SEHK:3316

Stock Analysis Report

Executive Summary

Binjiang Services Group Co. Ltd. provides property management services focusing on high-end residential properties in China.


Snowflake Analysis

Flawless balance sheet with acceptable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3316's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.0%

3316

7.9%

HK Commercial Services

1.7%

HK Market


1 Year Return

n/a

3316

43.7%

HK Commercial Services

-2.9%

HK Market

Return vs Industry: Insufficient data to determine how 3316 performed against the Hong Kong Commercial Services industry.

Return vs Market: Insufficient data to determine how 3316 performed against the Hong Kong Market.


Shareholder returns

3316IndustryMarket
7 Day17.0%7.9%1.7%
30 Day29.1%6.5%-4.8%
90 Day76.3%14.3%3.4%
1 Yearn/a47.1%43.7%0.7%-2.9%
3 Yearn/a-30.6%-35.7%15.3%3.6%
5 Yearn/a-43.2%-49.2%15.9%-3.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

29.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3316 (HK$12.52) is trading above our estimate of fair value (HK$5.37)

Significantly Below Fair Value: 3316 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3316 is poor value based on its PE Ratio (30x) compared to the Commercial Services industry average (12.1x).

PE vs Market: 3316 is poor value based on its PE Ratio (30x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3316's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3316 is overvalued based on its PB Ratio (4.8x) compared to the HK Commercial Services industry average (1.1x).


Next Steps

Future Growth

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

28.2%

Forecasted Commercial Services 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 Binjiang Services 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

Past Performance

How has Binjiang Services Group performed over the past 5 years?

39.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3316 has high quality earnings.

Growing Profit Margin: 3316's current net profit margins (13.8%) are lower than last year (14.8%).


Past Earnings Growth Analysis

Earnings Trend: 3316's earnings have grown significantly by 39.6% per year over the past 5 years.

Accelerating Growth: 3316's earnings growth over the past year (31.1%) is below its 5-year average (39.6% per year).

Earnings vs Industry: 3316 earnings growth over the past year (31.1%) exceeded the Commercial Services industry 14.3%.


Return on Equity

High ROE: 3316's Return on Equity (12.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Binjiang Services Group's financial position?


Financial Position Analysis

Short Term Liabilities: 3316's short term assets (CN¥969.9M) exceed its short term liabilities (CN¥437.1M).

Long Term Liabilities: 3316's short term assets (CN¥969.9M) exceed its long term liabilities (CN¥2.8M).


Debt to Equity History and Analysis

Debt Level: 3316 is debt free.

Reducing Debt: 3316 has not had any debt for past 5 years.

Debt Coverage: 3316 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 3316 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 3316 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 3316's debt is not covered by short term assets (assets are -1.0919619059507E+18x debt).


Next Steps

Dividend

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

0.78%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%2.3%markettop25%6.3%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 3316's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 3316's dividend (0.78%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).


Stability and Growth of Payments

Stable Dividend: 3316 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 3316 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: 3316 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 3316'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?

5.8yrs

Average management tenure


CEO

Lidong Zhu (55yo)

1.4yrs

Tenure

CN¥588,000

Compensation

Mr. Lidong Zhu is the Chairman of the board and the General Manager of Binjiang Property since November 2006 and February 2010, respectively. From February 2017 to September 2018, Mr. Zhu was the Deputy Ge ...


CEO Compensation Analysis

Compensation vs Market: Lidong's total compensation ($USD84.16K) is below average for companies of similar size in the Hong Kong market ($USD338.66K).

Compensation vs Earnings: Insufficient data to compare Lidong's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Lidong Zhu
Chairman & President1.4yrsCN¥588.00kno data
Ruoqin Zhong
Joint Company Secretary1.4yrsCN¥214.00kno data
Dong Zhou
Financial Controller1.5yrsno datano data
Guoyi Wang
Deputy General Manager10.2yrsno datano data
Guorong Shen
Deputy General Manager10.2yrsno datano data
Weiqi Yu
Deputy General Manager10.2yrsno datano data
Chunlan Guo
Deputy General Manager10.2yrsno datano data
Mei Ying Ko
Joint Company Secretary1.3yrsno datano data

5.8yrs

Average Tenure

38yo

Average Age

Experienced Management: 3316's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lidong Zhu
Chairman & President1.4yrsCN¥588.00kno data
Ruoqin Zhong
Joint Company Secretary1.4yrsCN¥214.00kno data
Jianhua Mo
Non-Executive Director2.2yrsno data12.89% CN¥441.2m
Jiangang Ding
Independent Non-Executive Director1yrsno datano data
Xin Cai
Non-Executive Director1.4yrsno datano data
Kunjun Li
Independent Non-Executive Director1yrsno datano data
Haijing Cai
Independent Non-Executive Director1yrsno datano data

1.4yrs

Average Tenure

43yo

Average Age

Experienced Board: 3316's board of directors are not considered experienced ( 1.4 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.


Ownership Breakdown

Dilution of Shares: 3316 only recently listed within the past 12 months, with total shares outstanding growing by 11% in the past year..


Top Shareholders

Company Information

Binjiang Services Group Co. Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Binjiang Services Group Co. Ltd.
  • Ticker: 3316
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: HK$3.422b
  • Shares outstanding: 276.41m
  • Website: https://www.hzbjwy.com

Number of Employees


Location

  • Binjiang Services Group Co. Ltd.
  • New Town Times Square
  • Block 1
  • Hangzhou
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3316SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2019

Biography

Binjiang Services Group Co. Ltd. provides property management services focusing on high-end residential properties in China. The company’s property management services include security, cleaning, gardening, repair, maintenance, and ancillary services to common area of residential and non-residential properties, such as commercial properties, office buildings, corporate headquarter buildings, public facilities, and industrial parks. It also offers value-added services to non-property owners comprising pre-delivery, consulting, and community space services, primarily to property developers. In addition, the company provides value-added services to property owners, which include community value-added, customized interior furnishing, and property agent services; and personal training at club houses, business center and/or parking lot management services, and customized interior furnishing services. It serves property owners and residents, property developers, and property management companies. The company was founded in 1995 and is headquartered in Hangzhou, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 13:16
End of Day Share Price2020/02/17 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.