SEHK:8472

Stock Analysis Report

Executive Summary

Lapco Holdings Limited, an investment holding company, provides environmental hygiene services in Hong Kong.

Snowflake

Fundamentals

Adequate balance sheet with weak fundamentals.

Share Price & News

How has Lapco Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

8472

1.9%

HK Commercial Services

0.9%

HK Market


1 Year Return

-17.3%

8472

29.1%

HK Commercial Services

0.6%

HK Market

Return vs Industry: 8472 underperformed the Hong Kong Commercial Services industry which returned 29.1% over the past year.

Return vs Market: 8472 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

8472IndustryMarket
7 Day0%1.9%0.9%
30 Day-14.0%7.0%0.4%
90 Day-18.9%8.2%-5.5%
1 Year-17.3%-17.3%32.1%29.1%4.2%0.6%
3 Yearn/a-27.4%-32.8%15.5%3.9%
5 Yearn/a-43.6%-49.7%19.9%-0.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Lapco Holdings undervalued compared to its fair value and its price relative to the market?

3.98x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: 8472 (HK$0.43) is trading above our estimate of fair value (HK$0.3)

Significantly Undervalued: 8472 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 8472 is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: 8472 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 8472's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8472 is overvalued based on its PB Ratio (4x) compared to the HK Commercial Services industry average (1.1x).


Next Steps

Future Growth

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

23.0%

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 Lapco Holdings 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 Lapco Holdings performed over the past 5 years?

-101.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 8472 is unprofitable, and losses have increased over the past 5 years at a rate of -101.1% per year.

Accelerating Growth: Unable to compare 8472's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8472 is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (10.1%).


Return on Equity

High ROE: 8472 has a negative Return on Equity (-44.34%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 8472 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 8472 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Lapco Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8472's short term assets (HK$186.9M) exceeds its short term liabilities (HK$185.5M)

Long Term Liabilities: 8472's short term assets (186.9M) exceeds its long term liabilities (35.9M)


Debt to Equity History and Analysis

Debt Level: 8472's debt to equity ratio (259.4%) is considered high

Reducing Debt: Insufficient data to determine if 8472's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 8472 has a high level of physical assets or inventory.

Debt Coverage by Assets: 8472's debt is covered by short term assets (assets are 1.667380x 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: Whilst unprofitable 8472 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 8472 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 72% per year.


Next Steps

Dividend

What is Lapco Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 8472's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8472's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 8472's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8472'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 8472's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Lapco Holdings's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average board tenure


CEO

Pak Lam (59yo)

0yrs

Tenure

HK$2,240,000

Compensation

Mr. Pak Ling Lam is the Founder, Chairman, Chief Executive Officer at Lapco Holdings Limited and serves as its Compliance Officer since March 14, 2017. 


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Pak's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

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


Board Age and Tenure

2.3yrs

Average Tenure

43yo

Average Age

Experienced Board: 8472's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellHK$11,998,16112 Apr 19
Lam Family Trust
EntityCompany
Shares63,990,000
Max PriceHK$0.19
BuyHK$11,998,16112 Apr 19
Chung Yin Choi
EntityIndividual
Shares63,990,000
Max PriceHK$0.19

Ownership Breakdown


Management Team

  • Pak Lam (59yo)

    Founder

    • Tenure: 0yrs
    • Compensation: HK$2.24m
  • Weiming Cai (53yo)

    Executive Director

    • Tenure: 3yrs
    • Compensation: HK$723.00k
  • jacky Wong (28yo)

    Senior Marketing Manager & Executive Director

    • Tenure: 3.2yrs
    • Compensation: HK$563.00k
  • Billy Tam (38yo)

    Financial Controller

    • Tenure: 0.8yrs

Board Members

  • Kit Yan Lam (44yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$120.00k
  • Pak Lam (59yo)

    Founder

    • Tenure: 0yrs
    • Compensation: HK$2.24m
  • Weiming Cai (53yo)

    Executive Director

    • Tenure: 3yrs
    • Compensation: HK$723.00k
  • jacky Wong (28yo)

    Senior Marketing Manager & Executive Director

    • Tenure: 3.2yrs
    • Compensation: HK$563.00k
  • Kwok Kei Mak (33yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$120.00k
  • Kin Wai Ho (43yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$120.00k
  • Billy Tam (38yo)

    Financial Controller

    • Tenure: 0.8yrs

Company Information

Lapco Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lapco Holdings Limited
  • Ticker: 8472
  • Exchange: SEHK
  • Founded: 1990
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: HK$172.000m
  • Shares outstanding: 400.00m
  • Website: https://www.lapco.com.hk

Number of Employees


Location

  • Lapco Holdings Limited
  • Unit No. 301A, Tower III
  • 3rd Floor
  • Kowloon Bay
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8472SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2017

Biography

Lapco Holdings Limited, an investment holding company, provides environmental hygiene services in Hong Kong. The company offers cleaning, pest management, waste management and recycling, and landscaping se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 13:01
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.