BST:XSP

Stock Analysis Report

China SCE Group Holdings

Executive Summary

China SCE Group Holdings Limited, an investment holding company, develops and manages properties in the People’s Republic of China.

Rewards

Trading at 95.6% below its fair value

Earnings are forecast to grow 16.73% per year

Earnings have grown 28.6% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Very undervalued established dividend payer.

Share Price & News

How has China SCE Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: XSP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.5%

XSP

2.3%

DE Real Estate

4.3%

DE Market


1 Year Return

n/a

XSP

-13.8%

DE Real Estate

-14.2%

DE Market

Return vs Industry: Insufficient data to determine how XSP performed against the German Real Estate industry.

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


Shareholder returns

XSPIndustryMarket
7 Day-0.5%2.3%4.3%
30 Day-19.1%-12.0%-9.0%
90 Day-23.5%-14.6%-21.6%
1 Yearn/a-11.4%-13.8%-11.7%-14.2%
3 Yearn/a24.1%14.6%-12.3%-19.6%
5 Yearn/a58.0%35.2%-14.0%-25.6%

Price Volatility Vs. Market

How volatile is China SCE Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China SCE Group Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: XSP (€0.4) is trading below our estimate of fair value (€8.97)

Significantly Below Fair Value: XSP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: XSP is good value based on its PE Ratio (3.7x) compared to the Real Estate industry average (10.2x).

PE vs Market: XSP is good value based on its PE Ratio (3.7x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: XSP is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: XSP is good value based on its PB Ratio (0.7x) compared to the DE Real Estate industry average (1.2x).


Next Steps

Future Growth

How is China SCE Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XSP's forecast earnings growth (16.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: XSP's earnings (16.7% per year) are forecast to grow faster than the German market (14.1% per year).

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

Revenue vs Market: XSP's revenue (26% per year) is forecast to grow faster than the German market (4% per year).

High Growth Revenue: XSP's revenue (26% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: XSP's Return on Equity is forecast to be low in 3 years time (18.6%).


Next Steps

Past Performance

How has China SCE Group Holdings performed over the past 5 years?

28.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XSP has a large one-off gain of CN¥2.0B impacting its December 31 2019 financial results.

Growing Profit Margin: XSP's current net profit margins (16.4%) are lower than last year (19%).


Past Earnings Growth Analysis

Earnings Trend: XSP's earnings have grown significantly by 28.6% per year over the past 5 years.

Accelerating Growth: XSP's earnings growth over the past year (3.7%) is below its 5-year average (28.6% per year).

Earnings vs Industry: XSP earnings growth over the past year (3.7%) underperformed the Real Estate industry 11.3%.


Return on Equity

High ROE: XSP's Return on Equity (13.3%) is considered low.


Next Steps

Financial Health

How is China SCE Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: XSP's short term assets (CN¥96.7B) exceed its short term liabilities (CN¥85.0B).

Long Term Liabilities: XSP's short term assets (CN¥96.7B) exceed its long term liabilities (CN¥34.0B).


Debt to Equity History and Analysis

Debt Level: XSP's debt to equity ratio (138.9%) is considered high.

Reducing Debt: XSP's debt to equity ratio has increased from 113.9% to 138.9% over the past 5 years.

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

Interest Coverage: XSP's interest payments on its debt are well covered by EBIT (18.5x coverage).


Balance Sheet


Next Steps

Dividend

What is China SCE Group Holdings's current dividend yield, its reliability and sustainability?

7.03%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: XSP's dividend (7.03%) is higher than the bottom 25% of dividend payers in the German market (1.69%).

High Dividend: XSP's dividend (7.03%) is in the top 25% of dividend payers in the German market (4.85%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.3%), XSP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: XSP's dividends in 3 years are forecast to be well covered by earnings (32.7% payout ratio).


Next Steps

Management

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

10.3yrs

Average board tenure


CEO

Chiu Wong (53yo)

no data

Tenure

CN¥3,942,000

Compensation

Mr. Chiu Yeung Wong is the Co-Founder, Chairman, Chief Executive Officer and President of China SCE Property Holdings Limited. Mr. Wong has 13 years of experience in real estate development. He serves as  ...


CEO Compensation Analysis

Compensation vs Market: Chiu's total compensation ($USD555.81K) is below average for companies of similar size in the German market ($USD1.93M).

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


Board Members

NamePositionTenureCompensationOwnership
Chiu Wong
Chairmanno dataCN¥3.94m50.4% CN¥857.4m
Hiu Lok Cheng
Co-Founder & Vice Chairmanno dataCN¥3.56m5.03% CN¥85.5m
Yuanlai Chen
Co-Founder & Vice Chairmanno dataCN¥3.56m5.51% CN¥93.6m
Youquan Huang
Executive President & Executive Director8.92yrsCN¥4.38mno data
Lun Wong
Assistant President & Executive Director3.08yrsCN¥2.45mno data
Chan Keith
CEO & Vice Chairman of Funlive Rental Apartments Businessno datano datano data
Leung Huel Ting
Independent Non-Executive Director10.25yrsCN¥284.00kno data
Hong Te Lu
Independent Non-Executive Director10.25yrsCN¥284.00kno data
Yiyi Dai
Independent Non-Executive Director10.25yrsCN¥284.00kno data

10.3yrs

Average Tenure

52yo

Average Age

Experienced Board: XSP's board of directors are seasoned and experienced ( 10.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: XSP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.2%.


Top Shareholders

Company Information

China SCE Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China SCE Group Holdings Limited
  • Ticker: XSP
  • Exchange: BST
  • Founded: 1996
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$14.261b
  • Listing Market Cap: HK$1.701b
  • Shares outstanding: 4.18b
  • Website: https://www.sce-re.com

Number of Employees


Location

  • China SCE Group Holdings Limited
  • SCE Tower
  • Lane 1688
  • Shanghai
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1966SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2010
XSPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2010
1966SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDFeb 2010
1966SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDFeb 2010
XSPBST (Boerse-Stuttgart)YesOrdinary SharesDEEURFeb 2010

Biography

China SCE Group Holdings Limited, an investment holding company, develops and manages properties in the People’s Republic of China. Its properties include high-rise residential buildings, low-rise residential buildings, villas, commercial buildings, offices, and rental apartments. The company also trades in construction materials. In addition, it offers fun live apartments, fun work co-working spaces, and health management spaces. The company was formerly known as China SCE Property Holdings Limited and changed its name to China SCE Group Holdings Limited in July 2018. China SCE Group Holdings Limited was founded in 1996 and is headquartered in Shanghai, the People's Republic of China. China SCE Group Holdings Limited is a subsidiary of Newup Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 02:45
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
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.