DB:0IW

Stock Analysis Report

DaFa Properties Group

Executive Summary

DaFa Properties Group Limited, an investment holding company, operates as a real estate developer in the Yangtze River Delta Region in the People’s Republic of China.

Rewards

Trading at 96.2% below its fair value

Earnings are forecast to grow 13.26% per year

Earnings have grown 48.1% 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

Shareholders have been diluted in the past year



Snowflake Analysis

Very undervalued with moderate growth potential.

Share Price & News

How has DaFa Properties Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0IW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.3%

0IW

2.3%

DE Real Estate

4.3%

DE Market


1 Year Return

n/a

0IW

-13.8%

DE Real Estate

-14.2%

DE Market

Return vs Industry: Insufficient data to determine how 0IW performed against the German Real Estate industry.

Return vs Market: Insufficient data to determine how 0IW performed against the German Market.


Shareholder returns

0IWIndustryMarket
7 Day-7.3%2.3%4.3%
30 Day-9.1%-12.0%-9.0%
90 Day-13.2%-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 DaFa Properties Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is DaFa Properties Group 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: 0IW (€0.48) is trading below our estimate of fair value (€12.8)

Significantly Below Fair Value: 0IW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0IW is good value based on its PE Ratio (6.4x) compared to the Real Estate industry average (10.2x).

PE vs Market: 0IW is good value based on its PE Ratio (6.4x) compared to the German market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: 0IW is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 0IW is good value based on its PB Ratio (1x) compared to the DE Real Estate industry average (1.2x).


Next Steps

Future Growth

How is DaFa Properties Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0IW's forecast earnings growth (13.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: 0IW's earnings (13.3% per year) are forecast to grow slower than the German market (14% per year).

High Growth Earnings: 0IW's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0IW's revenue (20.9% per year) is forecast to grow faster than the German market (3.9% per year).

High Growth Revenue: 0IW's revenue (20.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0IW's Return on Equity is forecast to be low in 3 years time (6.6%).


Next Steps

Past Performance

How has DaFa Properties Group performed over the past 5 years?

48.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0IW has high quality earnings.

Growing Profit Margin: 0IW's current net profit margins (7%) are lower than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: 0IW's earnings have grown significantly by 48.1% per year over the past 5 years.

Accelerating Growth: 0IW's earnings growth over the past year (8.2%) is below its 5-year average (48.1% per year).

Earnings vs Industry: 0IW earnings growth over the past year (8.2%) underperformed the Real Estate industry 11.3%.


Return on Equity

High ROE: 0IW's Return on Equity (10.6%) is considered low.


Next Steps

Financial Health

How is DaFa Properties Group's financial position?


Financial Position Analysis

Short Term Liabilities: 0IW's short term assets (CN¥22.5B) exceed its short term liabilities (CN¥15.9B).

Long Term Liabilities: 0IW's short term assets (CN¥22.5B) exceed its long term liabilities (CN¥6.2B).


Debt to Equity History and Analysis

Debt Level: 0IW's debt to equity ratio (160.7%) is considered high.

Reducing Debt: Insufficient data to determine if 0IW's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 0IW's debt is not well covered by operating cash flow (0.7%).

Interest Coverage: 0IW's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Next Steps

Dividend

What is DaFa Properties Group's current dividend yield, its reliability and sustainability?

3.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0IW's dividend (3.87%) is higher than the bottom 25% of dividend payers in the German market (1.67%).

High Dividend: 0IW's dividend (3.87%) is low compared to the top 25% of dividend payers in the German market (4.71%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 0IW's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 0IW's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.8%), 0IW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0IW's dividends in 3 years are forecast to be well covered by earnings (26.6% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Lujiang Liao (47yo)

2s

Tenure

CN¥954,000

Compensation

Mr. Lujiang Liao served as Assistant President of Shimao Real Estate Holding Co. Ltd and Shimao Group Co., Ltd. until January 31, 2018. Mr. Liao served as the Chief Operating Officer at Shimao Property Hol ...


CEO Compensation Analysis

Compensation vs Market: Lujiang's total compensation ($USD134.51K) is below average for companies of similar size in the German market ($USD1.10M).

Compensation vs Earnings: Insufficient data to compare Lujiang's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Yiyang Ge
Executive Chairmanno dataCN¥1.67m57.98% CN¥249.1m
Lujiang Liao
CEO & Executive Director2yrsCN¥954.00kno data
Jingyong Chi
Executive Director2.08yrsCN¥702.00kno data
Yongwu Yang
Executive Director2.08yrsCN¥614.00kno data
Junfeng Leng
Senior Vice President of Product Operation Centre2.08yrsno datano data
Shuk Yi So
Joint Company Secretaryno datano datano data
Chin Hung Wong
VP & Joint Company Secretary0.25yrno datano data

2.0yrs

Average Tenure

43.5yo

Average Age

Experienced Management: 0IW's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yiyang Ge
Executive Chairmanno dataCN¥1.67m57.98% CN¥249.1m
Lujiang Liao
CEO & Executive Director2yrsCN¥954.00kno data
Jingyong Chi
Executive Director2.08yrsCN¥702.00kno data
Yongwu Yang
Executive Director2.08yrsCN¥614.00kno data
Ho Yin Fok
Independent Non-Executive Director1.58yrsCN¥45.00kno data
Jiong Gu
Independent Non-Executive Director1.58yrsCN¥45.00kno data
Bing Sun
Independent Non-Executive Director1.58yrsCN¥45.00kno data

1.8yrs

Average Tenure

47yo

Average Age

Experienced Board: 0IW's board of directors are not considered experienced ( 1.8 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 28%.


Top Shareholders

Company Information

DaFa Properties Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DaFa Properties Group Limited
  • Ticker: 0IW
  • Exchange: DB
  • Founded: 1996
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$3.601b
  • Listing Market Cap: HK$429.564m
  • Shares outstanding: 827.88m
  • Website: https://www.dafaland.com

Number of Employees


Location

  • DaFa Properties Group Limited
  • No. 2, Lane 1188 Shenhong Road
  • Minhang District
  • Shanghai
  • 201107
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6111SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2018
0IWDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2018

Biography

DaFa Properties Group Limited, an investment holding company, operates as a real estate developer in the Yangtze River Delta Region in the People’s Republic of China. The company is involved in the development and sale of residential properties; and development and operation of commercial properties. As of December 31, 2018, it had a portfolio of 46 projects consisting of 38 residential properties, 4 commercial complexes, and 1 office floor. DaFa Properties Group Limited was founded in 1996 and is headquartered in Shanghai, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 02:01
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.