Key Insights

• Chanhigh Holdings' Annual General Meeting to take place on 13th of June
• Salary of CN¥323.0k is part of CEO Yonghui Peng's total remuneration
• Total compensation is 79% below industry average
• Chanhigh Holdings' three-year loss to shareholders was 42% while its EPS grew by 10% over the past three years

Shareholders may be wondering what CEO Yonghui Peng plans to do to improve the less than great performance at Chanhigh Holdings Limited (HKG:2017) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 13th of June. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Comparing Chanhigh Holdings Limited's CEO Compensation With The Industry

According to our data, Chanhigh Holdings Limited has a market capitalization of HK$176m, and paid its CEO total annual compensation worth CN¥416k over the year to December 2023. That's just a smallish increase of 4.5% on last year. Notably, the salary which is CN¥323.0k, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Construction industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥2.0m. This suggests that Yonghui Peng is paid below the industry median. What's more, Yonghui Peng holds HK$129m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 83% of total compensation represents salary and 17% is other remuneration. Chanhigh Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Chanhigh Holdings Limited's Growth

Chanhigh Holdings Limited's earnings per share (EPS) grew 10% per year over the last three years. It saw its revenue drop 6.9% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Chanhigh Holdings Limited Been A Good Investment?

With a total shareholder return of -42% over three years, Chanhigh Holdings Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. A key question may be why the fundamentals have not yet been reflected into the share price. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Chanhigh Holdings that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.