SZSE:000718

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Suning UniversalLtd

Executive Summary

Suning Universal Co.,Ltd operates as a real estate development company in China. More Details


Snowflake Analysis

Excellent balance sheet average dividend payer.

Share Price & News

How has Suning UniversalLtd's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 000718 is more volatile than 75% of CN stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 000718's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of CN stocks.


Market Performance


7 Day Return

-14.6%

718

0.5%

CN Real Estate

-1.2%

CN Market


1 Year Return

3.3%

718

-10.1%

CN Real Estate

25.4%

CN Market

Return vs Industry: 000718 exceeded the CN Real Estate industry which returned -10.1% over the past year.

Return vs Market: 000718 underperformed the CN Market which returned 25.4% over the past year.


Shareholder returns

718IndustryMarket
7 Day-14.6%0.5%-1.2%
30 Day14.0%-3.6%4.3%
90 Day17.6%-7.8%5.8%
1 Year13.1%3.3%-7.2%-10.1%27.5%25.4%
3 Year-8.6%-24.9%-24.5%-30.6%23.2%17.0%
5 Year-64.0%-71.6%-9.4%-18.9%39.0%29.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Suning UniversalLtd undervalued compared to its fair value and its price relative to the market?

2.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 000718 (CN¥3.74) is trading below our estimate of fair value (CN¥3.82)

Significantly Below Fair Value: 000718 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 000718 is good value based on its PE Ratio (8.9x) compared to the CN Real Estate industry average (14.5x).

PE vs Market: 000718 is good value based on its PE Ratio (8.9x) compared to the CN market (35x).


Price to Earnings Growth Ratio

PEG Ratio: 000718 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 000718 is overvalued based on its PB Ratio (1.2x) compared to the CN Real Estate industry average (1.1x).


Next Steps

Future Growth

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

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 000718's forecast earnings growth (6.9% per year) is above the savings rate (3.3%).

Earnings vs Market: 000718's earnings (6.9% per year) are forecast to grow slower than the CN market (24.3% per year).

High Growth Earnings: 000718's earnings are forecast to grow, but not significantly.

Revenue vs Market: 000718's revenue (7.4% per year) is forecast to grow slower than the CN market (18.1% per year).

High Growth Revenue: 000718's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 000718's Return on Equity is forecast to be low in 3 years time (16%).


Next Steps

Past Performance

How has Suning UniversalLtd performed over the past 5 years?

4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 000718 has high quality earnings.

Growing Profit Margin: 000718's current net profit margins (32.9%) are lower than last year (33.6%).


Past Earnings Growth Analysis

Earnings Trend: 000718's earnings have grown by 4.8% per year over the past 5 years.

Accelerating Growth: 000718's earnings growth over the past year (2%) is below its 5-year average (4.8% per year).

Earnings vs Industry: 000718 earnings growth over the past year (2%) exceeded the Real Estate industry -3.3%.


Return on Equity

High ROE: 000718's Return on Equity (14.7%) is considered low.


Next Steps

Financial Health

How is Suning UniversalLtd's financial position?


Financial Position Analysis

Short Term Liabilities: 000718's short term assets (CN¥13.6B) exceed its short term liabilities (CN¥7.2B).

Long Term Liabilities: 000718's short term assets (CN¥13.6B) exceed its long term liabilities (CN¥1.1B).


Debt to Equity History and Analysis

Debt Level: 000718's debt to equity ratio (36.9%) is considered satisfactory.

Reducing Debt: 000718's debt to equity ratio has reduced from 95.4% to 36.9% over the past 5 years.

Debt Coverage: 000718's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 000718's interest payments on its debt are well covered by EBIT (33.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Suning UniversalLtd current dividend yield, its reliability and sustainability?

8.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 000718's dividend (8.02%) is higher than the bottom 25% of dividend payers in the CN market (0.4%).

High Dividend: 000718's dividend (8.02%) is in the top 25% of dividend payers in the CN market (1.81%)


Stability and Growth of Payments

Stable Dividend: 000718's dividend payments have been volatile in the past 10 years.

Growing Dividend: 000718's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.5%), 000718's dividend payments are 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?

0.3yrs

Average board tenure


CEO

Gui Ping Zhang (69 yo)

no data

Tenure

CN¥2,814,900

Compensation

Mr. Gui Ping Zhang serves as Chairman and President of Suning Universal Co., Ltd. Mr. Zhang is works as Standing Committee of Chinese People's Political Consultative Conference in Jiangsu Province, Deputy ...


Board Members

NamePositionTenureCompensationOwnership
Gui Ping Zhang
Chairman of the Board & Presidentno dataCN¥2.81m19.08%
CN¥ 2.0b
Wei Li
VP & Directorno datano datano data
Kang Li Zhang
Non-Independent Directorno datano data16.49%
CN¥ 1.7b
Pei Ling Ni
Chairman of the Supervisory Board no dataCN¥30.00kno data
Jun Li
Member of the Supervisory Board5.67yrsno datano data
Li Li Ma
Member of the Supervisory Board4.83yrsno datano data
Zhen Shi
Member of Supervisory Board0.25yrno datano data
Junming Yin
Independent Director0.25yrno datano data
Honghai Yu
Independent Director0.25yrno datano data
Dejun Cheng
Independent Director0.25yrno datano data
Libo Jiang
Non-Independent Director0.25yrno datano data

0.3yrs

Average Tenure

48yo

Average Age

Experienced Board: 000718's board of directors are not considered experienced ( 0.3 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 been diluted in the past year, with total shares outstanding growing by 18.3%.


Top Shareholders

Company Information

Suning Universal Co.,Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Suning Universal Co.,Ltd
  • Ticker: 718
  • Exchange: SZSE
  • Founded: 1987
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: CN¥10.273b
  • Shares outstanding: 2.75b
  • Website: https://www.suning-universal.com

Number of Employees


Location

  • Suning Universal Co.,Ltd
  • No.188, Guangzhou Road
  • 17th Floor
  • Nanjing
  • Jiangsu Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
718SZSE (Shenzhen Stock Exchange)YesDomestic SharesCNCNYApr 1997
718XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)YesDomestic SharesCNCNYApr 1997

Biography

Suning Universal Co.,Ltd operates as a real estate development company in China. The company projects include commercial estates, residential properties, and hotels. It also provides building materials. Su...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/17 09:20
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.