Should You Be Pleased About The CEO Pay At Regina Miracle International (Holdings) Limited's (HKG:2199)

In this article:

The CEO of Regina Miracle International (Holdings) Limited (HKG:2199) is YY Hung. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Regina Miracle International (Holdings)

How Does YY Hung's Compensation Compare With Similar Sized Companies?

According to our data, Regina Miracle International (Holdings) Limited has a market capitalization of HK$5.9b, and paid its CEO total annual compensation worth HK$9.2m over the year to March 2019. Notably, the salary of HK$9.1m is the vast majority of the CEO compensation. When we examined a selection of companies with market caps ranging from HK$3.1b to HK$13b, we found the median CEO total compensation was HK$3.3m.

Thus we can conclude that YY Hung receives more in total compensation than the median of a group of companies in the same market, and of similar size to Regina Miracle International (Holdings) Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

The graphic below shows how CEO compensation at Regina Miracle International (Holdings) has changed from year to year.

SEHK:2199 CEO Compensation, December 5th 2019
SEHK:2199 CEO Compensation, December 5th 2019

Is Regina Miracle International (Holdings) Limited Growing?

Regina Miracle International (Holdings) Limited has increased its earnings per share (EPS) by an average of 22% a year, over the last three years (using a line of best fit). Its revenue is up 3.5% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.

Has Regina Miracle International (Holdings) Limited Been A Good Investment?

With a three year total loss of 34%, Regina Miracle International (Holdings) Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We examined the amount Regina Miracle International (Holdings) Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Regina Miracle International (Holdings).

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

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

Advertisement