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.

Rewards

PE ratio (3.7x) is below the Hong Kong market (10.5x)

Earnings grew by 23.5% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record



Snowflake Analysis

Average dividend payer and fair value.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.7%

1098

1.8%

HK Real Estate

1.6%

HK Market


1 Year Return

11.3%

1098

8.3%

HK Real Estate

6.0%

HK Market

Return vs Industry: 1098 exceeded the Hong Kong Real Estate industry which returned 8.2% over the past year.

Return vs Market: 1098 exceeded the Hong Kong Market which returned 5.6% over the past year.


Shareholder returns

1098IndustryMarket
7 Day2.7%1.8%1.6%
30 Day3.9%3.8%4.4%
90 Day13.1%9.7%8.6%
1 Year19.9%11.3%13.1%8.3%9.9%6.0%
3 Year191.0%136.1%61.8%44.6%27.7%14.7%
5 Year230.0%130.1%73.8%44.3%21.7%1.4%

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?

3.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1098 (HK$14.92) is trading above our estimate of fair value (HK$14.35)

Significantly Below Fair Value: 1098 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1098 is good value based on its PE Ratio (3.7x) compared to the Real Estate industry average (6.9x).

PE vs Market: 1098 is good value based on its PE Ratio (3.7x) compared to the Hong Kong market (10.5x).


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 (0.5x) compared to the HK Real Estate industry average (0.5x).


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?

7.0%

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?

29.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1098 has high quality earnings.

Growing Profit Margin: 1098's current net profit margins (13%) are lower than last year (14.3%).


Past Earnings Growth Analysis

Earnings Trend: 1098's earnings have grown significantly by 29.7% per year over the past 5 years.

Accelerating Growth: 1098's earnings growth over the past year (23.5%) is below its 5-year average (29.7% per year).

Earnings vs Industry: 1098 earnings growth over the past year (23.5%) exceeded the Real Estate industry -9.9%.


Return on Equity

High ROE: 1098's Return on Equity (14.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Road King Infrastructure's financial position?


Financial Position Analysis

Short Term Liabilities: 1098's short term assets (HK$56.3B) exceed its short term liabilities (HK$42.8B).

Long Term Liabilities: 1098's short term assets (HK$56.3B) exceed its long term liabilities (HK$16.1B).


Debt to Equity History and Analysis

Debt Level: 1098's debt to equity ratio (114.5%) is considered high.

Reducing Debt: 1098's debt to equity ratio has increased from 111.4% to 114.5% 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 (34.4x 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?

7.65%

Current Dividend Yield


Dividend Yield vs Market

company7.7%marketbottom25%2.2%markettop25%6.0%industryaverage4.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1098's dividend (7.91%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 1098's dividend (7.91%) is in the top 25% of dividend payers in the Hong Kong market (6.02%)


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%), 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

What is the CEO of Road King Infrastructure's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average board tenure


CEO

Yuk Bing Ko (63yo)

0yrs

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 ($USD0.00) is below average for companies of similar size in the Hong Kong market ($USD547.75K).

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


Board Age and Tenure

4.9yrs

Average Tenure

66yo

Average Age

Experienced Board: 1098's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

Insider Buying: 1098 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellHK$602,56010 Jan 20
Sai Yung Lau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares40,000
Max PriceHK$15.06
SellHK$900,00009 Jan 20
Sai Yung Lau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares60,000
Max PriceHK$15.00
SellHK$380,30008 Jan 20
Sai Yung Lau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares25,000
Max PriceHK$15.21
SellHK$2,849,61802 Jan 20
Sai Yung Lau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares187,000
Max PriceHK$15.24
SellHK$1,915,51530 Dec 19
Sai Yung Lau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares127,000
Max PriceHK$15.08
SellHK$15,02027 Dec 19
Sai Yung Lau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,000
Max PriceHK$15.02
SellHK$225,06027 Dec 19
Sai Yung Lau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares15,000
Max PriceHK$15.00
SellHK$105,00023 Dec 19
Sai Yung Lau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares7,000
Max PriceHK$15.00
BuyHK$145,00012 Dec 19
Wai Kee Holdings Limited
EntityCompany
Shares10,000
Max PriceHK$14.50
BuyHK$2,092,06311 Oct 19
Wai Kee Holdings Limited
EntityCompany
Shares160,000
Max PriceHK$13.08
BuyHK$2,368,09810 Oct 19
Wai Kee Holdings Limited
EntityCompany
Shares180,000
Max PriceHK$13.16
BuyHK$2,576,93009 Oct 19
Wai Kee Holdings Limited
EntityCompany
Shares196,000
Max PriceHK$13.15
BuyHK$1,476,58608 Oct 19
Wai Kee Holdings Limited
EntityCompany
Shares112,000
Max PriceHK$13.18
BuyHK$1,532,04504 Oct 19
Wai Kee Holdings Limited
EntityCompany
Shares117,000
Max PriceHK$13.09
BuyHK$1,510,10003 Oct 19
Wai Kee Holdings Limited
EntityCompany
Shares115,000
Max PriceHK$13.13
BuyHK$647,22102 Oct 19
Wai Kee Holdings Limited
EntityCompany
Shares49,000
Max PriceHK$13.21
BuyHK$2,296,52230 Sep 19
Wai Kee Holdings Limited
EntityCompany
Shares174,000
Max PriceHK$13.20
BuyHK$882,41727 Sep 19
Wai Kee Holdings Limited
EntityCompany
Shares67,000
Max PriceHK$13.17
BuyHK$1,703,14326 Sep 19
Wai Kee Holdings Limited
EntityCompany
Shares130,000
Max PriceHK$13.10
BuyHK$226,10025 Sep 19
Wai Kee Holdings Limited
EntityCompany
Shares17,000
Max PriceHK$13.30
BuyHK$2,151,84525 Sep 19
Wai Kee Holdings Limited
EntityCompany
Shares163,000
Max PriceHK$13.20
BuyHK$1,591,06523 Sep 19
Wai Kee Holdings Limited
EntityCompany
Shares118,000
Max PriceHK$13.48
BuyHK$391,50020 Sep 19
Wai Kee Holdings Limited
EntityCompany
Shares29,000
Max PriceHK$13.50
BuyHK$40,50019 Sep 19
Wai Kee Holdings Limited
EntityCompany
Shares3,000
Max PriceHK$13.50
BuyHK$634,40112 Sep 19
Wai Kee Holdings Limited
EntityCompany
Shares47,000
Max PriceHK$13.50
BuyHK$40,50006 Sep 19
Wai Kee Holdings Limited
EntityCompany
Shares3,000
Max PriceHK$13.50
SellHK$2,580,32110 Apr 19
Sai Yung Lau
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares143,000
Max PriceHK$18.04
SellHK$720,20010 Apr 19
Chee On Tse
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares40,000
Max PriceHK$18.01
SellHK$347,44008 Apr 19
Chee On Tse
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares20,000
Max PriceHK$17.37
SellHK$357,36004 Apr 19
Chee On Tse
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares20,000
Max PriceHK$17.87
SellHK$371,12029 Mar 19
Chee On Tse
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares20,000
Max PriceHK$18.56

Ownership Breakdown

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


Management Team

  • Fun Ng (46yo)

    Senior Vice President

    • Yuk Bing Ko (63yo)

      Deputy Chairman

      • Compensation: HK$33.96m
    • Derek Zen (66yo)

      Co-Chairman of the Board

      • Tenure: 2.7yrs
      • Compensation: HK$11.92m
    • Keter Fong (56yo)

      Finance Director

      • Tenure: 19.5yrs
      • Compensation: HK$12.64m
    • William Zen (71yo)

      Co-Chairman of the Board

      • Tenure: 2.7yrs
      • Compensation: HK$39.10m
    • Hayley Zen (44yo)

      Executive Director of Investment & Asset Management Division

      • Kennedy Lee (53yo)

        Senior Vice President

        • Hao Wang (48yo)

          Deputy Chief Executive Officer of Property Division

          • Tenure: 13yrs
        • Albert Ho (65yo)

          Senior Vice President of the Group for Design Centre

          • Daniel Luk (48yo)

            Senior Vice President


            Board Members

            • Yuk Bing Ko (63yo)

              Deputy Chairman

              • Compensation: HK$33.96m
            • Derek Zen (66yo)

              Co-Chairman of the Board

              • Tenure: 2.7yrs
              • Compensation: HK$11.92m
            • Keter Fong (56yo)

              Finance Director

              • Tenure: 19.5yrs
              • Compensation: HK$12.64m
            • William Zen (71yo)

              Co-Chairman of the Board

              • Tenure: 2.7yrs
              • Compensation: HK$39.10m
            • Sai Yung Lau (71yo)

              Independent Non-Executive Director

              • Tenure: 15.4yrs
              • Compensation: HK$569.00k
            • Yong Mou (56yo)

              Non-Executive Director

              • Tenure: 4.1yrs
              • Compensation: HK$323.00k
            • Raymond Tse (68yo)

              Independent Non-Executive Director

              • Tenure: 7.3yrs
              • Compensation: HK$470.00k
            • Fang Dong (46yo)

              Non-Executive Director

              • Tenure: 4.1yrs
              • Compensation: HK$323.00k
            • Wai Ho Wong (70yo)

              Independent Non-Executive Director

              • Tenure: 5.7yrs
              • Compensation: HK$477.00k

            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$11.555b
            • 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 Analysis2020/01/19 12:42
            End of Day Share Price2020/01/17 00:00
            Earnings2019/06/30
            Annual Earnings2018/12/31


            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.