SHSE:600823

Stock Analysis Report

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Executive Summary

Shanghai Shimao Co., Ltd. engages in the commercial real estate development activities in China. More Details


Snowflake Analysis

Excellent balance sheet, good value and pays a dividend.

Share Price & News

How has Shanghai Shimao's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 600823 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 600823's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

6.2%

600823

0.5%

CN Real Estate

-1.2%

CN Market


1 Year Return

10.4%

600823

-10.1%

CN Real Estate

25.4%

CN Market

Return vs Industry: 600823 exceeded the CN Real Estate industry which returned -10.1% over the past year.

Return vs Market: 600823 underperformed the CN Market which returned 25.5% over the past year.


Shareholder returns

600823IndustryMarket
7 Day6.2%0.5%-1.2%
30 Day-12.4%-3.6%4.3%
90 Day-25.7%-7.8%5.8%
1 Year16.6%10.4%-7.2%-10.1%27.5%25.4%
3 Year-9.9%-20.9%-24.5%-30.6%23.2%17.0%
5 Year7.5%-7.7%-9.4%-18.9%39.0%29.5%

Long-Term Price Volatility Vs. Market

How volatile is Shanghai Shimao's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Shanghai Shimao undervalued compared to its fair value and its price relative to the market?

8.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 600823 (CN¥4.66) is trading above our estimate of fair value (CN¥3.14)

Significantly Below Fair Value: 600823 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 600823 is good value based on its PE Ratio (8.8x) compared to the CN Real Estate industry average (14.5x).

PE vs Market: 600823 is good value based on its PE Ratio (8.8x) compared to the CN market (35x).


Price to Earnings Growth Ratio

PEG Ratio: 600823 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 600823 is good value based on its PB Ratio (0.7x) compared to the CN Real Estate industry average (1.1x).


Next Steps

Future Growth

How is Shanghai Shimao forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

20.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600823's forecast earnings growth (20.9% per year) is above the savings rate (3.3%).

Earnings vs Market: 600823's earnings (20.9% per year) are forecast to grow slower than the CN market (24.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 600823's revenue (22% per year) is forecast to grow faster than the CN market (18.1% per year).

High Growth Revenue: 600823's revenue (22% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 600823's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has Shanghai Shimao performed over the past 5 years?

1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 600823 has high quality earnings.

Growing Profit Margin: 600823's current net profit margins (10.7%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: 600823's earnings have grown by 1.1% per year over the past 5 years.

Accelerating Growth: 600823's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 600823 had negative earnings growth (-20.4%) over the past year, making it difficult to compare to the Real Estate industry average (-3.3%).


Return on Equity

High ROE: 600823's Return on Equity (6.9%) is considered low.


Next Steps

Financial Health

How is Shanghai Shimao's financial position?


Financial Position Analysis

Short Term Liabilities: 600823's short term assets (CN¥86.8B) exceed its short term liabilities (CN¥68.8B).

Long Term Liabilities: 600823's short term assets (CN¥86.8B) exceed its long term liabilities (CN¥25.7B).


Debt to Equity History and Analysis

Debt Level: 600823's debt to equity ratio (55.1%) is considered high.

Reducing Debt: 600823's debt to equity ratio has reduced from 80.4% to 55.1% over the past 5 years.

Debt Coverage: 600823's debt is well covered by operating cash flow (37.1%).

Interest Coverage: 600823's interest payments on its debt are well covered by EBIT (38.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Shanghai Shimao current dividend yield, its reliability and sustainability?

5.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 600823's dividend (5.58%) is higher than the bottom 25% of dividend payers in the CN market (0.4%).

High Dividend: 600823's dividend (5.58%) is in the top 25% of dividend payers in the CN market (1.81%)


Stability and Growth of Payments

Stable Dividend: 600823 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 600823's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49%), 600823's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 600823's dividends in 3 years are forecast to be well covered by earnings (44.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

CN¥3m

CEO Compensation


CEO

Sai Fei Liu (58 yo)

no data

Tenure

CN¥2,755,000

Compensation

Mr. Sai Fei Liu has been the President of Shimao Tourism Co. Ltd. since May 25, 2015. Mr. Liu serves as President of Shanghai Shimao Co., Ltd. Mr. Liu serves as Vice President of Shanghai Shimao Constructi...


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Shanghai Shimao Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shanghai Shimao Co., Ltd.
  • Ticker: 600823
  • Exchange: SHSE
  • Founded: 1994
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: CN¥17.480b
  • Shares outstanding: 3.75b
  • Website: https://www.shimaoco.com

Number of Employees


Location

  • Shanghai Shimao Co., Ltd.
  • Shimao Building
  • 55 West Weifang Road
  • Shanghai
  • 200120
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
600823SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYJun 1996
600823XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYJun 1996

Biography

Shanghai Shimao Co., Ltd. engages in the commercial real estate development activities in China. It develops, operates, and sells residential and commercial real estate projects, as well as engages in the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 09:21
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.