SEHK:88

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Tai Cheung Holdings

Executive Summary

Tai Cheung Holdings Limited, an investment holding company, engages in the property investment, development, and management activities in Hong Kong. More Details


Snowflake Analysis

High growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 88 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 88's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.4%

88

-1.9%

HK Real Estate

1.1%

HK Market


1 Year Return

-26.2%

88

-8.3%

HK Real Estate

8.2%

HK Market

Return vs Industry: 88 underperformed the Hong Kong Real Estate industry which returned -8.1% over the past year.

Return vs Market: 88 underperformed the Hong Kong Market which returned 7.6% over the past year.


Shareholder returns

88IndustryMarket
7 Day0.4%-1.9%1.1%
30 Day0.2%6.9%7.2%
90 Day-5.7%-3.0%5.2%
1 Year-22.9%-26.2%-3.4%-8.3%12.6%8.2%
3 Year-40.8%-48.4%-0.3%-12.9%0.4%-10.0%
5 Year-7.1%-26.0%45.0%14.7%30.6%8.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tai Cheung Holdings undervalued compared to its fair value and its price relative to the market?

22.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 88 (HK$4.62) is trading above our estimate of fair value (HK$1.32)

Significantly Below Fair Value: 88 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 88 is poor value based on its PE Ratio (22.9x) compared to the HK Real Estate industry average (8.4x).

PE vs Market: 88 is poor value based on its PE Ratio (22.9x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 88 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 88's PB Ratio (0.4x) is in line with the HK Real Estate industry average.


Next Steps

Future Growth

How is Tai Cheung Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

35.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 88's forecast earnings growth (35.5% per year) is above the savings rate (1.6%).

Earnings vs Market: 88's earnings (35.5% per year) are forecast to grow faster than the Hong Kong market (21.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 88's revenue (68.7% per year) is forecast to grow faster than the Hong Kong market (13.7% per year).

High Growth Revenue: 88's revenue (68.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 88's Return on Equity is forecast to be low in 3 years time (3.9%).


Next Steps

Past Performance

How has Tai Cheung Holdings performed over the past 5 years?

-12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 88 has high quality earnings.

Growing Profit Margin: 88's current net profit margins are higher than last year (63.1%).


Past Earnings Growth Analysis

Earnings Trend: 88's earnings have declined by 12.4% per year over the past 5 years.

Accelerating Growth: 88's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 88 had negative earnings growth (-46.1%) over the past year, making it difficult to compare to the Real Estate industry average (-0.6%).


Return on Equity

High ROE: 88's Return on Equity (1.8%) is considered low.


Next Steps

Financial Health

How is Tai Cheung Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 88's short term assets (HK$7.2B) exceed its short term liabilities (HK$191.5M).

Long Term Liabilities: 88's short term assets (HK$7.2B) exceed its long term liabilities (HK$280.9M).


Debt to Equity History and Analysis

Debt Level: 88's debt to equity ratio (3.1%) is considered satisfactory.

Reducing Debt: 88's debt to equity ratio has increased from 1.5% to 3.1% over the past 5 years.

Debt Coverage: 88's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 88's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Tai Cheung Holdings's current dividend yield, its reliability and sustainability?

5.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 88's dividend (5.19%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.23%).

High Dividend: 88's dividend (5.19%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.58%).


Stability and Growth of Payments

Stable Dividend: 88's dividend payments have been volatile in the past 10 years.

Growing Dividend: 88's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (118.9%), 88's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 88 is not forecast to pay a dividend in 3 years.


Next Steps

Management

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

23.8yrs

Average board tenure


CEO

David Chan (69 yo)

no data

Tenure

HK$4,430,000

Compensation

Mr. Pun Chan, SB Hon, LLD, also known as David, has been Chairman of Tai Cheung Holdings Ltd since 1981 and serves as its Chief Executive Officer. Mr. Chan has experience in construction, property developm...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD571.54K) is above average for companies of similar size in the Hong Kong market ($USD342.51K).

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


Board Members

NamePositionTenureCompensationOwnership
Pun Chan
Chairmanno dataHK$4.43m29.21%
HK$ 833.4m
Wai Lim Lam
Financial Controller16.83yrsHK$2.22mno data
Wing Sau Li
Controller of Project & Construction and Executive Director23.83yrsHK$2.68m0.012%
HK$ 337.2k
Chi Leung Kwok
Independent Non-Executive Director37.83yrsHK$200.00k0.046%
HK$ 1.3m
Sau Ching Chan
Non-Executive Director39.83yrsHK$200.00k3.26%
HK$ 93.0m
Man Sing Kwong
Independent Non-Executive Director14.17yrsHK$200.00kno data
Wing Siu Cheung
Independent Non-Executive Director16.83yrsHK$200.00kno data

23.8yrs

Average Tenure

69yo

Average Age

Experienced Board: 88's board of directors are seasoned and experienced ( 23.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 88 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

Tai Cheung Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tai Cheung Holdings Limited
  • Ticker: 88
  • Exchange: SEHK
  • Founded: 1956
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: HK$2.853b
  • Shares outstanding: 617.53m
  • Website: https://www.taicheung.com

Number of Employees


Location

  • Tai Cheung Holdings Limited
  • The Hong Kong Club Building
  • 20th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
88SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
TAIC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992

Biography

Tai Cheung Holdings Limited, an investment holding company, engages in the property investment, development, and management activities in Hong Kong. The company’s property portfolio includes office towers,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 10:02
End of Day Share Price2020/11/26 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.