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Market Cap

CN¥7.9b

Last Updated

2021/09/20 09:02 UTC

Data Sources

Company Financials +

Executive Summary

Wedge Industrial Co., Ltd. invests in, develops, sells, and operates real estate properties in China. More Details


Snowflake Analysis

High growth potential with excellent balance sheet.

Share Price & News

How has Wedge Industrial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 000534 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 000534's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-4.4%

534

-3.4%

CN Real Estate

-2.4%

CN Market


1 Year Return

32.3%

534

-21.9%

CN Real Estate

9.3%

CN Market

Return vs Industry: 000534 exceeded the CN Real Estate industry which returned -21.9% over the past year.

Return vs Market: 000534 exceeded the CN Market which returned 9.3% over the past year.


Shareholder returns

534IndustryMarket
7 Day-4.4%-3.4%-2.4%
30 Day-2.4%0.6%3.5%
90 Day12.1%-7.4%1.9%
1 Year32.7%32.3%-18.9%-21.9%10.9%9.3%
3 Year41.2%39.4%-6.1%-14.7%66.9%58.3%
5 Yearn/a-26.5%-34.6%29.0%20.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Wedge Industrial undervalued compared to its fair value and its price relative to the market?

85.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 000534 (CN¥15.99) is trading above our estimate of fair value (CN¥0.67)

Significantly Below Fair Value: 000534 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 000534 is poor value based on its PE Ratio (85.7x) compared to the CN Real Estate industry average (12.7x).

PE vs Market: 000534 is poor value based on its PE Ratio (85.7x) compared to the CN market (34.9x).


Price to Earnings Growth Ratio

PEG Ratio: 000534 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 000534 is overvalued based on its PB Ratio (7.8x) compared to the CN Real Estate industry average (1.1x).


Future Growth

How is Wedge Industrial forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

50.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 000534's forecast earnings growth (50.3% per year) is above the savings rate (3.3%).

Earnings vs Market: 000534's earnings (50.3% per year) are forecast to grow faster than the CN market (23.1% per year).

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

Revenue vs Market: 000534's revenue (43.8% per year) is forecast to grow faster than the CN market (18.2% per year).

High Growth Revenue: 000534's revenue (43.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 000534's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Wedge Industrial performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 000534 has a large one-off gain of CN¥64.8M impacting its June 30 2021 financial results.

Growing Profit Margin: 000534's current net profit margins (15.3%) are lower than last year (16.2%).


Past Earnings Growth Analysis

Earnings Trend: 000534's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: 000534's earnings growth over the past year (8.2%) exceeds its 5-year average (2.3% per year).

Earnings vs Industry: 000534 earnings growth over the past year (8.2%) underperformed the Real Estate industry 19.2%.


Return on Equity

High ROE: 000534's Return on Equity (8%) is considered low.


Financial Health

How is Wedge Industrial's financial position?


Financial Position Analysis

Short Term Liabilities: 000534's short term assets (CN¥606.8M) exceed its short term liabilities (CN¥514.5M).

Long Term Liabilities: 000534's short term assets (CN¥606.8M) exceed its long term liabilities (CN¥474.0M).


Debt to Equity History and Analysis

Debt Level: 000534's debt to equity ratio (41%) is considered high.

Reducing Debt: 000534's debt to equity ratio has reduced from 50% to 41% over the past 5 years.

Debt Coverage: 000534's debt is well covered by operating cash flow (42.8%).

Interest Coverage: 000534 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Wedge Industrial current dividend yield, its reliability and sustainability?

0.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 000534's dividend (0.38%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.41%).

High Dividend: 000534's dividend (0.38%) is low compared to the top 25% of dividend payers in the CN market (1.79%).


Stability and Growth of Payments

Stable Dividend: 000534's dividend payments have been volatile in the past 10 years.

Growing Dividend: 000534's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.2%), 000534's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.5yrs

Average board tenure


CEO

Zhen Guang Huang

no data

Tenure

CN¥312,000

Compensation

Mr. Zhen Guang Huang serves as General Manager and Director of Wedge Industrial Co., Ltd.


Board Members

Experienced Board: 000534's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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

Wedge Industrial Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wedge Industrial Co., Ltd.
  • Ticker: 534
  • Exchange: SZSE
  • Founded: 1992
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: CN¥7.864b
  • Shares outstanding: 491.79m
  • Website: https://www.wedgeind.com

Number of Employees


Location

  • Wedge Industrial Co., Ltd.
  • Guangming Building
  • 8th Floor
  • Shantou
  • Guangdong Province
  • 515041
  • China

Listings


Biography

Wedge Industrial Co., Ltd. invests in, develops, sells, and operates real estate properties in China. It also engages in power generation and steam heat supply activities. The company was formerly known as...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/20 09:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.