Key Insights
- Chu Kong Shipping Enterprises (Group) will host its Annual General Meeting on 22nd of May
- Total pay for CEO Jun Zhou includes HK$1.01m salary
- Total compensation is similar to the industry average
- Over the past three years, Chu Kong Shipping Enterprises (Group)'s EPS grew by 38% and over the past three years, the total loss to shareholders 3.7%
As many shareholders of Chu Kong Shipping Enterprises (Group) Company Limited (HKG:560) will be aware, they have not made a gain on their investment in the past three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 22nd of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
Check out our latest analysis for Chu Kong Shipping Enterprises (Group)
How Does Total Compensation For Jun Zhou Compare With Other Companies In The Industry?
According to our data, Chu Kong Shipping Enterprises (Group) Company Limited has a market capitalization of HK$875m, and paid its CEO total annual compensation worth HK$1.8m over the year to December 2024. That's just a smallish increase of 6.6% on last year. Notably, the salary which is HK$1.01m, represents a considerable chunk of the total compensation being paid.
For comparison, other companies in the Hong Kong Shipping industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.0m. So it looks like Chu Kong Shipping Enterprises (Group) compensates Jun Zhou in line with the median for the industry.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | HK$1.0m | HK$1.0m | 55% |
| Other | HK$823k | HK$708k | 45% |
| Total Compensation | HK$1.8m | HK$1.7m | 100% |
Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. Chu Kong Shipping Enterprises (Group) sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Chu Kong Shipping Enterprises (Group) Company Limited's Growth
Chu Kong Shipping Enterprises (Group) Company Limited has seen its earnings per share (EPS) increase by 38% a year over the past three years. It achieved revenue growth of 6.4% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Chu Kong Shipping Enterprises (Group) Company Limited Been A Good Investment?
Given the total shareholder loss of 3.7% over three years, many shareholders in Chu Kong Shipping Enterprises (Group) Company Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Chu Kong Shipping Enterprises (Group) you should be aware of, and 1 of them is a bit unpleasant.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.