SEHK:2288

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Rykadan Capital Limited, an investment holding company, engages in the property investment and development business in Hong Kong, the People's Republic of China, the United States, and internationally.

Risk Analysis

Does not have a meaningful market cap (HK$198M)



Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2288 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.4%

2288

0.05%

HK Real Estate

1.2%

HK Market


1 Year Return

-41.5%

2288

-3.9%

HK Real Estate

5.4%

HK Market

Return vs Industry: 2288 underperformed the Hong Kong Real Estate industry which returned -3.9% over the past year.

Return vs Market: 2288 underperformed the Hong Kong Market which returned 5.4% over the past year.


Shareholder returns

2288IndustryMarket
7 Day-2.4%0.05%1.2%
30 Day-2.4%-4.1%-2.7%
90 Day-10.8%-0.2%6.9%
1 Year-36.0%-41.5%1.2%-3.9%9.7%5.4%
3 Year-50.3%-57.7%10.0%-3.3%3.5%-7.6%
5 Year-58.8%-67.3%42.8%17.3%12.0%-6.8%

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 compared to its fair value and its price relative to the market?

0.15x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 2288's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 2288's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 2288 is unprofitable, so we can't compare its PE Ratio to the HK Real Estate industry average.

PE vs Market: 2288 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2288's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2288 is good value based on its PB Ratio (0.1x) compared to the HK Real Estate industry average (0.4x).


Next Steps

Future Growth

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

12.9%

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 Rykadan Capital 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 Rykadan Capital performed over the past 5 years?

30.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2288 is currently unprofitable.

Growing Profit Margin: 2288 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2288 is unprofitable, but has reduced losses over the past 5 years at a rate of 30.7% per year.

Accelerating Growth: Unable to compare 2288's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2288 is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (4.2%).


Return on Equity

High ROE: 2288 has a negative Return on Equity (-6.34%), as it is currently unprofitable.


Next Steps

Financial Health

How is Rykadan Capital's financial position?


Financial Position Analysis

Short Term Liabilities: 2288's short term assets (HK$1.2B) exceed its short term liabilities (HK$454.5M).

Long Term Liabilities: 2288's short term assets (HK$1.2B) exceed its long term liabilities (HK$8.4M).


Debt to Equity History and Analysis

Debt Level: 2288's debt to equity ratio (28.6%) is considered satisfactory.

Reducing Debt: 2288's debt to equity ratio has increased from 26.4% to 28.6% over the past 5 years.

Debt Coverage: 2288's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 2288's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2288's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2288's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2288's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2288's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2288 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2288's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

William Chan (45 yo)

8.08yrs

Tenure

HK$18,518,000

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

Compensation vs Market: William's total compensation ($USD2.39M) is above average for companies of similar size in the Hong Kong market ($USD230.44K).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Chan
Chairman & CEO8.08yrsHK$18.52m27.4%
HK$ 54.3m
Tak Kwan Ng
Co-Founder & Non-Executive Director5yrsHK$4.26m13.2%
HK$ 26.2m
Chun Yip
COO & Executive Director11yrsHK$4.38mno data
Hoi Lo
CFO & Company Secretary2.58yrsno data0.063%
HK$ 125.3k
Man Lui
Financial Controllerno datano datano data

2.6yrs

Average Tenure

45yo

Average Age

Experienced Management: 2288's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Chan
Chairman & CEO8.08yrsHK$18.52m27.4%
HK$ 54.3m
Tak Kwan Ng
Co-Founder & Non-Executive Director5yrsHK$4.26m13.2%
HK$ 26.2m
Chun Yip
COO & Executive Director11yrsHK$4.38mno data
King Yan To
Independent Non-Executive Director11yrsHK$264.00kno data
Kwok Wah Ho
Independent Non-Executive Director10.5yrsHK$264.00kno data
Hoi Wong
Independent Non-Executive Director11yrsHK$264.00kno data

11.0yrs

Average Tenure

61yo

Average Age

Experienced Board: 2288's board of directors are seasoned and experienced ( 11 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

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


Key Information

  • Name: Rykadan Capital Limited
  • Ticker: 2288
  • Exchange: SEHK
  • Founded: 1986
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$198.141m
  • 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 business in Hong Kong, the People's Republic of China, the United States, and internationally. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 12:55
End of Day Share Price2020/08/10 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.