SEHK:1031

Stock Analysis Report

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Executive Summary

Kingston Financial Group Limited, an investment holding company, provides a range of financial services in Hong Kong, Macau, and Canada.


Snowflake Analysis

Adequate balance sheet with poor track record.

Share Price & News

How has Kingston Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1031 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.3%

1031

15.0%

HK Capital Markets

4.0%

HK Market


1 Year Return

-55.6%

1031

17.6%

HK Capital Markets

-4.9%

HK Market

Return vs Industry: 1031 underperformed the Hong Kong Capital Markets industry which returned 17.6% over the past year.

Return vs Market: 1031 underperformed the Hong Kong Market which returned -4.9% over the past year.


Shareholder returns

1031IndustryMarket
7 Day4.3%15.0%4.0%
30 Day9.1%23.7%5.3%
90 Day16.1%43.4%13.3%
1 Year-54.9%-55.6%20.8%17.6%-1.4%-4.9%
3 Year-72.9%-73.8%6.6%-2.3%7.7%-3.5%
5 Year-75.0%-75.9%-24.1%-34.3%7.1%-10.3%

Price Volatility Vs. Market

How volatile is Kingston Financial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kingston Financial Group undervalued compared to its fair value and its price relative to the market?

24.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1031 (HK$0.72) is trading above our estimate of fair value (HK$0.55)

Significantly Below Fair Value: 1031 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1031 is poor value based on its PE Ratio (24.9x) compared to the Capital Markets industry average (11.1x).

PE vs Market: 1031 is poor value based on its PE Ratio (24.9x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1031's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1031 is overvalued based on its PB Ratio (0.6x) compared to the HK Capital Markets industry average (0.5x).


Next Steps

Future Growth

How is Kingston Financial Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.3%

Forecasted Diversified Financials 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 Kingston Financial Group 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 Kingston Financial Group performed over the past 5 years?

-14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1031 has high quality earnings.

Growing Profit Margin: 1031's current net profit margins (40.6%) are lower than last year (44.8%).


Past Earnings Growth Analysis

Earnings Trend: 1031's earnings have declined by -14.2% per year over the past 5 years.

Accelerating Growth: 1031's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1031 had negative earnings growth (-49.8%) over the past year, making it difficult to compare to the Capital Markets industry average (-8.1%).


Return on Equity

High ROE: 1031's Return on Equity (2.3%) is considered low.


Next Steps

Financial Health

How is Kingston Financial Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1031's short term assets (HK$17.9B) exceed its short term liabilities (HK$9.5B).

Long Term Liabilities: 1031's short term assets (HK$17.9B) exceed its long term liabilities (HK$665.5M).


Debt to Equity History and Analysis

Debt Level: 1031's debt to equity ratio (40.7%) is considered high.

Reducing Debt: 1031's debt to equity ratio has reduced from 73.6% to 40.7% over the past 5 years.

Debt Coverage: 1031's debt is well covered by operating cash flow (44.4%).

Interest Coverage: Insufficient data to determine if 1031's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Kingston Financial Group current dividend yield, its reliability and sustainability?

1.39%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 1031's dividend (1.39%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.34%).

High Dividend: 1031's dividend (1.39%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.72%).


Stability and Growth of Payments

Stable Dividend: 1031 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1031 has only been paying a dividend for 9 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.5%), 1031's dividend payments are 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?

4.4yrs

Average board tenure


CEO

Pollyanna Chu (61yo)

no data

Tenure

HK$53,927,000

Compensation

Mrs. Yuet Wah Chu also known as Pollyanna, serves as Chief Executive Officer and Executive Director of Sure Expert ltd. Mrs. Chu serves as the Chief Executive Officer and Executive Director of Kingston Fin ...


CEO Compensation Analysis

Compensation vs Market: Pollyanna's total compensation ($USD6.96M) is above average for companies of similar size in the Hong Kong market ($USD532.02K).

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


Board Members

NamePositionTenureCompensationOwnership
Yuk-yui Chu
Chairman of the Boardno dataHK$31.11mno data
Yuet Wah Chu
CEO & Executive Directorno dataHK$53.93m80.09% HK$10.0b
Chi Ho Ho
Executive Director6.5yrsHK$4.59mno data
Chun Ho Chu
Executive Director4.92yrsHK$5.37mno data
Man Tak Lau
Independent Non-Executive Directorno dataHK$240.00kno data
Miu Sheung Lo
Independent Non-Executive Director3.83yrsHK$240.00kno data
Yin Tong Chan
Director of Kingston Securities Limitedno datano datano data
Sin Nang Chiu
Independent Non-Executive Director0.92yrno datano data

4.4yrs

Average Tenure

58yo

Average Age

Experienced Board: 1031's board of directors are considered experienced (4.4 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Kingston Financial Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kingston Financial Group Limited
  • Ticker: 1031
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: HK$12.502b
  • Shares outstanding: 17.36b
  • Website: https://www.kingston.com.hk

Number of Employees


Location

  • Kingston Financial Group Limited
  • The Center
  • 72nd Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1031SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2011

Biography

Kingston Financial Group Limited, an investment holding company, provides a range of financial services in Hong Kong, Macau, and Canada. The company operates through seven segments: Securities Brokerage, Underwriting, and Placements; Margin and Initial Public Offering (IPO) Financing; Other Financial Services; Hotel Ownership and Management; Food and Beverage; Gaming; and Securities Investment. It offers brokerage, underwriting, and placements services for dealings in securities on stock exchanges; margin and IPO financing; and corporate finance advisory, futures brokerage, and asset management services. The company also operates hotels and restaurants, as well as casinos in hotels; provides hotel management services; and trades in listed securities. As of March 31, 2019, it had 64 tables in the mass market halls, 12 tables in the VIP rooms, and 274 slot machines and 70 live baccarat machines in the electronic gaming halls. The company was incorporated in 1996 and is based in Central, Hong Kong. Kingston Financial Group Limited is a subsidiary of Active Dynamic Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 12:37
End of Day Share Price2020/07/03 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.