SEHK:318

Stock Analysis Report

Executive Summary

Vongroup Limited, an investment holding company, engages in the financial services, securities, property, technology and media, and food and beverage businesses in Hong Kong, the People’s Republic of China, and Macau.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.8%

318

2.6%

HK Real Estate

2.4%

HK Market


1 Year Return

-25.0%

318

9.7%

HK Real Estate

0.4%

HK Market

Return vs Industry: 318 underperformed the Hong Kong Real Estate industry which returned 9.7% over the past year.

Return vs Market: 318 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

318IndustryMarket
7 Day-3.8%2.6%2.4%
30 Day-16.7%-1.8%-2.6%
90 Day-10.7%-11.6%-5.6%
1 Year-25.0%-25.0%13.9%9.7%4.0%0.4%
3 Year-77.1%-77.1%36.7%22.4%15.1%3.5%
5 Year-89.1%-89.1%59.4%33.8%20.3%0.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Vongroup 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: 318 (HK$0.38) is trading below our estimate of fair value (HK$1.15)

Significantly Undervalued: 318 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 318 is good value based on its PE Ratio (3.3x) compared to the Real Estate industry average (6.1x).

PE vs Market: 318 is good value based on its PE Ratio (3.3x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 318's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 318 is good value based on its PB Ratio (0.2x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

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

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 318's forecast earnings growth (18.2% per year) is above the savings rate (2%).

Earnings vs Market: 318's earnings (18.2% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

High Growth Earnings: 318's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 318's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 318's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 318's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Vongroup performed over the past 5 years?

50.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 318 has become profitable over the past 5 years, growing earnings by 50.9% per year.

Accelerating Growth: 318's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 318 had negative earnings growth (-42.9%) over the past year, making it difficult to compare to the Real Estate industry average (-12.4%).


Return on Equity

High ROE: 318's Return on Equity (5.8%) is considered low.


Return on Assets

ROA vs Industry: 318 has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 318's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Vongroup's financial position?


Financial Position Analysis

Short Term Liabilities: 318's short term assets (HK$132.2M) exceeds its short term liabilities (HK$34.2M)

Long Term Liabilities: 318's short term assets (132.2M) exceeds its long term liabilities (896.0K)


Debt to Equity History and Analysis

Debt Level: 318's debt to equity ratio (6.9%) is considered satisfactory

Reducing Debt: 318's debt to equity ratio has reduced from 13.5% to 6.9% over the past 5 years.

Debt Coverage: 318's debt is not well covered by operating cash flow (9.7%).

Interest Coverage: 318's interest payments on its debt are well covered by EBIT (19.1x coverage).


Balance Sheet

Inventory Level: 318 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 318's debt is covered by short term assets (assets are 5.028670x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 318's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 318's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 318's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 318's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 318's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

14.2yrs

Average board tenure


CEO

David Vong (57yo)

14.2yrs

Tenure

HK$3,600,000

Compensation

Mr. Tat Ieong Vong, also known as David, has been the Chief Executive Officer at Vongroup Ltd. (Alternatively Kamboat Group Company Ltd.) since August 30, 2005. Mr. Vong has been involved in cross-border m ...


CEO Compensation Analysis

Compensation vs. Market: David's total compensation ($USD458.91K) is about average for companies of similar size in the Hong Kong market ($USD211.40K).

Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

14.2yrs

Average Tenure

57yo

Average Age

Experienced Board: 318's board of directors are seasoned and experienced ( 14.2 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.


Ownership Breakdown


Management Team

  • Heng Chung Lai (68yo)

    Purchasing Manager and Head of Administration & Purchasing Functions

    • Tenure: 0yrs
  • Siping Xu (61yo)

    Executive Director

    • Tenure: 14.2yrs
    • Compensation: HK$500.00k
  • David Vong (57yo)

    CEO & Executive Director

    • Tenure: 14.2yrs
    • Compensation: HK$3.60m
  • Raymond Tsui (43yo)

    Company Secretary

    • Tenure: 9.7yrs

Board Members

  • Lee George Lam (60yo)

    Independent Non-Executive Director

    • Tenure: 14.2yrs
    • Compensation: HK$150.00k
  • Siping Xu (61yo)

    Executive Director

    • Tenure: 14.2yrs
    • Compensation: HK$500.00k
  • David Vong (57yo)

    CEO & Executive Director

    • Tenure: 14.2yrs
    • Compensation: HK$3.60m
  • David Fung (56yo)

    Independent Non-Executive Director

    • Tenure: 14.2yrs
    • Compensation: HK$100.00k
  • Edna Wong (53yo)

    Independent Non-Executive Director

    • Tenure: 14.8yrs
    • Compensation: HK$100.00k

Company Information

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


Key Information

  • Name: Vongroup Limited
  • Ticker: 318
  • Exchange: SEHK
  • Founded:
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$73.993m
  • Shares outstanding: 192.19m
  • Website: https://www.thevongroup.com

Number of Employees


Location

  • Vongroup Limited
  • 17A EGL Tower
  • 83 Hung To Road
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
318SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2001

Biography

Vongroup Limited, an investment holding company, engages in the financial services, securities, property, technology and media, and food and beverage businesses in Hong Kong, the People’s Republic of China ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:33
End of Day Share Price2019/10/15 00:00
Earnings2019/04/30
Annual Earnings2019/04/30


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.