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53

Guoco GroupSEHK:53 Stock Report

Market Cap

HK$29.9b

7D

-1.0%

1Y

-4.1%

Updated

26 Oct, 2021

Data

Company Financials
53 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance1/6
Financial Health3/6
Dividends1/6

53 Overview

Guoco Group Limited, an investment holding company, engages in the principal investment, property investment and development, hospitality and leisure, and financial service businesses.

Price History & Performance

Summary of all time highs, changes and price drops for Guoco Group
Historical stock prices
Current Share PriceHK$90.80
52 Week HighHK$85.00
52 Week LowHK$100.00
Beta0.34
1 Month Change0.66%
3 Month Change2.02%
1 Year Change-4.12%
3 Year Change-30.26%
5 Year Change3.95%
Change since IPO591.81%

Recent News & Updates

Oct 20
Here's Why Guoco Group (HKG:53) Has A Meaningful Debt Burden

Here's Why Guoco Group (HKG:53) Has A Meaningful Debt Burden

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

May 05
Factors Income Investors Should Consider Before Adding Guoco Group Limited (HKG:53) To Their Portfolio

Factors Income Investors Should Consider Before Adding Guoco Group Limited (HKG:53) To Their Portfolio

Today we'll take a closer look at Guoco Group Limited ( HKG:53 ) from a dividend investor's perspective. Owning a...

Feb 24
Here's Why Guoco Group (HKG:53) Has A Meaningful Debt Burden

Here's Why Guoco Group (HKG:53) Has A Meaningful Debt Burden

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Shareholder Returns

53HK IndustrialsHK Market
7D-1.0%-1.0%0.4%
1Y-4.1%17.5%6.7%

Return vs Industry: 53 underperformed the Hong Kong Industrials industry which returned 17.5% over the past year.

Return vs Market: 53 underperformed the Hong Kong Market which returned 6.7% over the past year.

Price Volatility

Is 53's price volatile compared to industry and market?
53 volatility
53 Beta0.34
Industry Beta0.84
Market Beta1

Stable Share Price: 53 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: 53's weekly volatility (1%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a10,000Hong Cheong Tanghttps://www.guoco.com

Guoco Group Limited, an investment holding company, engages in the principal investment, property investment and development, hospitality and leisure, and financial service businesses. The company’s Principal Investment segment offers debt, equity, and direct investments, as well as treasury operations with trading and strategic investments in global capital markets. Its Property Development and Investment segment develops residential and commercial properties, as well as holds properties for rental income in Singapore, China, Malaysia, Vietnam, and Hong Kong.

Guoco Group Fundamentals Summary

How do Guoco Group's earnings and revenue compare to its market cap?
53 fundamental statistics
Market CapUS$3.84b
Earnings (TTM)US$322.10m
Revenue (TTM)US$1.32b

11.9x

P/E Ratio

2.9x

P/S Ratio

Is 53 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
53 income statement (TTM)
RevenueUS$1.32b
Cost of RevenueUS$968.78m
Gross ProfitUS$351.64m
ExpensesUS$29.54m
EarningsUS$322.10m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.98
Gross Margin26.63%
Net Profit Margin24.39%
Debt/Equity Ratio48.7%

How did 53 perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

26%

Payout Ratio

Does 53 pay a reliable dividends?

See 53 dividend history and benchmarks
When do you need to buy 53 by to receive an upcoming dividend?
Guoco Group dividend dates
Ex Dividend DateNov 11 2021
Dividend Pay DateNov 25 2021
Days until Ex dividend15 days
Days until Dividend pay date29 days

Does 53 pay a reliable dividends?

See 53 dividend history and benchmarks

Valuation

Is Guoco Group undervalued compared to its fair value and its price relative to the market?

17.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 53 (HK$90.8) is trading below our estimate of fair value (HK$110.34)

Significantly Below Fair Value: 53 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 53 is poor value based on its PE Ratio (11.9x) compared to the Hong Kong Industrials industry average (6.1x).

PE vs Market: 53 is poor value based on its PE Ratio (11.9x) compared to the Hong Kong market (9.6x).


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 (0.5x) compared to the HK Industrials industry average (0.4x).


Future Growth

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

5.7%

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.


Past Performance

How has Guoco Group performed over the past 5 years?

-29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 53 has a large one-off gain of $210.7M impacting its June 30 2021 financial results.

Growing Profit Margin: 53 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 53's earnings have declined by 29.4% per year over the past 5 years.

Accelerating Growth: 53 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 53 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Industrials industry (53.2%).


Return on Equity

High ROE: 53's Return on Equity (3.2%) is considered low.


Financial Health

How is Guoco Group's financial position?


Financial Position Analysis

Short Term Liabilities: 53's short term assets ($6.3B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: 53's short term assets ($6.3B) exceed its long term liabilities ($5.1B).


Debt to Equity History and Analysis

Debt Level: 53's debt to equity ratio (48.7%) is considered high.

Reducing Debt: 53's debt to equity ratio has reduced from 49.1% to 48.7% over the past 5 years.

Debt Coverage: 53's debt is not well covered by operating cash flow (9.5%).

Interest Coverage: 53's interest payments on its debt are not well covered by EBIT (0.8x coverage).


Balance Sheet


Dividend

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

2.20%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 26 2021Ex Dividend DateNov 11 2021Dividend Pay DateNov 25 202114 days from Ex DividendBuy in the next 15 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 53's dividend (2.2%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 53's dividend (2.2%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.8%).


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26%), 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?

5.1yrs

Average board tenure


CEO

Hong Cheong Tang (66 yo)

5.08yrs

Tenure

US$1,179,000

Compensation

Mr. Hong Cheong Tang has been Non-Independent & Non-Executive Chairman of GuocoLand (Malaysia) Berhad since July 01, 2021. Mr. Tang serves as Non Independent Non Executive Chairman of GLM REIT Management S...


CEO Compensation Analysis

Compensation vs Market: Hong Cheong's total compensation ($USD1.18M) is above average for companies of similar size in the Hong Kong market ($USD702.95K).

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


Board Members

Experienced Board: 53's board of directors are considered experienced (5.1 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

Guoco Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Guoco Group Limited
  • Ticker: 53
  • Exchange: SEHK
  • Founded: NaN
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: HK$29.878b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 10:08
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.