SEHK:1031

Stock Analysis Report

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Market Cap

HK$9.6b

Last Updated

2021/06/21 10:13 UTC

Data Sources

Company Financials

Executive Summary

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


Snowflake Analysis

Excellent balance sheet and overvalued.

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 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1031's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-8.6%

1031

-0.7%

HK Capital Markets

-1.3%

HK Market


1 Year Return

-20.9%

1031

33.1%

HK Capital Markets

21.5%

HK Market

Return vs Industry: 1031 underperformed the Hong Kong Capital Markets industry which returned 33.1% over the past year.

Return vs Market: 1031 underperformed the Hong Kong Market which returned 21.5% over the past year.


Shareholder returns

1031IndustryMarket
7 Day-8.6%-0.7%-1.3%
30 Day-7.0%3.0%-0.2%
90 Day-7.0%2.2%-1.9%
1 Year-19.7%-20.9%35.7%33.1%26.0%21.5%
3 Year-75.8%-76.8%27.4%18.1%10.5%-1.3%
5 Year-83.8%-84.6%22.8%8.5%59.8%32.6%

Long-Term 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?

11.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1031 (HK$0.53) is trading below our estimate of fair value (HK$0.6)

Significantly Below Fair Value: 1031 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1031 is poor value based on its PE Ratio (47.3x) compared to the Hong Kong Capital Markets industry average (11.3x).

PE vs Market: 1031 is poor value based on its PE Ratio (47.3x) compared to the Hong Kong market (11.5x).


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's PB Ratio (0.4x) is in line with the HK Capital Markets industry average.


Future Growth

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

12.4%

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.


Past Performance

How has Kingston Financial Group performed over the past 5 years?

-23.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1031 has high quality earnings.

Growing Profit Margin: 1031's current net profit margins (23.1%) are lower than last year (51.6%).


Past Earnings Growth Analysis

Earnings Trend: 1031's earnings have declined by 23.4% 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 (-78%) over the past year, making it difficult to compare to the Capital Markets industry average (17.3%).


Return on Equity

High ROE: 1031's Return on Equity (0.9%) is considered low.


Financial Health

How is Kingston Financial Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1031's short term assets (HK$19.1B) exceed its short term liabilities (HK$11.1B).

Long Term Liabilities: 1031's short term assets (HK$19.1B) exceed its long term liabilities (HK$230.3M).


Debt to Equity History and Analysis

Debt Level: 1031's debt to equity ratio (36.7%) is considered satisfactory.

Reducing Debt: 1031's debt to equity ratio has reduced from 71.5% to 36.7% over the past 5 years.

Debt Coverage: 1031's debt is well covered by operating cash flow (30.4%).

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


Balance Sheet


Dividend

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

1.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1031's dividend (1.89%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (1.9%).

High Dividend: 1031's dividend (1.89%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.06%).


Stability and Growth of Payments

Stable Dividend: 1031's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1031's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (89.3%), 1031's payments are 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?

5.3yrs

Average board tenure


CEO

Pollyanna Chu (61 yo)

no data

Tenure

HK$44,243,000

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 ($USD5.70M) is above average for companies of similar size in the Hong Kong market ($USD647.16K).

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


Board Members

Experienced Board: 1031's board of directors are considered experienced (5.3 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$9.550b
  • 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


Biography

Kingston Financial Group Limited, an investment holding company, provides a range of financial services in Hong Kong and Macau. The company operates through Securities Brokerage, Underwriting, and Placemen...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/21 10:13
End of Day Share Price2021/06/21 00:00
Earnings2020/09/30
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.