy services related to mergers and acquisitions, initial public offerings, private placements, and others. It provides marketing and event organization, financing, property investment, and ESG and credit reporting services. The company is headquartered in Wan Chai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 13:06
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.