DB:USH

Stock Analysis Report

Wing Tai Properties

Executive Summary

Wing Tai Properties Limited, an investment holding company, invests in, develops, and manages properties in Hong Kong, the People’s Republic of China, the United Kingdom, Singapore, and internationally.


Snowflake Analysis

Undervalued with high growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Wing Tai Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

1.0%

USH

4.6%

DE Real Estate

7.2%

DE Market


1 Year Return

-21.6%

USH

-19.9%

DE Real Estate

-17.5%

DE Market

Return vs Industry: USH underperformed the German Real Estate industry which returned -17.9% over the past year.

Return vs Market: USH underperformed the German Market which returned -14.1% over the past year.


Shareholder returns

USHIndustryMarket
7 Day1.0%4.6%7.2%
30 Day-8.0%-22.1%-22.3%
90 Day-14.1%-18.3%-26.1%
1 Year-17.5%-21.6%-17.7%-19.9%-14.9%-17.5%
3 Year-8.3%-19.5%22.1%12.7%-18.7%-25.7%
5 Year11.8%-7.8%52.4%30.6%-17.8%-29.1%

Price Volatility Vs. Market

How volatile is Wing Tai Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Wing Tai Properties undervalued compared to its fair value and its price relative to the market?

48.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: USH (€0.52) is trading below our estimate of fair value (€1.02)

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


Price To Earnings Ratio

PE vs Industry: USH is poor value based on its PE Ratio (13.5x) compared to the Real Estate industry average (11.1x).

PE vs Market: USH is good value based on its PE Ratio (13.5x) compared to the German market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: USH is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: USH is good value based on its PB Ratio (0.2x) compared to the DE Real Estate industry average (1.3x).


Next Steps

Future Growth

How is Wing Tai Properties forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

24.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: USH's forecast earnings growth (24% per year) is above the savings rate (-0.4%).

Earnings vs Market: USH's earnings (24% per year) are forecast to grow faster than the German market (14.7% per year).

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

Revenue vs Market: USH's revenue (59.7% per year) is forecast to grow faster than the German market (4% per year).

High Growth Revenue: USH's revenue (59.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Wing Tai Properties performed over the past 5 years?

-6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: USH has high quality earnings.

Growing Profit Margin: USH's current net profit margins (48.3%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: USH's earnings have declined by -6.8% per year over the past 5 years.

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

Earnings vs Industry: USH had negative earnings growth (-81%) over the past year, making it difficult to compare to the Real Estate industry average (9%).


Return on Equity

High ROE: USH's Return on Equity (1.9%) is considered low.


Next Steps

Financial Health

How is Wing Tai Properties's financial position?


Financial Position Analysis

Short Term Liabilities: USH's short term assets (HK$7.6B) exceed its short term liabilities (HK$3.1B).

Long Term Liabilities: USH's short term assets (HK$7.6B) exceed its long term liabilities (HK$4.3B).


Debt to Equity History and Analysis

Debt Level: USH's debt to equity ratio (16.6%) is considered satisfactory.

Reducing Debt: USH's debt to equity ratio has reduced from 19.7% to 16.6% over the past 5 years.

Debt Coverage: USH's debt is not well covered by operating cash flow (6.9%).

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


Balance Sheet

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

Debt Coverage by Assets: USH's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is Wing Tai Properties's current dividend yield, its reliability and sustainability?

5.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: USH's dividend (5.52%) is higher than the bottom 25% of dividend payers in the German market (1.66%).

High Dividend: USH's dividend (5.52%) is in the top 25% of dividend payers in the German market (4.86%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.6%), USH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: USH's dividends in 3 years are forecast to be well covered by earnings (47.8% payout ratio).


Next Steps

Management

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

12.7yrs

Average board tenure


CEO

Edward Cheng (63yo)

26.17s

Tenure

HK$21,796,000

Compensation

Mr. Wai Sun Cheng, also known as Edward, G.B.S., J.P. has been the Chief Executive Officer of Wing Tai Properties Limited (formerly, USI Holdings Limited) since 1994. Mr. Cheng has been an Executive Direct ...


CEO Compensation Analysis

Compensation vs Market: Edward's total compensation ($USD2.81M) is above average for companies of similar size in the German market ($USD1.33M).

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


Board Members

NamePositionTenureCompensationOwnership
Wai-Chee Cheng
Executive Chairman28.58yrsHK$11.72m1.04% HK$8.0m
Wai Sun Cheng
Deputy Chairman & Chief Executive26.17yrsHK$21.80m0.89% HK$6.8m
Man Piu Cheng
Executive Director28.58yrsHK$25.00kno data
Wai-Wai Chow
MD of Group Property Investment & Management Division and Executive Director12.58yrsHK$6.17m0.078% HK$600.8k
Kar Wai Ng
MD of Group Property Division & Executive Director5.17yrsHK$9.23m0.087% HK$670.9k
Michael Hamilton Hobson
Director & CEO of Lanson Place Hospitality Management Limitedno datano datano data
Simon Murray
Independent Non-Executive Director26yrsHK$340.00kno data
Hoi-Chuen Cheng
Independent Non-Executive Director7.08yrsHK$340.00kno data
Tak Wai Ng
Non-Executive Director8.92yrsHK$70.00k0.12% HK$914.9k
Kit Shing Yeung
Independent Non-Executive Director15.5yrsHK$400.00kno data

12.7yrs

Average Tenure

67.5yo

Average Age

Experienced Board: USH's board of directors are seasoned and experienced ( 12.7 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Wing Tai Properties Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wing Tai Properties Limited
  • Ticker: USH
  • Exchange: DB
  • Founded:
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: HK$6.624b
  • Listing Market Cap: HK$770.673m
  • Shares outstanding: 1.35b
  • Website: https://www.wingtaiproperties.com

Number of Employees


Location

  • Wing Tai Properties Limited
  • AIA Kowloon Tower
  • 27th Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
USHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
369SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Wing Tai Properties Limited, an investment holding company, invests in, develops, and manages properties in Hong Kong, the People’s Republic of China, the United Kingdom, Singapore, and internationally. The company operates through Property Development, Property Investment and Management, Hospitality Investment and Management, and Others divisions. It develops and manages residential and commercial properties. The company’s investment properties include office buildings, industrial buildings, car parking spaces, retail spaces, and serviced apartments. It is also involved in the hospitality management, investment, licensing, treasury investment, financing, and property agency activities. The company was formerly known as USI Holdings Limited and changed its name to Wing Tai Properties Limited in 2010. Wing Tai Properties Limited is headquartered in Kwun Tong, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 20:39
End of Day Share Price2020/03/27 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.