DB:CQH3

Stock Analysis Report

Cheuk Nang (Holdings)

Executive Summary

Cheuk Nang (Holdings) Limited, an investment holding company, engages in the investment, development, management, and trading of properties in the People’s Republic of China and Malaysia.

Rewards

Trading at 67.8% below its fair value

Pays a high and reliable dividend of 7.03%

Risk Analysis

Large one-off items impacting financial results

Profit margins are lower than last year

Shareholders have been diluted in the past year



Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.

Share Price & News

How has Cheuk Nang (Holdings)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CQH3 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

CQH3

2.1%

DE Real Estate

1.7%

DE Market


1 Year Return

-27.9%

CQH3

9.4%

DE Real Estate

15.0%

DE Market

Return vs Industry: CQH3 underperformed the German Real Estate industry which returned 9.4% over the past year.

Return vs Market: CQH3 underperformed the German Market which returned 15% over the past year.


Shareholder returns

CQH3IndustryMarket
7 Day-0.6%2.1%1.7%
30 Day-4.3%5.8%0.8%
90 Day-10.7%11.2%3.7%
1 Year-23.4%-27.9%12.4%9.4%18.5%15.0%
3 Year-35.7%-44.7%52.6%40.9%17.1%6.9%
5 Year-45.1%-55.2%91.4%63.5%24.3%7.3%

Price Volatility Vs. Market

How volatile is Cheuk Nang (Holdings)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Cheuk Nang (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: CQH3 (€0.35) is trading below our estimate of fair value (€1.09)

Significantly Below Fair Value: CQH3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CQH3 is good value based on its PE Ratio (3.2x) compared to the Real Estate industry average (15x).

PE vs Market: CQH3 is good value based on its PE Ratio (3.2x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CQH3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CQH3 is good value based on its PB Ratio (0.3x) compared to the DE Real Estate industry average (1.5x).


Next Steps

Future Growth

How is Cheuk Nang (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-10.2%

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 Cheuk Nang (Holdings) 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 Cheuk Nang (Holdings) performed over the past 5 years?

9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CQH3 has a large one-off gain of HK$694.0M impacting its June 30 2019 financial results.

Growing Profit Margin: CQH3's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: CQH3's earnings have grown by 9.1% per year over the past 5 years.

Accelerating Growth: CQH3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CQH3 had negative earnings growth (-5.6%) over the past year, making it difficult to compare to the Real Estate industry average (7.5%).


Return on Equity

High ROE: CQH3's Return on Equity (8.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cheuk Nang (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: CQH3's short term assets (HK$2.8B) exceed its short term liabilities (HK$2.4B).

Long Term Liabilities: CQH3's short term assets (HK$2.8B) exceed its long term liabilities (HK$1.5B).


Debt to Equity History and Analysis

Debt Level: CQH3's debt to equity ratio (23.1%) is considered satisfactory.

Reducing Debt: CQH3's debt to equity ratio has reduced from 46.5% to 23.1% over the past 5 years.

Debt Coverage: CQH3's debt is not well covered by operating cash flow (8.9%).

Interest Coverage: CQH3 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CQH3 has a high level of physical assets or inventory.

Debt Coverage by Assets: CQH3's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is Cheuk Nang (Holdings)'s current dividend yield, its reliability and sustainability?

7.03%

Current Dividend Yield


Dividend Yield vs Market

company7.0%marketbottom25%1.3%markettop25%3.6%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: CQH3's dividend (7.03%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: CQH3's dividend (7.03%) is in the top 25% of dividend payers in the German market (3.59%)


Stability and Growth of Payments

Stable Dividend: CQH3's dividends per share have been stable in the past 10 years.

Growing Dividend: CQH3's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.8%), CQH3's dividend payments are 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?

13.2yrs

Average board tenure


CEO

Cecil Chao (83yo)

HK$10,016,000

Compensation

Dr. Sze-Tsung Chao, also known as Cecil, Founded Cheuk Nang (Holdings) Ltd. Dr. Chao worked in the field of property, investment, finance, architecture and construction for forty years. He also worked for  ...


CEO Compensation Analysis

Compensation vs Market: Cecil's total compensation ($USD1.29M) is above average for companies of similar size in the German market ($USD634.28K).

Compensation vs Earnings: Cecil's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Sze-Tsung Chao
Founder0yrsHK$10.02m73.82% HK$174.2m
Gigi Chao
Vice Chairman of the Board5.3yrsHK$1.72mno data
Philip Yung
Executive Director14.4yrsHK$854.00kno data
Howard Chao
Executive Manager & Non-Executive Director13.2yrsHK$1.36mno data
Sau-Fun Ho
Company Secretary & Executive Director23.4yrsHK$1.09mno data
Woo Shou Ting
Independent Non-Executive Director7.3yrsHK$63.00kno data
Ping Hsu Sun
Independent Non-Executive Director13.2yrsHK$63.00kno data
Ka Wai Lam
Independent Non-Executive Director15.4yrsHK$151.00kno data
Ding-Yue Lee
Non-Executive Director13.2yrsHK$63.00k0.28% HK$671.0k

13.2yrs

Average Tenure

57yo

Average Age

Experienced Board: CQH3's board of directors are seasoned and experienced ( 13.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CQH3 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 5.3%.


Top Shareholders

Company Information

Cheuk Nang (Holdings) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cheuk Nang (Holdings) Limited
  • Ticker: CQH3
  • Exchange: DB
  • Founded: 1963
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$1.987b
  • Listing Market Cap: HK$235.922m
  • Shares outstanding: 620.87m
  • Website: https://www.cheuknang.com.hk

Number of Employees


Location

  • Cheuk Nang (Holdings) Limited
  • Central Plaza
  • Suite 4901
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CQH3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
131SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Cheuk Nang (Holdings) Limited, an investment holding company, engages in the investment, development, management, and trading of properties in the People’s Republic of China and Malaysia. It operates through Property Sales, Property Rental, Estate Management, and Others segments. The company develops residential, commercial, and retail properties. It is also involved in the provision of secretarial and management services; and securities trading and debentures, and mortgage lending activities. The company was formerly known as Far East Wool & Fibre Mill, Limited and changed its name to Cheuk Nang (Holdings) Limited in 1988. The company was founded in 1963 and is based in Wan Chai, Hong Kong. Cheuk Nang (Holdings) Limited is a subsidiary of Yan Yin Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 20:50
End of Day Share Price2020/02/14 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.