Is Winox Holdings Limited (HKG:6838) Overpaying Its CEO?

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Hon Ming Yiu is the CEO of Winox Holdings Limited (HKG:6838). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Winox Holdings

How Does Hon Ming Yiu's Compensation Compare With Similar Sized Companies?

According to our data, Winox Holdings Limited has a market capitalization of HK$1.3b, and pays its CEO total annual compensation worth HK$1.7m. (This is based on the year to December 2018). We note that's an increase of 119% above last year. While we always look at total compensation first, we note that the salary component is less, at HK$606k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$783m to HK$3.1b. The median total CEO compensation was HK$2.1m.

So Hon Ming Yiu receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Winox Holdings has changed over time.

SEHK:6838 CEO Compensation, June 15th 2019
SEHK:6838 CEO Compensation, June 15th 2019

Is Winox Holdings Limited Growing?

On average over the last three years, Winox Holdings Limited has grown earnings per share (EPS) by 35% each year (using a line of best fit). It achieved revenue growth of 27% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Winox Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 205% over three years, Winox Holdings Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Hon Ming Yiu is paid around what is normal the leaders of comparable size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Winox Holdings shares (free trial).