Guoco Group
Market Cap
HK$36.7b
Last Updated
2020/07/03 12:41 UTC
Data Sources
Company Financials
Executive Summary
Guoco Group Limited, together with its subsidiaries, engages in the investment, property investment and development, hospitality and leisure, and financial service businesses.
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet with acceptable track record.
Share Price & News
How has Guoco Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 53 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.0%
53
3.9%
HK Industrials
4.0%
HK Market
1 Year Return
-8.7%
53
-29.1%
HK Industrials
-4.9%
HK Market
Return vs Industry: 53 exceeded the Hong Kong Industrials industry which returned -29.8% over the past year.
Return vs Market: 53 underperformed the Hong Kong Market which returned -6.6% over the past year.
Shareholder returns
| 53 | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.0% | 3.9% | 4.0% |
| 30 Day | 4.2% | 0.09% | 5.3% |
| 90 Day | 1.0% | 2.7% | 13.3% |
| 1 Year | -5.8%-8.7% | -25.2%-29.1% | -1.4%-4.9% |
| 3 Year | 38.2%24.5% | -27.2%-35.9% | 7.7%-3.5% |
| 5 Year | 50.8%23.9% | -35.0%-45.5% | 7.1%-10.3% |
Price Volatility Vs. Market
How volatile is Guoco Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
Do Investors Have Good Reason To Be Wary Of Guoco Group Limited's (HKG:53) 3.6% Dividend Yield?1 year ago | Simply Wall St
Why Guoco Group Limited’s (HKG:53) Return On Capital Employed Looks Uninspiring1 year ago | Simply Wall St
What Do You Get For Owning Guoco Group Limited (HKG:53)?Valuation
Is Guoco Group undervalued compared to its fair value and its price relative to the market?
8.36x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 53 (HK$110.9) is trading above our estimate of fair value (HK$54.8)
Significantly Below Fair Value: 53 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 53 is poor value based on its PE Ratio (8.4x) compared to the Industrials industry average (5.6x).
PE vs Market: 53 is good value based on its PE Ratio (8.4x) compared to the Hong Kong market (10.1x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 53's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 53 is overvalued based on its PB Ratio (0.6x) compared to the HK Industrials industry average (0.4x).
Next Steps
Future Growth
How is Guoco Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
1.1%
Forecasted Capital Goods 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 Guoco Group 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
- Examine Guoco Group's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- Guoco Group competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Capital Goods industry.
Past Performance
How has Guoco Group performed over the past 5 years?
-4.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 53 has a large one-off gain of $307.8M impacting its December 31 2004 financial results.
Growing Profit Margin: 53's current net profit margins (23.3%) are higher than last year (8.2%).
Past Earnings Growth Analysis
Earnings Trend: 53's earnings have declined by -4.7% per year over the past 5 years.
Accelerating Growth: 53's earnings growth over the past year (238.9%) exceeds its 5-year average (-4.7% per year).
Earnings vs Industry: 53 earnings growth over the past year (238.9%) exceeded the Industrials industry 1.3%.
Return on Equity
High ROE: 53's Return on Equity (6.8%) is considered low.
Next Steps
Financial Health
How is Guoco Group's financial position?
Financial Position Analysis
Short Term Liabilities: 53's short term assets ($6.7B) exceed its short term liabilities ($1.8B).
Long Term Liabilities: 53's short term assets ($6.7B) exceed its long term liabilities ($5.5B).
Debt to Equity History and Analysis
Debt Level: 53's debt to equity ratio (51.2%) is considered high.
Reducing Debt: 53's debt to equity ratio has reduced from 70.6% to 51.2% over the past 5 years.
Debt Coverage: 53's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: 53's interest payments on its debt are well covered by EBIT (3.7x coverage).
Balance Sheet
Next Steps
Dividend
What is Guoco Group current dividend yield, its reliability and sustainability?
3.57%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 53's dividend (3.57%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.39%).
High Dividend: 53's dividend (3.57%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.84%).
Stability and Growth of Payments
Stable Dividend: 53's dividend payments have been volatile in the past 10 years.
Growing Dividend: 53's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30%), 53's dividend payments are well 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?
5.4yrs
Average board tenure
CEO
Hong Cheong Tang (65yo)
3.83yrs
Tenure
US$3,656,000
Compensation
Mr. Hong Cheong Tang has been the Chief Executive Officer and President at Guoco Group Limited since September 1, 2016. Mr. Tang has been Group Managing Director at GL Limited since September 15, 2016. He ...
CEO Compensation Analysis
Compensation vs Market: Hong Cheong's total compensation ($USD3.66M) is above average for companies of similar size in the Hong Kong market ($USD488.00K).
Compensation vs Earnings: Hong Cheong's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 3.83yrs | US$8.22m | 1.16% $423.8m | |
| President | 3.83yrs | US$3.66m | 0.040% $14.5m | |
| Independent Non-Executive Director | 7yrs | US$55.00k | 0.0012% $447.6k | |
| Non-Executive Director | 30.5yrs | no data | 0.064% $23.3m | |
| Independent Non-Executive Director | 10.75yrs | US$66.00k | no data | |
| Independent Non-executive Director | 0.67yr | no data | no data |
5.4yrs
Average Tenure
65yo
Average Age
Experienced Board: 53's board of directors are considered experienced (5.4 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
Guoco Group Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Guoco Group Limited
- Ticker: 53
- Exchange: SEHK
- Founded:
- Industry: Industrial Conglomerates
- Sector: Capital Goods
- Market Cap: HK$36.689b
- Shares outstanding: 329.05m
- Website: https://www.guoco.com
Number of Employees
Location
- Guoco Group Limited
- The Center
- 50th Floor
- Hong Kong
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GULR.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| 53 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jan 1992 |
| GULR.Y | OTCPK (Pink Sheets LLC) | UNSPONSORD ADR | US | USD | Nov 2008 |
Biography
Guoco Group Limited, together with its subsidiaries, engages in the investment, property investment and development, hospitality and leisure, and financial service businesses. Its Principal Investment segment offers 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 in Singapore, China, Malaysia, Vietnam, and Hong Kong. Its Hospitality and Leisure Business segment owns, leases, and manages hotels; and operates gaming and leisure businesses in United Kingdom, Spain, and Belgium. This segment owns and operates 17 hotels under Amba, Guoman, Thistle, and Thistle Express brands. It offers Mecca, a bingo operator in Great Britain with 82 clubs; Grosvenor Casinos, a casino operator with 52 casinos in Great Britain, and 1 casino in Belgium; 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 services; and life and general insurance, Takaful insurance, fund management and unit trust, stock broking, and corporate advisory services. The company also offers royalty entitlement of Bass Strait’s oil and gas production, marketing, and distribution of health products. In addition, it provides hotel and property management, marketing and maintenance services, support services for interactive gaming, funding, and trustee services; and apiculture services, which includes manufacture and distribution of New Zealand natural healthcare products. The company operates in the People’s Republic of China, the United Kingdom and Continental Europe, Singapore, Australasia, and internationally. Guoco Group Limited is based in Hong Kong, Hong Kong. Guoco Group Limited is a subsidiary of GuoLine Overseas Limited.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/03 12:41 |
| End of Day Share Price | 2020/07/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.