SEHK:1113

Stock Analysis Report

Executive Summary

CK Asset Holdings Limited operates as a property developer in Hong Kong, the Mainland, Singapore, the United Kingdom, continental Europe, Australia, Canada, and the United States.

Rewards

PE ratio (6.6x) is below the Hong Kong market (10.3x)

Risk Analysis

Earnings are forecast to decline by an average of -7.9% per year for the next 3 years

Unstable dividend track record

Profit margins (50.5%) are lower than last year (87.9%)



Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has CK Asset Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1113 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.9%

1113

4.2%

HK Real Estate

3.7%

HK Market


1 Year Return

-5.5%

1113

4.7%

HK Real Estate

2.4%

HK Market

Return vs Industry: 1113 underperformed the Hong Kong Real Estate industry which returned 4.7% over the past year.

Return vs Market: 1113 underperformed the Hong Kong Market which returned 2.4% over the past year.


Shareholder returns

1113IndustryMarket
7 Day4.9%4.2%3.7%
30 Day4.7%8.1%4.2%
90 Day-3.9%6.6%1.7%
1 Year-2.3%-5.5%8.7%4.7%6.0%2.4%
3 Year17.6%7.8%59.9%43.2%25.6%12.9%
5 Yearn/a75.9%46.9%23.2%2.5%

Price Volatility Vs. Market

How volatile is CK Asset Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CK Asset Holdings undervalued compared to its fair value and its price relative to the market?

6.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1113 (HK$54.3) is trading above our estimate of fair value (HK$27.58)

Significantly Below Fair Value: 1113 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1113 is good value based on its PE Ratio (6.6x) compared to the Real Estate industry average (6.6x).

PE vs Market: 1113 is good value based on its PE Ratio (6.6x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1113's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 1113 is overvalued based on its PB Ratio (0.6x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is CK Asset Holdings forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1113's earnings are forecast to decline over the next 3 years (-7.9% per year).

Earnings vs Market: 1113's earnings are forecast to decline over the next 3 years (-7.9% per year).

High Growth Earnings: 1113's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 1113's revenue is expected to decline over the next 3 years (-3% per year).

High Growth Revenue: 1113's revenue is forecast to decline over the next 3 years (-3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1113's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

  • Explore growth companies in the Real Estate industry.

Past Performance

How has CK Asset Holdings performed over the past 5 years?

21.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1113 has high quality earnings.

Growing Profit Margin: 1113's current net profit margins (50.5%) are lower than last year (87.9%).


Past Earnings Growth Analysis

Earnings Trend: 1113's earnings have grown significantly by 21.4% per year over the past 5 years.

Accelerating Growth: 1113's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1113 had negative earnings growth (-23.6%) over the past year, making it difficult to compare to the Real Estate industry average (-11.5%).


Return on Equity

High ROE: 1113's Return on Equity (9.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CK Asset Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1113's short term assets (HK$217.5B) exceed its short term liabilities (HK$56.5B).

Long Term Liabilities: 1113's short term assets (HK$217.5B) exceed its long term liabilities (HK$69.9B).


Debt to Equity History and Analysis

Debt Level: 1113's debt to equity ratio (17.5%) is considered satisfactory.

Reducing Debt: 1113's debt to equity ratio has reduced from 25.6% to 17.5% over the past 5 years.

Debt Coverage: 1113's debt is well covered by operating cash flow (23.1%).

Interest Coverage: 1113 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1113 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1113's debt is covered by short term assets (assets are 3.6x debt).


Next Steps

Dividend

What is CK Asset Holdings's current dividend yield, its reliability and sustainability?

3.59%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%2.2%markettop25%6.2%industryaverage4.2%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: 1113's dividend (3.59%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.22%).

High Dividend: 1113's dividend (3.59%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.17%).


Stability and Growth of Payments

Stable Dividend: 1113 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1113's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.6%), 1113's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1113's dividends in 3 years are forecast to be well covered by earnings (34.8% payout ratio).


Next Steps

Management

What is the CEO of CK Asset Holdings's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Victor Li (55yo)

4.8yrs

Tenure

HK$94,420,000

Compensation

Mr. Li Tzar Kuoi, also known as Victor, B.Sc, M.Sc, LLD (Hon) serves as Non-Executive Director of Hongkong and Shanghai Banking Corporation Ltd. - New Zealand Branch. He had been Deputy Chairman of Cheung  ...


CEO Compensation Analysis

Compensation vs Market: Victor's total compensation ($USD12.11M) is above average for companies of similar size in the Hong Kong market ($USD882.36K).

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


Management Age and Tenure

4.8yrs

Average Tenure

67.5yo

Average Age

Experienced Management: 1113's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

68yo

Average Age

Experienced Board: 1113's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$46,684,13904 Sep 19
Li Ka Shing (Overseas) Foundation, Endowment Arm
EntityCompany
Shares878,000
Max PriceHK$53.17
BuyHK$49,276,86604 Sep 19
Li Ka Shing (Overseas) Foundation, Endowment Arm
EntityCompany
Shares949,500
Max PriceHK$51.90
BuyHK$106,822,16429 Aug 19
Li Ka Shing (Overseas) Foundation, Endowment Arm
EntityCompany
Shares1,950,000
Max PriceHK$54.78
BuyHK$210,829,18129 Aug 19
Li Ka Shing (Overseas) Foundation, Endowment Arm
EntityCompany
Shares3,970,500
Max PriceHK$53.10
BuyHK$147,641,07929 Aug 19
Li Ka Shing (Overseas) Foundation, Endowment Arm
EntityCompany
Shares2,710,000
Max PriceHK$54.48
BuyHK$103,962,62429 Aug 19
Li Ka Shing (Overseas) Foundation, Endowment Arm
EntityCompany
Shares1,893,500
Max PriceHK$54.91
BuyHK$111,081,84923 Aug 19
Li Ka Shing (Overseas) Foundation, Endowment Arm
EntityCompany
Shares2,046,000
Max PriceHK$54.29
BuyHK$61,985,11123 Aug 19
Li Ka Shing (Overseas) Foundation, Endowment Arm
EntityCompany
Shares1,134,500
Max PriceHK$54.64
BuyHK$259,242,66323 Aug 19
Li Ka Shing (Overseas) Foundation, Endowment Arm
EntityCompany
Shares4,688,000
Max PriceHK$55.30
BuyHK$77,591,96906 May 19
Li Ka Shing Foundation Ltd, Endowment Arm
EntityCompany
Shares1,230,000
Max PriceHK$63.08
BuyHK$138,558,75707 Jan 19
Li Ka Shing Foundation Ltd, Endowment Arm
EntityCompany
Shares2,500,000
Max PriceHK$55.42
BuyHK$27,153,69607 Jan 19
Li Ka Shing Foundation Ltd, Endowment Arm
EntityCompany
Shares486,000
Max PriceHK$55.87

Ownership Breakdown

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


Management Team

  • Justin Chiu (68yo)

    Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$35.69m
  • Davy Chung (68yo)

    Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$35.44m
  • Ezra Pau (63yo)

    Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$32.81m
  • Grace Woo (62yo)

    Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$37.18m
  • Ka-shing Li (91yo)

    Senior Advisor

    • Tenure: 0yrs
  • Victor Li (55yo)

    Chairman & MD

    • Tenure: 4.8yrs
    • Compensation: HK$94.42m
  • Hing Lam Kam (73yo)

    Deputy MD & Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$27.82m
  • Raymond Chow (71yo)

    Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$32.65m
  • Edmond Ip (67yo)

    Deputy MD & Executive Director

    • Tenure: 4.9yrs
    • Compensation: HK$26.46m
  • Simon Man (62yo)

    General Manager of Accounts Department

    • Tenure: 0yrs

Board Members

  • Justin Chiu (68yo)

    Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$35.69m
  • Davy Chung (68yo)

    Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$35.44m
  • Ezra Pau (63yo)

    Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$32.81m
  • Grace Woo (62yo)

    Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$37.18m
  • Katherine Hung (71yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$410.00k
  • Victor Li (55yo)

    Chairman & MD

    • Tenure: 4.8yrs
    • Compensation: HK$94.42m
  • Hing Lam Kam (73yo)

    Deputy MD & Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$27.82m
  • Raymond Chow (71yo)

    Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$32.65m
  • Edmond Ip (67yo)

    Deputy MD & Executive Director

    • Tenure: 4.9yrs
    • Compensation: HK$26.46m
  • Henry Cheong (72yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$410.00k

Company Information

CK Asset Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CK Asset Holdings Limited
  • Ticker: 1113
  • Exchange: SEHK
  • Founded: 2015
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$200.552b
  • Shares outstanding: 3.69b
  • Website: https://www.ckah.com

Number of Employees


Location

  • CK Asset Holdings Limited
  • Cheung Kong Center
  • 7th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1113SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2015
1CKDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2015
1113SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2015
CHKG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2015
1113SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2015

Biography

CK Asset Holdings Limited operates as a property developer in Hong Kong, the Mainland, Singapore, the United Kingdom, continental Europe, Australia, Canada, and the United States. The company is involved i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 12:58
End of Day Share Price2019/12/13 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.