SEHK:3319

Stock Analysis Report

Executive Summary

A-Living Services Co., Ltd., together with its subsidiaries, provide property management and related value-added services in the People’s Republic of China.

Rewards

Trading at 53.9% below its fair value

Earnings are forecast to grow 27.56% per year

Earnings grew by 98.1% over the past year

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Exceptional growth potential with solid track record.

Share Price & News

How has A-Living Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3319's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.0%

3319

-0.3%

HK Commercial Services

0.6%

HK Market


1 Year Return

140.8%

3319

29.6%

HK Commercial Services

-0.06%

HK Market

Return vs Industry: 3319 exceeded the Hong Kong Commercial Services industry which returned 29.6% over the past year.

Return vs Market: 3319 exceeded the Hong Kong Market which returned -0.1% over the past year.


Shareholder returns

3319IndustryMarket
7 Day-6.0%-0.3%0.6%
30 Day0%-3.5%-3.6%
90 Day54.3%10.2%-0.01%
1 Year148.2%140.8%32.6%29.6%3.5%-0.06%
3 Yearn/a-26.4%-31.9%19.5%7.4%
5 Yearn/a-45.2%-51.1%18.4%-1.4%

Price Volatility Vs. Market

How volatile is A-Living Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is A-Living Services 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: 3319 (HK$25) is trading below our estimate of fair value (HK$54.18)

Significantly Below Fair Value: 3319 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3319 is poor value based on its PE Ratio (29.7x) compared to the Commercial Services industry average (13x).

PE vs Market: 3319 is poor value based on its PE Ratio (29.7x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 3319 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 3319 is overvalued based on its PB Ratio (5.4x) compared to the HK Commercial Services industry average (1.2x).


Next Steps

Future Growth

How is A-Living Services forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

27.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3319's forecast earnings growth (27.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 3319's earnings (27.6% per year) are forecast to grow faster than the Hong Kong market (11.9% per year).

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

Revenue vs Market: 3319's revenue (38.6% per year) is forecast to grow faster than the Hong Kong market (9.8% per year).

High Growth Revenue: 3319's revenue (38.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3319's Return on Equity is forecast to be high in 3 years time (26.8%)


Next Steps

Past Performance

How has A-Living Services performed over the past 5 years?

53.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3319 has high quality earnings.

Growing Profit Margin: 3319's current net profit margins (24%) are higher than last year (20.6%).


Past Earnings Growth Analysis

Earnings Trend: 3319's earnings have grown significantly by 53.7% per year over the past 5 years.

Accelerating Growth: 3319's earnings growth over the past year (98.1%) exceeds its 5-year average (53.7% per year).

Earnings vs Industry: 3319 earnings growth over the past year (98.1%) exceeded the Commercial Services industry 5.7%.


Return on Equity

High ROE: 3319's Return on Equity (18.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is A-Living Services's financial position?


Financial Position Analysis

Short Term Liabilities: 3319's short term assets (CN¥6.4B) exceed its short term liabilities (CN¥2.7B).

Long Term Liabilities: 3319's short term assets (CN¥6.4B) exceed its long term liabilities (CN¥189.1M).


Debt to Equity History and Analysis

Debt Level: 3319's debt to equity ratio (1.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 3319's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 3319's debt is well covered by operating cash flow (1224.2%).

Interest Coverage: 3319 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 3319 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 3319's debt is covered by short term assets (assets are 64.8x debt).


Next Steps

Dividend

What is A-Living Services's current dividend yield, its reliability and sustainability?

0.67%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%2.3%markettop25%6.3%industryaverage1.8%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: 3319's dividend (0.67%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 3319's dividend (0.67%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.26%).


Stability and Growth of Payments

Stable Dividend: 3319 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 3319 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: 3319 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 3319's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of A-Living Services's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Fengchao Huang (57yo)

1.1yrs

Tenure

0

Mr. Huang Fengchao serves as Chief Executive Officer and General Manager at A-Living Services Co., Ltd since May 28, 2019. Mr. Huang served as Acting Chief Executive Officer at A-Living Services Co., Ltd s ...


Management Age and Tenure

2.0yrs

Average Tenure

52yo

Average Age

Experienced Management: 3319's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 3319's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCN¥150,274,74403 Dec 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares5,479,000
Max PriceCN¥27.43
BuyCN¥19,207,91328 Oct 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares856,250
Max PriceCN¥22.43
SellCN¥152,161,63922 Oct 19
Segantii Capital Management Limited
EntityCompany
Shares7,034,750
Max PriceCN¥21.63
SellCN¥83,889,75722 Oct 19
Segantii Capital Management Limited
EntityCompany
Shares3,806,250
Max PriceCN¥22.04
BuyCN¥588,804,08218 Oct 19
Segantii Capital Management Limited
EntityCompany
Shares27,800,000
Max PriceCN¥21.18
SellCN¥1,059,000,14818 Oct 19
Greenland Holdings Corporation Limited
EntityCompany
Shares50,000,000
Max PriceCN¥21.18
BuyCN¥4,613,80005 Sep 19
Toscafund Asset Management LLP
EntityCompany
Shares295,000
Max PriceCN¥15.64
BuyCN¥9,217,95129 Aug 19
Van Eck Associates Corporation
EntityCompany
Shares609,250
Max PriceCN¥15.13
SellCN¥17,484,96704 Jul 19
Toscafund Asset Management LLP
EntityCompany
Shares1,262,817
Max PriceCN¥13.85
SellCN¥6,189,75117 Jun 19
Toscafund Asset Management LLP
EntityCompany
Shares525,000
Max PriceCN¥11.79
BuyCN¥50,058,28017 May 19
Van Eck Associates Corporation
EntityCompany
Shares4,510,000
Max PriceCN¥11.10
BuyCN¥8,350,14808 May 19
Toscafund Asset Management LLP
EntityCompany
Shares685,000
Max PriceCN¥12.19
SellCN¥3,188,16518 Mar 19
Toscafund Asset Management LLP
EntityCompany
Shares261,325
Max PriceCN¥12.20
SellCN¥9,318,74011 Feb 19
Toscafund Asset Management LLP
EntityCompany
Shares850,250
Max PriceCN¥10.96
BuyCN¥7,451,73410 Jan 19
Toscafund Asset Management LLP
EntityCompany
Shares702,994
Max PriceCN¥10.60

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.9%.


Management Team

  • Cheuk Hung Chan (62yo)

    Co-Chairman of the Board

    • Tenure: 2.3yrs
  • Fengchao Huang (57yo)

    CEO, GM & Co-Chairman

    • Tenure: 1.1yrs
  • Xin Feng (47yo)

    VP & Executive Director

    • Tenure: 2.4yrs
    • Compensation: CN¥2.05m
  • Dalong Li (34yo)

    Joint Company Secretary & CFO

    • Tenure: 3.3yrs
  • Yee Man Choy

    Joint Company Secretary

    • Tenure: 2.3yrs

Board Members

  • Cheuk Hung Chan (62yo)

    Co-Chairman of the Board

    • Tenure: 2.3yrs
  • Fengchao Huang (57yo)

    CEO, GM & Co-Chairman

    • Tenure: 1.1yrs
  • Liru Chen (50yo)

    President of the Supervisory Committee

    • Tenure: 2.4yrs
  • Joseph Wan (65yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥310.00k
  • Yuan Yue (43yo)

    Non-Executive Director

    • Tenure: 0.6yrs
  • Xin Feng (47yo)

    VP & Executive Director

    • Tenure: 2.4yrs
    • Compensation: CN¥2.05m
  • Xianzhong Wei (55yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥317.00k
  • Kam To Wan (66yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥310.00k
  • Peng Wang (43yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
  • Zhengyu Shi (46yo)

    Supervisor

    • Tenure: 2.4yrs

Company Information

A-Living Services Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: A-Living Services Co., Ltd.
  • Ticker: 3319
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: HK$34.067b
  • Shares outstanding: 1.33b
  • Website: https://www.agileliving.com.cn

Number of Employees


Location

  • A-Living Services Co., Ltd.
  • Agile Center
  • 35th Floor
  • Guangzhou
  • Guangdong Province
  • 510623
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3319SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDFeb 2018

Biography

A-Living Services Co., Ltd., together with its subsidiaries, provide property management and related value-added services in the People’s Republic of China. It operates through three segments: Property Man ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 13:15
End of Day Share Price2019/12/10 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.