Key Insights

• Hua Yin International Holdings to hold its Annual General Meeting on 19th of September
• CEO Junjie Li's total compensation includes salary of CN¥605.0k
• Total compensation is 68% below industry average
• Hua Yin International Holdings' three-year loss to shareholders was 95% while its EPS grew by 33% over the past three years

The performance at Hua Yin International Holdings Limited (HKG:989) has been rather lacklustre of late and shareholders may be wondering what CEO Junjie Li is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 19th of September. 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 Hua Yin International Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Hua Yin International Holdings Limited has a market capitalization of HK$144m, and reported total annual CEO compensation of CN¥605k for the year to March 2024. This means that the compensation hasn't changed much from last year. It is worth noting that the CEO compensation consists entirely of the salary, worth CN¥605k.

For comparison, other companies in the Hong Kong Real Estate industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥1.9m. In other words, Hua Yin International Holdings pays its CEO lower than the industry median.

Talking in terms of the industry, salary represented approximately 76% of total compensation out of all the companies we analyzed, while other remuneration made up 24% of the pie. On a company level, Hua Yin International Holdings prefers to reward its CEO through a salary, opting not to pay Junjie Li through non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Hua Yin International Holdings Limited's Growth

Over the past three years, Hua Yin International Holdings Limited has seen its earnings per share (EPS) grow by 33% per year. Its revenue is down 71% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Hua Yin International Holdings Limited Been A Good Investment?

Few Hua Yin International Holdings Limited shareholders would feel satisfied with the return of -95% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Hua Yin International Holdings pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The fact that shareholders are sitting on a loss is certainly disheartening. This diverges with the robust growth in EPS, suggesting that there is a large discrepancy between share price and fundamentals. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which shouldn't be ignored) in Hua Yin International Holdings we think you should know about.

Switching gears from Hua Yin International Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.