SEHK:184

Stock Analysis Report

Keck Seng Investments (Hong Kong)

Executive Summary

Keck Seng Investments (Hong Kong) Limited, an investment holding company, engages in the hotel and club operations, and property investment and development activities.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Keck Seng Investments (Hong Kong)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 184's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

184

-6.7%

HK Hospitality

-0.4%

HK Market


1 Year Return

-49.5%

184

-32.8%

HK Hospitality

-22.7%

HK Market

Return vs Industry: 184 underperformed the Hong Kong Hospitality industry which returned -31.1% over the past year.

Return vs Market: 184 underperformed the Hong Kong Market which returned -20.4% over the past year.


Shareholder returns

184IndustryMarket
7 Day0%-6.7%-0.4%
30 Day-38.0%-19.5%-11.2%
90 Day-42.5%-30.5%-17.3%
1 Year-47.9%-49.5%-30.8%-32.8%-19.9%-22.7%
3 Year-55.7%-59.1%-21.9%-28.9%-4.8%-14.4%
5 Year-61.3%-65.8%-16.0%-29.2%-12.3%-26.3%

Price Volatility Vs. Market

How volatile is Keck Seng Investments (Hong Kong)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Keck Seng Investments (Hong Kong) undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 184 (HK$2.6) is trading below our estimate of fair value (HK$10.4)

Significantly Below Fair Value: 184 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 184 is poor value based on its PE Ratio (160.4x) compared to the Hospitality industry average (11.6x).

PE vs Market: 184 is poor value based on its PE Ratio (160.4x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 184's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 184 is good value based on its PB Ratio (0.2x) compared to the HK Hospitality industry average (0.7x).


Next Steps

Future Growth

How is Keck Seng Investments (Hong Kong) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.9%

Forecasted Consumer 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 Keck Seng Investments (Hong Kong) 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 Keck Seng Investments (Hong Kong) performed over the past 5 years?

-14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 184 has a large one-off loss of HK$209.1M impacting its December 31 2019 financial results.

Growing Profit Margin: 184's current net profit margins (0.3%) are lower than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: 184's earnings have declined by -14.9% per year over the past 5 years.

Accelerating Growth: 184's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 184 had negative earnings growth (-97.2%) over the past year, making it difficult to compare to the Hospitality industry average (-4.7%).


Return on Equity

High ROE: 184's Return on Equity (2.8%) is considered low.


Next Steps

Financial Health

How is Keck Seng Investments (Hong Kong)'s financial position?


Financial Position Analysis

Short Term Liabilities: 184's short term assets (HK$2.4B) exceed its short term liabilities (HK$2.3B).

Long Term Liabilities: 184's short term assets (HK$2.4B) exceed its long term liabilities (HK$188.0M).


Debt to Equity History and Analysis

Debt Level: 184's debt to equity ratio (43.2%) is considered high.

Reducing Debt: 184's debt to equity ratio has reduced from 52.6% to 43.2% over the past 5 years.

Debt Coverage: 184's debt is well covered by operating cash flow (25.9%).

Interest Coverage: 184's interest payments on its debt are well covered by EBIT (116.4x coverage).


Balance Sheet

Inventory Level: 184 has a high level of physical assets or inventory.

Debt Coverage by Assets: 184's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

What is Keck Seng Investments (Hong Kong)'s current dividend yield, its reliability and sustainability?

3.03%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 184's dividend (3.08%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.56%).

High Dividend: 184's dividend (3.08%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.14%).


Stability and Growth of Payments

Stable Dividend: 184's dividend payments have been volatile in the past 10 years.

Growing Dividend: 184's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (493.4%), 184's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

13.8yrs

Average board tenure


CEO

Keck Seng Investments (Hong Kong) has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Kian Guan Ho
Executive Chairmanno dataHK$1.81mno data
Kian Hock Ho
Deputy Executive Chairmanno dataHK$1.74mno data
See Fan Tse
Executive Director40.33yrsHK$215.00k0.085% HK$750.7k
Yuet Chu Yu
Executive Director13.75yrsHK$1.60mno data
Lui Ming Chan
Executive Director13.75yrsHK$829.00kno data
Chung Tao Ho
Executive Director11.5yrsHK$1.87mno data
Chung Hui Ho
Executive Director11.5yrsHK$608.00kno data
Hon To Yu
Independent Non Executive Director7yrsHK$250.00kno data
Chi Shun Kwok
Independent Non-Executive Director25.25yrsHK$250.00kno data
Poey Foon Wang
Independent Non-Executive Director15.58yrsHK$250.00kno data

13.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 184's board of directors are seasoned and experienced ( 13.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Keck Seng Investments (Hong Kong) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Keck Seng Investments (Hong Kong) Limited
  • Ticker: 184
  • Exchange: SEHK
  • Founded: 1973
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: HK$884.520m
  • Shares outstanding: 340.20m
  • Website: https://www.keckseng.com.hk

Number of Employees


Location

  • Keck Seng Investments (Hong Kong) Limited
  • West Tower
  • Room 2902
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
184SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
KECDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
KCKS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992

Biography

Keck Seng Investments (Hong Kong) Limited, an investment holding company, engages in the hotel and club operations, and property investment and development activities. It operates through three segments: Hotel, Property, and Investment and Corporate. The Hotel segment offers hotel room accommodation services; and food and beverages at hotel restaurant outlets, as well as operates slot machines. The Property segment leases investment properties, which primarily consist of retail, commercial, and office properties; and develops, sells, and markets trading properties, as well as offers management services. The Investment and Corporate segment is involved in the non-trading and trading securities; financial instruments; and other treasury operations. It has operations in Hong Kong, Macau, the People's Republic of China, Vietnam, the United States, Canada, and Japan. The company was founded in 1973 and is based in Central, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 12:51
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.