SEHK:532

Stock Analysis Report

Wong's Kong King International (Holdings)

Executive Summary

Wong's Kong King International (Holdings) Limited, an investment holding company, trades in and distributes chemicals, materials, and equipment for use in the manufacture of printed circuit boards and electronic products.

Snowflake

Fundamentals

Good value with adequate balance sheet.

Share Price & News

How has Wong's Kong King International (Holdings)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-8.0%

532

0.6%

HK Electronic

2.9%

HK Market


1 Year Return

-34.9%

532

-1.6%

HK Electronic

0.7%

HK Market

Return vs Industry: 532 underperformed the Hong Kong Electronic industry which returned -1.6% over the past year.

Return vs Market: 532 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

532IndustryMarket
7 Day-8.0%0.6%2.9%
30 Day-5.5%-1.6%-2.5%
90 Day-24.2%3.7%-5.4%
1 Year-30.5%-34.9%1.8%-1.6%4.4%0.7%
3 Year-21.9%-34.9%0.3%-7.6%17.0%5.2%
5 Year33.0%3.0%54.2%34.3%20.2%0.2%

Price Volatility Vs. Market

How volatile is Wong's Kong King International (Holdings)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wong's Kong King International (Holdings) undervalued compared to its fair value and its price relative to the market?

0.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 532 (HK$0.69) is trading below our estimate of fair value (HK$0.7)

Significantly Undervalued: 532 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 532 is good value based on its PE Ratio (6.9x) compared to the Electronic industry average (8.7x).

PE vs Market: 532 is good value based on its PE Ratio (6.9x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 532's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532 is good value based on its PB Ratio (0.3x) compared to the HK Electronic industry average (0.9x).


Next Steps

Future Growth

How is Wong's Kong King International (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532's forecast earnings growth (17.5% per year) is above the savings rate (2%).

Earnings vs Market: 532's earnings (17.5% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Earnings: 532's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 532's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 532'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 532's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Wong's Kong King International (Holdings) performed over the past 5 years?

13.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 532's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: 532's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532 had negative earnings growth (-40.7%) over the past year, making it difficult to compare to the Electronic industry average (-12.9%).


Return on Equity

High ROE: 532's Return on Equity (4.9%) is considered low.


Return on Assets

ROA vs Industry: 532's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: 532 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Wong's Kong King International (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: 532's short term assets (HK$2.9B) exceeds its short term liabilities (HK$1.9B)

Long Term Liabilities: 532's short term assets (2.9B) exceeds its long term liabilities (34.9M)


Debt to Equity History and Analysis

Debt Level: 532's debt to equity ratio (48.3%) is considered high

Reducing Debt: 532's debt to equity ratio has reduced from 59.5% to 48.3% over the past 5 years.

Debt Coverage: 532's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 532's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet

Inventory Level: 532 has a high level of physical assets or inventory.

Debt Coverage by Assets: 532's debt is covered by short term assets (assets are 3.649860x debt).


Next Steps

Dividend

What is Wong's Kong King International (Holdings)'s current dividend yield, its reliability and sustainability?

8.70%

Current Dividend Yield


Dividend Yield vs Market

company8.7%marketbottom25%2.2%markettop25%6.3%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 532's dividend (8.7%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 532's dividend (8.7%) is in the top 25% of dividend payers in the Hong Kong market (6.29%)

Stable Dividend: 532 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 532's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.1%), 532's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Wong's Kong King International (Holdings)'s salary, the management and board of directors tenure and is there insider trading?

10.5yrs

Average management tenure


CEO

Edward Tsui (72yo)

4.6yrs

Tenure

HK$7,142,000

Compensation

Mr. Ying-Chun Tsui, also known as Edward, has been Chief Executive Officer of Wong's Kong King International (Holdings) Limited since March 1, 2015. Mr. Tsui serves as the Group President of Wong's Kong Ki ...


CEO Compensation Analysis

Compensation vs. Market: Edward's total compensation ($USD910.51K) is about average for companies of similar size in the Hong Kong market ($USD211.63K).

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


Management Age and Tenure

10.5yrs

Average Tenure

71yo

Average Age

Experienced Management: 532's management team is seasoned and experienced (10.5 years average tenure).


Board Age and Tenure

23.7yrs

Average Tenure

71yo

Average Age

Experienced Board: 532's board of directors are seasoned and experienced ( 23.7 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

  • Edward Tsui (72yo)

    CEO, Group President & Executive Director

    • Tenure: 4.6yrs
    • Compensation: HK$7.14m
  • Senta Wong (76yo)

    Chairman of the Board

    • Tenure: 29.6yrs
    • Compensation: HK$12.55m
  • Byron Ho (74yo)

    CFO & Executive Director

    • Tenure: 29.6yrs
    • Compensation: HK$6.62m
  • Bengie Kwong (71yo)

    Executive Director

    • Tenure: 23.7yrs
    • Compensation: HK$5.40m
  • Alvin Chung (71yo)

    General Manager of Human Resources & Administration Department

    • Tenure: 0yrs
  • Bruce Bacon (60yo)

    President of WKK America (Holdings) Inc

    • Tenure: 0yrs
  • Victor Chang (44yo)

    Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$1.92m
  • Smale Liao (55yo)

    President & Director of Taiwan Kong King Co Limited

    • Tenure: 0yrs
  • Vinci Wong (48yo)

    Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$1.28m
  • Masato Watanabe (72yo)

    President & Representative Director of WKK Japan Limited

    • Tenure: 10.5yrs

Board Members

  • Edward Tsui (72yo)

    CEO, Group President & Executive Director

    • Tenure: 4.6yrs
    • Compensation: HK$7.14m
  • Senta Wong (76yo)

    Chairman of the Board

    • Tenure: 29.6yrs
    • Compensation: HK$12.55m
  • Byron Ho (74yo)

    CFO & Executive Director

    • Tenure: 29.6yrs
    • Compensation: HK$6.62m
  • Bengie Kwong (71yo)

    Executive Director

    • Tenure: 23.7yrs
    • Compensation: HK$5.40m
  • Chuen-Hau Yeung (71yo)

    GM & Director of WKK China Limited

    • Tenure: 0yrs
  • Ben Wong (63yo)

    GM of Sales & Project Management Dept of WKK Technology Ltd and Director of WKK Technology Ltd

    • Tenure: 0yrs
  • Victor Chang (44yo)

    Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$1.92m
  • Smale Liao (55yo)

    President & Director of Taiwan Kong King Co Limited

    • Tenure: 0yrs
  • Vinci Wong (48yo)

    Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$1.28m
  • Masato Watanabe (72yo)

    President & Representative Director of WKK Japan Limited

    • Tenure: 10.5yrs

Company Information

Wong's Kong King International (Holdings) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wong's Kong King International (Holdings) Limited
  • Ticker: 532
  • Exchange: SEHK
  • Founded: 1975
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: HK$510.614m
  • Shares outstanding: 729.45m
  • Website: https://www.wkk.com.hk

Number of Employees


Location

  • Wong's Kong King International (Holdings) Limited
  • Octa Tower
  • 17th Floor
  • Kowloon Bay
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Wong's Kong King International (Holdings) Limited, an investment holding company, trades in and distributes chemicals, materials, and equipment for use in the manufacture of printed circuit boards and elec ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:33
End of Day Share Price2019/10/14 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.