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

Adequate balance sheet average dividend payer.

Risks

  • Wong's Kong King International (Holdings) is not covered by any analysts.

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

2.4%

SEHK:532

5.1%

HK Electronic

1.9%

HK Market


1 Year Return

-24.8%

SEHK:532

-19.7%

HK Electronic

-10.4%

HK Market

532 underperformed the Electronic industry which returned -19.7% over the past year.

532 underperformed the Market in Hong Kong which returned -10.4% over the past year.


Share holder returns

532IndustryMarket
7 Day2.4%5.1%1.9%
30 Day-4.5%-3.4%-7.5%
90 Day-13.3%4.9%-4.4%
1 Year-19.7%-24.8%-17.2%-19.7%-7.2%-10.4%
3 Year41.7%19.7%-5.5%-12.7%15.3%3.9%
5 Year59.2%25.0%26.6%11.1%10.1%-8.1%

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 based on future cash flows and its price relative to the stock market?

7.57x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Wong's Kong King International (Holdings)'s share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Wong's Kong King International (Holdings)'s share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Wong's Kong King International (Holdings) is good value based on earnings compared to the HK Electronic industry average.

Wong's Kong King International (Holdings) is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Wong's Kong King International (Holdings), we can't assess if its growth is good value.


Price Based on Value of Assets

Wong's Kong King International (Holdings) is good value based on assets compared to the HK Electronic industry average.


Next Steps

Future Growth

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

18.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Wong's Kong King International (Holdings) is high growth as no revenue estimate data is available.

Wong's Kong King International (Holdings)'s earnings are expected to grow by 18.7% yearly, however this is not considered high growth (20% yearly).

Unable to compare Wong's Kong King International (Holdings)'s revenue growth to the Hong Kong market average as no estimate data is available.

Wong's Kong King International (Holdings)'s earnings growth is expected to exceed the Hong Kong market average.

Wong's Kong King International (Holdings)'s earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Wong's Kong King International (Holdings) will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

16.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Wong's Kong King International (Holdings)'s year on year earnings growth rate has been positive over the past 5 years.

Wong's Kong King International (Holdings)'s 1-year earnings growth is negative, it can't be compared to the 5-year average.

Wong's Kong King International (Holdings)'s 1-year earnings growth is negative, it can't be compared to the HK Electronic industry average.


Return on Equity

Wong's Kong King International (Holdings) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Wong's Kong King International (Holdings) used its assets less efficiently than the HK Electronic industry average last year based on Return on Assets.


Return on Capital Employed

Wong's Kong King International (Holdings) has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

Wong's Kong King International (Holdings) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Wong's Kong King International (Holdings)'s cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Wong's Kong King International (Holdings)'s level of debt (52.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (60.3% vs 52.4% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 8.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.4x debt.


Next Steps

Dividend

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

7.65%

Current Dividend Yield


Dividend Yield and Payments Analysis

Wong's Kong King International (Holdings)'s pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.25%).

Wong's Kong King International (Holdings)'s dividend is above the markets top 25% of dividend payers in Hong Kong (6.18%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

10.3yrs

Average management tenure


CEO

Edward Tsui (72yo)

4.4yrs

Tenure

HK$21,058,000

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

Edward's remuneration is higher than average for companies of similar size in Hong Kong.

Edward's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

10.3yrs

Average Tenure

71yo

Average Age

The average tenure for the Wong's Kong King International (Holdings) management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

23.5yrs

Average Tenure

71yo

Average Age

The average tenure for the Wong's Kong King International (Holdings) board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Edward Tsui (72yo)

    CEO, Group President & Executive Director

    • Tenure: 4.4yrs
    • Compensation: HK$21.06m
  • Senta Wong (76yo)

    Chairman of the Board

    • Tenure: 29.4yrs
    • Compensation: HK$12.55m
  • Byron Ho (74yo)

    CFO & Executive Director

    • Tenure: 29.4yrs
    • Compensation: HK$19.50m
  • Bengie Kwong (71yo)

    Executive Director

    • Tenure: 23.5yrs
    • Compensation: HK$15.95m
  • Alvin Chung (71yo)

    General Manager of Human Resources & Administration Department

    • Tenure: 0.0yrs
  • Bruce Bacon (60yo)

    President of WKK America (Holdings) Inc

    • Tenure: 0.0yrs
  • Victor Chang (44yo)

    Executive Director

    • Tenure: 1.9yrs
    • Compensation: HK$1.92m
  • Smale Liao (55yo)

    President & Director of Taiwan Kong King Co Limited

    • Tenure: 0.0yrs
  • Vinci Wong (48yo)

    Executive Director

    • Tenure: 1.9yrs
    • Compensation: HK$3.60m
  • Masato Watanabe (72yo)

    President & Representative Director of WKK Japan Limited

    • Tenure: 10.3yrs

Board Members

  • Edward Tsui (72yo)

    CEO, Group President & Executive Director

    • Tenure: 4.4yrs
    • Compensation: HK$21.06m
  • Senta Wong (76yo)

    Chairman of the Board

    • Tenure: 29.4yrs
    • Compensation: HK$12.55m
  • Byron Ho (74yo)

    CFO & Executive Director

    • Tenure: 29.4yrs
    • Compensation: HK$19.50m
  • Bengie Kwong (71yo)

    Executive Director

    • Tenure: 23.5yrs
    • Compensation: HK$15.95m
  • Chuen-Hau Yeung (71yo)

    GM & Director of WKK China Limited

    • Tenure: 0.0yrs
  • Ben Wong (63yo)

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

    • Tenure: 0.0yrs
  • Victor Chang (44yo)

    Executive Director

    • Tenure: 1.9yrs
    • Compensation: HK$1.92m
  • Smale Liao (55yo)

    President & Director of Taiwan Kong King Co Limited

    • Tenure: 0.0yrs
  • Vinci Wong (48yo)

    Executive Director

    • Tenure: 1.9yrs
    • Compensation: HK$3.60m
  • Masato Watanabe (72yo)

    President & Representative Director of WKK Japan Limited

    • Tenure: 10.3yrs

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$620.031m
  • 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 Analysis2019/08/25 12:35
End of Day Share Price2019/08/23 00:00
Earnings2018/12/31
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.