SEHK:1888

Stock Analysis Report

Kingboard Laminates Holdings

Executive Summary

Kingboard Laminates Holdings Limited, an investment holding company, operates as a vertically-integrated electronic materials manufacturer in the People's Republic of China, other Asian countries, Europe, and America.

Rewards

Trading at 56.4% below its fair value

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet average dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1888's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.6%

1888

6.2%

HK Electronic

0.6%

HK Market


1 Year Return

25.6%

1888

16.8%

HK Electronic

-0.06%

HK Market

Return vs Industry: 1888 exceeded the Hong Kong Electronic industry which returned 16.8% over the past year.

Return vs Market: 1888 exceeded the Hong Kong Market which returned -0.1% over the past year.


Shareholder returns

1888IndustryMarket
7 Day1.6%6.2%0.6%
30 Day7.3%3.1%-3.6%
90 Day29.8%14.1%-0.01%
1 Year33.8%25.6%20.3%16.8%3.5%-0.06%
3 Year53.8%23.6%19.7%10.1%19.5%7.4%
5 Year342.1%202.0%92.7%67.7%18.4%-1.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Kingboard Laminates 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

Below Fair Value: 1888 (HK$8.97) is trading below our estimate of fair value (HK$20.58)

Significantly Below Fair Value: 1888 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1888 is poor value based on its PE Ratio (10.8x) compared to the Electronic industry average (9.3x).

PE vs Market: 1888 is poor value based on its PE Ratio (10.8x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 1888 is poor value based on its PEG Ratio (9.4x)


Price to Book Ratio

PB vs Industry: 1888 is overvalued based on its PB Ratio (1.5x) compared to the HK Electronic industry average (0.9x).


Next Steps

Future Growth

How is Kingboard Laminates Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

1.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1888's forecast earnings growth (1.1% per year) is below the savings rate (1.6%).

Earnings vs Market: 1888's earnings (1.1% per year) are forecast to grow slower than the Hong Kong market (11.9% per year).

High Growth Earnings: 1888's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1888's revenue (4.4% per year) is forecast to grow slower than the Hong Kong market (9.8% per year).

High Growth Revenue: 1888's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1888's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

How has Kingboard Laminates Holdings performed over the past 5 years?

22.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1888 has high quality earnings.

Growing Profit Margin: 1888's current net profit margins (13.7%) are lower than last year (18.6%).


Past Earnings Growth Analysis

Earnings Trend: 1888's earnings have grown significantly by 22.8% per year over the past 5 years.

Accelerating Growth: 1888's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1888 had negative earnings growth (-27.7%) over the past year, making it difficult to compare to the Electronic industry average (-8.8%).


Return on Equity

High ROE: 1888's Return on Equity (14.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kingboard Laminates Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1888's short term assets (HK$14.2B) exceed its short term liabilities (HK$5.7B).

Long Term Liabilities: 1888's short term assets (HK$14.2B) exceed its long term liabilities (HK$4.2B).


Debt to Equity History and Analysis

Debt Level: 1888's debt to equity ratio (28.8%) is considered satisfactory.

Reducing Debt: 1888's debt to equity ratio has reduced from 36.1% to 28.8% over the past 5 years.

Debt Coverage: 1888's debt is well covered by operating cash flow (83.1%).

Interest Coverage: 1888's interest payments on its debt are well covered by EBIT (33x coverage).


Balance Sheet

Inventory Level: 1888 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1888's debt is covered by short term assets (assets are 2.7x debt).


Next Steps

Dividend

What is Kingboard Laminates Holdings's current dividend yield, its reliability and sustainability?

5.02%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%2.3%markettop25%6.3%industryaverage2.5%forecastin3Years6.3%

Current dividend yield vs market & industry

Notable Dividend: 1888's dividend (5.02%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1888's dividend (5.02%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.26%).


Stability and Growth of Payments

Stable Dividend: 1888's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1888's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.3%), 1888's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1888's dividends in 3 years are forecast to be covered by earnings (55.7% payout ratio).


Next Steps

Management

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

13.3yrs

Average board tenure


CEO

Kwok Keung Cheung (66yo)

0yrs

Tenure

HK$18,355,000

Compensation

Mr. Kwok Keung Cheung has been the Managing Director of Kingboard Laminates Holdings Ltd. since July 20, 2006 and serves as its Chief Executive Officer. Mr. Cheung has over 13 years' experience in the lami ...


CEO Compensation Analysis

Compensation vs Market: Kwok Keung's total compensation ($USD2.34M) is above average for companies of similar size in the Hong Kong market ($USD511.20K).

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


Board Age and Tenure

13.3yrs

Average Tenure

60yo

Average Age

Experienced Board: 1888's board of directors are seasoned and experienced ( 13.3 years average tenure).


Insider Trading

Insider Buying: 1888 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$4,981,85902 Nov 19
Kingboard Holdings Limited
EntityCompany
Shares656,000
Max PriceHK$7.61
BuyHK$8,740,98931 Oct 19
Kwok Wa Cheung
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares1,236,000
Max PriceHK$7.07
BuyHK$1,840,02031 Oct 19
Kwok Wa Cheung
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares260,000
Max PriceHK$7.08
BuyHK$2,168,48611 Oct 19
Kwok Wa Cheung
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares306,500
Max PriceHK$7.07
BuyHK$512,08024 Sep 19
Kwok Wa Cheung
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares74,000
Max PriceHK$6.92
BuyHK$1,527,24029 Aug 19
Kwok Wa Cheung
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares264,000
Max PriceHK$5.78
BuyHK$377,00028 Aug 19
Kwok Wa Cheung
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares65,000
Max PriceHK$5.80
BuyHK$854,13928 Aug 19
Kwok Wa Cheung
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares143,000
Max PriceHK$5.97
BuyHK$2,337,19924 Aug 19
Kwok Wa Cheung
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares400,000
Max PriceHK$5.84
BuyHK$686,95224 Aug 19
Kwok Wa Cheung
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares116,000
Max PriceHK$5.92
BuyHK$889,81120 Aug 19
Kwok Wa Cheung
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares148,500
Max PriceHK$5.99
BuyHK$1,268,98216 Aug 19
Kwok Wa Cheung
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares221,000
Max PriceHK$5.74
BuyHK$1,337,15015 Aug 19
Kwok Wa Cheung
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares235,000
Max PriceHK$5.69
BuyHK$318,39515 Aug 19
Kwok Wa Cheung
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares55,000
Max PriceHK$5.79
BuyHK$605,84614 Aug 19
Kwok Wa Cheung
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares103,000
Max PriceHK$5.88
SellHK$7,107,36004 Jul 19
Kwok Wa Cheung
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares960,000
Max PriceHK$7.40
SellHK$3,870,43121 Jun 19
Kwok Wa Cheung
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares534,000
Max PriceHK$7.25
SellHK$14,072,24921 Jun 19
Kwok Wa Cheung
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares1,941,000
Max PriceHK$7.25
SellHK$17,524,99714 Jun 19
Kingboard Holdings Limited
EntityCompany
Shares2,500,000
Max PriceHK$7.01
SellHK$390,00009 May 19
Ka Po Lam
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares50,000
Max PriceHK$7.80
SellHK$3,501,94509 May 19
Ka Po Lam
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares450,000
Max PriceHK$7.78
SellHK$6,215,99808 May 19
Kwok Keung Cheung
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares800,000
Max PriceHK$7.77
SellHK$427,230,60912 Apr 19
Kingboard Holdings Limited
EntityCompany
Shares49,678,000
Max PriceHK$8.60

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ka Po Lam (62yo)

    Executive Director

    • Tenure: 13.1yrs
    • Compensation: HK$18.20m
  • Kwok Wa Cheung (55yo)

    Executive Chairman

    • Tenure: 13.4yrs
    • Compensation: HK$23.39m
  • Kwok Ping Cheung (58yo)

    Executive Director

    • Tenure: 13.6yrs
    • Compensation: HK$18.49m
  • Kwok Keung Cheung (66yo)

    CEO, MD & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$18.36m
  • Pei Feng Zhou (50yo)

    Executive Director

    • Tenure: 13.1yrs
    • Compensation: HK$3.08m
  • Ka Ho Cheung (35yo)

    Executive Director

    • Tenure: 13.4yrs
    • Compensation: HK$4.46m
  • Ting Hin Lam (31yo)

    Company Secretary

    • Tenure: 1.9yrs

Board Members

  • Kaizer Lau (67yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$390.00k
  • Ka Po Lam (62yo)

    Executive Director

    • Tenure: 13.1yrs
    • Compensation: HK$18.20m
  • Kwok Wa Cheung (55yo)

    Executive Chairman

    • Tenure: 13.4yrs
    • Compensation: HK$23.39m
  • Kwok Ping Cheung (58yo)

    Executive Director

    • Tenure: 13.6yrs
    • Compensation: HK$18.49m
  • Kwok Keung Cheung (66yo)

    CEO, MD & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$18.36m
  • Ka Leong Lo (45yo)

    Non-Executive Director

    • Tenure: 13.4yrs
    • Compensation: HK$1.71m
  • Stephen Ip (68yo)

    Independent Non-Executive Director

    • Tenure: 8.6yrs
    • Compensation: HK$630.00k
  • Pei Feng Zhou (50yo)

    Executive Director

    • Tenure: 13.1yrs
    • Compensation: HK$3.08m
  • Tai Chiu Leung (73yo)

    Independent Non-Executive Director

    • Tenure: 13.1yrs
    • Compensation: HK$342.00k
  • Ka Ho Cheung (35yo)

    Executive Director

    • Tenure: 13.4yrs
    • Compensation: HK$4.46m

Company Information

Kingboard Laminates Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kingboard Laminates Holdings Limited
  • Ticker: 1888
  • Exchange: SEHK
  • Founded:
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: HK$27.729b
  • Shares outstanding: 3.08b
  • Website: https://www.kblaminates.com

Number of Employees


Location

  • Kingboard Laminates Holdings Limited
  • Delta House
  • 23rd Floor
  • Shatin
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1888SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2006
KLNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2006
1888SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2006
1888SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2006

Biography

Kingboard Laminates Holdings Limited, an investment holding company, operates as a vertically-integrated electronic materials manufacturer in the People's Republic of China, other Asian countries, Europe,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 12:42
End of Day Share Price2019/12/09 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.