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2189

Kato (Hong Kong) HoldingsSEHK:2189 Stock Report

Market Cap

HK$650.0m

7D

1.6%

1Y

27.5%

Updated

25 Oct, 2021

Data

Company Financials
2189 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance6/6
Financial Health4/6
Dividends2/6

2189 Overview

Kato (Hong Kong) Holdings Limited operates residential care homes for the elderly in Hong Kong.

Price History & Performance

Summary of all time highs, changes and price drops for Kato (Hong Kong) Holdings
Historical stock prices
Current Share PriceHK$0.65
52 Week HighHK$0.50
52 Week LowHK$0.70
Beta0.48
1 Month Change1.56%
3 Month Change1.56%
1 Year Change27.45%
3 Year Changen/a
5 Year Changen/a
Change since IPO16.07%

Recent News & Updates

Aug 21
Kato (Hong Kong) Holdings (HKG:2189) Is Due To Pay A Dividend Of HK$0.02

Kato (Hong Kong) Holdings (HKG:2189) Is Due To Pay A Dividend Of HK$0.02

Kato (Hong Kong) Holdings Limited ( HKG:2189 ) will pay a dividend of HK$0.02 on the 7th of September. This means the...

Jun 18
Kato (Hong Kong) Holdings (HKG:2189) Is Due To Pay A Dividend Of HK$0.02

Kato (Hong Kong) Holdings (HKG:2189) Is Due To Pay A Dividend Of HK$0.02

The board of Kato (Hong Kong) Holdings Limited ( HKG:2189 ) has announced that it will pay a dividend on the 7th of...

Shareholder Returns

2189HK HealthcareHK Market
7D1.6%-0.2%0.4%
1Y27.5%-41.6%6.7%

Return vs Industry: 2189 exceeded the Hong Kong Healthcare industry which returned -43.7% over the past year.

Return vs Market: 2189 exceeded the Hong Kong Market which returned 5.9% over the past year.

Price Volatility

Is 2189's price volatile compared to industry and market?
2189 volatility
2189 Beta0.48
Industry Beta0.88
Market Beta1

Stable Share Price: 2189 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 2189's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1991498Godfrey Ngaihttps://www.elderlyhk.com

Kato (Hong Kong) Holdings Limited operates residential care homes for the elderly in Hong Kong. The company provides a range of residential care services for the elderly, including accommodation, professional nursing and care-taking, nutritional management, medical, physiotherapy and occupational therapy, psychological and social care, individual care, and recreational services; and sells healthcare and medical goods, as well as offers add-on healthcare services to its residents. As of March 31, 2021, it operated eight care and attention homes for the elderly with 1,129 residential care places across four districts in Hong Kong under the Fai To, Kato, Happy Luck Home, Tsuen Wan Centre, and Pine Villa brand names.

Kato (Hong Kong) Holdings Fundamentals Summary


Earnings & Revenue

Key profitability statistics from the latest earnings report
2189 income statement (TTM)
RevenueHK$256.53m
Cost of RevenueHK$106.63m
Gross ProfitHK$149.90m
ExpensesHK$70.03m
EarningsHK$79.87m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.08
Gross Margin58.43%
Net Profit Margin31.14%
Debt/Equity Ratio51.5%

How did 2189 perform over the long term?

See historical performance and comparison

Dividends

6.2%

Current Dividend Yield

50%

Payout Ratio

Valuation

Is Kato (Hong Kong) Holdings 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: 2189 (HK$0.65) is trading below our estimate of fair value (HK$5.08)

Significantly Below Fair Value: 2189 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2189 is good value based on its PE Ratio (8.1x) compared to the Hong Kong Healthcare industry average (16.9x).

PE vs Market: 2189 is good value based on its PE Ratio (8.1x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2189's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2189 is overvalued based on its PB Ratio (2.8x) compared to the HK Healthcare industry average (1.7x).


Future Growth

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

30.1%

Forecasted Healthcare 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 Kato (Hong Kong) 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.


Past Performance

How has Kato (Hong Kong) Holdings performed over the past 5 years?

17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2189 has high quality earnings.

Growing Profit Margin: 2189's current net profit margins (31.1%) are higher than last year (24.4%).


Past Earnings Growth Analysis

Earnings Trend: 2189's earnings have grown by 17.1% per year over the past 5 years.

Accelerating Growth: 2189's earnings growth over the past year (66.9%) exceeds its 5-year average (17.1% per year).

Earnings vs Industry: 2189 earnings growth over the past year (66.9%) exceeded the Healthcare industry 29.5%.


Return on Equity

High ROE: 2189's Return on Equity (34.1%) is considered high.


Financial Health

How is Kato (Hong Kong) Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2189's short term assets (HK$117.3M) exceed its short term liabilities (HK$53.9M).

Long Term Liabilities: 2189's short term assets (HK$117.3M) do not cover its long term liabilities (HK$315.5M).


Debt to Equity History and Analysis

Debt Level: 2189's debt to equity ratio (51.5%) is considered high.

Reducing Debt: 2189's debt to equity ratio has reduced from 1381% to 51.5% over the past 5 years.

Debt Coverage: 2189's debt is well covered by operating cash flow (98.4%).

Interest Coverage: 2189's interest payments on its debt are well covered by EBIT (18.4x coverage).


Balance Sheet


Dividend

What is Kato (Hong Kong) Holdings's current dividend yield, its reliability and sustainability?

6.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2189's dividend (6.15%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.22%).

High Dividend: 2189's dividend (6.15%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 2189 has been paying a dividend for less than 10 years.

Growing Dividend: 2189 has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.1%), 2189's dividend 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?

2.4yrs

Average board tenure


CEO

Godfrey Ngai (47 yo)

3yrs

Tenure

HK$1,829,000

Compensation

Mr. Shi Shing Ngai, also known as Godfrey, serves as Chairman of the Board at Kato (Hong Kong) Holdings Limited since October 15, 2020. He serves as an Executive Director and Chief Executive Officer of Kat...


CEO Compensation Analysis

Compensation vs Market: Godfrey's total compensation ($USD235.28K) is about average for companies of similar size in the Hong Kong market ($USD227.73K).

Compensation vs Earnings: Godfrey's compensation has increased by more than 20% in the past year.


Board Members

Experienced Board: 2189's board of directors are not considered experienced ( 2.4 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: 2189 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

Kato (Hong Kong) Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Kato (Hong Kong) Holdings Limited
  • Ticker: 2189
  • Exchange: SEHK
  • Founded: 1991
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: HK$650.000m
  • Shares outstanding: 1.00b
  • Website: https://www.elderlyhk.com

Number of Employees


Location

  • Kato (Hong Kong) Holdings Limited
  • Tung Wai Court
  • 1st Floor
  • Tuen Mun
  • New Territories
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:59
End of Day Share Price2021/10/25 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.