SEHK:2288

Stock Analysis Report

Executive Summary

Rykadan Capital Limited, an investment holding company, engages in the property investment and development, and construction and interior decorative materials distribution businesses in Hong Kong, the People's Republic of China, the United States, and internationally.

Snowflake

Fundamentals

Undervalued with solid track record.

Risks

  • Rykadan Capital is not covered by any analysts.

Share Price & News

How has Rykadan Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.1%

SEHK:2288

1.3%

HK Real Estate

1.9%

HK Market


1 Year Return

-9.1%

SEHK:2288

-8.1%

HK Real Estate

-10.4%

HK Market

2288 underperformed the Real Estate industry which returned -8.1% over the past year.

2288 outperformed the Market in Hong Kong which returned -10.4% over the past year.


Share holder returns

2288IndustryMarket
7 Day-4.1%1.3%1.9%
30 Day-5.4%-9.4%-6.8%
90 Day12.9%-7.9%-4.2%
1 Year-9.1%-9.1%-4.2%-8.1%-7.2%-10.4%
3 Year-23.5%-30.7%36.1%22.1%15.3%3.9%
5 Year-53.7%-66.0%48.8%23.5%10.1%-8.1%

Price Volatility Vs. Market

How volatile is Rykadan Capital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rykadan Capital undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Rykadan Capital's share price is below the future cash flow value, and at a moderate discount (> 20%).

Rykadan Capital's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Rykadan Capital is good value based on earnings compared to the HK Real Estate industry average.

Rykadan Capital is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Rykadan Capital, we can't assess if its growth is good value.


Price Based on Value of Assets

Rykadan Capital is good value based on assets compared to the HK Real Estate industry average.


Next Steps

Future Growth

How is Rykadan Capital expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

-15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Rykadan Capital is high growth as no revenue estimate data is available.

Rykadan Capital's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Rykadan Capital's revenue growth to the Hong Kong market average as no estimate data is available.

Rykadan Capital's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

Rykadan Capital's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Rykadan Capital will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Rykadan Capital performed over the past 5 years?

-31.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Rykadan Capital's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Rykadan Capital's 1-year earnings growth exceeds its 5-year average (960.3% vs -31.7%)

Rykadan Capital's earnings growth has exceeded the HK Real Estate industry average in the past year (960.3% vs -2.9%).


Return on Equity

Rykadan Capital has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Rykadan Capital used its assets more efficiently than the HK Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

Rykadan Capital has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Rykadan Capital's financial position?


Financial Position Analysis

Rykadan Capital is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Rykadan Capital's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Rykadan Capital's level of debt (28.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (27.6% vs 28.4% today).

Debt is well covered by operating cash flow (99.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 29.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.5x debt.


Next Steps

Dividend

What is Rykadan Capital's current dividend yield, its reliability and sustainability?

8.57%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Rykadan Capital before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Rykadan Capital's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.25%).

Rykadan Capital's dividend is above the markets top 25% of dividend payers in Hong Kong (6.18%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (11.5x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Rykadan Capital's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

William Chan (44yo)

7.1yrs

Tenure

HK$20,018,000

Compensation

Mr. William Chan serves as an Advisor of Yan Chai Hospital. Mr. Chan has been Chief Executive Officer of Rykadan Capital Limited since July 01, 2012. He serves as Divisional Senior Vice President of Hong K ...


CEO Compensation Analysis

William's remuneration is higher than average for companies of similar size in Hong Kong.

William's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.3yrs

Average Tenure

40yo

Average Age

The tenure for the Rykadan Capital management team is about average.


Board Age and Tenure

10.0yrs

Average Tenure

60yo

Average Age

The average tenure for the Rykadan Capital board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • William Chan (44yo)

    Chairman & CEO

    • Tenure: 7.1yrs
    • Compensation: HK$20.02m
  • Chun Yip (45yo)

    COO & Executive Director

    • Tenure: 10.0yrs
    • Compensation: HK$4.88m
  • Tak Ng (65yo)

    Co-Founder & Non-Executive Director

    • Tenure: 4.0yrs
    • Compensation: HK$4.96m
  • Megan Yeung (36yo)

    Legal Counsel & Company Secretary

    • Tenure: 9.3yrs
  • Heywood Lo (36yo)

    Chief Financial Officer

    • Tenure: 1.6yrs
  • Man Lui (34yo)

    Financial Controller

    • Tenure: 0.0yrs

Board Members

  • Adam To (59yo)

    Independent Non-Executive Director

    • Tenure: 10.0yrs
    • Compensation: HK$264.00k
  • George Ho (61yo)

    Independent Non-Executive Director

    • Tenure: 9.5yrs
    • Compensation: HK$264.00k
  • William Chan (44yo)

    Chairman & CEO

    • Tenure: 7.1yrs
    • Compensation: HK$20.02m
  • Chun Yip (45yo)

    COO & Executive Director

    • Tenure: 10.0yrs
    • Compensation: HK$4.88m
  • Hoi Wong (65yo)

    Independent Non-Executive Director

    • Tenure: 10.0yrs
    • Compensation: HK$264.00k
  • Tak Ng (65yo)

    Co-Founder & Non-Executive Director

    • Tenure: 4.0yrs
    • Compensation: HK$4.96m

Company Information

Rykadan Capital Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rykadan Capital Limited
  • Ticker: 2288
  • Exchange: SEHK
  • Founded:
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$334.213m
  • Shares outstanding: 477.45m
  • Website: https://www.rykadan.com

Number of Employees


Location

  • Rykadan Capital Limited
  • Rykadan Capital Tower
  • Rooms 2701 and 2801
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2288SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 2009
V2UDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2009

Biography

Rykadan Capital Limited, an investment holding company, engages in the property investment and development, and construction and interior decorative materials distribution businesses in Hong Kong, the Peop ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 12:47
End of Day Share Price2019/08/23 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.