Key Insights

• Sang Hing Holdings (International)'s Annual General Meeting to take place on 5th of September
• Total pay for CEO Chun Wing Au includes HK$1.26m salary
• The overall pay is 34% below the industry average
• Sang Hing Holdings (International)'s EPS declined by 110% over the past three years while total shareholder loss over the past three years was 71%

Performance at Sang Hing Holdings (International) Limited (HKG:1472) has not been particularly rosy recently and shareholders will likely be holding CEO Chun Wing Au and the board accountable for this. The next AGM coming up on 5th of September will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

How Does Total Compensation For Chun Wing Au Compare With Other Companies In The Industry?

According to our data, Sang Hing Holdings (International) Limited has a market capitalization of HK$51m, and paid its CEO total annual compensation worth HK$1.5m over the year to March 2024. We note that's a small decrease of 6.6% on last year. In particular, the salary of HK$1.26m, makes up a huge portion of the total compensation being paid to the CEO.

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 HK$2.3m. In other words, Sang Hing Holdings (International) pays its CEO lower than the industry median.

On an industry level, around 84% of total compensation represents salary and 16% is other remuneration. Sang Hing Holdings (International) 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.

Sang Hing Holdings (International) Limited's Growth

Over the last three years, Sang Hing Holdings (International) Limited has shrunk its earnings per share by 110% per year. In the last year, its revenue is down 64%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Sang Hing Holdings (International) Limited Been A Good Investment?

With a total shareholder return of -71% over three years, Sang Hing Holdings (International) Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Sang Hing Holdings (International) that you should be aware of before investing.

Important note: Sang Hing Holdings (International) is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.