In This Article:
Huaimin Hu became the CEO of Yue Da International Holdings Limited (HKG:629) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
View our latest analysis for Yue Da International Holdings
How Does Huaimin Hu's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Yue Da International Holdings Limited has a market cap of HK$438m, and reported total annual CEO compensation of CN¥778k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CN¥631k. We looked at a group of companies with market capitalizations under CN¥1.4b, and the median CEO total compensation was CN¥1.6m.
A first glance this seems like a real positive for shareholders, since Huaimin Hu is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Yue Da International Holdings, below.
Is Yue Da International Holdings Limited Growing?
Yue Da International Holdings Limited has increased its earnings per share (EPS) by an average of 62% a year, over the last three years (using a line of best fit). Its revenue is down 16% over last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Yue Da International Holdings Limited Been A Good Investment?
With a total shareholder return of 16% over three years, Yue Da International Holdings Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Yue Da International Holdings Limited is currently paying its CEO below what is normal for companies of its size.
Since the business is growing, many would argue this suggests the pay is modest. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Huaimin Hu is overcompensated. It's great to see a company that pays its CEO reasonably, even while growing. But for me, it's even better if insiders are also buying shares with their own cold, hard, cash. Whatever your view on compensation, you might want to check if insiders are buying or selling Yue Da International Holdings shares (free trial).