Should You Worry About Redco Properties Group Limited's (HKG:1622) CEO Pay Cheque?

Simply Wall St
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The CEO of Redco Properties Group Limited (HKG:1622) is Ruoqing Huang. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.

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View our latest analysis for Redco Properties Group

How Does Ruoqing Huang's Compensation Compare With Similar Sized Companies?

Our data indicates that Redco Properties Group Limited is worth HK$11b, and total annual CEO compensation is CN¥2.5m. (This figure is for the year to December 2018). We note that's an increase of 25% above last year. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥2.5m. When we examined a selection of companies with market caps ranging from CN¥6.9b to CN¥22b, we found the median CEO total compensation was CN¥3.2m.

So Ruoqing Huang receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Redco Properties Group, below.

SEHK:1622 CEO Compensation, May 20th 2019
SEHK:1622 CEO Compensation, May 20th 2019

Is Redco Properties Group Limited Growing?

On average over the last three years, Redco Properties Group Limited has grown earnings per share (EPS) by 41% each year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Redco Properties Group Limited Been A Good Investment?

With a total shareholder return of 16% over three years, Redco Properties Group Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Ruoqing Huang is paid around what is normal the leaders of comparable size companies.

The company is growing EPS but shareholder returns have been sound but not amazing. As a result of these considerations, I would suggest the CEO pay is reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Redco Properties Group (free visualization of insider trades).

If you want to buy a stock that is better than Redco Properties Group, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.

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