DB:SHS

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Shenzhen Investment

Executive Summary

Shenzhen Investment Limited, together with its subsidiaries, invests in, develops, and manages real estate properties in Mainland China.


Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has Shenzhen Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.9%

SHS

1.0%

DE Real Estate

1.5%

DE Market


1 Year Return

-14.0%

SHS

-6.5%

DE Real Estate

-0.2%

DE Market

Return vs Industry: SHS underperformed the German Real Estate industry which returned -5.9% over the past year.

Return vs Market: SHS underperformed the German Market which returned 0.1% over the past year.


Shareholder returns

SHSIndustryMarket
7 Day-2.9%1.0%1.5%
30 Day-9.0%8.2%5.7%
90 Day-11.4%-4.8%-2.7%
1 Year-12.1%-14.0%-5.1%-6.5%1.5%-0.2%
3 Year-23.1%-36.4%29.5%21.6%-7.1%-14.3%
5 Year-26.1%-45.0%100.2%74.1%5.2%-8.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Shenzhen Investment undervalued compared to its fair value and its price relative to the market?

5.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SHS (€0.26) is trading above our estimate of fair value (€0.19)

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


Price To Earnings Ratio

PE vs Industry: SHS is good value based on its PE Ratio (5.2x) compared to the Real Estate industry average (10.3x).

PE vs Market: SHS is good value based on its PE Ratio (5.2x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: SHS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SHS is good value based on its PB Ratio (0.5x) compared to the DE Real Estate industry average (1.4x).


Next Steps

Future Growth

How is Shenzhen Investment forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHS's earnings are forecast to decline over the next 3 years (-9.3% per year).

Earnings vs Market: SHS's earnings are forecast to decline over the next 3 years (-9.3% per year).

High Growth Earnings: SHS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SHS's revenue (12.1% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: SHS's revenue (12.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHS's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

How has Shenzhen Investment performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHS has high quality earnings.

Growing Profit Margin: SHS's current net profit margins (27.2%) are higher than last year (20.5%).


Past Earnings Growth Analysis

Earnings Trend: SHS's earnings have grown by 2.8% per year over the past 5 years.

Accelerating Growth: SHS's earnings growth over the past year (19%) exceeds its 5-year average (2.8% per year).

Earnings vs Industry: SHS earnings growth over the past year (19%) exceeded the Real Estate industry 10%.


Return on Equity

High ROE: SHS's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is Shenzhen Investment's financial position?


Financial Position Analysis

Short Term Liabilities: SHS's short term assets (HK$61.6B) exceed its short term liabilities (HK$51.1B).

Long Term Liabilities: SHS's short term assets (HK$61.6B) exceed its long term liabilities (HK$25.8B).


Debt to Equity History and Analysis

Debt Level: SHS's debt to equity ratio (66%) is considered high.

Reducing Debt: SHS's debt to equity ratio has reduced from 100.8% to 66% over the past 5 years.

Debt Coverage: SHS's debt is not well covered by operating cash flow (12.6%).

Interest Coverage: SHS's interest payments on its debt are well covered by EBIT (12.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Shenzhen Investment's current dividend yield, its reliability and sustainability?

7.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SHS's dividend (7.32%) is higher than the bottom 25% of dividend payers in the German market (1.28%).

High Dividend: SHS's dividend (7.32%) is in the top 25% of dividend payers in the German market (3.94%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.9%), SHS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SHS's dividends in 3 years are forecast to be well covered by earnings (40.8% payout ratio).


Next Steps

Management

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

7.5yrs

Average management tenure


CEO

Wei Huang (49yo)

4.92yrs

Tenure

HK$5,925,000

Compensation

Mr. Huang Wei has been the President and Executive Director of Shenzhen Investment Ltd. since July 21, 2015. Mr. Wei serves as General Manager, Deputy Party Secretary and Director of Shum Yip Group Limited ...


CEO Compensation Analysis

Compensation vs Market: Wei's total compensation ($USD764.38K) is below average for companies of similar size in the German market ($USD2.36M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hua Lu
Chairman of the Board7.42yrsHK$6.20m0.013% HK$330.6k
Wei Huang
Executive Director & President4.92yrsHK$5.93mno data
Yong Mou
Executive Director10.5yrsHK$2.41mno data
Chong Liu
Executive Director & VP9.5yrsHK$3.14mno data
Jianhui Yang
General Manager of Finance Management Department0.42yrno datano data
Nicole Zhou
Senior IR Managerno datano datano data
Yin Wong
General Counsel & Secretary2.42yrsno datano data
Guoqiang Zhu
General Manager of Capital Market Departmentno datano datano data
Ka Sze Lee
Company Secretary11yrsno datano data

7.5yrs

Average Tenure

53.5yo

Average Age

Experienced Management: SHS's management team is seasoned and experienced (7.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hua Lu
Chairman of the Board7.42yrsHK$6.20m0.013% HK$330.6k
Wei Huang
Executive Director & President4.92yrsHK$5.93mno data
Yong Mou
Executive Director10.5yrsHK$2.41mno data
Chong Liu
Executive Director & VP9.5yrsHK$3.14mno data
Wai Keung Li
Independent Non-Executive Director15.75yrsHK$380.00k0.013% HK$338.2k
Wai Chung Wu
Independent Non-Executive Director17.67yrsHK$330.00kno data
Yau Kar Wong
Independent Non-Executive Director7yrsHK$380.00k0.0064% HK$162.7k
Jiesi Wu
Non-Executive Director14.08yrsHK$330.00k0.038% HK$973.7k
Shichao Liu
Non-Executive Director3.42yrsHK$330.00kno data

9.5yrs

Average Tenure

59yo

Average Age

Experienced Board: SHS's board of directors are considered experienced (9.5 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.7%.


Top Shareholders

Company Information

Shenzhen Investment Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shenzhen Investment Limited
  • Ticker: SHS
  • Exchange: DB
  • Founded: 1992
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: HK$21.819b
  • Listing Market Cap: HK$2.530b
  • Shares outstanding: 8.83b
  • Website: https://www.shenzheninvestment.com

Number of Employees


Location

  • Shenzhen Investment Limited
  • New East Ocean Centre
  • 8th Floor
  • Tsim Sha Tsui
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
604SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 1997
SZNT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 1997
SHSDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 1997
604SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 1997
604SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 1997

Biography

Shenzhen Investment Limited, together with its subsidiaries, invests in, develops, and manages real estate properties in Mainland China. The company operates through five segments: Property Development, Property Investment, Property Management, Manufacture, and Others. It invests in and develops residential, industrial, and commercial properties; manages properties; and manufactures and sells industrial and commercial products. The company also manufactures and sells aluminum alloy, agricultural, and LCD products; provides construction services; and operates hotels and warehouses. The company was founded in 1992 and is based in Tsim Sha Tsui, Hong Kong. Shenzhen Investment Limited is a subsidiary of Shum Yip Holdings Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 23:19
End of Day Share Price2020/05/29 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.