SGX:L19

Stock Analysis Report

Executive Summary

Lum Chang Holdings Limited, an investment holding company, engages in the construction, project management, and property development and investment activities in Singapore, Malaysia, and the United Kingdom.

Snowflake

Fundamentals

Good value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

L19

-1.2%

SG Construction

1.1%

SG Market


1 Year Return

2.9%

L19

-15.9%

SG Construction

2.6%

SG Market

Return vs Industry: L19 exceeded the SG Construction industry which returned -15.9% over the past year.

Return vs Market: L19 matched the SG Market which returned 2.6% over the past year.


Shareholder returns

L19IndustryMarket
7 Day1.4%-1.2%1.1%
30 Day2.9%-2.7%-0.3%
90 Day4.4%-6.2%-5.9%
1 Year8.3%2.9%-13.4%-15.9%6.7%2.6%
3 Year12.7%-1.4%-13.7%-21.5%15.5%3.2%
5 Year20.6%-5.3%-43.5%-52.2%12.0%-6.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Lum Chang Holdings undervalued compared to its fair value and its price relative to the market?

4.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: L19 (SGD0.36) is trading below our estimate of fair value (SGD0.37)

Significantly Below Fair Value: L19 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: L19 is good value based on its PE Ratio (5.8x) compared to the Construction industry average (13.8x).

PE vs Market: L19 is good value based on its PE Ratio (5.8x) compared to the SG market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate L19's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: L19 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 Lum Chang Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: L19's earnings are forecast to decline over the next 3 years (-12.2% per year).

Earnings vs Market: L19's earnings are forecast to decline over the next 3 years (-12.2% per year).

High Growth Earnings: L19's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if L19's revenue is forecast to grow faster than the SG market.

High Growth Revenue: Insufficient data to determine if L19's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if L19's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Lum Chang Holdings performed over the past 5 years?

-4.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: L19's earnings have declined by -4% per year over the past 5 years.

Accelerating Growth: L19's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: L19 had negative earnings growth (-5.5%) over the past year, making it difficult to compare to the Construction industry average (-47.8%).


Return on Equity

High ROE: L19's Return on Equity (10%) is considered low.


Return on Assets

ROA vs Industry: L19 has a higher Return on Assets than the Construction industry average last year.


Return on Capital Employed

ROCE Improving: L19's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Lum Chang Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: L19's short term assets (SGD372.9M) exceeds its short term liabilities (SGD173.5M)

Long Term Liabilities: L19's short term assets (372.9M) exceeds its long term liabilities (229.5M)


Debt to Equity History and Analysis

Debt Level: L19's debt to equity ratio (76.8%) is considered high

Reducing Debt: L19's debt to equity ratio has reduced from 82.8% to 76.8% over the past 5 years.

Debt Coverage: L19's debt is not well covered by operating cash flow (13.7%).

Interest Coverage: L19's interest payments on its debt are not well covered by EBIT (0.5x coverage).


Balance Sheet

Inventory Level: L19 has a high level of physical assets or inventory.

Debt Coverage by Assets: L19's debt is covered by short term assets (assets are 1.755750x debt).


Next Steps

Dividend

What is Lum Chang Holdings's current dividend yield, its reliability and sustainability?

5.07%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Lum Chang Holdings before the 'Buy Limit' to receive their next dividend payment.


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: L19's dividend (5.07%) is higher than the bottom 25% of dividend payers in the SG market (2.54%).

High Dividend: L19's dividend (5.07%) is low compared to the top 25% of dividend payers in the SG market (5.69%).

Stable Dividend: L19's dividend payments have been volatile in the past 10 years.

Growing Dividend: L19's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.5%), L19'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 Lum Chang Holdings's salary, the management and board of directors tenure and is there insider trading?

9.8yrs

Average management tenure


CEO

David Lum (70yo)

0yrs

Tenure

S$2,326,000

Compensation

Mr. Kok Seng Lum, also known as David, serves as the Managing Director of Lum Chang Holdings Limited. Mr. Lum has been Executive Chairman of LC Development Ltd., since August 1, 2011. Mr. Lum has been an E ...


CEO Compensation Analysis

Compensation vs. Market: David's total compensation ($USD1.71M) is about average for companies of similar size in the SG market ($USD269.41K).

Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

9.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: L19's management team is seasoned and experienced (9.8 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

66yo

Average Age

Experienced Board: L19's board of directors are considered experienced (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.


Recent Insider Transactions

BuyS$86,08702 May 19
Saray Capital Limited
EntityCompany
Shares242,500
Max PriceS$0.35
BuyS$41,32318 Feb 19
Lum Chang Investments Pte Ltd
EntityCompany
Shares115,200
Max PriceS$0.36
BuyS$107,66631 Jan 19
Beverian Holdings Pte. Ltd.
EntityCompany
Shares292,300
Max PriceS$0.37
BuyS$16,70429 Jan 19
Beverian Holdings Pte. Ltd.
EntityCompany
Shares46,400
Max PriceS$0.36
BuyS$94,15828 Jan 19
Beverian Holdings Pte. Ltd.
EntityCompany
Shares258,300
Max PriceS$0.36
BuyS$96,52325 Jan 19
Beverian Holdings Pte. Ltd.
EntityCompany
Shares268,500
Max PriceS$0.36
BuyS$32,40024 Jan 19
Beverian Holdings Pte. Ltd.
EntityCompany
Shares90,000
Max PriceS$0.36
BuyS$25,44923 Jan 19
Beverian Holdings Pte. Ltd.
EntityCompany
Shares70,800
Max PriceS$0.36
BuyS$8,25122 Jan 19
Beverian Holdings Pte. Ltd.
EntityCompany
Shares23,200
Max PriceS$0.36
BuyS$170,26621 Jan 19
Beverian Holdings Pte. Ltd.
EntityCompany
Shares473,000
Max PriceS$0.36
BuyS$21,19018 Jan 19
Beverian Holdings Pte. Ltd.
EntityCompany
Shares59,000
Max PriceS$0.36
BuyS$35,84816 Jan 19
Beverian Holdings Pte. Ltd.
EntityCompany
Shares101,000
Max PriceS$0.35
BuyS$13,44015 Jan 19
Beverian Holdings Pte. Ltd.
EntityCompany
Shares37,900
Max PriceS$0.35
BuyS$76,29014 Jan 19
Beverian Holdings Pte. Ltd.
EntityCompany
Shares217,500
Max PriceS$0.35
BuyS$25,28811 Jan 19
Beverian Holdings Pte. Ltd.
EntityCompany
Shares73,300
Max PriceS$0.34

Ownership Breakdown


Management Team

  • David Lum (70yo)

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: S$2.33m
  • Raymond Lum (73yo)

    Executive Chairman

    • Tenure: 35.8yrs
    • Compensation: S$2.32m
  • Tony Fong

    Group Finance Director

    • Tenure: 7.3yrs
    • Compensation: S$773.00k
  • Wey Pin Tan

    Head of Construction

    • Tenure: 13.3yrs
  • Yoke Heng Foo

    Director of Human Resources

    • Tenure: 11.8yrs
  • Adrian Lum (43yo)

    Director of Property Development

    • Tenure: 0yrs
  • Emlyn Lum (34yo)

    Vice President of Finance

    • Tenure: 0yrs
  • Rintu Chakravarthy

    General Manager of Projects

    • Tenure: 0yrs
  • Gerald Tan

    Group Legal Counsel & Company Secretary

    • Tenure: 4.8yrs
  • Thiam Hooi Lim

    Managing Director of Lum Chang Interior

    • Tenure: 1.7yrs

Board Members

  • David Lum (70yo)

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: S$2.33m
  • Peter Sim (64yo)

    Lead Independent Director

    • Tenure: 0yrs
  • Raymond Lum (73yo)

    Executive Chairman

    • Tenure: 35.8yrs
    • Compensation: S$2.32m
  • Tony Fong

    Group Finance Director

    • Tenure: 7.3yrs
    • Compensation: S$773.00k
  • Kelvin Lum (45yo)

    Non-Independent Non-Executive Director

    • Tenure: 2.9yrs
  • Willie Lee (72yo)

    Non-Executive Independent Director

    • Tenure: 13.7yrs
  • Clement Leow (44yo)

    Non-Executive Independent Director

    • Tenure: 1.4yrs
  • Daniel Soh (65yo)

    Non-Executive Independent Director

    • Tenure: 6.8yrs
  • Andrew Chua (67yo)

    Non-Executive Independent Director

    • Tenure: 3.8yrs

Company Information

Lum Chang Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lum Chang Holdings Limited
  • Ticker: L19
  • Exchange: SGX
  • Founded: 1982
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: S$135.073m
  • Shares outstanding: 380.49m
  • Website: https://www.lumchang.com.sg

Location

  • Lum Chang Holdings Limited
  • No. 08-01 Lum Chang Building
  • 14 Kung Chong Road
  • Singapore
  • 159150
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
L19SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992

Biography

Lum Chang Holdings Limited, an investment holding company, engages in the construction, project management, and property development and investment activities in Singapore, Malaysia, and the United Kingdom ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:39
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.