SEHK:226

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Executive Summary

Lippo Limited, an investment holding company, engages in the food, property investment and development, treasury investment, securities investment, healthcare services, banking, mineral exploration and extraction, and other businesses.


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Lippo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 226's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.3%

226

2.2%

HK Consumer Retailing

5.8%

HK Market


1 Year Return

-28.0%

226

44.7%

HK Consumer Retailing

-4.0%

HK Market

Return vs Industry: 226 underperformed the Hong Kong Consumer Retailing industry which returned 44.7% over the past year.

Return vs Market: 226 underperformed the Hong Kong Market which returned -4% over the past year.


Shareholder returns

226IndustryMarket
7 Day1.3%2.2%5.8%
30 Day-11.9%-9.4%4.0%
90 Day-15.2%3.0%-2.6%
1 Year-25.5%-28.0%47.4%44.7%-0.6%-4.0%
3 Year-47.6%-51.6%21.3%15.7%1.3%-9.2%
5 Year-45.9%-53.1%39.8%24.5%-9.2%-23.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 226 (HK$2.29) is trading above our estimate of fair value (HK$1.49)

Significantly Below Fair Value: 226 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 226 is good value based on its PE Ratio (8.2x) compared to the Consumer Retailing industry average (17.2x).

PE vs Market: 226 is good value based on its PE Ratio (8.2x) compared to the Hong Kong market (9.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 226's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 226 is good value based on its PB Ratio (0.1x) compared to the HK Consumer Retailing industry average (0.8x).


Next Steps

Future Growth

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

13.6%

Forecasted Consumer Retailing 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 Lippo 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 Lippo performed over the past 5 years?

-43.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 226 has a large one-off gain of HK$966.5M impacting its September 30 2019 financial results.

Growing Profit Margin: 226 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 226 has become profitable over the past 5 years, growing earnings by -43.2% per year.

Accelerating Growth: 226 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 226 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (5.3%).


Return on Equity

High ROE: 226's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

How is Lippo's financial position?


Financial Position Analysis

Short Term Liabilities: 226's short term assets (HK$2.9B) exceed its short term liabilities (HK$2.2B).

Long Term Liabilities: 226's short term assets (HK$2.9B) exceed its long term liabilities (HK$1.1B).


Debt to Equity History and Analysis

Debt Level: 226's debt to equity ratio (13.9%) is considered satisfactory.

Reducing Debt: 226's debt to equity ratio has increased from 12.2% to 13.9% over the past 5 years.

Debt Coverage: 226's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 226's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Lippo's current dividend yield, its reliability and sustainability?

3.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 226's dividend (3.93%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.43%).

High Dividend: 226's dividend (3.93%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.03%).


Stability and Growth of Payments

Stable Dividend: 226's dividend payments have been volatile in the past 10 years.

Growing Dividend: 226's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.2%), 226'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?

8.9yrs

Average management tenure


CEO

John Lee (70yo)

no data

Tenure

HK$16,797,000

Compensation

Mr. Lee Luen-Wai, also known as John, BBS, FCA, JP serves as Principal at Go Capital & EOC. Mr. Lee has been the Chief Executive Officer of Lippo China Resources Limited since March 25, 2011. Mr. Lee has b ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD2.17M) is above average for companies of similar size in the Hong Kong market ($USD228.98K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Riady
Chairman & Executive President29.42yrsHK$39.47mno data
Luen-Wai Lee
MD, CEO & Executive Directorno dataHK$16.80m0.21% HK$2.4m
Shiu Leung Au
Chief Financial Officer8.92yrsno datano data
Kwok Fai Lee
Company Secretary29.17yrsno datano data

8.9yrs

Average Tenure

Experienced Management: 226's management team is seasoned and experienced (8.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Riady
Chairman & Executive President29.42yrsHK$39.47mno data
Luen-Wai Lee
MD, CEO & Executive Directorno dataHK$16.80m0.21% HK$2.4m
Mochtar Riady
Honorary Chairman17.17yrsno datano data
Jark Lee
Non-Executive Director5.25yrsHK$239.00k0.000010% HK$112.9
Edwin Neo
Independent Non-Executive Director18.25yrsHK$1.18mno data
Nim Leung Chan
Non Executive Director23.42yrsHK$1.21mno data
Ha Kuk Yung
Independent Non Executive Director15.75yrsHK$1.24mno data
King Fai Tsui
Independent Non-Executive Director15.75yrsHK$1.37mno data

17.2yrs

Average Tenure

69yo

Average Age

Experienced Board: 226's board of directors are seasoned and experienced ( 17.2 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

Lippo Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lippo Limited
  • Ticker: 226
  • Exchange: SEHK
  • Founded:
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: HK$1.129b
  • Shares outstanding: 493.15m
  • Website: https://www.lippoltd.com.hk

Number of Employees


Location

  • Lippo Limited
  • Tower Two
  • 40th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LIPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1993
226SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 1993

Biography

Lippo Limited, an investment holding company, engages in the food, property investment and development, treasury investment, securities investment, healthcare services, banking, mineral exploration and extraction, and other businesses. It distributes consumer food and non-food products; and operates and manages restaurants and food courts, as well as manufactures and retails food products. The company is also involved in the development, letting, sale, and resale of real estate properties; money market and securities investment activities; provision of healthcare management services; and exploration, extraction, and processing of minerals. In addition, it provides commercial and retail banking services; property, project, and fund management, and investment advisory services, as well as invests in a closed-end fund; and money lending services. Further, the company operates a hotel; develops software products; and provides management, commercial consulting, and financing services, as well as owns a motor yacht. The company operates in Hong Kong, Macau, Mainland China, Singapore, Malaysia, and internationally. Lippo Limited is headquartered in Central, Hong Kong. Lippo Limited is a subsidiary of Lippo Capital Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 13:08
End of Day Share Price2020/06/05 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.