SEHK:173

Stock Analysis Report

K. Wah International Holdings

Executive Summary

K. Wah International Holdings Limited, an investment holding company, engages in the property development and investment activities in Hong Kong and Mainland China.

Snowflake

Fundamentals

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has K. Wah International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.3%

173

2.6%

HK Real Estate

2.4%

HK Market


1 Year Return

28.9%

173

9.7%

HK Real Estate

0.4%

HK Market

Return vs Industry: 173 exceeded the Hong Kong Real Estate industry which returned 9.7% over the past year.

Return vs Market: 173 exceeded the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

173IndustryMarket
7 Day5.3%2.6%2.4%
30 Day-2.8%-1.8%-2.6%
90 Day-7.6%-11.6%-5.6%
1 Year34.7%28.9%13.9%9.7%4.0%0.4%
3 Year12.6%-0.2%36.7%22.4%15.1%3.5%
5 Year55.0%-8.0%59.4%33.8%20.3%0.3%

Price Volatility Vs. Market

How volatile is K. Wah International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is K. Wah International 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

Undervalued: 173 (HK$4.15) is trading below our estimate of fair value (HK$52.58)

Significantly Undervalued: 173 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 173 is good value based on its PE Ratio (2.6x) compared to the Real Estate industry average (6.1x).

PE vs Market: 173 is good value based on its PE Ratio (2.6x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 173's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 173 is good value based on its PB Ratio (0.3x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is K. Wah International Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 173's earnings are forecast to decline over the next 3 years (-22% per year).

Earnings vs Market: 173's earnings are forecast to decline over the next 3 years (-22% per year).

High Growth Earnings: 173's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 173's revenue (25.5% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 173's revenue (25.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 173's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has K. Wah International Holdings performed over the past 5 years?

22.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 173's earnings have grown significantly by 22% per year over the past 5 years.

Accelerating Growth: 173's earnings growth over the past year (115.1%) exceeds its 5-year average (22% per year).

Earnings vs Industry: 173 earnings growth over the past year (115.1%) exceeded the Real Estate industry -12.4%.


Return on Equity

High ROE: 173's Return on Equity (13.2%) is considered low.


Return on Assets

ROA vs Industry: 173 has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 173 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is K. Wah International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 173's short term assets (HK$37.3B) exceeds its short term liabilities (HK$15.0B)

Long Term Liabilities: 173's short term assets (37.3B) exceeds its long term liabilities (16.7B)


Debt to Equity History and Analysis

Debt Level: 173's debt to equity ratio (44%) is considered high

Reducing Debt: 173's debt to equity ratio has reduced from 53.3% to 44% over the past 5 years.

Debt Coverage: 173's debt is well covered by operating cash flow (31.7%).

Interest Coverage: 173 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 173 has a high level of physical assets or inventory.

Debt Coverage by Assets: 173's debt is covered by short term assets (assets are 2.180670x debt).


Next Steps

Dividend

What is K. Wah International Holdings's current dividend yield, its reliability and sustainability?

4.82%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%2.3%markettop25%6.3%industryaverage4.5%forecastin3Years5.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 173's dividend (4.82%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 173's dividend (4.82%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).

Stable Dividend: 173's dividend payments have been volatile in the past 10 years.

Growing Dividend: 173's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.6%), 173's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 173's dividends in 3 years are forecast to be well covered by earnings (15.7% payout ratio).


Next Steps

Management

What is the CEO of K. Wah International Holdings's salary, the management and board of directors tenure and is there insider trading?

10.2yrs

Average board tenure


CEO

Che-Woo Lui (89yo)

0yrs

Tenure

HK$21,399,000

Compensation

Dr. Che Woo Lui, GBM, MBE, JP, LLD, DSSc, DBA, serves as the President of Tsim Sha Tsui East Property Developers Association. Dr. Lui is the Founder of K. Wah International Holdings Ltd. and serves as its  ...


CEO Compensation Analysis

Compensation vs. Market: Che-Woo's total compensation ($USD2.73M) is about average for companies of similar size in the Hong Kong market ($USD511.20K).

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


Board Age and Tenure

10.2yrs

Average Tenure

66.5yo

Average Age

Experienced Board: 173's board of directors are seasoned and experienced ( 10.2 years average tenure).


Insider Trading

Insider Buying: 173 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$1,082,00102 Oct 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares261,000
Max PriceHK$4.15
BuyHK$1,081,11702 Oct 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares262,000
Max PriceHK$4.13
BuyHK$1,595,64527 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares390,000
Max PriceHK$4.09
BuyHK$1,779,51327 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares430,000
Max PriceHK$4.14
BuyHK$995,75525 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares237,000
Max PriceHK$4.20
BuyHK$1,730,76925 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares416,000
Max PriceHK$4.16
BuyHK$1,630,29323 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares396,000
Max PriceHK$4.12
BuyHK$1,248,35923 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares303,000
Max PriceHK$4.12
BuyHK$1,861,42319 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares450,000
Max PriceHK$4.14
BuyHK$1,769,48019 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares419,000
Max PriceHK$4.22
BuyHK$1,213,07317 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares285,000
Max PriceHK$4.26
BuyHK$1,587,62217 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares372,000
Max PriceHK$4.27
BuyHK$1,368,51113 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares319,000
Max PriceHK$4.29
BuyHK$1,300,41513 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares303,000
Max PriceHK$4.29
BuyHK$1,161,20911 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares271,000
Max PriceHK$4.28
BuyHK$1,207,48511 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares281,000
Max PriceHK$4.30
BuyHK$768,47509 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares184,000
Max PriceHK$4.18
BuyHK$1,004,03609 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares244,000
Max PriceHK$4.11
BuyHK$2,492,88205 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares624,000
Max PriceHK$4.00
BuyHK$2,296,12405 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares573,000
Max PriceHK$4.01
BuyHK$2,266,78603 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares555,000
Max PriceHK$4.08
BuyHK$1,993,92003 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares488,000
Max PriceHK$4.09
BuyHK$1,193,66802 Sep 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares290,000
Max PriceHK$4.12
BuyHK$1,908,22230 Aug 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares466,000
Max PriceHK$4.09
BuyHK$5,510,23028 Aug 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,322,000
Max PriceHK$4.17
BuyHK$4,294,89727 Aug 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,052,000
Max PriceHK$4.08
BuyHK$574,44426 Aug 19
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares144,000
Max PriceHK$3.99
BuyHK$80,50014 Nov 18
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares23,000
Max PriceHK$3.50
BuyHK$6,323,35407 Nov 18
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,722,000
Max PriceHK$3.67
BuyHK$4,985,88305 Nov 18
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,378,000
Max PriceHK$3.62
BuyHK$5,175,72005 Nov 18
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,467,000
Max PriceHK$3.53
BuyHK$8,141,24001 Nov 18
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,326,000
Max PriceHK$3.50
BuyHK$6,959,42201 Nov 18
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,031,000
Max PriceHK$3.43
BuyHK$6,932,21231 Oct 18
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,079,000
Max PriceHK$3.33
BuyHK$5,616,38630 Oct 18
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,770,000
Max PriceHK$3.17
BuyHK$10,166,20729 Oct 18
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares3,145,000
Max PriceHK$3.23
BuyHK$8,561,75626 Oct 18
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,594,000
Max PriceHK$3.30
BuyHK$1,646,59924 Oct 18
Lui Wai Yu Tang
EntityIndividual
Role
Member of the Board of Directors
Member of Executive Board & Executive Director
Shares500,000
Max PriceHK$3.29
BuyHK$4,242,64224 Oct 18
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,314,000
Max PriceHK$3.23
BuyHK$12,822,24424 Oct 18
Che-Woo Lui
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares3,882,000
Max PriceHK$3.30

Ownership Breakdown


Management Team

  • Eileen Cheng Lui (61yo)

    Member of Senior Management and Director of K Wah Management Services Limited

    • Tenure: 0yrs
  • Richard Cheung (54yo)

    Assistant General Manager of Legal Department

    • Tenure: 0yrs
  • Paddy Tang (65yo)

    Member of Executive Board & Executive Director

    • Tenure: 30.3yrs
    • Compensation: HK$12.75m
  • Che-Woo Lui (89yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: HK$21.40m
  • Francis Lui (63yo)

    Member of Executive Board & Executive Director

    • Tenure: 30.3yrs
    • Compensation: HK$3.51m
  • Josephine Ng (54yo)

    Assistant General Manager of Administration and Human Resources Department

    • Tenure: 0yrs
  • Alexander Lui (56yo)

    Member of Executive Board & Executive Director

    • Tenure: 9.5yrs
    • Compensation: HK$16.37m
  • Cecilia Lee

    Company Secretary

    • Tenure: 0yrs
  • Oliver Lam

    Chief Financial Officer

    • Tenure: 0yrs
  • Brian Wong

    Assistant Corporate Affairs Manager

    • Tenure: 0yrs

Board Members

  • Moses Cheng (69yo)

    Non-Executive Director

    • Tenure: 10.2yrs
    • Compensation: HK$444.00k
  • Eileen Cheng Lui (61yo)

    Member of Senior Management and Director of K Wah Management Services Limited

    • Tenure: 0yrs
  • Paddy Tang (65yo)

    Member of Executive Board & Executive Director

    • Tenure: 30.3yrs
    • Compensation: HK$12.75m
  • Che-Woo Lui (89yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: HK$21.40m
  • Francis Lui (63yo)

    Member of Executive Board & Executive Director

    • Tenure: 30.3yrs
    • Compensation: HK$3.51m
  • William Yip (81yo)

    Independent Non-Executive Director

    • Tenure: 11.3yrs
    • Compensation: HK$574.00k
  • Yun Wing Nip (65yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Alexander Lui (56yo)

    Member of Executive Board & Executive Director

    • Tenure: 9.5yrs
    • Compensation: HK$16.37m
  • Kwai Lam Wong (70yo)

    Independent Non-Executive Director

    • Tenure: 8.2yrs
    • Compensation: HK$424.00k
  • Man Chu Au (68yo)

    Independent Non-Executive Director

    • Tenure: 8.2yrs
    • Compensation: HK$444.00k

Company Information

K. Wah International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: K. Wah International Holdings Limited
  • Ticker: 173
  • Exchange: SEHK
  • Founded: 1990
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$12.751b
  • Shares outstanding: 3.13b
  • Website: https://www.kwih.com

Number of Employees


Location

  • K. Wah International Holdings Limited
  • K. Wah Centre
  • 29th Floor
  • North Point
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
173SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
KWHA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
KW2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
173SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
173SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992

Biography

K. Wah International Holdings Limited, an investment holding company, engages in the property development and investment activities in Hong Kong and Mainland China. Its property portfolio comprises residen ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:38
End of Day Share Price2019/10/15 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.