SGX:5TT

Stock Analysis Report

Executive Summary

Keong Hong Holdings Limited, an investment holding company, engages in the building construction, and property and hotel investment and development activities in Singapore, Japan, and the Maldives.

Snowflake

Fundamentals

Good value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.1%

5TT

0.09%

SG Construction

0.9%

SG Market


1 Year Return

-12.7%

5TT

-16.4%

SG Construction

0.7%

SG Market

Return vs Industry: 5TT exceeded the SG Construction industry which returned -16.4% over the past year.

Return vs Market: 5TT underperformed the SG Market which returned 0.7% over the past year.


Shareholder returns

5TTIndustryMarket
7 Day1.1%0.09%0.9%
30 Day2.3%-1.3%-1.7%
90 Day-5.3%-6.6%-7.1%
1 Year-8.9%-12.7%-14.1%-16.4%4.7%0.7%
3 Year10.3%-5.3%-13.7%-21.4%14.9%2.6%
5 Year55.2%15.6%-42.8%-51.6%10.0%-8.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Keong Hong Holdings undervalued compared to its fair value and its price relative to the market?

38.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 5TT (SGD0.45) is trading below our estimate of fair value (SGD0.73)

Significantly Undervalued: 5TT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 5TT is good value based on its PE Ratio (6.1x) compared to the Construction industry average (13.6x).

PE vs Market: 5TT is good value based on its PE Ratio (6.1x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 5TT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 5TT is good value based on its PB Ratio (0.5x) compared to the SG Construction industry average (0.6x).


Next Steps

Future Growth

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

-8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5TT's earnings are forecast to decline over the next 3 years (-8.1% per year).

Earnings vs Market: 5TT's earnings are forecast to decline over the next 3 years (-8.1% per year).

High Growth Earnings: 5TT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 5TT's revenue is forecast to grow faster than the SG market.

High Growth Revenue: Insufficient data to determine if 5TT'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 5TT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Keong Hong Holdings performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 5TT's earnings have grown by 8.3% per year over the past 5 years.

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

Earnings vs Industry: 5TT had negative earnings growth (-74.8%) over the past year, making it difficult to compare to the Construction industry average (-52.7%).


Return on Equity

High ROE: 5TT's Return on Equity (7.4%) is considered low.


Return on Assets

ROA vs Industry: 5TT has a higher Return on Assets than the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 5TT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Keong Hong Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 5TT's short term assets (SGD177.8M) exceeds its short term liabilities (SGD169.4M)

Long Term Liabilities: 5TT's short term assets (177.8M) exceeds its long term liabilities (93.7M)


Debt to Equity History and Analysis

Debt Level: 5TT's debt to equity ratio (57.8%) is considered high

Reducing Debt: 5TT's debt to equity ratio has increased from 22.4% to 57.8% over the past 5 years.

Debt Coverage: 5TT's debt is not well covered by operating cash flow (11.6%).

Interest Coverage: 5TT earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 5TT has a low level of unsold assets or inventory.

Debt Coverage by Assets: 5TT's debt is covered by short term assets (assets are 1.372940x debt).


Next Steps

Dividend

What is Keong Hong Holdings's current dividend yield, its reliability and sustainability?

5.06%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%2.5%markettop25%5.7%industryaverage3.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 5TT's dividend (5.06%) is higher than the bottom 25% of dividend payers in the SG market (2.51%).

High Dividend: 5TT's dividend (5.06%) is low compared to the top 25% of dividend payers in the SG market (5.65%).

Stable Dividend: 5TT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 5TT's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31%), 5TT's dividend payments are well 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 Keong Hong Holdings's salary, the management and board of directors tenure and is there insider trading?

7.9yrs

Average board tenure


CEO

Ronald Leo (67yo)

0yrs

Tenure

0

Mr. Ting Ping Leo, also known as Ronald, serves as an Executive Chairman and Chief Executive Officer of Keong Hong Holdings Limited. Mr. Leo has been the Managing Director of Keong Hong Construction Pte Lt ...


Board Age and Tenure

7.9yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 5TT's board of directors are considered experienced (7.9 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.


Recent Insider Transactions

BuyS$23,50028 Jun 19
Zhen Leo
EntityIndividual
Role
Member of the Board of Directors
Non-Executive & Non-Independent Director
Shares50,000
Max PriceS$0.47

Ownership Breakdown


Management Team

  • Michelle Lo

    Joint Company Secretary

    • Tenure: 0yrs
  • Ronald Leo (67yo)

    Executive Chairman & CEO

    • Tenure: 0yrs
  • Kah Tan (53yo)

    CFO & Executive Director

    • Tenure: 1.8yrs
  • Siew Khim Ng (46yo)

    Head of Contracts

    • Tenure: 0yrs
  • Ang Er (66yo)

    Executive Director

    • Tenure: 8.1yrs
  • Guek Hong Lim

    Joint Company Secretary

    • Tenure: 3.4yrs
  • Khoo Choon

    Executive Officer

    • Tenure: 0yrs
  • Toh Yong

    Executive Officer

    • Tenure: 0yrs

Board Members

  • Wai Chong (71yo)

    Non-Executive Independent Director

    • Tenure: 0yrs
  • Meng Yeng Wong (60yo)

    Independent Director

    • Tenure: 7.9yrs
  • Ronald Leo (67yo)

    Executive Chairman & CEO

    • Tenure: 0yrs
  • Weng Hoe Chong (55yo)

    Independent Director

    • Tenure: 7.9yrs
  • Kah Tan (53yo)

    CFO & Executive Director

    • Tenure: 1.8yrs
  • Steven Lim (63yo)

    Lead Indenpendent Director

    • Tenure: 8.8yrs
  • Ang Er (66yo)

    Executive Director

    • Tenure: 8.1yrs
  • Lionel Leo (36yo)

    Non-Executive & Non-Independent Director

    • Tenure: 5.3yrs

Company Information

Keong Hong Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Keong Hong Holdings Limited
  • Ticker: 5TT
  • Exchange: SGX
  • Founded: 1983
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: S$104.579m
  • Shares outstanding: 235.01m
  • Website: https://www.keonghong.com

Number of Employees


Location

  • Keong Hong Holdings Limited
  • 9 Sungei Kadut Street 2
  • Singapore
  • 729230
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
5TTSGX (Singapore Exchange)YesOrdinary SharesSGSGDDec 2011

Biography

Keong Hong Holdings Limited, an investment holding company, engages in the building construction, and property and hotel investment and development activities in Singapore, Japan, and the Maldives. It oper ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:47
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.