SEHK:8052

Stock Analysis Report

Luk Hing Entertainment Group Holdings

Executive Summary

Luk Hing Entertainment Group Holdings Limited, an investment holding company, engages in the food and beverage, and entertainment industry in Macau and Hong Kong.

Snowflake

Fundamentals

Excellent balance sheet with weak fundamentals.

Share Price & News

How has Luk Hing Entertainment Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

8052

2.7%

HK Hospitality

0.9%

HK Market


1 Year Return

-36.5%

8052

15.8%

HK Hospitality

0.6%

HK Market

Return vs Industry: 8052 underperformed the Hong Kong Hospitality industry which returned 15.8% over the past year.

Return vs Market: 8052 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

8052IndustryMarket
7 Day0%2.7%0.9%
30 Day-4.1%0.4%0.5%
90 Day-9.6%-5.0%-4.3%
1 Year-36.5%-36.5%19.5%15.8%4.2%0.6%
3 Yearn/a23.2%11.6%15.6%4.0%
5 Yearn/a-9.3%-23.8%20.0%-0.08%

Price Volatility Vs. Market

How volatile is Luk Hing Entertainment Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Luk Hing Entertainment Group Holdings undervalued compared to its fair value and its price relative to the market?

16.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8052's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8052's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8052 is poor value based on its PE Ratio (16.9x) compared to the Hospitality industry average (12.1x).

PE vs Market: 8052 is poor value based on its PE Ratio (16.9x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8052's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8052 is overvalued based on its PB Ratio (1x) compared to the HK Hospitality industry average (0.9x).


Next Steps

Future Growth

How is Luk Hing Entertainment Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.0%

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 Luk Hing Entertainment Group 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 Luk Hing Entertainment Group Holdings performed over the past 5 years?

-27.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 8052's earnings have declined by -27.3% per year over the past 5 years.

Accelerating Growth: 8052 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 8052 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (-5.3%).


Return on Equity

High ROE: 8052's Return on Equity (6.7%) is considered low.


Return on Assets

ROA vs Industry: 8052's Return on Assets is below or equal to the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: 8052's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Luk Hing Entertainment Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8052's short term assets (HK$97.9M) exceeds its short term liabilities (HK$56.4M)

Long Term Liabilities: 8052's short term assets (97.9M) exceeds its long term liabilities (54.4M)


Debt to Equity History and Analysis

Debt Level: 8052's debt to equity ratio (17.8%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 8052's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8052's debt is well covered by operating cash flow (29.1%).

Interest Coverage: 8052's interest payments on its debt are well covered by EBIT (88.8x coverage).


Balance Sheet

Inventory Level: 8052 has a high level of physical assets or inventory.

Debt Coverage by Assets: 8052's debt is covered by short term assets (assets are 6.596400x debt).


Next Steps

Dividend

What is Luk Hing Entertainment Group Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 8052's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8052'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 8052's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8052'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 8052'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 Luk Hing Entertainment Group Holdings's salary, the management and board of directors tenure and is there insider trading?

6.2yrs

Average management tenure


CEO

Simon Choi (43yo)

9.4yrs

Tenure

HK$953,000

Compensation

Mr. Choi Yiu Ying, also known as Simon, has been Chairman of the Board at Luk Hing Entertainment Group Holdings Limited since March 2, 2016 and Chief Executive Officer since May 2010. Mr. Choi is a co-owne ...


CEO Compensation Analysis

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

Compensation vs Earnings: Simon's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.2yrs

Average Tenure

43yo

Average Age

Experienced Management: 8052's management team is seasoned and experienced (6.2 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

48yo

Average Age

Experienced Board: 8052's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Simon Choi (43yo)

    Chairman & CEO

    • Tenure: 9.4yrs
    • Compensation: HK$953.00k
  • John Choi (41yo)

    MD, Compliance Officer & Executive Director

    • Tenure: 3.9yrs
    • Compensation: HK$858.00k
  • Alex Yeung (48yo)

    Administrative Director & Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$331.00k
  • Clement Wong

    Company Secretary

    • Tenure: 1.3yrs

Board Members

  • Simon Choi (43yo)

    Chairman & CEO

    • Tenure: 9.4yrs
    • Compensation: HK$953.00k
  • John Choi (41yo)

    MD, Compliance Officer & Executive Director

    • Tenure: 3.9yrs
    • Compensation: HK$858.00k
  • Alex Yeung (48yo)

    Administrative Director & Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$331.00k
  • Eric Au (51yo)

    Non-Executive Director

    • Tenure: 3.6yrs
  • Odilia Poon (59yo)

    Non-Executive Director

    • Tenure: 3.6yrs
  • Raymond Lam (49yo)

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: HK$180.00k
  • Michael Chan (38yo)

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: HK$180.00k
  • Simon Tse (61yo)

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: HK$200.00k
  • Ka Wai Au (41yo)

    Non-Executive Director

    • Tenure: 1.2yrs

Company Information

Luk Hing Entertainment Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Luk Hing Entertainment Group Holdings Limited
  • Ticker: 8052
  • Exchange: SEHK
  • Founded: 2015
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: HK$84.600m
  • Shares outstanding: 1.80b
  • Website: https://null

Number of Employees


Location

  • Luk Hing Entertainment Group Holdings Limited
  • Shun Tak Centre West Tower
  • 15th Floor
  • Sheung Wan
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8052SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2016

Biography

Luk Hing Entertainment Group Holdings Limited, an investment holding company, engages in the food and beverage, and entertainment industry in Macau and Hong Kong. The company operates clubs and restaurants ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:48
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.