DB:3HJ

Stock Analysis Report

Lippo Malls Indonesia Retail Trust

Executive Summary

LMIR Trust is a Singapore-based real estate investment trust established with the principal investment objective of owning and investing, on a long-term basis, in a diversified portfolio of income-producing real estate in Indonesia that are primarily used for retail and/or retail-related purposes.

Rewards

Trading at 61.3% below its fair value

Risk Analysis

Earnings have declined by -7.76% per year over past 5 years

Unstable dividend track record



Snowflake Analysis

Good value with acceptable track record.

Share Price & News

How has Lippo Malls Indonesia Retail Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

3.7%

3HJ

4.1%

DE REITs

1.7%

DE Market


1 Year Return

-0.7%

3HJ

44.7%

DE REITs

15.0%

DE Market

Return vs Industry: 3HJ underperformed the German REITs industry which returned 44.7% over the past year.

Return vs Market: 3HJ underperformed the German Market which returned 15% over the past year.


Shareholder returns

3HJIndustryMarket
7 Day3.7%4.1%1.7%
30 Day2.2%8.4%0.8%
90 Day-4.8%14.9%3.7%
1 Year9.4%-0.7%49.3%44.7%18.5%15.0%
3 Year-21.7%-40.2%42.3%22.0%17.1%6.9%
5 Year6.3%-31.7%47.3%15.6%24.3%7.3%

Price Volatility Vs. Market

How volatile is Lippo Malls Indonesia Retail Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Lippo Malls Indonesia Retail Trust 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: 3HJ (€0.14) is trading below our estimate of fair value (€0.36)

Significantly Below Fair Value: 3HJ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3HJ is poor value based on its PE Ratio (13.1x) compared to the REITs industry average (9.6x).

PE vs Market: 3HJ is good value based on its PE Ratio (13.1x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3HJ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3HJ is good value based on its PB Ratio (0.6x) compared to the DE REITs industry average (1.7x).


Next Steps

Future Growth

How is Lippo Malls Indonesia Retail Trust forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-11.4%

Forecasted Real Estate 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 Malls Indonesia Retail Trust 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 Malls Indonesia Retail Trust performed over the past 5 years?

-7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3HJ has high quality earnings.

Growing Profit Margin: 3HJ's current net profit margins (18.5%) are higher than last year (14.2%).


Past Earnings Growth Analysis

Earnings Trend: 3HJ's earnings have declined by -7.8% per year over the past 5 years.

Accelerating Growth: 3HJ's earnings growth over the past year (60.9%) exceeds its 5-year average (-7.8% per year).

Earnings vs Industry: 3HJ earnings growth over the past year (60.9%) underperformed the REITs industry 96.7%.


Return on Equity

High ROE: 3HJ's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lippo Malls Indonesia Retail Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 3HJ has a high level of physical assets or inventory.

Debt Coverage by Assets: 3HJ's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: 3HJ's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 3HJ has a sufficient allowance for bad loans.

Low Risk Liabilities: 3HJ reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 3HJ has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 3HJ has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 3HJ has an appropriate level of bad loans.


Next Steps

Dividend

What is Lippo Malls Indonesia Retail Trust's current dividend yield, its reliability and sustainability?

9.11%

Current Dividend Yield


Dividend Yield vs Market

company9.1%marketbottom25%1.3%markettop25%3.6%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 3HJ's dividend (9.11%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: 3HJ's dividend (9.11%) is in the top 25% of dividend payers in the German market (3.59%)


Stability and Growth of Payments

Stable Dividend: 3HJ's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3HJ's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.1%), 3HJ'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?

1.6yrs

Average management tenure


CEO

James Liew (47yo)

0.8yrs

Tenure

0

Mr. Chee Seng Liew, also known as James, serves as Chief Executive Officer at Lippo Malls Indonesia Retail Trust since May 2019 and as its Executive Director since December 31, 2019. He was Deputy Chief Ex ...


Leadership Team

NamePositionTenureCompensationOwnership
Chee Seng Liew
Executive Director & CEO0.8yrsno datano data
Han Wong
Chief Financial Officer - LMIRT Management Ltd2.6yrsno datano data
Christina Lee
Director of Legal & Compliance - LMIRT Management Ltd2.1yrsno datano data
Shao Heng
Director of Asset Management & Business Development - LMIRT Management Ltd2.1yrsno datano data
Ella Jia
Financial Controller of LMIRT Management Ltd1.1yrsno datano data
Lay Hong Tan
Company Secretary of LMIRT Management Ltd.0.5yrsno datano data

1.6yrs

Average Tenure

Experienced Management: 3HJ's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Chee Seng Liew
Executive Director & CEO0.8yrsno datano data
Soo Lee
Independent Director - LMIRT Management Ltd8.5yrsS$85.00kno data
Gouw Viven Sitiabudi
Non-Executive & Non-Independent Director1.3yrsno datano data
Tiam Lock Goh
Independent Director - LMIRT Management Ltd8.4yrsS$75.50kno data
Murray Bell
Independent Chairman of the Board & Lead Independent Director of LMIRT Management Ltd.0.2yrsno datano data

1.3yrs

Average Tenure

68yo

Average Age

Experienced Board: 3HJ's board of directors are not considered experienced ( 1.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lippo Malls Indonesia Retail Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lippo Malls Indonesia Retail Trust
  • Ticker: 3HJ
  • Exchange: DB
  • Founded: 2007
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: S$651.353m
  • Listing Market Cap: S$431.547m
  • Shares outstanding: 2.89b
  • Website: https://www.lmir-trust.com

Location

  • Lippo Malls Indonesia Retail Trust
  • 50 Collyer Quay
  • No 06-07 OUE Bayfront
  • Singapore
  • 49321
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
D5IUSGX (Singapore Exchange)YesUnitsSGSGDNov 2007
3HJDB (Deutsche Boerse AG)YesUnitsDEEURNov 2007
LPMD.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDNov 2007

Biography

LMIR Trust is a Singapore-based real estate investment trust established with the principal investment objective of owning and investing, on a long-term basis, in a diversified portfolio of income-producing real estate in Indonesia that are primarily used for retail and/or retail-related purposes. LMIR Trust’s current asset portfolio comprises 23 retail malls (“Retail Malls”) and seven retail spaces located within other retail malls (“Retail Spaces”, and collectively with the Retail Malls, the “Properties”). The Properties have a total net lettable area of 910,749 square metres and total valuation of Rp19,514.1 billion as at 31 December 2018, and are strategically located in major cities of Indonesia with large middle-income population. Tenants include leading names such as Matahari Department Store, Zara, M&S, H&M, Sogo, Giant, Hypermart, Carrefour, Ace Hardware, as well as international specialty tenants such as Victoria’s Secret, Promod, McDonalds, Pizza Hut, Kentucky Fried Chicken, A&W, Fitness First and Starbucks. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 21:21
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
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.