MUN:LIQ

Stock Analysis Report

Executive Summary

Lippo China Resources Limited, an investment holding company, primarily engages in food, and property investment and development businesses in Hong Kong, Mainland China, Singapore, Malaysia, and internationally.


Snowflake Analysis

Mediocre balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Lippo China Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LIQ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

LIQ

3.4%

DE Consumer Retailing

-0.6%

DE Market


1 Year Return

n/a

LIQ

-6.6%

DE Consumer Retailing

-20.9%

DE Market

Return vs Industry: Insufficient data to determine how LIQ performed against the German Consumer Retailing industry.

Return vs Market: Insufficient data to determine how LIQ performed against the German Market.


Shareholder returns

LIQIndustryMarket
7 Day0%3.4%-0.6%
30 Day0%-4.7%-20.0%
90 Dayn/a-7.3%-26.3%
1 Yearn/a-2.9%-6.6%-18.6%-20.9%
3 Year-14.3%-32.0%0.6%-9.2%-19.0%-25.8%
5 Year-32.5%-51.4%-5.3%-19.8%-21.1%-31.8%

Price Volatility Vs. Market

How volatile is Lippo China Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Lippo China Resources undervalued compared to its fair value and its price relative to the market?

21.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LIQ (€0.02) is trading above our estimate of fair value (€0.02)

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


Price To Earnings Ratio

PE vs Industry: LIQ is poor value based on its PE Ratio (21.3x) compared to the Consumer Retailing industry average (17.4x).

PE vs Market: LIQ is poor value based on its PE Ratio (21.3x) compared to the German market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LIQ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LIQ is good value based on its PB Ratio (0.4x) compared to the XE Consumer Retailing industry average (1.3x).


Next Steps

Future Growth

How is Lippo China Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.9%

Forecasted Consumer Retailing industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Lippo China Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Lippo China Resources performed over the past 5 years?

-30.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LIQ has a large one-off gain of HK$802.6M impacting its September 30 2019 financial results.

Growing Profit Margin: LIQ became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LIQ has become profitable over the past 5 years, growing earnings by -30% per year.

Accelerating Growth: LIQ has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LIQ has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (2.2%).


Return on Equity

High ROE: LIQ's Return on Equity (15.9%) is considered low.


Next Steps

Financial Health

How is Lippo China Resources's financial position?


Financial Position Analysis

Short Term Liabilities: LIQ's short term assets (HK$2.4B) exceed its short term liabilities (HK$1.4B).

Long Term Liabilities: LIQ's short term assets (HK$2.4B) exceed its long term liabilities (HK$573.4M).


Debt to Equity History and Analysis

Debt Level: LIQ's debt to equity ratio (21.6%) is considered satisfactory.

Reducing Debt: LIQ's debt to equity ratio has increased from 14.2% to 21.6% over the past 5 years.

Debt Coverage: LIQ's debt is not well covered by operating cash flow (8.2%).

Interest Coverage: Insufficient data to determine if LIQ's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: LIQ has a low level of unsold assets or inventory.

Debt Coverage by Assets: LIQ's debt is covered by short term assets (assets are 2.9x debt).


Next Steps

Dividend

What is Lippo China Resources's current dividend yield, its reliability and sustainability?

4.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LIQ's dividend (4.38%) is higher than the bottom 25% of dividend payers in the German market (1.71%).

High Dividend: LIQ's dividend (4.38%) is low compared to the top 25% of dividend payers in the German market (4.85%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (93.1%), LIQ's dividend payments are not 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?

9.1yrs

Average management tenure


CEO

John Lee (70yo)

9.08s

Tenure

HK$15,102,000

Compensation

Mr. Lee Luen-Wai, also known as John, BBS, FCA, JP serves as Principal at Go Capital & EOC. Mr. Lee has been the Chief Executive Officer of Lippo China Resources Limited since March 25, 2011. Mr. Lee has b ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.95M) is above average for companies of similar size in the German market ($USD744.69K).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Riady
Chairman9.08yrsHK$36.60mno data
Luen-Wai Lee
CEO & Executive Director9.08yrsHK$15.10mno data
Siu Lung Lee
Executive Director4.92yrsHK$2.26m0.000020% HK$35.1
Leung Au Shiu
Chief Financial Officer8.75yrsno datano data
Fun Luk Yuen
Secretary27.33yrsno datano data

9.1yrs

Average Tenure

56.5yo

Average Age

Experienced Management: LIQ's management team is seasoned and experienced (9.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Riady
Chairman9.08yrsHK$36.60mno data
Luen-Wai Lee
CEO & Executive Director9.08yrsHK$15.10mno data
Siu Lung Lee
Executive Director4.92yrsHK$2.26m0.000020% HK$35.1
Edwin Neo
Independent Non-Executive Director18.08yrsHK$394.00kno data
Nim Leung Chan
Non-Executive Director23.25yrsHK$394.00kno data
Ha Kuk Yung
Independent Non-Executive Director15.58yrsHK$421.00kno data
King Fai Tsui
Independent Non-Executive Director15.58yrsHK$449.00kno data

15.6yrs

Average Tenure

65yo

Average Age

Experienced Board: LIQ's board of directors are seasoned and experienced ( 15.6 years average tenure).


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

Lippo China Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lippo China Resources Limited
  • Ticker: LIQ
  • Exchange: MUN
  • Founded:
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: HK$1.470b
  • Listing Market Cap: HK$175.735m
  • Shares outstanding: 9.19b
  • Website: https://www.lcr.com.hk

Number of Employees


Location

  • Lippo China Resources Limited
  • Tower Two
  • 40th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
156SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
LPPC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
LIQMUN (Boerse Muenchen)YesOrdinary SharesDEEURJan 1992

Biography

Lippo China Resources Limited, an investment holding company, primarily engages in food, and property investment and development businesses in Hong Kong, Mainland China, Singapore, Malaysia, and internationally. It operates through Property Investment, Property Development, Treasury Investment, Securities Investment, Food Businesses, Healthcare Services, Mineral Exploration and Extraction, and Other segments. It distributes customer food and non-food products; and operates and manages restaurants and food courts, as well as manufactures and retails food products. The company is also involved in the development, letting, sale, and resale of real estate properties, as well as offers property management and real estate agency services. In addition, it invests in money markets and securities held-for-trading; engages in the exploration, extraction, and processing of minerals; and provision of money lending services. Further, the company is involved in intellectual property and financing activities; provision of management and commercial consulting services; and development of software products. Additionally, it engages in the development and sale of franchising activities; and wholesale trade, distribution, and retail of general products, and food and beverage products. The company is headquartered in Central, Hong Kong. Lippo China Resources Limited is a subsidiary of Skyscraper Realty Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 23:06
End of Day Share Price2020/04/03 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.