TWSE:5521

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Kung Sing Engineering

Market Cap

NT$4.4b

Last Updated

2021/07/27 16:05 UTC

Data Sources

Company Financials

Executive Summary

Kung Sing Engineering Corporation, together with its subsidiaries, engages in the construction business in Taiwan. More Details

Rewards

Trading at 99.4% below our estimate of its fair value

Became profitable this year

Risk Analysis

No risks detected for 5521 from our risk checks.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Kung Sing Engineering's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 5521 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 5521's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-0.6%

5521

-0.3%

TW Construction

-0.8%

TW Market


1 Year Return

0.3%

5521

24.2%

TW Construction

38.7%

TW Market

Return vs Industry: 5521 underperformed the TW Construction industry which returned 24.2% over the past year.

Return vs Market: 5521 underperformed the TW Market which returned 38.7% over the past year.


Shareholder returns

5521IndustryMarket
7 Day-0.6%-0.3%-0.8%
30 Day0.6%-1.2%0.03%
90 Day-15.2%-7.5%-0.3%
1 Year0.3%0.3%29.0%24.2%41.8%38.7%
3 Year16.4%9.7%49.4%31.4%72.7%56.0%
5 Year6.9%-1.2%104.2%59.4%127.4%90.2%

Long-Term Price Volatility Vs. Market

How volatile is Kung Sing Engineering's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kung Sing Engineering undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 5521 (NT$9.88) is trading below our estimate of fair value (NT$1558.16)

Significantly Below Fair Value: 5521 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 5521 is good value based on its PE Ratio (4.3x) compared to the TW Construction industry average (12.2x).

PE vs Market: 5521 is good value based on its PE Ratio (4.3x) compared to the TW market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 5521's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 5521 is good value based on its PB Ratio (0.8x) compared to the TW Construction industry average (1.3x).


Future Growth

How is Kung Sing Engineering forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.9%

Forecasted Capital Goods 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 Kung Sing Engineering 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.


Past Performance

How has Kung Sing Engineering performed over the past 5 years?

59.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5521 has high quality earnings.

Growing Profit Margin: 5521 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 5521's earnings have grown significantly by 59.5% per year over the past 5 years.

Accelerating Growth: 5521 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 5521 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (37.3%).


Return on Equity

High ROE: 5521's Return on Equity (18.4%) is considered low.


Financial Health

How is Kung Sing Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: 5521's short term assets (NT$7.4B) exceed its short term liabilities (NT$2.4B).

Long Term Liabilities: 5521's short term assets (NT$7.4B) exceed its long term liabilities (NT$288.6M).


Debt to Equity History and Analysis

Debt Level: 5521's debt to equity ratio (2.5%) is considered satisfactory.

Reducing Debt: 5521's debt to equity ratio has reduced from 54.1% to 2.5% over the past 5 years.

Debt Coverage: 5521's debt is well covered by operating cash flow (2624.9%).

Interest Coverage: 5521's interest payments on its debt are well covered by EBIT (146.3x coverage).


Balance Sheet


Dividend

What is Kung Sing Engineering current dividend yield, its reliability and sustainability?

1.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 5521's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the TW market (1.8%).

High Dividend: 5521's dividend (1.32%) is low compared to the top 25% of dividend payers in the TW market (4.91%).


Stability and Growth of Payments

Stable Dividend: 5521's dividend payments have been volatile in the past 10 years.

Growing Dividend: 5521's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.6%), 5521's dividend payments are thoroughly 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

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

9.5yrs

Average management tenure


CEO

Chi-Ching Chiang

12.92yrs

Tenure

NT$6,814,000

Compensation

Mr. Chi-Ching Chiang has been General Manager of Kung Sing Engineering Corporation since August 15, 2008. Mr. Chiang serves as an Executive Director of National Association of Construction. He served as Pr...


CEO Compensation Analysis

Compensation vs Market: Chi-Ching's total compensation ($USD242.88K) is above average for companies of similar size in the TW market ($USD179.79K).

Compensation vs Earnings: Chi-Ching's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 5521's management team is seasoned and experienced (9.5 years average tenure).


Board Members

Experienced Board: 5521's board of directors are considered experienced (6.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Kung Sing Engineering Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kung Sing Engineering Corporation
  • Ticker: 5521
  • Exchange: TWSE
  • Founded: 1941
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: NT$4.422b
  • Shares outstanding: 447.53m
  • Website: https://www.kseco.com.tw

Number of Employees


Location

  • Kung Sing Engineering Corporation
  • No.102, Civic Boulevard
  • 8th Floor
  • Taipei
  • 106
  • Taiwan

Listings


Biography

Kung Sing Engineering Corporation, together with its subsidiaries, engages in the construction business in Taiwan. Its projects include roads, bridges, tunnels, residential buildings, airports, and railway...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/27 16:05
End of Day Share Price2021/07/27 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.