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Guoco Group

SEHK:53
Snowflake Description

Adequate balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
53
SEHK
HK$40B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

Guoco Group Limited, an investment holding company, engages in the investment, property development and investment, hospitality and leisure, financial service, and oil and gas businesses. The last earnings update was 124 days ago. More info.


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53 Share Price and Events
7 Day Returns
1.4%
SEHK:53
-1.9%
HK Industrials
-1.1%
HK Market
1 Year Returns
-4.1%
SEHK:53
-6.2%
HK Industrials
-6.5%
HK Market
53 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Guoco Group (53) 1.4% 3.4% 10.4% -4.1% 42% 27.8%
HK Industrials -1.9% 1.9% -9% -6.2% -4.9% -29.2%
HK Market -1.1% 3.4% -7.7% -6.5% 17.4% 4.2%
1 Year Return vs Industry and Market
  • 53 outperformed the Industrials industry which returned -6.2% over the past year.
  • 53 outperformed the Market in Hong Kong which returned -6.5% over the past year.
Price Volatility
53
Industry
5yr Volatility vs Market

53 Value

 Is Guoco Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Guoco Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Guoco Group.

SEHK:53 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 10.8%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:53
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Industrials Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.889 (1 + (1- 25%) (90.43%))
1.329
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.33
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.329 * 6.65%)
10.84%

Discounted Cash Flow Calculation for SEHK:53 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Guoco Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:53 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.84%)
2020 607.53 Est @ -11.02% 548.11
2021 564.32 Est @ -7.11% 459.32
2022 539.61 Est @ -4.38% 396.25
2023 526.31 Est @ -2.46% 348.69
2024 520.40 Est @ -1.12% 311.05
2025 519.43 Est @ -0.19% 280.10
2026 521.87 Est @ 0.47% 253.89
2027 526.73 Est @ 0.93% 231.19
2028 533.33 Est @ 1.25% 211.19
2029 541.20 Est @ 1.48% 193.35
Present value of next 10 years cash flows $3,233.14
SEHK:53 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $541.20 × (1 + 2%) ÷ (10.84% – 2%)
$6,245.98
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $6,245.98 ÷ (1 + 10.84%)10
$2,231.41
SEHK:53 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,233.14 + $2,231.41
$5,464.56
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,464.56 / 329.05
$16.61
SEHK:53 Discount to Share Price
Calculation Result
Exchange Rate USD/HKD
(Reporting currency to currency of SEHK:53)
7.824
Value per Share
(HKD)
= Value per Share in USD x Exchange Rate (USD/HKD)
= $16.61 x 7.824
HK$129.93
Value per share (HKD) From above. HK$129.93
Current discount Discount to share price of HK$122.00
= -1 x (HK$122.00 - HK$129.93) / HK$129.93
6.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Guoco Group is available for.
Intrinsic value
6%
Share price is HK$122 vs Future cash flow value of HK$129.93
Current Discount Checks
For Guoco Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Guoco Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Guoco Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Guoco Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Guoco Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:53 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.51
SEHK:53 Share Price ** SEHK (2019-07-12) in HKD HK$122
SEHK:53 Share Price converted to USD reporting currency Exchange rate (HKD/ USD) 0.128 $15.59
Hong Kong Industrials Industry PE Ratio Median Figure of 12 Publicly-Listed Industrials Companies 6.89x
Hong Kong Market PE Ratio Median Figure of 1,503 Publicly-Listed Companies 10.71x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Guoco Group.

SEHK:53 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:53 Share Price ÷ EPS (both in USD)

= 15.59 ÷ 0.51

30.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Guoco Group is overvalued based on earnings compared to the HK Industrials industry average.
  • Guoco Group is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Guoco Group's expected growth come at a high price?
Raw Data
SEHK:53 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 30.87x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
18.5%per year
Hong Kong Industrials Industry PEG Ratio Median Figure of 6 Publicly-Listed Industrials Companies 1.07x
Hong Kong Market PEG Ratio Median Figure of 477 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Guoco Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Guoco Group's assets?
Raw Data
SEHK:53 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $23.49
SEHK:53 Share Price * SEHK (2019-07-12) in HKD HK$122
SEHK:53 Share Price converted to USD reporting currency Exchange rate (HKD/ USD) 0.128 $15.59
Hong Kong Industrials Industry PB Ratio Median Figure of 14 Publicly-Listed Industrials Companies 0.6x
Hong Kong Market PB Ratio Median Figure of 2,190 Publicly-Listed Companies 0.92x
SEHK:53 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:53 Share Price ÷ Book Value per Share (both in USD)

= 15.59 ÷ 23.49

0.66x

* Primary Listing of Guoco Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Guoco Group is overvalued based on assets compared to the HK Industrials industry average.
X
Value checks
We assess Guoco Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Industrials industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Industrials industry average (and greater than 0)? (1 check)
  5. Guoco Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

53 Future Performance

 How is Guoco Group expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Guoco Group, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Guoco Group expected to grow at an attractive rate?
  • Guoco Group's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Guoco Group's earnings growth is expected to exceed the Hong Kong market average.
  • Unable to compare Guoco Group's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:53 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:53 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 18.5%
Hong Kong Industrials Industry Earnings Growth Rate Market Cap Weighted Average 5.3%
Hong Kong Industrials Industry Revenue Growth Rate Market Cap Weighted Average 7.5%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.2%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:53 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:53 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SEHK:53 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 2,012 789 164
2018-09-30 2,958 602 394
2018-06-30 3,905 415 624
2018-03-31 3,892 713 744
2017-12-31 3,880 1,011 864
2017-09-30 2,834 935 824
2017-06-30 1,789 860 785
2017-03-31 1,790 241 625
2016-12-31 1,792 -379 465
2016-09-30 2,008 -190 432
2016-06-30 2,224 -2 398
2016-03-31 2,581 521 556

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Guoco Group's earnings are expected to grow by 18.5% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Guoco Group is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:53 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Guoco Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:53 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SEHK:53 Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.51
2018-09-30 1.21
2018-06-30 1.92
2018-03-31 2.29
2017-12-31 2.66
2017-09-30 2.54
2017-06-30 2.41
2017-03-31 1.92
2016-12-31 1.43
2016-09-30 1.33
2016-06-30 1.22
2016-03-31 1.71

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Guoco Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Guoco Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Guoco Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

53 Past Performance

  How has Guoco Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Guoco Group's growth in the last year to its industry (Industrials).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Guoco Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Guoco Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Guoco Group's 1-year earnings growth is negative, it can't be compared to the HK Industrials industry average.
Earnings and Revenue History
Guoco Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Guoco Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:53 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,011.74 164.21 587.99
2018-09-30 2,958.24 394.25 602.16
2018-06-30 3,904.74 624.30 616.33
2018-03-31 3,892.37 744.25 596.28
2017-12-31 3,880.01 864.21 576.24
2017-09-30 2,834.26 824.42 561.07
2017-06-30 1,788.51 784.64 545.89
2017-03-31 1,790.04 624.95 549.23
2016-12-31 1,791.57 465.27 552.58
2016-09-30 2,008.00 431.62 576.53
2016-06-30 2,224.43 397.97 600.48
2016-03-31 2,580.84 555.97 626.11
2015-12-31 2,937.25 713.97 651.74
2015-09-30 2,871.34 655.28 660.96
2015-06-30 2,805.44 596.59 670.18
2015-03-31 2,847.47 548.94 690.59
2014-12-31 2,889.50 501.29 710.99
2014-09-30 2,820.30 621.72 723.46
2014-06-30 2,751.10 742.15 735.93
2014-03-31 2,580.17 785.91 715.14
2013-12-31 2,409.24 829.68 694.35
2013-09-30 2,302.36 820.70 671.98
2013-06-30 2,195.48 811.73 649.61
2013-03-31 1,944.59 705.40 630.99
2012-12-31 1,693.69 599.07 612.38
2012-09-30 1,669.23 216.13 600.92

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Guoco Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Guoco Group used its assets less efficiently than the HK Industrials industry average last year based on Return on Assets.
  • Guoco Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Guoco Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Industrials industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Guoco Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

53 Health

 How is Guoco Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Guoco Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Guoco Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Guoco Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Guoco Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Guoco Group Company Filings, last reported 6 months ago.

SEHK:53 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 10,094.20 4,640.08 3,947.18
2018-09-30 10,094.20 4,640.08 3,947.18
2018-06-30 10,786.77 4,803.24 4,179.10
2018-03-31 10,786.77 4,803.24 4,179.10
2017-12-31 10,560.60 4,482.27 4,525.81
2017-09-30 10,560.60 4,482.27 4,525.81
2017-06-30 9,905.89 4,768.77 4,701.85
2017-03-31 9,905.89 4,768.77 4,701.85
2016-12-31 8,927.23 4,816.40 4,455.81
2016-09-30 8,927.23 4,816.40 4,455.81
2016-06-30 9,080.64 4,457.68 4,184.96
2016-03-31 9,080.64 4,457.68 4,184.96
2015-12-31 9,089.83 4,721.56 4,494.93
2015-09-30 9,089.83 4,721.56 4,494.93
2015-06-30 9,457.92 5,693.56 3,352.05
2015-03-31 9,457.92 5,693.56 3,352.05
2014-12-31 9,022.63 6,381.46 3,781.63
2014-09-30 9,022.63 6,381.46 3,781.63
2014-06-30 9,168.10 6,268.69 3,714.57
2014-03-31 9,168.10 6,268.69 3,714.57
2013-12-31 8,828.92 6,573.58 3,842.96
2013-09-30 8,828.92 6,573.58 3,842.96
2013-06-30 8,055.53 6,459.98 3,321.60
2013-03-31 8,055.53 6,459.98 3,321.60
2012-12-31 7,702.48 6,225.28 2,925.10
2012-09-30 7,702.48 6,225.28 2,925.10
  • Guoco Group's level of debt (46%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (74.4% vs 46% today).
  • Debt is not well covered by operating cash flow (17%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.7x coverage).
X
Financial health checks
We assess Guoco Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Guoco Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

53 Dividends

 What is Guoco Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.27%
Current annual income from Guoco Group dividends.
If you bought HK$2,000 of Guoco Group shares you are expected to receive HK$65 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Guoco Group's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Guoco Group's dividend is below the markets top 25% of dividend payers in Hong Kong (5.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:53 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Industrials Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 4%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:53 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
SEHK:53 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-11-13 0.510 3.725
2017-10-12 0.510 3.474
2017-08-29 0.511 3.660
2016-11-21 0.511 4.466
2015-11-24 0.511 4.731
2014-10-09 0.772 6.584
2014-08-29 0.773 6.186
2014-03-18 0.258 2.111
2014-02-27 0.258 2.131
2013-10-09 0.193 1.572
2013-08-30 0.193 1.609
2013-03-07 0.000 0.000
2013-02-21 0.000 0.000
2012-08-30 0.284 2.830
2012-02-29 0.348 4.237
2011-08-30 0.410 4.181
2011-03-01 0.384 3.169
2010-09-20 0.360 2.909
2010-08-27 0.360 3.535
2010-03-01 0.295 2.906
2009-08-28 0.257 2.410
2009-02-17 0.451 6.191
2008-10-09 0.515 8.495
2008-09-08 0.513 5.695

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Guoco Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Guoco Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Guoco Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Guoco Group has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

53 Management

 What is the CEO of Guoco Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Hong Cheong Tang
COMPENSATION $3,425,000
AGE 64
TENURE AS CEO 2.8 years
CEO Bio

Mr. Hong Cheong Tang has been the Chief Executive Officer and President at Guoco Group Limited since September 1, 2016. Mr. Tang has been Group Managing Director at GL Limited since September 15, 2016. He has over 40 years of broad-based and C-suite expertise in finance, treasury, risk management, operations and strategic planning. He possesses in-depth knowledge in investment, manufacturing, financial services, property development, gaming and hospitality industry. He served as the President of HL Management Co Sdn Bhd and also served as its Finance Director since 2005. He served as Group Managing Director of Nanyang Press Holdings Berhad. He has served in the Hong Leong Group of companies since 1976. He served as the Chairman of GLM REIT Management Sdn. Bhd. since August 2008 until September 1,2016. He served as a Director of GLM REIT Management Sdn Bhd since August 1, 2008 until September 1, 2016. He has been a Non-executive Director of Guoco Group Limited and Lam Soon Hong Kong Ltd. since September 1, 2016. He has been a Non-Independent Non-Executive Director of GuocoLand Limited (GLL) since September 1, 2016. He has been Non-Independent Executive Director at GL Limited since September 15, 2016. He serves as a Director of PJ City Development Sdn Bhd and PJ Corporate Park Sdn Bhd. He has been non-executive director of The Rank Group Plc since January 15, 2019. He served as a Non-Independent & Non-Executive Director of Southern Steel Berhad from January 15, 2010 to September 1, 2016. Mr. Tang obtained Fellowship of the Chartered Association of Certified Accountants, United Kingdom in 1975 and membership of the Institute of Chartered Secretaries and Administrators, United Kingdom in 1979. Mr. Tang is Member of Malaysian Institute of Accountants.

CEO Compensation
  • Hong Cheong's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Hong Cheong's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team

Leng Hai Kwek

TITLE
Executive Chairman
COMPENSATION
$6M
AGE
66

Hong Cheong Tang

TITLE
President
COMPENSATION
$3M
AGE
64
TENURE
2.8 yrs

Richard Mak

TITLE
Group Financial Controller

Stella Lo

TITLE
Company Secretary
Board of Directors Tenure

Average tenure and age of the Guoco Group board of directors in years:

7.9
Average Tenure
65
Average Age
  • The tenure for the Guoco Group board of directors is about average.
Board of Directors

Leng Hai Kwek

TITLE
Executive Chairman
COMPENSATION
$6M
AGE
66
TENURE
2.8 yrs

Hong Cheong Tang

TITLE
President
COMPENSATION
$3M
AGE
64
TENURE
2.8 yrs

Volker Stoeckel

TITLE
Independent Non-Executive Director
COMPENSATION
$59K
AGE
74
TENURE
15.2 yrs

Roddy Sage

TITLE
Independent Non-Executive Director
COMPENSATION
$61K
AGE
67
TENURE
9.8 yrs

Leng San Kwek

TITLE
Non-Executive Director
AGE
64
TENURE
29.5 yrs

David Norman

TITLE
Independent Non-Executive Director
COMPENSATION
$52K
AGE
63
TENURE
6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess Guoco Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Guoco Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

53 News

Simply Wall St News

Why Guoco Group Limited’s (HKG:53) Return On Capital Employed Looks Uninspiring

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

How Has Guoco Group Limited's (HKG:53) Earnings Fared Against The Long Term Trend

Understanding how Guoco Group Limited (HKG:53) is performing as a company requires looking at more than just a years' earnings. … Today I will run you through a basic sense check to gain perspective on how Guoco Group is doing by comparing its latest earnings with its long-term trend as well as the performance of its industrials industry peers. … See our latest analysis for Guoco Group.

Simply Wall St -

Why Guoco Group Limited (HKG:53) Is A Buy When Markets Go Down

High quality companies, such as Guoco Group Limited, are impacted by general market panic and sell-off, but the fundamentals of these companies stay the same. … See our latest analysis for Guoco Group. … Guoco Group Limited, an investment holding company, engages in the investment, property development and investment, hospitality and leisure, financial service, and oil and gas businesses.

Simply Wall St -

Is Guoco Group Limited (HKG:53) Potentially Underrated?

In the case of Guoco Group Limited (HKG:53), there's. … Below is a brief commentary on these key aspects … If you're interested in understanding beyond my high-level commentary,

Simply Wall St -

Is Buying Guoco Group Limited (HKG:53) For Its Upcoming $1 Dividend A Good Choice?

View our latest analysis for Guoco Group 5 checks you should use to assess a dividend stock When researching a dividend stock, I always follow the following screening criteria: Is their annual yield among the top 25% of dividend payers? … SEHK:53 Historical Dividend Yield Mar 10th 18 How well does Guoco Group fit our criteria? … If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you're eyeing out is reliable in its payments.

Simply Wall St -

53 Company Info

Description

Guoco Group Limited, an investment holding company, engages in the investment, property development and investment, hospitality and leisure, financial service, and oil and gas businesses. Its Principal Investment segment is involved in the equity and direct investment activities; and treasury operations with trading and strategic investments in global capital markets. The company's Property Development and Investment segment develops residential and commercial properties; and holds properties for rental income. Its Hospitality and Leisure Business segment owns, leases, or manages hotels; and operates gaming and leisure businesses. This segment owns and operates 17 hotels under the Clermont, Amba, every, Thistle, and Thistle Express brands. It also operates Clermont Club in London; Mecca, a bingo operator in Great Britain with 90 clubs, as well as a digital business offering online and mobile bingo; Grosvenor Casinos, a casino operator with 58 casinos in Great Britain, and 2 other casinos in Belgium, as well as an online and mobile casino business; and Enracha, an operator of 9 bingo clubs in Spain. The company's Financial Services segment provides commercial and consumer, Islamic, and investment banking, as well as life and general insurance, Takaful insurance, fund management and unit trust, stock broking, and corporate advisory services. Its Oil and Gas segment engages in the entitlement of Bass Strait’s oil and gas production. Guoco Group Limited engages in the provision of property management, marketing, and maintenance services; general management services; and support services for interactive gaming, as well as funding operations. It operates in the People’s Republic of China, the United Kingdom and Continental Europe, Singapore, Australasia, and internationally. The company is based in Central, Hong Kong. Guoco Group Limited is a subsidiary of GuoLine Overseas Limited.

Details
Name: Guoco Group Limited
53
Exchange: SEHK
Founded:
HK$40,144,267,506
329,051,373
Website: http://www.guoco.com
Address: Guoco Group Limited
The Center,
50th Floor,
Central,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 53 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 02. Jan 1992
OTCPK GULR.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
OTCPK GULR.Y UNSPONSORD ADR Pink Sheets LLC US USD 05. Nov 2008
Number of employees
Current staff
Staff numbers
12,500
Guoco Group employees.
Industry
Industrial Conglomerates
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 12:43
End of day share price update: 2019/07/12 00:00
Last estimates confirmation: 2016/12/29
Last earnings filing: 2019/03/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.