DB:26X

Stock Analysis Report

Dexin China Holdings

Executive Summary

Dexin China Holdings Company Limited, an investment holding company, engages in the property development business in China.

Snowflake

Fundamentals

Undervalued with proven track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

6.4%

26X

-0.05%

DE Real Estate

2.8%

DE Market


1 Year Return

n/a

26X

5.0%

DE Real Estate

3.0%

DE Market

Return vs Industry: Insufficient data to determine how 26X performed against the German Real Estate industry.

Return vs Market: Insufficient data to determine how 26X performed against the German Market.


Share holder returns

26XIndustryMarket
7 Day6.4%-0.05%2.8%
30 Day-1.1%6.9%0.2%
90 Dayn/a2.1%1.3%
1 Yearn/a7.8%5.0%6.2%3.0%
3 Yearn/a42.7%31.7%18.2%8.0%
5 Yearn/a140.4%105.9%43.1%23.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Dexin China Holdings undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: 26X (€0.36) is trading below our estimate of fair value (€2.03)

Significantly Undervalued: 26X is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: 26X is good value based on its PE Ratio (3.4x) compared to the Real Estate industry average (13.8x).

PE vs Market: 26X is good value based on its PE Ratio (3.4x) compared to the German market (19.7x).


Price Based on Expected Growth

Low PEG Ratio: 26X is good value based on its PEG Ratio (0.6x)


Price Based on Value of Assets

PB vs Industry: 26X is overvalued based on its PB Ratio (1.7x) compared to the DE Real Estate industry average (1.3x).


Next Steps

Future Growth

How is Dexin China Holdings expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 26X's forecast earnings growth (5.5% per year) is above the savings rate (0.2%).

Earnings vs Market: 26X's earnings (5.5% per year) are forecast to grow slower than the German market (12.8% per year).

High Growth Earnings: 26X's earnings are forecast to grow, but not significantly.

Revenue vs Market: 26X's revenue (29.8% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 26X's revenue (29.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: 26X's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has Dexin China Holdings performed over the past 5 years?

51.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 26X's earnings have grown significantly by 51.4% per year over the past 5 years.

Accelerating Growth: 26X's earnings growth over the past year (86.6%) exceeds its 5-year average (51.4% per year).

Earnings vs Industry: 26X earnings growth over the past year (86.6%) exceeded the Real Estate industry 2.5%.


Return on Equity

High ROE: Whilst 26X's Return on Equity (27.66%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: 26X's Return on Assets is below or equal to the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 26X has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Dexin China Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 26X's short term assets (€51.6B) exceeds its short term liabilities (€40.7B)

Long Term Liabilities: 26X's short term assets (€51.6B) exceeds its long term liabilities (€7.6B)


Debt to Equity History and Analysis

Debt Level: 26X's debt to equity ratio (155.3%) is considered high

Reducing Debt: Insufficient data to determine if 26X's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 26X's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 26X's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet

Inventory Level: 26X has a high level of physical assets or inventory.

Debt Coverage by Assets: 26X's debt is covered by short term assets (assets are 3.452950x debt).


Next Steps

Dividend

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

6.65%

Current Dividend Yield


Dividend Yield vs Market

company6.6%marketbottom25%1.5%markettop25%3.9%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 26X's dividend (6.65%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: 26X's dividend (6.65%) is in the top 25% of dividend payers in the German market (3.86%)

Stable Dividend: Too early to tell whether 26X's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 26X's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.4%), 26X's dividend payments are thoroughly 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

What is the CEO of Dexin China Holdings's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Zhongmin Fei (49yo)

1.2yrs

Tenure

CN¥1,372,000

Compensation

Mr. Fei Zhongmin has been Director of Dexin China Holdings Company Limited since January 16, 2018. Mr. Fei Zhongmin re-designated as an executive Director and was appointed as President of Dexin China Hold ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Zhongmin's total compensation is reasonable compared to companies of similar size in the German market.

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


Management Age and Tenure

1.2yrs

Average Tenure

44yo

Average Age

Experienced Management: 26X's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

1.2yrs

Average Tenure

52yo

Average Age

Experienced Board: 26X's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 26X insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellCN¥42,249,29025 Sep 19
Yiping Hu
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares109,120,400
Max PriceCN¥0.39
BuyCN¥15,163,73025 Sep 19
Zhongmin Fei
EntityIndividual
Role
Chief Executive Officer
President & Executive Director
Shares39,164,500
Max PriceCN¥0.39
BuyCN¥5,019,71825 Sep 19
Xia Feng
EntityIndividual
Role
Member of the Board of Directors
Vice President & Executive Director
Shares12,964,800
Max PriceCN¥0.39

Ownership Breakdown


Management Team

  • Hing Ling Chau (44yo)

    Company Secretary

    • Tenure: 1.4yrs
  • Zhongmin Fei (49yo)

    President & Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥1.37m
  • Xia Feng (42yo)

    Vice President & Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥1.11m
  • Jing Fang (44yo)

    Executive Vice President

    • Tenure: 1.2yrs

Board Members

  • Albert Wong (67yo)

    Independent Non-executive Director

    • Tenure: 0.8yrs
  • Hengliu Chen (64yo)

    Independent Non Executive Director

    • Tenure: 0.8yrs
  • Yiping Hu (52yo)

    Chairman of the Board

    • Tenure: 1.2yrs
    • Compensation: CN¥372.00k
  • Zhongmin Fei (49yo)

    President & Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥1.37m
  • Xia Feng (42yo)

    Vice President & Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥1.11m
  • Shihao Hu (24yo)

    Non Executive Director

    • Tenure: 1.2yrs
  • Jiangang Ding (55yo)

    Independent Non Executive Director

    • Tenure: 0.8yrs

Company Information

Dexin China Holdings Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dexin China Holdings Company Limited
  • Ticker: 26X
  • Exchange: DB
  • Founded: 1995
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$8.995b
  • Listing Market Cap: HK$1.038b
  • Shares outstanding: 2.70b
  • Website: https://www.dothinkgroup.com

Number of Employees


Location

  • Dexin China Holdings Company Limited
  • Huaneng Building
  • 3rd Floor
  • Hangzhou
  • Zhejiang Province
  • 310014
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2019SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2019
26XDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2019
2019SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDFeb 2019

Biography

Dexin China Holdings Company Limited, an investment holding company, engages in the property development business in China. It operates through four segments: Property Development and Sales; Property Const ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/12 23:33
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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