SEHK:8619

Stock Analysis Report

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Executive Summary

WAC Holdings Limited, a construction engineering consultant company, provides structural and geotechnical engineering consultancy services in Hong Kong.


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8619's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-10.1%

8619

-0.8%

HK Professional Services

2.0%

HK Market


1 Year Return

-42.0%

8619

-27.4%

HK Professional Services

6.0%

HK Market

Return vs Industry: 8619 underperformed the Hong Kong Professional Services industry which returned -27.4% over the past year.

Return vs Market: 8619 underperformed the Hong Kong Market which returned 6% over the past year.


Shareholder returns

8619IndustryMarket
7 Day-10.1%-0.8%2.0%
30 Day-25.1%-3.8%1.0%
90 Day-47.9%-7.2%9.4%
1 Year-42.0%-42.0%-27.0%-27.4%10.4%6.0%
3 Yearn/a-40.0%-40.8%0.8%-10.1%
5 Yearn/a93.5%80.7%10.8%-7.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20.13x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8619's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8619's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8619 is unprofitable, so we can't compare its PE Ratio to the XA Professional Services industry average.

PE vs Market: 8619 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 8619's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8619 is overvalued based on its PB Ratio (20.1x) compared to the HK Professional Services industry average (2x).


Next Steps

Future Growth

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

19.2%

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 WAC 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 WAC Holdings performed over the past 5 years?

-108.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8619 is currently unprofitable.

Growing Profit Margin: 8619 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8619 is unprofitable, and losses have increased over the past 5 years at a rate of 108% per year.

Accelerating Growth: Unable to compare 8619's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8619 is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (5.4%).


Return on Equity

High ROE: 8619 has a negative Return on Equity (-10.9%), as it is currently unprofitable.


Next Steps

Financial Health

How is WAC Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8619's short term assets (HK$70.9M) exceed its short term liabilities (HK$10.0M).

Long Term Liabilities: 8619's short term assets (HK$70.9M) exceed its long term liabilities (HK$1.2M).


Debt to Equity History and Analysis

Debt Level: 8619 is debt free.

Reducing Debt: 8619 had no debt 5 years ago.

Debt Coverage: 8619 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 8619 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8619's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 8619'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 8619's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8619'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 8619'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?

2.0yrs

Average board tenure


CEO

Po Lam Kwong (63 yo)

no data

Tenure

HK$2,416,000

Compensation

Mr. Po Lam Kwong served as Executive Director at Win Win Way Construction Holdings Ltd since May 6, 2016 until April 26, 2019 and was responsible for quality and technical assurance. Mr. Kwong has been Exe ...


CEO Compensation Analysis

Compensation vs Market: Po Lam's total compensation ($USD311.74K) is about average for companies of similar size in the Hong Kong market ($USD279.34K).

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


Board Members

NamePositionTenureCompensationOwnership
Yin Nin Chan
Chairman of the Board & Compliance Officerno dataHK$3.58mno data
Po Lam Kwong
MD & Executive Directorno dataHK$2.42mno data
Xiaoyan Su
Executive Director1.17yrsHK$310.00kno data
Wai Shek Choy
Independent Non Executive Director2yrsHK$100.00kno data
Kyran Sze
Independent Non-Executive Director2yrsHK$100.00kno data
Moune Tsi Chu
Independent Non-Executive Director2yrsHK$100.00kno data

2.0yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 8619's board of directors are not considered experienced ( 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: WAC Holdings Limited
  • Ticker: 8619
  • Exchange: SEHK
  • Founded: 1987
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: HK$1.296b
  • Shares outstanding: 960.00m
  • Website: https://www.wcce.hk

Number of Employees


Location

  • WAC Holdings Limited
  • 9 Wing Hong Street
  • Floor 9
  • Cheung Sha Wan
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8619SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2018

Biography

WAC Holdings Limited, a construction engineering consultant company, provides structural and geotechnical engineering consultancy services in Hong Kong. The company offers structural engineering services, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/05 13:06
End of Day Share Price2020/08/05 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.