DB:PW5

Stock Analysis Report

Powerlong Real Estate Holdings

Executive Summary

Powerlong Real Estate Holdings Limited, an investment holding company, invests in, develops, and manages properties in the People’s Republic of China.


Snowflake Analysis

Very undervalued established dividend payer.


Similar Companies

Share Price & News

How has Powerlong Real Estate Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PW5 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

PW5

9.8%

DE Real Estate

9.9%

DE Market


1 Year Return

13.6%

PW5

-17.0%

DE Real Estate

-17.5%

DE Market

Return vs Industry: PW5 exceeded the German Real Estate industry which returned -19.9% over the past year.

Return vs Market: PW5 exceeded the German Market which returned -17.7% over the past year.


Shareholder returns

PW5IndustryMarket
7 Day2.9%9.8%9.9%
30 Day-5.4%-15.7%-16.6%
90 Day-10.3%-15.6%-24.8%
1 Year23.4%13.6%-14.7%-17.0%-15.0%-17.5%
3 Year89.6%53.1%26.7%17.0%-17.4%-24.5%
5 Year375.6%245.4%58.7%35.9%-16.6%-28.1%

Price Volatility Vs. Market

How volatile is Powerlong Real Estate Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Powerlong Real Estate 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: PW5 (€0.53) is trading below our estimate of fair value (€4.27)

Significantly Below Fair Value: PW5 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PW5 is good value based on its PE Ratio (4.1x) compared to the Real Estate industry average (10.6x).

PE vs Market: PW5 is good value based on its PE Ratio (4.1x) compared to the German market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: PW5 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: PW5 is good value based on its PB Ratio (0.5x) compared to the DE Real Estate industry average (1.3x).


Next Steps

Future Growth

How is Powerlong Real Estate Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

17.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PW5's forecast earnings growth (17.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: PW5's earnings (17.5% per year) are forecast to grow faster than the German market (14.3% per year).

High Growth Earnings: PW5's earnings are forecast to grow, but not significantly.

Revenue vs Market: PW5's revenue (25.2% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: PW5's revenue (25.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PW5's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

How has Powerlong Real Estate Holdings performed over the past 5 years?

16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PW5 has a large one-off gain of CN¥3.2B impacting its December 31 2019 financial results.

Growing Profit Margin: PW5's current net profit margins (15.5%) are higher than last year (14.5%).


Past Earnings Growth Analysis

Earnings Trend: PW5's earnings have grown by 16.9% per year over the past 5 years.

Accelerating Growth: PW5's earnings growth over the past year (42.4%) exceeds its 5-year average (16.9% per year).

Earnings vs Industry: PW5 earnings growth over the past year (42.4%) exceeded the Real Estate industry 9%.


Return on Equity

High ROE: PW5's Return on Equity (15.5%) is considered low.


Next Steps

Financial Health

How is Powerlong Real Estate Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: PW5's short term assets (CN¥99.6B) exceed its short term liabilities (CN¥76.8B).

Long Term Liabilities: PW5's short term assets (CN¥99.6B) exceed its long term liabilities (CN¥46.7B).


Debt to Equity History and Analysis

Debt Level: PW5's debt to equity ratio (142%) is considered high.

Reducing Debt: PW5's debt to equity ratio has increased from 103.1% to 142% over the past 5 years.

Debt Coverage: PW5's debt is not well covered by operating cash flow (5.9%).

Interest Coverage: PW5's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet

Inventory Level: PW5 has a high level of physical assets or inventory.

Debt Coverage by Assets: PW5's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is Powerlong Real Estate Holdings's current dividend yield, its reliability and sustainability?

7.76%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: PW5's dividend (7.76%) is higher than the bottom 25% of dividend payers in the German market (1.7%).

High Dividend: PW5's dividend (7.76%) is in the top 25% of dividend payers in the German market (4.97%)


Stability and Growth of Payments

Stable Dividend: PW5's dividend payments have been volatile in the past 10 years.

Growing Dividend: PW5's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.1%), PW5's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PW5's dividends in 3 years are forecast to be well covered by earnings (49.1% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Wa Fong Hoi (41yo)

10.58s

Tenure

CN¥1,026,000

Compensation

Mr. Wa Fong Hoi serves as President at Powerlong Commercial Management Holdings Limited since February 2013. He serves as a Director at Powerlong Commercial Management Holdings Limited since March 25, 2019 ...


CEO Compensation Analysis

Compensation vs Market: Wa Fong's total compensation ($USD144.53K) is below average for companies of similar size in the German market ($USD1.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kin Hong Hoi
Executive Chairman of the Boardno dataCN¥1.24m44.76% CN¥972.7m
Wa Fong Hoi
CEO & Executive Director10.58yrsCN¥1.03m14.74% CN¥320.4m
Qing Ping Xiao
Deputy CEO & Executive Director12.33yrsCN¥1.02m0.022% CN¥482.9k
Sze Ni Shih
Executive Directorno dataCN¥776.00k0.012% CN¥266.6k
Hong Feng Zhang
Executive VP4.42yrsCN¥1.02m0.0045% CN¥97.6k
Ming Liao
VP & CFO7.92yrsno datano data
Yao Ming Huang
VP & GM of the Investment Development Centre1.92yrsno datano data
Fred Tao
Senior Investor Relations Managerno datano datano data
Jian Zheng Shen
VP & GM of Marketing Management Centre1.92yrsno datano data
Li Hua
Deputy Chief Executive Officerno datano datano data

4.9yrs

Average Tenure

50yo

Average Age

Experienced Management: PW5's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kin Hong Hoi
Executive Chairman of the Boardno dataCN¥1.24m44.76% CN¥972.7m
Wa Fong Hoi
CEO & Executive Director10.58yrsCN¥1.03m14.74% CN¥320.4m
Qing Ping Xiao
Deputy CEO & Executive Director12.33yrsCN¥1.02m0.022% CN¥482.9k
Sze Ni Shih
Executive Directorno dataCN¥776.00k0.012% CN¥266.6k
Hong Feng Zhang
Executive VP4.42yrsCN¥1.02m0.0045% CN¥97.6k
Wai Fung Ngai
Independent Non-Executive Director11.75yrsCN¥260.00kno data
Zu Yu Ding
Independent Non-Executive Director5.25yrsCN¥260.00kno data
Wa Fan Hoi
Non-Executive Director12.33yrsCN¥160.00k6.45% CN¥140.1m
Jianping Mei
Independent Non-Executive Director11.75yrsCN¥260.00kno data

11.8yrs

Average Tenure

52yo

Average Age

Experienced Board: PW5's board of directors are seasoned and experienced ( 11.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PW5 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Powerlong Real Estate Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Powerlong Real Estate Holdings Limited
  • Ticker: PW5
  • Exchange: DB
  • Founded: 2007
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$18.590b
  • Listing Market Cap: HK$2.173b
  • Shares outstanding: 4.10b
  • Website: https://www.powerlong.com

Number of Employees


Location

  • Powerlong Real Estate Holdings Limited
  • Powerlong Tower
  • 1399 Xinzhen Road
  • Shanghai
  • 201101
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1238SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2009
PW5DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2009
1238SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2009

Biography

Powerlong Real Estate Holdings Limited, an investment holding company, invests in, develops, and manages properties in the People’s Republic of China. It develops large-scale commercial and residential properties. The company also operates hotels; and provides construction and decoration services. As of December 31, 2018, it had a land bank with a total gross floor area of 21.2 million square meters; and developed, owned, and operated 114 real estate projects. The company was incorporated in 2007 and is based in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 22:44
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.