DB:HKC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Hongkong Chinese Limited, an investment holding company, engages in property investment and development, and hotel operations.


Snowflake Analysis

Fair value with questionable track record.


Similar Companies

Share Price & News

How has Hongkong Chinese's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.8%

HKC

-0.09%

DE Real Estate

-0.6%

DE Market


1 Year Return

-29.4%

HKC

5.6%

DE Real Estate

3.0%

DE Market

Return vs Industry: HKC underperformed the German Real Estate industry which returned 5.1% over the past year.

Return vs Market: HKC underperformed the German Market which returned 2.5% over the past year.


Shareholder returns

HKCIndustryMarket
7 Day-3.8%-0.09%-0.6%
30 Day-0.6%-0.2%-0.1%
90 Day-9.9%13.9%16.4%
1 Year-27.7%-29.4%8.0%5.6%5.2%3.0%
3 Year-48.3%-51.3%37.9%27.8%1.0%-6.9%
5 Year-49.9%-55.0%96.0%72.2%8.0%-6.4%

Price Volatility Vs. Market

How volatile is Hongkong Chinese's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Hongkong Chinese undervalued compared to its fair value and its price relative to the market?

3.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HKC (€0.08) is trading above our estimate of fair value (€0.02)

Significantly Below Fair Value: HKC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HKC is good value based on its PE Ratio (3.4x) compared to the Real Estate industry average (11.6x).

PE vs Market: HKC is good value based on its PE Ratio (3.4x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HKC is good value based on its PB Ratio (0.1x) compared to the DE Real Estate industry average (1.4x).


Next Steps

Future Growth

How is Hongkong Chinese forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-2.6%

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 Hongkong Chinese 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 Hongkong Chinese performed over the past 5 years?

-32.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HKC has high quality earnings.

Growing Profit Margin: HKC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HKC's earnings have declined by -32.7% per year over the past 5 years.

Accelerating Growth: HKC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HKC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Real Estate industry (8.4%).


Return on Equity

High ROE: HKC's Return on Equity (4%) is considered low.


Next Steps

Financial Health

How is Hongkong Chinese's financial position?


Financial Position Analysis

Short Term Liabilities: HKC's short term assets (HK$267.7M) exceed its short term liabilities (HK$82.1M).

Long Term Liabilities: HKC's short term assets (HK$267.7M) do not cover its long term liabilities (HK$507.2M).


Debt to Equity History and Analysis

Debt Level: HKC's debt to equity ratio (4.6%) is considered satisfactory.

Reducing Debt: HKC's debt to equity ratio has increased from 4.4% to 4.6% over the past 5 years.

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

Interest Coverage: Insufficient data to determine if HKC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Hongkong Chinese current dividend yield, its reliability and sustainability?

2.74%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: HKC's dividend (2.74%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: HKC's dividend (2.74%) is low compared to the top 25% of dividend payers in the German market (3.84%).


Stability and Growth of Payments

Stable Dividend: HKC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: HKC has only been paying a dividend for 9 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.4%), HKC'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

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

15.8yrs

Average board tenure


CEO

John Lee (71yo)

9.33yrs

Tenure

HK$1,456,000

Compensation

Mr. Lee Luen-Wai, also known as John, BBS, FCA, JP serves as Principal at Go Capital & EOC. Mr. Lee has been the Chief Executive Officer of Lippo China Resources Limited since March 25, 2011. Mr. Lee has b ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD187.87K) is below average for companies of similar size in the German market ($USD781.18K).

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


Board Members

NamePositionTenureCompensationOwnership
Stephen Riady
Chairman of the Boardno dataHK$1.34mno data
Luen-Wai Lee
CEO & Executive Director9.33yrsHK$1.46m0.10% HK$166.8k
Edwin Neo
Independent Non-Executive Director2.5yrsHK$394.00kno data
Nim Leung Chan
Non-Executive Director28.5yrsHK$424.00kno data
Ha Kuk Yung
Independent Non-Executive Director15.83yrsHK$394.00kno data
King Fai Tsui
Independent Non-Executive Director15.83yrsHK$476.00k0.034% HK$56.3k

15.8yrs

Average Tenure

68yo

Average Age

Experienced Board: HKC's board of directors are seasoned and experienced ( 15.8 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

Hongkong Chinese Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hongkong Chinese Limited
  • Ticker: HKC
  • Exchange: DB
  • Founded: 1992
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$1.459b
  • Listing Market Cap: HK$166.578m
  • Shares outstanding: 2.00b
  • Website: https://www.hkchinese.com.hk

Number of Employees


Location

  • Hongkong Chinese Limited
  • Tower Two
  • 40th Floor
  • Hong Kong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
655SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 1993
HKCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 1993

Biography

Hongkong Chinese Limited, an investment holding company, engages in property investment and development, and hotel operations. The company’s Property Investment segment engages in the letting and resale of properties. Its Property Development segment is involved in the development and sale of properties. The company’s Treasury Investment segment invests in money markets. Its Securities Investment segment invests in securities held-for-trading. The company’s Banking Business segment is involved in the provision of commercial and retail banking services. Its Other segment engages in the money lending activities; and the provision of project management services. The company also owns a motor yacht. It has operations in Hong Kong, Macau, Mainland China, Republic of Singapore, and internationally. The company was founded in 1992 and is based in Hong Kong, Hong Kong. Hongkong Chinese Limited is a subsidiary of Hennessy Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 21:35
End of Day Share Price2020/07/09 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.