SEHK:366

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Luks Group (Vietnam Holdings)

Executive Summary

Luks Group (Vietnam Holdings) Company Limited, an investment holding company, manufactures and sells cement products for use in the construction industry in Vietnam, Hong Kong, and the People's Republic of China.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Luks Group (Vietnam Holdings)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 366 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

366

-2.0%

HK Basic Materials

5.8%

HK Market


1 Year Return

-31.6%

366

21.4%

HK Basic Materials

-4.0%

HK Market

Return vs Industry: 366 underperformed the Hong Kong Basic Materials industry which returned 21.4% over the past year.

Return vs Market: 366 underperformed the Hong Kong Market which returned -4% over the past year.


Shareholder returns

366IndustryMarket
7 Day1.7%-2.0%5.8%
30 Day-5.5%-4.4%4.0%
90 Day-19.9%-6.2%-2.6%
1 Year-29.2%-31.6%26.0%21.4%-0.6%-4.0%
3 Year-47.8%-54.2%87.7%68.2%1.3%-9.2%
5 Year-44.9%-55.5%48.2%29.8%-9.2%-23.5%

Price Volatility Vs. Market

How volatile is Luks Group (Vietnam Holdings)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Luks Group (Vietnam 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: 366 (HK$1.21) is trading below our estimate of fair value (HK$10.18)

Significantly Below Fair Value: 366 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 366 is good value based on its PE Ratio (5x) compared to the Basic Materials industry average (7.7x).

PE vs Market: 366 is good value based on its PE Ratio (5x) compared to the Hong Kong market (9.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 366's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 366 is good value based on its PB Ratio (0.2x) compared to the HK Basic Materials industry average (0.9x).


Next Steps

Future Growth

How is Luks Group (Vietnam Holdings) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

0.2%

Forecasted Materials 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 Luks Group (Vietnam 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 Luks Group (Vietnam Holdings) performed over the past 5 years?

9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 366 has a large one-off gain of HK$46.5M impacting its December 31 2019 financial results.

Growing Profit Margin: 366's current net profit margins (18.8%) are lower than last year (19.9%).


Past Earnings Growth Analysis

Earnings Trend: 366's earnings have grown by 9.5% per year over the past 5 years.

Accelerating Growth: 366's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 366 had negative earnings growth (-15.2%) over the past year, making it difficult to compare to the Basic Materials industry average (6.4%).


Return on Equity

High ROE: 366's Return on Equity (5%) is considered low.


Next Steps

Financial Health

How is Luks Group (Vietnam Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: 366's short term assets (HK$494.0M) exceed its short term liabilities (HK$157.8M).

Long Term Liabilities: 366's short term assets (HK$494.0M) exceed its long term liabilities (HK$248.1M).


Debt to Equity History and Analysis

Debt Level: 366's debt to equity ratio (0.7%) is considered satisfactory.

Reducing Debt: 366's debt to equity ratio has reduced from 3.4% to 0.7% over the past 5 years.

Debt Coverage: 366's debt is well covered by operating cash flow (1255%).

Interest Coverage: 366 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Luks Group (Vietnam Holdings)'s current dividend yield, its reliability and sustainability?

7.44%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 366's dividend (7.44%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.43%).

High Dividend: 366's dividend (7.44%) is in the top 25% of dividend payers in the Hong Kong market (7.03%)


Stability and Growth of Payments

Stable Dividend: 366's dividend payments have been volatile in the past 10 years.

Growing Dividend: 366's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.2%), 366'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?

4.8yrs

Average board tenure


CEO

Cheung Cheng (78yo)

4.83yrs

Tenure

HK$3,090,000

Compensation

Madam Cheung Cheng has been the Chairman and Chief Executive Officer of Luks Group (Vietnam Holdings) Company Limited since August 29, 2015. Madam Cheng serves as an Executive Director of Luks Industrial G ...


CEO Compensation Analysis

Compensation vs Market: Cheung's total compensation ($USD398.71K) is above average for companies of similar size in the Hong Kong market ($USD228.98K).

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


Board Members

NamePositionTenureCompensationOwnership
Cheung Cheng
Chairman & CEO4.83yrsHK$3.09m11.52% HK$70.4m
Chiu Tat Fan
Financial Controllerno dataHK$2.51m0.30% HK$1.8m
Sze Wan Luk
Investor Relations Director & Executive Director4.5yrsHK$1.16m0.26% HK$1.6m
Yan Luk
Executive Directorno dataHK$3.32m0.64% HK$3.9m
Fung Luk
Executive Director14.42yrsHK$2.77m0.64% HK$3.9m
Li Yuan Liu
Independent Non-Executive Director18.25yrsHK$100.00kno data
Fang Liang
Independent Non-Executive Directorno dataHK$100.00kno data
Chi Kuen Lam
Independent Non-Executive Director3.75yrsHK$100.00kno data

4.8yrs

Average Tenure

60yo

Average Age

Experienced Board: 366's board of directors are considered experienced (4.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Luks Group (Vietnam Holdings) Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Luks Group (Vietnam Holdings) Company Limited
  • Ticker: 366
  • Exchange: SEHK
  • Founded: 1975
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: HK$611.410m
  • Shares outstanding: 505.30m
  • Website: https://www.luks.com.hk

Number of Employees


Location

  • Luks Group (Vietnam Holdings) Company Limited
  • Cheong Wah Factory Building
  • 5th Floor
  • To Kwa Wan
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
366SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
LU4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
LKSG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992

Biography

Luks Group (Vietnam Holdings) Company Limited, an investment holding company, manufactures and sells cement products for use in the construction industry in Vietnam, Hong Kong, and the People's Republic of China. It operates through five segments: Cement Products; Property Investment; Hotel Operation; Property Development; and Corporate and Others. The company offers cement products under the KIM DINH brand to construction sites and retail markets; provides clinkers; and invests in and rents various properties, including industrial, commercial, and residential premises, as well as provides property management and related services. It also develops and sells properties; operates and manages the PENTAHOTEL HONG KONG with 298 rooms located in Tuen Mun; sells and trades in electronic products, including printed circuits boards and other electronics components; and manufactures and sells plywood products. The company was founded in 1975 and is based in To Kwa Wan, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 12:38
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.