SEHK:1098

Stock Analysis Report

Road King Infrastructure

Executive Summary

Road King Infrastructure Limited, an investment holding company, invests in, develops, operates, and manages property projects and toll roads in the People’s Republic of China.


Snowflake Analysis

Undervalued with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Road King Infrastructure's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1098's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

16.1%

1098

5.4%

HK Real Estate

4.0%

HK Market


1 Year Return

-37.6%

1098

-26.0%

HK Real Estate

-20.3%

HK Market

Return vs Industry: 1098 underperformed the Hong Kong Real Estate industry which returned -26% over the past year.

Return vs Market: 1098 underperformed the Hong Kong Market which returned -20.3% over the past year.


Shareholder returns

1098IndustryMarket
7 Day16.1%5.4%4.0%
30 Day-15.3%-11.9%-9.6%
90 Day-25.4%-19.5%-16.0%
1 Year-32.7%-37.6%-22.7%-26.0%-17.4%-20.3%
3 Year50.2%21.9%15.8%3.2%-3.2%-13.0%
5 Year125.8%57.5%34.4%11.5%-7.4%-22.3%

Price Volatility Vs. Market

How volatile is Road King Infrastructure's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Road King Infrastructure undervalued compared to its fair value and its price relative to the market?

23.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1098 (HK$11.26) is trading below our estimate of fair value (HK$14.75)

Significantly Below Fair Value: 1098 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1098 is good value based on its PE Ratio (2.8x) compared to the Real Estate industry average (6.3x).

PE vs Market: 1098 is good value based on its PE Ratio (2.8x) compared to the Hong Kong market (9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1098's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1098 is good value based on its PB Ratio (0.3x) compared to the HK Real Estate industry average (0.4x).


Next Steps

Future Growth

How is Road King Infrastructure forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.3%

Forecasted Real Estate 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 Road King Infrastructure 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 Road King Infrastructure performed over the past 5 years?

30.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1098 has high quality earnings.

Growing Profit Margin: 1098's current net profit margins (14.1%) are higher than last year (13.4%).


Past Earnings Growth Analysis

Earnings Trend: 1098's earnings have grown significantly by 30.2% per year over the past 5 years.

Accelerating Growth: 1098's earnings growth over the past year (1.3%) is below its 5-year average (30.2% per year).

Earnings vs Industry: 1098 earnings growth over the past year (1.3%) exceeded the Real Estate industry 1.1%.


Return on Equity

High ROE: 1098's Return on Equity (12.9%) is considered low.


Next Steps

Financial Health

How is Road King Infrastructure's financial position?


Financial Position Analysis

Short Term Liabilities: 1098's short term assets (HK$64.9B) exceed its short term liabilities (HK$39.1B).

Long Term Liabilities: 1098's short term assets (HK$64.9B) exceed its long term liabilities (HK$23.0B).


Debt to Equity History and Analysis

Debt Level: 1098's debt to equity ratio (115.7%) is considered high.

Reducing Debt: 1098's debt to equity ratio has increased from 108.3% to 115.7% over the past 5 years.

Debt Coverage: 1098's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1098's interest payments on its debt are well covered by EBIT (14x coverage).


Balance Sheet

Inventory Level: 1098 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1098's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

What is Road King Infrastructure's current dividend yield, its reliability and sustainability?

10.48%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 1098's dividend (10.48%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.67%).

High Dividend: 1098's dividend (10.48%) is in the top 25% of dividend payers in the Hong Kong market (7.29%)


Stability and Growth of Payments

Stable Dividend: 1098's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1098's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.2%), 1098'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?

5.0yrs

Average board tenure


CEO

Yuk Bing Ko (63yo)

no data

Tenure

HK$33,964,000

Compensation

Mr. Yuk Bing Ko serves as the Chief Executive Officer and Managing Director of Road King Infrastructure Limited. Mr. Ko joined Road King Infrastructure Limited in early 1995. He serves as an Executive Dire ...


CEO Compensation Analysis

Compensation vs Market: Yuk Bing's total compensation ($USD0.00) is below average for companies of similar size in the Hong Kong market ($USD480.55K).

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


Board Members

NamePositionTenureCompensationOwnership
Wei Peu Zen
Co-Chairman of the Board2.83yrsHK$11.92m3.29% HK$281.5m
Wei Pao Zen
Co-Chairman of the Board2.83yrsHK$39.10mno data
Yuk Bing Ko
Deputy Chairmanno dataHK$33.96mno data
Shiu Leung Fong
Finance Director19.67yrsHK$12.64m0.035% HK$3.0m
Sai Yung Lau
Independent Non-Executive Director15.58yrsHK$569.00kno data
Yong Mou
Non-Executive Director4.25yrsHK$323.00kno data
Chee On Tse
Independent Non-Executive Director7.42yrsHK$470.00kno data
Fang Dong
Non-Executive Director4.25yrsHK$323.00kno data
Wai Ho Wong
Independent Non-Executive Director5.83yrsHK$477.00kno data

5.0yrs

Average Tenure

66yo

Average Age

Experienced Board: 1098's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1098 insiders have only sold shares 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

Road King Infrastructure Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Road King Infrastructure Limited
  • Ticker: 1098
  • Exchange: SEHK
  • Founded: 1994
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$8.557b
  • Shares outstanding: 749.34m
  • Website: https://www.roadking.com.hk

Number of Employees


Location

  • Road King Infrastructure Limited
  • Tower 6
  • Suite 501, 5th Floor
  • Tsim Sha Tsui
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RKGX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1996
1098SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 1996
1098SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 1996

Biography

Road King Infrastructure Limited, an investment holding company, invests in, develops, operates, and manages property projects and toll roads in the People’s Republic of China. It operates through Property Development and Investment, Toll Road, and Investment and Asset Management segments. The company is involved in the development, rental, and sale of residential and commercial properties. It also engages in the property funds, cultural attractions and tourism, and indoor entertainment businesses. In addition, it provides financial and management services. Further, the company invests in and operates a toll road portfolio of 5 expressways spanning approximately 340 kilometers. As of December 31, 2018, it had a land reserve of approximately 7,880,000 square meters located in Mainland China and 120,000 square meters in Hong Kong. The company was founded in 1994 and is based in Tsim Sha Tsui, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 12:53
End of Day Share Price2020/03/30 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.