SEHK:1995

Stock Analysis Report

Ever Sunshine Lifestyle Services Group

Executive Summary

Ever Sunshine Lifestyle Services Group Limited provides property management services in China.

Rewards

Trading at 66% below its fair value

Earnings are forecast to grow 45% per year

Earnings grew by 72.3% over the past year

Risk Analysis

Highly volatile share price over past 3 months



Snowflake Analysis

Exceptional growth potential with solid track record.

Share Price & News

How has Ever Sunshine Lifestyle Services Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1995's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.6%

1995

3.2%

HK Commercial Services

0.3%

HK Market


1 Year Return

198.2%

1995

41.4%

HK Commercial Services

-5.1%

HK Market

Return vs Industry: 1995 exceeded the Hong Kong Commercial Services industry which returned 41.4% over the past year.

Return vs Market: 1995 exceeded the Hong Kong Market which returned -5.1% over the past year.


Shareholder returns

1995IndustryMarket
7 Day9.6%3.2%0.3%
30 Day27.3%7.2%-3.9%
90 Day78.0%15.4%4.4%
1 Year200.6%198.2%44.7%41.4%-1.6%-5.1%
3 Yearn/a-31.6%-36.8%13.4%1.9%
5 Yearn/a-46.1%-51.7%15.6%-3.6%

Price Volatility Vs. Market

How volatile is Ever Sunshine Lifestyle Services Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ever Sunshine Lifestyle Services Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1995 (HK$8.35) is trading below our estimate of fair value (HK$24.59)

Significantly Below Fair Value: 1995 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1995 is poor value based on its PE Ratio (67.4x) compared to the Commercial Services industry average (12.1x).

PE vs Market: 1995 is poor value based on its PE Ratio (67.4x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 1995 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 1995 is overvalued based on its PB Ratio (11.4x) compared to the HK Commercial Services industry average (1.2x).


Next Steps

Future Growth

How is Ever Sunshine Lifestyle Services Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

45.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1995's forecast earnings growth (45% per year) is above the savings rate (1.6%).

Earnings vs Market: 1995's earnings (45% per year) are forecast to grow faster than the Hong Kong market (11.8% per year).

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

Revenue vs Market: 1995's revenue (28.5% per year) is forecast to grow faster than the Hong Kong market (10.5% per year).

High Growth Revenue: 1995's revenue (28.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1995's Return on Equity is forecast to be high in 3 years time (29%)


Next Steps

Past Performance

How has Ever Sunshine Lifestyle Services Group performed over the past 5 years?

42.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1995 has high quality earnings.

Growing Profit Margin: 1995's current net profit margins (11.1%) are higher than last year (10.3%).


Past Earnings Growth Analysis

Earnings Trend: 1995's earnings have grown significantly by 42.6% per year over the past 5 years.

Accelerating Growth: 1995's earnings growth over the past year (72.3%) exceeds its 5-year average (42.6% per year).

Earnings vs Industry: 1995 earnings growth over the past year (72.3%) exceeded the Commercial Services industry 14.3%.


Return on Equity

High ROE: 1995's Return on Equity (14.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ever Sunshine Lifestyle Services Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1995's short term assets (CN¥1.5B) exceed its short term liabilities (CN¥744.3M).

Long Term Liabilities: 1995's short term assets (CN¥1.5B) exceed its long term liabilities (CN¥37.3M).


Debt to Equity History and Analysis

Debt Level: 1995's debt to equity ratio (0.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1995's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1995's debt is well covered by operating cash flow (3266.9%).

Interest Coverage: 1995 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1995 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1995's debt is covered by short term assets (assets are 156.7x debt).


Next Steps

Dividend

What is Ever Sunshine Lifestyle Services Group's current dividend yield, its reliability and sustainability?

0.27%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%2.3%markettop25%6.3%industryaverage1.5%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: 1995's dividend (0.27%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1995's dividend (0.27%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.28%).


Stability and Growth of Payments

Stable Dividend: 1995 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1995 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1995 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1995's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Hongbin Zhou (49yo)

2.2yrs

Tenure

0

Mr. Hongbin Zhou was appointed as Ever Sunshine Lifestyle Services Group Limited executive Director on 25 July 2018 and has been the president of Group since he joined in December 2017. Mr. Zhou is prima ...


Leadership Team

NamePositionTenureCompensationOwnership
Zhong Lin
Executive Chairman1.6yrsno datano data
Hongbin Zhou
Executive Director & President2.2yrsno data1.91% CN¥240.5m
Di Zhou
Chief Financial Officer0.8yrsno datano data
Bin Liang
Vice President of Human Resources1.4yrsno datano data
Ching Man Yeung
Company Secretary1.6yrsno datano data

1.6yrs

Average Tenure

42yo

Average Age

Experienced Management: 1995's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Zhong Lin
Executive Chairman1.6yrsno datano data
Hongbin Zhou
Executive Director & President2.2yrsno data1.91% CN¥240.5m
Yongyi Ma
Independent Non-executive Director1.3yrsno datano data
Feng Lin
Deputy Chairman of the Board1.6yrsno data12.27% CN¥1.5b
Wai Cheung
Independent Non-executive Director1.3yrsno datano data
Ming Ge
Non-executive Director1.6yrsno data0.098% CN¥12.3m
Peng Wang
Independent non-executive Director1.3yrsno datano data

1.6yrs

Average Tenure

48yo

Average Age

Experienced Board: 1995's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


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

Ever Sunshine Lifestyle Services Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ever Sunshine Lifestyle Services Group Limited
  • Ticker: 1995
  • Exchange: SEHK
  • Founded: 2018
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: HK$12.598b
  • Shares outstanding: 1.54b
  • Website: https://www.ysservice.com.cn

Number of Employees


Location

  • Ever Sunshine Lifestyle Services Group Limited
  • Henderson CIFI Center
  • 6th Floor
  • Shanghai
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1995SEHK (The Stock Exchange of Hong Kong Ltd.)YesDomestic SharesHKHKDDec 2018

Biography

Ever Sunshine Lifestyle Services Group Limited provides property management services in China. It offers services for residential and non-residential properties, such as office buildings, shopping malls, government buildings, schools, exhibition centers, industrial parks, and hospitals. The company also provides value added services to non-property owners, including sales assistance, additional tailored, housing repair, pre-delivery inspection, and preliminary planning and design consultancy services. In addition, it offers community value-added services to property owners and residents, which include home living services, property agency services, and common area value-added services, as well as parking space management, leasing, and sales services. Further, the company provides construction and maintenance services. Ever Sunshine Lifestyle Services Group Limited was incorporated in 2018 and is headquartered in Shanghai, the People's Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 13:22
End of Day Share Price2020/02/20 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.