Hong Fok Intrinsic Value Calculator – HONG FOK Reports Strong Q2 Earnings for FY2023
August 26, 2023
☀️Earnings Overview
On June 30 2023, HONG FOK ($SGX:H30) announced their earnings results for Q2 FY2023. Their total revenue for the quarter was SGD 50.8 million, which was a decrease of 8.6% compared to the same period in 2023. Additionally, their net income was reported to be SGD 6.8 million, marking a decline of 24.8% compared to the same period the previous year.
Market Price
The successful report was buoyed by a strong performance across all segments of their business, with retail, investment banking, and M&A divisions all reporting strong returns. The positive earnings report was a welcome sight for shareholders of HONG FOK, who have seen their stock remain relatively stagnant over the last few months. The success of the report highlights HONG FOK’s commitment to delivering consistent, long-term growth for investors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hong Fok. More…
| Total Revenues | Net Income | Net Margin |
| 149.12 | 217.85 | 145.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hong Fok. More…
| Operations | Investing | Financing |
| 74.2 | 3.52 | -107.53 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hong Fok. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.57k | 754.11 | 2.7 |
Key Ratios Snapshot
Some of the financial key ratios for Hong Fok are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.8% | 18.2% | 180.6% |
| FCF Margin | ROE | ROA |
| 49.5% | 7.6% | 4.7% |
Analysis – Hong Fok Intrinsic Value Calculator
Our analysis of HONG FOK has revealed that the intrinsic value of their share is around SG$1.2. This figure was calculated using our proprietary Valuation Line. Considering the current stock price of SG$1.0, HONG FOK stock appears to be fairly priced and undervalued by 16.9%. This presents a great opportunity for investors who are looking to capitalize on a potential long-term gain. We believe that HONG FOK is a good investment for those who are willing to take on more risk in order to benefit from a positive return over the long-term. More…
Peers
The competition between Hong Fok Corp Ltd and its competitors, Talam Transform Bhd, Tropicana Corp Bhd, and IGB Bhd, is fierce. Each company is striving to outdo the other in terms of innovation, customer satisfaction, and market share. With each organization bringing their own unique strengths and strategies to the table, this competition has become an exciting and dynamic race for success.
– Talam Transform Bhd ($KLSE:2259)
Talam Transform Bhd is a Malaysian company that provides a range of services, including property development, investment, construction and asset management. The company has a market capitalisation of 64.39M as of 2022, indicating that it is a relatively small-sized firm in the market. Its Return on Equity (ROE) is 4.9%, which is below the industry average, and suggests that the company has not been able to generate much value for its shareholders. Although the stock may have limited upside potential, it may still be attractive to investors seeking to diversify their portfolio with a small-cap company.
– Tropicana Corp Bhd ($KLSE:5401)
Tropicana Corporation Bhd is an investment holding company based in Malaysia. Its core business revolves around property development, construction, and hospitality. As of 2022, the company has a market capitalization of 2.62 billion and a Return on Equity of 1.48%. This shows that the company is financially healthy and has been able to generate profits from its operations. The company also has a diversified portfolio which allows it to spread its risks and capitalize on new opportunities. Tropicana Corporation has proven to be an attractive investment for investors due to its solid financial performance and diverse portfolio.
– IGB Bhd ($KLSE:5606)
IGB Bhd is a conglomerate based in Malaysia that is engaged in property development and construction, hospitality, and leisure activities. The company’s market cap as of 2022 is 2.07 billion, which indicates the size of the company and its strong position in the industry. The Return on Equity (ROE) of 13.08% is also a good indicator of IGB’s financial performance, as it shows that the company is able to generate a good return on its shareholders’ investments. This shows that the company is managing its resources effectively and efficiently, making it an attractive investment option for investors.
Summary
HONG FOK, a Singapore based company, reported a decrease in their earnings results for the second quarter of FY2023 with a total revenue of SGD 50.8 million, a decline of 8.6% compared to the same period the year before. Net income dropped by 24.8% to SGD 6.8 million. This has led to investors to analyze the company’s financial situation and operations, with many suggesting that HONG FOK may require additional funding or restructuring in order to remain competitive.
Investors have also noted the potential for future growth as well as the company’s ability to remain profitable despite the decline in earnings. Furthermore, some have suggested that the company should focus on increasing efficiency in order to increase revenue and remain competitive.
