DB:GUW

Stock Analysis Report

Guangdong Land Holdings

Executive Summary

Guangdong Land Holdings Limited, an investment holding company, invests in and develops properties primarily in Mainland China.

Rewards

Trading at 91.4% below its fair value

Earnings are forecast to grow 37.67% per year

Earnings grew by 14.3% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Profit margins (16.7%) are lower than last year (66.1%)



Snowflake Analysis

Undervalued with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.8%

GUW

0.8%

DE Real Estate

2.0%

DE Market


1 Year Return

-33.5%

GUW

8.8%

DE Real Estate

15.1%

DE Market

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

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


Shareholder returns

GUWIndustryMarket
7 Day0.8%0.8%2.0%
30 Day-7.6%5.3%1.0%
90 Day-2.9%10.3%3.8%
1 Year-33.5%-33.5%11.8%8.8%18.6%15.1%
3 Year-39.3%-39.3%52.1%40.5%16.8%6.6%
5 Year-38.1%-38.1%89.3%61.7%23.7%6.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Guangdong Land 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: GUW (€0.13) is trading below our estimate of fair value (€1.54)

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


Price To Earnings Ratio

PE vs Industry: GUW is poor value based on its PE Ratio (15.8x) compared to the Real Estate industry average (15x).

PE vs Market: GUW is good value based on its PE Ratio (15.8x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: GUW is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: GUW is good value based on its PB Ratio (0.5x) compared to the DE Real Estate industry average (1.5x).


Next Steps

Future Growth

How is Guangdong Land Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

37.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GUW's forecast earnings growth (37.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: GUW's earnings (37.7% per year) are forecast to grow faster than the German market (13.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GUW's revenue (18% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: GUW's revenue (18% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GUW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Guangdong Land Holdings performed over the past 5 years?

-0.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GUW has a large one-off gain of HK$315.1M impacting its June 30 2019 financial results.

Growing Profit Margin: GUW's current net profit margins (16.7%) are lower than last year (66.1%).


Past Earnings Growth Analysis

Earnings Trend: GUW's earnings have declined by -0.8% per year over the past 5 years.

Accelerating Growth: GUW's earnings growth over the past year (14.3%) exceeds its 5-year average (-0.8% per year).

Earnings vs Industry: GUW earnings growth over the past year (14.3%) exceeded the Real Estate industry 7.5%.


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Guangdong Land Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: GUW's short term assets (HK$8.1B) exceed its short term liabilities (HK$2.5B).

Long Term Liabilities: GUW's short term assets (HK$8.1B) exceed its long term liabilities (HK$3.5B).


Debt to Equity History and Analysis

Debt Level: GUW's debt to equity ratio (50%) is considered high.

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

Debt Coverage: GUW's debt is not well covered by operating cash flow (14.7%).

Interest Coverage: GUW's interest payments on its debt are not well covered by EBIT (0.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: GUW's debt is covered by short term assets (assets are 3.5x debt).


Next Steps

Dividend

What is Guangdong Land Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.3%markettop25%3.6%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GUW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GUW's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GUW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GUW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GUW is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GUW's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Chunxiao Zhao (49yo)

3.5yrs

Tenure

0

Ms. Chunxiao Zhao serves as Deputy General Manager and Secretary at Guangdong Holdings Limited. Ms. Zhao serves as the Chief Administration Officer, Company Secretary and Executive Director of GDH Limited  ...


Leadership Team

NamePositionTenureCompensationOwnership
Chunxiao Zhao
CEO & Executive Director3.5yrsno datano data
Mingchang Wu
Executive Director3.9yrsno datano data
Wai Keung Li
Company Secretary & Executive Director8.3yrsno datano data
Jun Zhang
Chief Financial Officer0.9yrsno datano data
Guang Zhu
Executive Director0.3yrsno datano data

1.9yrs

Average Tenure

49yo

Average Age

Experienced Management: GUW's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Chunxiao Zhao
CEO & Executive Director3.5yrsno datano data
Mingchang Wu
Executive Director3.9yrsno datano data
Wai Keung Li
Company Secretary & Executive Director8.3yrsno datano data
Guang Zhu
Executive Director0.3yrsno datano data
Kwan Ho Lee
Independent Non-Executive Director10.9yrsHK$560.00k0.058% HK$140.2k
Alan Smith
Independent Non-Executive Director21.1yrsHK$520.00k0.019% HK$44.5k
Wo Fong
Independent Non-Executive Director13.1yrsHK$560.00kno data
Wailin Hou
Chairman of the Board0.7yrsno datano data

6.8yrs

Average Tenure

59yo

Average Age

Experienced Board: GUW's board of directors are considered experienced (6.8 years average tenure).


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

Guangdong Land Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Guangdong Land Holdings Limited
  • Ticker: GUW
  • Exchange: DB
  • Founded:
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$2.020b
  • Listing Market Cap: HK$239.967m
  • Shares outstanding: 1.71b
  • Website: https://www.gdland.com.hk

Number of Employees


Location

  • Guangdong Land Holdings Limited
  • Guangdong Investment Tower
  • 18th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
124SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 1997
GUWDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1997

Biography

Guangdong Land Holdings Limited, an investment holding company, invests in and develops properties primarily in Mainland China. The company was formerly known as Kingway Brewery Holdings Limited and changed its name to Guangdong Land Holdings Limited in September 2013. The company is headquartered in Central, Hong Kong and is considered as a Red Chip company due to its listing on the Hong Kong Stock Exchange. Guangdong Land Holdings Ltd. is a subsidiary of Guangdong Investment Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 21:08
End of Day Share Price2020/02/17 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.