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.

Rewards

Trading at 24.1% below its fair value

Risk Analysis

Large one-off items impacting financial results

Significant insider selling over the past 3 months



Snowflake Analysis

Undervalued with mediocre balance sheet.


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

Stable Share Price: H30 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

H30

0.6%

SG Real Estate

1.0%

SG Market


1 Year Return

10.0%

H30

-5.1%

SG Real Estate

-1.8%

SG Market

Return vs Industry: H30 exceeded the SG Real Estate industry which returned -5.1% over the past year.

Return vs Market: H30 exceeded the SG Market which returned -1.8% over the past year.


Shareholder returns

H30IndustryMarket
7 Day-0.6%0.6%1.0%
30 Day-6.7%-4.9%-2.9%
90 Day-4.9%-1.0%-1.5%
1 Year11.7%10.0%-2.2%-5.1%2.2%-1.8%
3 Year12.1%7.7%-2.3%-9.9%9.3%-2.2%
5 Year4.6%-3.2%-7.8%-19.5%9.1%-9.2%

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?

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: H30 (SGD0.77) is trading below our estimate of fair value (SGD1.01)

Significantly Below Fair Value: 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 (11.2x).

PE vs Market: H30 is good value based on its PE Ratio (2.9x) compared to the SG market (13.1x).


Price to Earnings Growth Ratio

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?

4.7%

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 Fok 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 Fok performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: H30 has a large one-off gain of SGD257.4M impacting its September 30 2019 financial results.

Growing Profit Margin: H30's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: H30's earnings have grown by 12.6% per year over the past 5 years.

Accelerating Growth: H30's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: H30 had negative earnings growth (-6.4%) over the past year, making it difficult to compare to the Real Estate industry average (-37.7%).


Return on Equity

High ROE: H30's Return on Equity (10.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hong Fok's financial position?


Financial Position Analysis

Short Term Liabilities: H30's short term assets (SGD234.1M) exceed its short term liabilities (SGD54.0M).

Long Term Liabilities: H30's short term assets (SGD234.1M) do not cover its long term liabilities (SGD800.3M).


Debt to Equity History and Analysis

Debt Level: H30's debt to equity ratio (31.3%) is considered satisfactory.

Reducing Debt: H30's debt to equity ratio has reduced from 42.1% to 31.3% over the past 5 years.

Debt Coverage: H30's debt is not well covered by operating cash flow (9%).

Interest Coverage: H30's interest payments on its debt are not well covered by EBIT (1.6x 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?

1.30%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%2.5%markettop25%5.7%industryaverage3.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: H30's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.56%).

High Dividend: H30's dividend (1.3%) is low compared to the top 25% of dividend payers in the SG market (5.71%).


Stability and Growth of Payments

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

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

6.1yrs

Average management tenure


CEO

Patrick Cheong (70yo)

6.1yrs

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  ...


Leadership Team

NamePositionTenureCompensationOwnership
Pin Chuan Cheong
Joint Chairman & Joint CEO6.1yrsno data2.52% SGD16.7m
Sim Eng Cheong
Joint CEO & Director29.8yrsno data13.44% SGD88.9m
Chay Koh
VP of Accounts & Finance and Company Secretary0yrsno datano data
Hooi Kheng Cheong
COO & Executive Director30.9yrsno data1.73% SGD11.4m
Puay Kheng Cheong
Vice President of Administration & Personnel5.7yrsno data0.88% SGD5.9m
Jimmy Yeo
Vice President of Marketing0yrsno datano data
Swee Oi Lo
Company Secretary5.2yrsno datano data

6.1yrs

Average Tenure

65yo

Average Age

Experienced Management: H30's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pin Chuan Cheong
Joint Chairman & Joint CEO6.1yrsno data2.52% SGD16.7m
Sim Eng Cheong
Joint CEO & Director29.8yrsno data13.44% SGD88.9m
Hooi Kheng Cheong
COO & Executive Director30.9yrsno data1.73% SGD11.4m
Pengee Chan
Non-Executive Independent Chairman0.9yrsS$85.00kno data
Jun Xiong Lim
Non-Executive Director5.6yrsS$87.50kno data
Yew Hon Chow
Lead Independent Director5.4yrsS$95.00kno data

5.8yrs

Average Tenure

64.5yo

Average Age

Experienced Board: H30's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: H30 insiders have sold more shares than they have bought 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 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$661.519m
  • Shares outstanding: 859.12m
  • 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 residential and other properties; invests in office, shop, restaurant, retail, residential, and commercial properties; and provides property maintenance services. It also offers investment trading and investment management services. The company was incorporated in 1967 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 Analysis2020/02/16 12:42
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
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.