SGX:H30

Stock Analysis Report

Executive Summary

Hong Fok Corporation Limited, an investment holding company, primarily engages in the investment, construction, development, and management of properties in Singapore and Hong Kong.

Snowflake

Fundamentals

Undervalued with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.8%

H30

0.8%

SG Real Estate

0.9%

SG Market


1 Year Return

17.5%

H30

-0.2%

SG Real Estate

0.7%

SG Market

Return vs Industry: H30 exceeded the SG Real Estate industry which returned -0.2% over the past year.

Return vs Market: H30 exceeded the SG Market which returned 0.7% over the past year.


Shareholder returns

H30IndustryMarket
7 Day-1.8%0.8%0.9%
30 Day-1.2%-1.0%-1.7%
90 Day-7.5%-7.7%-7.1%
1 Year19.3%17.5%3.0%-0.2%4.7%0.7%
3 Year26.1%21.1%2.9%-5.4%14.9%2.6%
5 Year9.3%1.2%-0.08%-12.2%10.0%-8.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: H30 (SGD0.81) is trading below our estimate of fair value (SGD3.61)

Significantly Undervalued: H30 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: H30 is good value based on its PE Ratio (2.9x) compared to the Real Estate industry average (11.1x).

PE vs Market: H30 is good value based on its PE Ratio (2.9x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate H30's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: H30 is good value based on its PB Ratio (0.3x) compared to the SG Real Estate industry average (0.5x).


Next Steps

Future Growth

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

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: H30's forecast earnings growth (3.2% per year) is above the savings rate (2.3%).

Earnings vs Market: H30's earnings (3.2% per year) are forecast to grow slower than the SG market (5.5% per year).

High Growth Earnings: H30's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if H30's revenue is forecast to grow faster than the SG market.

High Growth Revenue: Insufficient data to determine if H30'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 H30's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hong Fok performed over the past 5 years?

4.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: H30's earnings have grown by 4.6% per year over the past 5 years.

Accelerating Growth: H30's earnings growth over the past year (4.4%) is below its 5-year average (4.6% per year).

Earnings vs Industry: H30 earnings growth over the past year (4.4%) exceeded the Real Estate industry -22.8%.


Return on Equity

High ROE: H30's Return on Equity (10.8%) is considered low.


Return on Assets

ROA vs Industry: H30 has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: H30's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Hong Fok's financial position?


Financial Position Analysis

Short Term Liabilities: H30's short term assets (SGD251.5M) exceeds its short term liabilities (SGD54.5M)

Long Term Liabilities: H30's short term assets (251.5M) do not cover its long term liabilities (825.5M)


Debt to Equity History and Analysis

Debt Level: H30's debt to equity ratio (32.4%) is considered satisfactory

Reducing Debt: H30's debt to equity ratio has reduced from 44.4% to 32.4% over the past 5 years.

Debt Coverage: H30's debt is not well covered by operating cash flow (10%).

Interest Coverage: H30's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet

Inventory Level: H30 has a high level of physical assets or inventory.

Debt Coverage by Assets: H30's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

1.24%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%2.5%markettop25%5.7%industryaverage3.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: H30's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.51%).

High Dividend: H30's dividend (1.24%) is low compared to the top 25% of dividend payers in the SG market (5.65%).

Stable Dividend: H30 is not paying a notable dividend for the SG market, therefore no need to check if payments are stable.

Growing Dividend: H30 is not paying a notable dividend for the SG market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: H30 is not paying a notable dividend for the SG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of H30's dividend in 3 years as they are not forecast to pay a notable one for the SG market.


Next Steps

Management

What is the CEO of Hong Fok's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Patrick Cheong (70yo)

5.8yrs

Tenure

0

Mr. Pin Chuan Cheong, also known as Patrick, served as Joint Chairman and Joint Managing Director of Winfoong International Ltd. from June 23, 2014 to November 27, 2015. Mr. Cheong has been Joint Chairman  ...


Management Age and Tenure

5.8yrs

Average Tenure

65yo

Average Age

Experienced Management: H30's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: H30's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: H30 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyS$51,97523 Sep 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares63,000
Max PriceS$0.82
BuyS$50,70003 Sep 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares60,000
Max PriceS$0.84
BuyS$89,96023 Jul 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares104,000
Max PriceS$0.86
BuyS$171,62022 Jul 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares199,000
Max PriceS$0.86
BuyS$53,62520 Jun 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares65,000
Max PriceS$0.82
BuyS$39,50006 Jun 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares50,000
Max PriceS$0.79
BuyS$55,65023 May 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares70,000
Max PriceS$0.79
BuyS$462,50029 Mar 19
Goodyear Realty Co. Pte. Ltd.
EntityCompany
Shares500,000
Max PriceS$0.92
BuyS$313,25020 Mar 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares350,000
Max PriceS$0.89
BuyS$130,60008 Mar 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares170,000
Max PriceS$0.77
BuyS$209,52006 Mar 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares291,000
Max PriceS$0.72
BuyS$175,90005 Mar 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares245,000
Max PriceS$0.72
BuyS$1,627,49814 Dec 18
Goodyear Realty Co. Pte. Ltd.
EntityCompany
Shares2,170,000
Max PriceS$0.75
BuyS$3,749,99606 Dec 18
Pin Chuan Cheong
EntityIndividual
Role
Co-Chief Executive Officer
Joint Chairman & Joint CEO
Shares5,000,000
Max PriceS$0.75
BuyS$488,32503 Dec 18
Hooi Kheng Cheong
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares651,100
Max PriceS$0.75
BuyS$3,749,99703 Dec 18
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares5,000,000
Max PriceS$0.75

Ownership Breakdown


Management Team

  • Patrick Cheong (70yo)

    Joint Chairman & Joint CEO

    • Tenure: 5.8yrs
  • Sim Eng Cheong (58yo)

    Joint CEO & Director

    • Tenure: 29.4yrs
  • Hooi Kheng Cheong (66yo)

    COO & Executive Director

    • Tenure: 30.6yrs
  • Chay Koh

    VP of Accounts & Finance and Company Secretary

    • Tenure: 0yrs
  • Puay Kheng Cheong (64yo)

    Vice President of Administration & Personnel

    • Tenure: 5.3yrs
  • Jimmy Yeo

    Vice President of Marketing

    • Tenure: 0yrs
  • Swee Oi Lo

    Company Secretary

    • Tenure: 4.8yrs

Board Members

  • Patrick Cheong (70yo)

    Joint Chairman & Joint CEO

    • Tenure: 5.8yrs
  • Sim Eng Cheong (58yo)

    Joint CEO & Director

    • Tenure: 29.4yrs
  • Hooi Kheng Cheong (66yo)

    COO & Executive Director

    • Tenure: 30.6yrs
  • Adrian Chan (54yo)

    Non-Executive Independent Chairman

    • Tenure: 0.6yrs
    • Compensation: S$85.00k
  • Steven Lim (63yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: S$87.50k
  • Yew Hon Chow (68yo)

    Lead Independent Director

    • Tenure: 5.1yrs
    • Compensation: S$95.00k

Company Information

Hong Fok Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hong Fok Corporation Limited
  • Ticker: H30
  • Exchange: SGX
  • Founded: 1967
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: S$700.230m
  • Shares outstanding: 859.18m
  • Website: https://www.hongfok.com.sg

Location

  • Hong Fok Corporation Limited
  • The Concourse
  • No. 41-00, 300 Beach Road
  • Singapore
  • 199555
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
H30SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992
H8VBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 1992

Biography

Hong Fok Corporation Limited, an investment holding company, primarily engages in the investment, construction, development, and management of properties in Singapore and Hong Kong. The company develops re ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:37
End of Day Share Price2019/10/18 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.