OTCPK:KWHA.F

Stock Analysis Report

K. Wah International Holdings

Executive Summary

K. Wah International Holdings Limited, an investment holding company, engages in the property development and investment activities in Hong Kong and Mainland China.


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has K. Wah International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-15.5%

KWHA.F

-1.4%

US Real Estate

2.4%

US Market


1 Year Return

-23.8%

KWHA.F

-36.3%

US Real Estate

-10.0%

US Market

Return vs Industry: KWHA.F exceeded the US Real Estate industry which returned -39.4% over the past year.

Return vs Market: KWHA.F underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

KWHA.FIndustryMarket
7 Day-15.5%-1.4%2.4%
30 Day-15.5%-33.5%-11.0%
90 Day-18.4%-41.4%-19.4%
1 Year-23.8%-23.8%-35.8%-36.3%-8.1%-10.0%
3 Year-30.6%-30.6%-23.0%-24.9%17.3%9.6%
5 Year-3.1%-3.1%-35.7%-37.6%36.1%21.1%

Price Volatility Vs. Market

How volatile is K. Wah International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is K. Wah International Holdings 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: KWHA.F ($0.47) is trading below our estimate of fair value ($2.11)

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


Price To Earnings Ratio

PE vs Industry: KWHA.F is good value based on its PE Ratio (3.4x) compared to the Real Estate industry average (17x).

PE vs Market: KWHA.F is good value based on its PE Ratio (3.4x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KWHA.F is good value based on its PB Ratio (0.3x) compared to the US Real Estate industry average (1x).


Next Steps

Future Growth

How is K. Wah International Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

19.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if KWHA.F's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if KWHA.F's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KWHA.F's revenue (19.7% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: KWHA.F's revenue (19.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KWHA.F's Return on Equity is forecast to be low in 3 years time (5%).


Next Steps

Past Performance

How has K. Wah International Holdings performed over the past 5 years?

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KWHA.F has high quality earnings.

Growing Profit Margin: KWHA.F's current net profit margins (29.6%) are lower than last year (37.6%).


Past Earnings Growth Analysis

Earnings Trend: KWHA.F's earnings have grown by 16.5% per year over the past 5 years.

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

Earnings vs Industry: KWHA.F had negative earnings growth (-22.2%) over the past year, making it difficult to compare to the Real Estate industry average (10.4%).


Return on Equity

High ROE: KWHA.F's Return on Equity (8.1%) is considered low.


Next Steps

Financial Health

How is K. Wah International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: KWHA.F's short term assets (HK$36.2B) exceed its short term liabilities (HK$15.7B).

Long Term Liabilities: KWHA.F's short term assets (HK$36.2B) exceed its long term liabilities (HK$18.7B).


Debt to Equity History and Analysis

Debt Level: KWHA.F's debt to equity ratio (51%) is considered high.

Reducing Debt: KWHA.F's debt to equity ratio has reduced from 66.6% to 51% over the past 5 years.

Debt Coverage: KWHA.F's debt is well covered by operating cash flow (26.5%).

Interest Coverage: KWHA.F's interest payments on its debt are well covered by EBIT (455.5x coverage).


Balance Sheet


Next Steps

Dividend

What is K. Wah International Holdings's current dividend yield, its reliability and sustainability?

5.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KWHA.F's dividend (5.87%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: KWHA.F's dividend (5.87%) is in the top 25% of dividend payers in the US market (5.66%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.8%), KWHA.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KWHA.F's dividends in 3 years are forecast to be well covered by earnings (30.4% payout ratio).


Next Steps

Management

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

10.7yrs

Average board tenure


CEO

Che-Woo Lui (89yo)

no data

Tenure

HK$21,399,000

Compensation

Dr. Che Woo Lui, GBM, MBE, JP, LLD, DSSc, DBA, serves as the President of Tsim Sha Tsui East Property Developers Association. Dr. Lui is the Founder of K. Wah International Holdings Ltd. and serves as its  ...


CEO Compensation Analysis

Compensation vs Market: Che-Woo's total compensation ($USD2.76M) is below average for companies of similar size in the US market ($USD4.74M).

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


Board Members

NamePositionTenureCompensationOwnership
Che-Woo Lui
Chairmanno dataHK$21.40m51.97% HK$714.4m
Lui Wai Yu Tang
Member of Executive Board & Executive Director30.83yrsHK$12.75m0.52% HK$7.1m
Yiu Tung Lui
Member of Executive Board & Executive Director30.83yrsHK$3.51m0.19% HK$2.6m
Yiu Wah Lui
Member of Executive Board & Executive Director10yrsHK$16.37m0.27% HK$3.7m
Wai Cheng Lui
Member of Senior Management and Director of K Wah Management Services Limitedno datano datano data
Mo Chi Cheng
Non-Executive Director10.67yrsHK$444.00k0.0067% HK$92.0k
Shue Lam Yip
Independent Non-Executive Director11.83yrsHK$574.00k0.018% HK$252.0k
Yun Wing Nip
Independent Non-Executive Director0.75yrno datano data
Kwai Lam Wong
Independent Non-Executive Director8.67yrsHK$424.00k0.013% HK$176.0k
Man Chu Au
Independent Non-Executive Director8.67yrsHK$444.00k0.012% HK$161.7k

10.7yrs

Average Tenure

66.5yo

Average Age

Experienced Board: KWHA.F's board of directors are seasoned and experienced ( 10.7 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

K. Wah International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: K. Wah International Holdings Limited
  • Ticker: KWHA.F
  • Exchange: OTCPK
  • Founded: 1990
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$10.657b
  • Listing Market Cap: HK$1.375b
  • Shares outstanding: 3.13b
  • Website: https://www.kwih.com

Number of Employees


Location

  • K. Wah International Holdings Limited
  • K. Wah Centre
  • 29th Floor
  • North Point
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
173SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
KWHA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
KW2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
173SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
173SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992

Biography

K. Wah International Holdings Limited, an investment holding company, engages in the property development and investment activities in Hong Kong and Mainland China. Its property portfolio comprises residential developments, office towers, hotels, serviced apartments, and retail complexes. The company also provides financial, management, decoration, and property management services. K. Wah International Holdings Limited was incorporated in 1990 and is headquartered in North Point, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 02:47
End of Day Share Price2020/04/06 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.