SGX:CTO

Stock Analysis Report

Hong Lai Huat Group

Executive Summary

Hong Lai Huat Group Limited, a real estate company, focuses on the property development and agricultural investment activities in Cambodia and Singapore.


Snowflake Analysis

Excellent balance sheet with questionable track record.

Share Price & News

How has Hong Lai Huat Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.3%

CTO

3.2%

SG Real Estate

4.9%

SG Market


1 Year Return

-47.8%

CTO

-29.9%

SG Real Estate

-23.8%

SG Market

Return vs Industry: CTO underperformed the SG Real Estate industry which returned -29.9% over the past year.

Return vs Market: CTO underperformed the SG Market which returned -23.8% over the past year.


Shareholder returns

CTOIndustryMarket
7 Day2.3%3.2%4.9%
30 Day-25.3%-18.2%-17.7%
90 Day-23.1%-25.7%-23.5%
1 Year-46.6%-47.8%-27.3%-29.9%-20.5%-23.8%
3 Year-54.6%-55.7%-30.3%-36.2%-17.1%-25.9%
5 Year-66.0%-68.3%-27.9%-37.7%-15.3%-29.8%

Price Volatility Vs. Market

How volatile is Hong Lai Huat Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hong Lai Huat Group undervalued compared to its fair value and its price relative to the market?

26.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CTO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CTO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CTO is poor value based on its PE Ratio (26.7x) compared to the Real Estate industry average (10.1x).

PE vs Market: CTO is poor value based on its PE Ratio (26.7x) compared to the SG market (10.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CTO is good value based on its PB Ratio (0.2x) compared to the SG Real Estate industry average (0.4x).


Next Steps

Future Growth

How is Hong Lai Huat Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.0%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hong Lai Huat Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Hong Lai Huat Group performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTO has high quality earnings.

Growing Profit Margin: CTO's current net profit margins (3.8%) are lower than last year (22.1%).


Past Earnings Growth Analysis

Earnings Trend: CTO's earnings have grown by 1.3% per year over the past 5 years.

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

Earnings vs Industry: CTO had negative earnings growth (-85.4%) over the past year, making it difficult to compare to the Real Estate industry average (-30.5%).


Return on Equity

High ROE: CTO's Return on Equity (0.9%) is considered low.


Next Steps

Financial Health

How is Hong Lai Huat Group's financial position?


Financial Position Analysis

Short Term Liabilities: CTO's short term assets (SGD58.6M) exceed its short term liabilities (SGD10.7M).

Long Term Liabilities: CTO's short term assets (SGD58.6M) exceed its long term liabilities (SGD12.9M).


Debt to Equity History and Analysis

Debt Level: CTO's debt to equity ratio (1%) is considered satisfactory.

Reducing Debt: CTO's debt to equity ratio has reduced from 2.3% to 1% over the past 5 years.

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

Interest Coverage: CTO's interest payments on its debt are well covered by EBIT (25.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: CTO's debt is covered by short term assets (assets are 47.3x debt).


Next Steps

Dividend

What is Hong Lai Huat Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CTO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CTO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CTO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CTO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CTO is not paying a notable dividend for the SG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CTO's dividend in 3 years as they are not forecast to pay a notable one for the SG market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Johnny Ong (50yo)

8.92s

Tenure

Dato Dr. Bee Huat Ong, also known as Johnny, has been the Chief Executive Officer of HLH Group Limited since April 6, 2011. Prior to that, Dato Dr. Ong served as an Acting Group Chief Executive Officer of  ...


Leadership Team

NamePositionTenureCompensationOwnership
Bee Ong
Executive Deputy Chairman & CEO8.92yrsno data20.56% SGD6.4m
Eng Chew
Financial Controller1.67yrsno datano data
Wui Koh Gan
Chief Operation Officer13.58yrsno datano data
Jia Ong
Executive Officer & Executive Director3.42yrsno data3.98% SGD1.2m
James Ng
Head of Business Development2.67yrsno datano data
Fanny Cheng
Chief Operating Officer of Property Developmentno datano datano data
Alex Tham Senga
Chief Operating Officer of Agriculture Division Cambodiano datano datano data
Bobby Quek Leng
Chief Operating Officer of Property Division Cambodiano datano datano data
Liew Ling
Company Secretary0.58yrno datano data

4.4yrs

Average Tenure

Experienced Management: CTO's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bee Ong
Executive Deputy Chairman & CEO8.92yrsno data20.56% SGD6.4m
Jia Ong
Executive Officer & Executive Director3.42yrsno data3.98% SGD1.2m
Kai Yuen Wang
Non-Executive Independent Chairmanno datano data0.11% SGD34.1k
Seow Phun Chen
Non-Executive Independent Director13.58yrsno datano data
Kuo Chuen Lee
Independent Non-Executive Director7.92yrsno datano data
Wen-Young Wong
Non-Executive Vice Chairman13yrsno data6.24% SGD1.9m
- Wong
Alternate Directorno datano datano data
We King Lien
Independent Non-Executive Director1yrno datano data
Kohe Noor Binte Mahmoodul Hasan
Independent Non-Executive Director1yrno datano data

7.9yrs

Average Tenure

61yo

Average Age

Experienced Board: CTO's board of directors are considered experienced (7.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Hong Lai Huat Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hong Lai Huat Group Limited
  • Ticker: CTO
  • Exchange: SGX
  • Founded: 1988
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: S$31.071m
  • Shares outstanding: 221.93m
  • Website: https://honglaihuatgroup.com

Location

  • Hong Lai Huat Group Limited
  • No. 20-12/13 Westgate Tower
  • 1 Gateway Drive
  • Singapore
  • 608531
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTOSGX (Singapore Exchange)YesOrdinary SharesSGSGDJun 2000

Biography

Hong Lai Huat Group Limited, a real estate company, focuses on the property development and agricultural investment activities in Cambodia and Singapore. The company develops residential, commercial, and industrial properties. It owns an approximately 10,000-hectares farmland known as Aoral Farm, which cultivates fresh cassava and produces tapioca starch. The company was formerly known as HLH Group Limited and changed its name to Hong Lai Huat Group Limited in April 2018. Hong Lai Huat Group Limited was founded in 1988 and is based in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 12:44
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.