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K W Nelson Interior Design and Contracting Group

SEHK:8411
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
8411
SEHK
HK$206M
Market Cap
  1. Home
  2. HK
  3. Commercial Services
Company description

K W Nelson Interior Design and Contracting Group Limited, an investment holding company, provides interior design and project management services, and fitting-out works for office and retail spaces in the People’s Republic of China. The last earnings update was 77 days ago. More info.


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8411 Share Price and Events
7 Day Returns
-2.4%
SEHK:8411
-0.7%
HK Professional Services
0.5%
HK Market
1 Year Returns
-22.3%
SEHK:8411
-5.6%
HK Professional Services
-6.1%
HK Market
8411 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
K W Nelson Interior Design and Contracting Group (8411) -2.4% 3% 5.1% -22.3% - -
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
  • 8411 underperformed the Professional Services industry which returned -5.6% over the past year.
  • 8411 underperformed the Market in Hong Kong which returned -6.1% over the past year.
Price Volatility
8411
Industry
5yr Volatility vs Market

8411 Value

 Is K W Nelson Interior Design and Contracting Group 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 K W Nelson Interior Design and Contracting Group 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 K W Nelson Interior Design and Contracting Group.

SEHK:8411 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.1%
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:8411
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%) (0%))
0.911
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.91
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.911 * 6.65%)
8.06%

Discounted Cash Flow Calculation for SEHK:8411 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for K W Nelson Interior Design and Contracting Group 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:8411 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 8.06%)
2019 2.12 Est @ -73.24% 1.96
2020 1.05 Est @ -50.66% 0.90
2021 0.68 Est @ -34.86% 0.54
2022 0.52 Est @ -23.8% 0.38
2023 0.44 Est @ -16.06% 0.30
2024 0.39 Est @ -10.64% 0.24
2025 0.36 Est @ -6.85% 0.21
2026 0.35 Est @ -4.19% 0.19
2027 0.34 Est @ -2.33% 0.17
2028 0.34 Est @ -1.03% 0.15
Present value of next 10 years cash flows HK$5.04
SEHK:8411 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$0.34 × (1 + 2%) ÷ (8.06% – 2%)
HK$5.66
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$5.66 ÷ (1 + 8.06%)10
HK$2.61
SEHK:8411 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$5.04 + HK$2.61
HK$7.65
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$7.65 / 1,000.00
HK$0.01
SEHK:8411 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$0.01
Current discount Discount to share price of HK$0.21
= -1 x (HK$0.21 - HK$0.01) / HK$0.01
-2591.9%

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

  • The current share price of K W Nelson Interior Design and Contracting Group 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 K W Nelson Interior Design and Contracting Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are K W Nelson Interior Design and Contracting Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:8411 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.03
SEHK:8411 Share Price ** SEHK (2019-04-18) in HKD HK$0.21
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 K W Nelson Interior Design and Contracting Group.

SEHK:8411 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:8411 Share Price ÷ EPS (both in HKD)

= 0.21 ÷ 0.03

7.17x

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

  • K W Nelson Interior Design and Contracting Group is good value based on earnings compared to the Asia Professional Services industry average.
  • K W Nelson Interior Design and Contracting Group is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does K W Nelson Interior Design and Contracting Group's expected growth come at a high price?
Raw Data
SEHK:8411 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.17x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
-8.6%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 K W Nelson Interior Design and Contracting Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on K W Nelson Interior Design and Contracting Group's assets?
Raw Data
SEHK:8411 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$0.11
SEHK:8411 Share Price * SEHK (2019-04-18) in HKD HK$0.21
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:8411 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:8411 Share Price ÷ Book Value per Share (both in HKD)

= 0.21 ÷ 0.11

1.87x

* Primary Listing of K W Nelson Interior Design and Contracting Group.

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

  • K W Nelson Interior Design and Contracting Group is good value based on assets compared to the HK Professional Services industry average.
X
Value checks
We assess K W Nelson Interior Design and Contracting Group's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. K W Nelson Interior Design and Contracting Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

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

8411 Future Performance

 How is K W Nelson Interior Design and Contracting Group expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover K W Nelson Interior Design and Contracting Group, 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!
Annual Growth Rate
-8.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is K W Nelson Interior Design and Contracting Group expected to grow at an attractive rate?
  • K W Nelson Interior Design and Contracting Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.
Growth vs Market Checks
  • K W Nelson Interior Design and Contracting Group's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
  • Unable to compare K W Nelson Interior Design and Contracting Group's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:8411 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:8411 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -8.6%
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:8411 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:8411 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SEHK:8411 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 124 10 29
2018-09-30 134 34
2018-06-30 131 38 35
2018-03-31 111 31
2017-12-31 89 27 26
2017-09-30 66 12
2017-06-30 65 0 11
2017-03-31 64 10
2016-12-31 60 -6 5
2016-09-30 49 7
2016-06-30 51 -2 7
2016-03-31 43 6

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • K W Nelson Interior Design and Contracting Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if K W Nelson Interior Design and Contracting Group is high growth as no revenue estimate data is available.
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:8411 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 0 Analyst Estimates (S&P Global) See Below

All data from K W Nelson Interior Design and Contracting Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:8411 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SEHK:8411 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.03
2018-09-30 0.03
2018-06-30 0.04
2018-03-31 0.03
2017-12-31 0.03
2017-09-30 0.01
2017-06-30 0.01
2017-03-31 0.01
2016-12-31 0.01
2016-09-30 0.01
2016-06-30 0.01
2016-03-31 0.01

*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 K W Nelson Interior Design and Contracting Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess K W Nelson Interior Design and Contracting Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. 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.
K W Nelson Interior Design and Contracting Group has a total score of 0/6, 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.

8411 Past Performance

  How has K W Nelson Interior Design and Contracting Group 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 K W Nelson Interior Design and Contracting Group'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.
  • K W Nelson Interior Design and Contracting Group has delivered over 20% year on year earnings growth in the past 5 years.
  • K W Nelson Interior Design and Contracting Group's 1-year earnings growth is less than its 5-year average (10.1% vs 34.9%)
  • K W Nelson Interior Design and Contracting Group's earnings growth has not exceeded the Asia Professional Services industry average in the past year (10.1% vs 12.5%).
Earnings and Revenue History
K W Nelson Interior Design and Contracting Group'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 K W Nelson Interior Design and Contracting Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:8411 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 124.39 28.73 14.82
2018-09-30 134.12 34.26 15.39
2018-06-30 131.12 35.31 11.96
2018-03-31 111.00 30.76 8.85
2017-12-31 89.34 26.10 7.71
2017-09-30 65.65 11.58 8.00
2017-06-30 65.12 10.89 7.05
2017-03-31 64.16 10.20 5.89
2016-12-31 59.86 4.67 5.06
2016-09-30 49.38 6.76 4.66
2016-06-30 51.07 7.37 4.46
2016-03-31 42.76 5.77 4.28
2015-12-31 48.61 12.93 4.12
2014-12-31 79.98 21.81 3.42

*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.
  • K W Nelson Interior Design and Contracting Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • K W Nelson Interior Design and Contracting Group used its assets more efficiently than the Asia Professional Services industry average last year based on Return on Assets.
  • K W Nelson Interior Design and Contracting Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess K W Nelson Interior Design and Contracting Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
K W Nelson Interior Design and Contracting Group has a total score of 3/6, 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.

8411 Health

 How is K W Nelson Interior Design and Contracting Group'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 K W Nelson Interior Design and Contracting Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • K W Nelson Interior Design and Contracting Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • K W Nelson Interior Design and Contracting Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of K W Nelson Interior Design and Contracting Group'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.
  • K W Nelson Interior Design and Contracting Group has no debt, it does not need to be covered by short term assets.
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 K W Nelson Interior Design and Contracting Group Company Filings, last reported 3 months ago.

SEHK:8411 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 110.45 0.00 76.90
2018-09-30 99.71 0.00 86.49
2018-06-30 99.71 0.00 86.49
2018-03-31 83.86 0.00 74.64
2017-12-31 83.86 0.00 74.64
2017-09-30
2017-06-30 66.33 0.00 48.31
2017-03-31 57.60 0.00 44.60
2016-12-31 57.60 0.00 44.60
2016-09-30
2016-06-30 50.14 0.05 6.40
2016-03-31 47.76 0.41 4.95
2015-12-31 47.76 0.41 4.95
2014-12-31 30.06 0.43 10.97
  • K W Nelson Interior Design and Contracting Group has no debt.
  • K W Nelson Interior Design and Contracting Group currently has no debt however we can't compare to 5 years ago as we have no data for that period.
  • K W Nelson Interior Design and Contracting Group has no debt, it does not need to be covered by operating cash flow.
  • K W Nelson Interior Design and Contracting Group has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess K W Nelson Interior Design and Contracting Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. K W Nelson Interior Design and Contracting Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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.

8411 Dividends

 What is K W Nelson Interior Design and Contracting Group'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
Dividend payments
1.21%
Current annual income from K W Nelson Interior Design and Contracting Group dividends.
If you bought HK$2,000 of K W Nelson Interior Design and Contracting Group shares you are expected to receive HK$24 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?
  • K W Nelson Interior Design and Contracting Group's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (1.94%).
  • K W Nelson Interior Design and Contracting Group'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:8411 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 0 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:8411 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
SEHK:8411 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-04-09 0.003 1.226
2018-04-23 0.002 0.889

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

  • It is too early to tell whether K W Nelson Interior Design and Contracting Group has stable dividend payments.
  • K W Nelson Interior Design and Contracting Group only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of K W Nelson Interior Design and Contracting Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (11.5x 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.
X
Income/ dividend checks
We assess K W Nelson Interior Design and Contracting Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can K W Nelson Interior Design and Contracting Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. K W Nelson Interior Design and Contracting Group has a total score of 1/6, see the detailed checks below.


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

8411 Management

 What is the CEO of K W Nelson Interior Design and Contracting Group'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
Nelson Lau
COMPENSATION HK$1,983,000
AGE 53
TENURE AS CEO 3.3 years
CEO Bio

Mr. King Wai Lau, also known as Nelson, has been Chief Executive Officer and Executive Director at K W Nelson Interior Architect Group Ltd since January 07, 2016 and serves as its Chairman of the Board and Compliance Officer. Mr. Lau founded K W Nelson Interior Architect Group Ltd in February 2009 and is responsible for the overall business development, strategic planning and major decision-making. Mr. Lau has over 28 years of experience in the interior design and decoration industry. Mr. Lau started working as an architectural draftsman of King Yip Engineering & Architectural Co. from July 1985 to July 1987 and he was responsible for preparing architectural drawings. Mr. Lau worked as a site co-ordinator of OGLE Contracting Co. from September 1987 to February 1988 and he was responsible for work coordination at construction sites. He worked at Frankwell Commodities Ltd from April 1988 to 1989 and his last position was account executive responsible for supervising trading accounts of clients. Mr. Lau was a Project Director, Operator and Owner of FCS Interior Design & Contracting Co. from October 1989 to December 1990 and he was responsible for project management. He was a project director and operator of FCS Interior Design & Contracting Co. and was a branch office of Further Concept Limited from January 1991 to December 1999 and he was responsible for project management. Mr. Lau was the Chief Executive Officer of F.C.S. Interior Design and Contracting Co. Limited from January 2000 to April 2011 and he was responsible for the overall business development. F.C.S. Interior Design and Contracting Co. Limited. Mr. Lau was a Director of Further Concept Group Limited; Good Bridge Investments Limited; Top Wisdom Engineering Limited and F.C.S. Interior Design and Contracting Co. Limited. He obtained a certificate in basic site surveying and a certificate in engineering preparatory from Vocational Training Council Hong Kong in July 1984 and July 1985 respectively. He completed a distance learning course approved by Business & Technician Education Council, London at Morrison Hill Technical Institute (currently known as The Hong Kong Institute of Vocational Education (Morrison Hill)) and was awarded a national certificate in building studies by Business & Technician Education Council, London in July 1987.

CEO Compensation
  • Nelson 's compensation has increased by more than 20% in the past year.
  • Nelson 's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the K W Nelson Interior Design and Contracting Group management team in years:

3.3
Average Tenure
44
Average Age
  • The tenure for the K W Nelson Interior Design and Contracting Group management team is about average.
Management Team

Nelson Lau

TITLE
Chairman of the Board
COMPENSATION
HK$2M
AGE
53
TENURE
3.3 yrs

May Yan Leung

TITLE
Design Director & Executive Director
COMPENSATION
HK$528K
AGE
42
TENURE
10.2 yrs

Edward Wong

TITLE
Executive Director
COMPENSATION
HK$432K
AGE
41

Kevin Or

TITLE
Company Secretary
AGE
46
TENURE
1 yrs
Board of Directors Tenure

Average tenure and age of the K W Nelson Interior Design and Contracting Group board of directors in years:

2.4
Average Tenure
49.5
Average Age
  • The average tenure for the K W Nelson Interior Design and Contracting Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Nelson Lau

TITLE
Chairman of the Board
COMPENSATION
HK$2M
AGE
53

May Yan Leung

TITLE
Design Director & Executive Director
COMPENSATION
HK$528K
AGE
42
TENURE
3.2 yrs

Edward Wong

TITLE
Executive Director
COMPENSATION
HK$432K
AGE
41
TENURE
3.2 yrs

Andy Li

TITLE
Independent Non-Executive Director
COMPENSATION
HK$120K
AGE
46
TENURE
2.4 yrs

Patsy So

TITLE
Independent Non- Executive Director
COMPENSATION
HK$120K
AGE
59
TENURE
2.4 yrs

Harry Hui

TITLE
Independent Non- Executive Director
COMPENSATION
HK$120K
AGE
54
TENURE
2.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess K W Nelson Interior Design and Contracting Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. K W Nelson Interior Design and Contracting Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


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.

8411 News

Simply Wall St News

Can We See Significant Insider Ownership On The K W Nelson Interior Design and Contracting Group Limited (HKG:8411) Share Register?

If you want to know who really controls K W Nelson Interior Design and Contracting Group Limited (HKG:8411), then you'll have to look at the makeup of its share registry. … K W Nelson Interior Design and Contracting Group is a smaller company with a market capitalization of HK$200m, so it may still be flying under the radar of many institutional investors. … View our latest analysis for K W Nelson Interior Design and Contracting Group

Simply Wall St -

How Financially Strong Is K W Nelson Interior Design and Contracting Group Limited (HKG:8411)?

Zero-debt allows substantial financial flexibility, especially for small-cap companies like K W Nelson Interior Design and Contracting Group Limited (HKG:8411), as the company does not have to adhere to strict debt covenants. … However, it also faces higher cost of capital given interest cost is generally lower than equity. … Is financial flexibility worth the lower cost of capital.

Simply Wall St -

Can K W Nelson Interior Design and Contracting Group Limited (HKG:8411) Maintain Its Strong Returns?

We'll use ROE to examine K W Nelson Interior Design and Contracting Group Limited (HKG:8411), by way of a worked example. … Over the last twelve months K W Nelson Interior Design and Contracting Group has recorded a ROE of 26%. … View our latest analysis for K W Nelson Interior Design and Contracting Group?

Simply Wall St -

Why K W Nelson Interior Design and Contracting Group Limited’s (HKG:8411) Return On Capital Employed Is Impressive

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

What Kind Of Shareholder Owns Most K W Nelson Interior Design and Contracting Group Limited (HKG:8411) Stock?

Every investor in K W Nelson Interior Design and Contracting Group Limited (HKG:8411) should be aware of the most powerful shareholder groups. … With a market capitalization of HK$205m, K W Nelson Interior Design and Contracting Group is a small cap stock, so it might not be well known by many institutional investors. … Check out our latest analysis for K W Nelson Interior Design and Contracting Group

Simply Wall St -

Read This Before You Buy K W Nelson Interior Design and Contracting Group Limited (HKG:8411) Because Of Its P/E Ratio

We'll show how you can use K W Nelson Interior Design and Contracting Group Limited's (HKG:8411) P/E ratio to inform your assessment of the investment opportunity. … Based on the last twelve months, K W Nelson Interior Design and Contracting Group's P/E ratio is 6.01. … View our latest analysis for K W Nelson Interior Design and Contracting Group?

Simply Wall St -

Are K W Nelson Interior Design and Contracting Group Limited's (HKG:8411) Interest Costs Too High?

Zero-debt allows substantial financial flexibility, especially for small-cap companies like K W Nelson Interior Design and Contracting Group Limited (HKG:8411), as the company does not have to adhere to strict debt covenants. … However, it also faces higher cost of capital given interest cost is generally lower than equity. … Is 8411 right in choosing financial flexibility over lower cost of capital.

Simply Wall St -

Does K W Nelson Interior Design and Contracting Group Limited's (HKG:8411) PE Ratio Warrant A Buy?

This analysis is intended to introduce important early concepts to people who are starting to invest. … K W Nelson Interior Design and Contracting Group Limited (HKG:8411) is currently trading at a trailing P/E of 7.2x, which is lower than the industry average of 26.4x. … See our latest analysis for K W Nelson Interior Design and Contracting Group

Simply Wall St -

Has K W Nelson Interior Design and Contracting Group Limited's (HKG:8411) Earnings Momentum Changed Recently?

Assessing K W Nelson Interior Design and Contracting Group Limited's (HKG:8411) past track record of performance is a useful exercise for investors. … Below, I assess 8411's latest performance announced on 31 March 2018 and evaluate these figures to its historical trend and industry movements. … See our latest analysis for K W Nelson Interior Design and Contracting Group.

Simply Wall St -

Is K W Nelson Interior Design and Contracting Group Limited's (HKG:8411) Balance Sheet Strong Enough To Weather A Storm?

Zero-debt allows substantial financial flexibility, especially for small-cap companies like K W Nelson Interior Design and Contracting Group Limited (HKG:8411), as the company does not have to adhere to strict debt covenants. … However, it also faces higher cost of capital given interest cost is generally lower than equity. … Is 8411 right in choosing financial flexibility over lower cost of capital

Simply Wall St -

8411 Company Info

Description

K W Nelson Interior Design and Contracting Group Limited, an investment holding company, provides interior design and project management services, and fitting-out works for office and retail spaces in the People’s Republic of China. It offers pre-lease advisory, space planning, construction, maintenance for tailor made sections, and after sales services. The company offers services for design and decoration projects; and other interior design and fitting-out services. It serves multi-national companies from various industries, such as banking, retail, healthcare, legal services, catering, education, energy, insurance, telecommunications, property management, and logistics management. The company was formerly known as K W Nelson Interior Architect Group Limited and changed its name to K W Nelson Interior Design and Contracting Group Limited in August 2017. K W Nelson Interior Design and Contracting Group Limited was founded in 2009 and is headquartered in Quarry Bay, Hong Kong.

Details
Name: K W Nelson Interior Design and Contracting Group Limited
8411
Exchange: SEHK
Founded: 2009
HK$206,000,000
1,000,000,000
Website: http://www.kwnelson.com.hk
Address: K W Nelson Interior Design and Contracting Group Limited
Technology Plaza,
Room 1703, 17th Floor,
Quarry Bay,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 8411 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 08. Dec 2016
Number of employees
Current staff
Staff numbers
19
K W Nelson Interior Design and Contracting Group employees.
Industry
Research and Consulting Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 13:00
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2018/01/23
Last earnings filing: 2019/02/01
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.