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Kato (Hong Kong) Holdings

Market Cap

HK$600.0m

Last Updated

2021/04/15 10:33 UTC

Data Sources

Company Financials

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with outstanding track record.

Share Price & News

How has Kato (Hong Kong) Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2189 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 2189's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

0%

2189

2.8%

HK Healthcare

-0.7%

HK Market


1 Year Return

23.7%

2189

25.9%

HK Healthcare

28.8%

HK Market

Return vs Industry: 2189 underperformed the Hong Kong Healthcare industry which returned 25.9% over the past year.

Return vs Market: 2189 underperformed the Hong Kong Market which returned 28.8% over the past year.


Shareholder returns

2189IndustryMarket
7 Day0%2.8%-0.7%
30 Day-1.6%14.0%-0.3%
90 Day11.1%11.7%1.3%
1 Year33.6%23.7%29.1%25.9%33.7%28.8%
3 Yearn/a-36.4%-40.6%6.7%-4.5%
5 Yearn/a-37.8%-43.5%50.3%24.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

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$0.6) is trading below our estimate of fair value (HK$3.72)

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 (9.9x) compared to the HK Healthcare industry average (21x).

PE vs Market: 2189 is good value based on its PE Ratio (9.9x) compared to the Hong Kong market (11.7x).


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 (2.9x) compared to the HK Healthcare industry average (1.3x).


Future Growth

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

20.6%

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?

12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2189 has high quality earnings.

Growing Profit Margin: 2189's current net profit margins (28.1%) are higher than last year (22.7%).


Past Earnings Growth Analysis

Earnings Trend: 2189's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: 2189's earnings growth over the past year (45.1%) exceeds its 5-year average (12.8% per year).

Earnings vs Industry: 2189 earnings growth over the past year (45.1%) exceeded the Healthcare industry 1%.


Return on Equity

High ROE: 2189's Return on Equity (29.3%) 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$215.9M) exceed its short term liabilities (HK$49.8M).

Long Term Liabilities: 2189's short term assets (HK$215.9M) exceed its long term liabilities (HK$194.7M).


Debt to Equity History and Analysis

Debt Level: 2189 is debt free.

Reducing Debt: 2189 had no debt 5 years ago.

Debt Coverage: 2189 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 2189 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

6.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2189's dividend (6.67%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.96%).

High Dividend: 2189's dividend (6.67%) is in the top 25% of dividend payers in the Hong Kong market (5.99%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 2189's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 2189's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.9%), 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?

1.9yrs

Average board tenure


CEO

Godfrey Ngai (46 yo)

2.5yrs

Tenure

HK$1,101,000

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 ($USD141.74K) is below average for companies of similar size in the Hong Kong market ($USD231.54K).

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 ( 1.9 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 sold more shares than they have bought 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 company bio, 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$600.010m
  • 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


Biography

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, professio...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/15 10:33
End of Day Share Price2021/04/15 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.