SEHK:281

Stock Analysis Report

Executive Summary

Rivera (Holdings) Limited, an investment holding company, engages in property development and investment, and securities trading and investment businesses in Hong Kong, Macau, and Mainland China.

Rewards

Trading at 51.4% below its fair value

Risk Analysis

Earnings have declined by -3.92% per year over past 5 years

High level of non-cash earnings

Makes less than USD$1m in revenue (HK$4M)

Dividend of 8.33% is not well covered by earnings



Snowflake Analysis

Good value second-rate dividend payer.


Similar Companies

Share Price & News

How has Rivera (Holdings)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 281 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

281

5.0%

HK Capital Markets

2.9%

HK Market


1 Year Return

-25.0%

281

-7.1%

HK Capital Markets

-3.8%

HK Market

Return vs Industry: 281 underperformed the Hong Kong Capital Markets industry which returned -6.3% over the past year.

Return vs Market: 281 underperformed the Hong Kong Market which returned -2.9% over the past year.


Shareholder returns

281IndustryMarket
7 Day-1.0%5.0%2.9%
30 Day-7.7%-4.2%-4.1%
90 Day-2.0%8.8%2.9%
1 Year-19.3%-25.0%-4.3%-7.1%-0.2%-3.8%
3 Year4.4%-17.2%-15.1%-22.9%15.3%3.7%
5 Year75.5%28.0%-10.5%-25.2%16.8%-2.7%

Price Volatility Vs. Market

How volatile is Rivera (Holdings)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rivera (Holdings) 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: 281 (HK$0.48) is trading below our estimate of fair value (HK$0.99)

Significantly Below Fair Value: 281 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 281 is good value based on its PE Ratio (11.3x) compared to the Capital Markets industry average (14x).

PE vs Market: 281 is poor value based on its PE Ratio (11.3x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 281's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 281 is good value based on its PB Ratio (0.5x) compared to the HK Capital Markets industry average (0.6x).


Next Steps

Future Growth

How is Rivera (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.5%

Forecasted Diversified Financials 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 Rivera (Holdings) 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 Rivera (Holdings) performed over the past 5 years?

-3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 281 has a high level of non-cash earnings.

Growing Profit Margin: 281's current net profit margins are higher than last year .


Past Earnings Growth Analysis

Earnings Trend: 281's earnings have declined by -3.9% per year over the past 5 years.

Accelerating Growth: 281's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 281 had negative earnings growth (-33.2%) over the past year, making it difficult to compare to the Capital Markets industry average (-24.5%).


Return on Equity

High ROE: 281's Return on Equity (4.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rivera (Holdings)'s financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 281 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 281's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: 281's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 281 has a sufficient allowance for bad loans.

Low Risk Liabilities: 281 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 281 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 281 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 281 has an appropriate level of bad loans.


Next Steps

Dividend

What is Rivera (Holdings)'s current dividend yield, its reliability and sustainability?

8.33%

Current Dividend Yield


Dividend Yield vs Market

company8.3%marketbottom25%2.2%markettop25%6.3%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 281's dividend (8.33%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 281's dividend (8.33%) is in the top 25% of dividend payers in the Hong Kong market (6.34%)


Stability and Growth of Payments

Stable Dividend: 281's dividend payments have been volatile in the past 10 years.

Growing Dividend: 281's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (94.1%), 281's dividend payments are not 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?

10.5yrs

Average management tenure


CEO

Rivera (Holdings) has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Albert Tong
Executive Director18.9yrsHK$997.00k3.96% HK$49.5m
Feng Hsu
Executive Director30.1yrsno data3.96% HK$49.5m
Sau King Kwok
Financial Controller20.4yrsno datano data
Chi Kar Tong
Executive Director0.5yrsno datano data
Haisheng Zhao
Executive Director0.5yrsno datano data
Yuen Lee
Company Secretary21.9yrsno datano data

10.5yrs

Average Tenure

47.5yo

Average Age

Experienced Management: 281's management team is seasoned and experienced (10.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Albert Tong
Executive Director18.9yrsHK$997.00k3.96% HK$49.5m
Feng Hsu
Executive Director30.1yrsno data3.96% HK$49.5m
Chi Kar Tong
Executive Director0.5yrsno datano data
Haisheng Zhao
Executive Director0.5yrsno datano data
Tze-Chun Sung
Non-Executive Director14.1yrsno datano data
Hong Zhang
Independent Non-Executive Director14.8yrsHK$124.00kno data
Ying Liu
Non-Executive Chairman2.1yrsno datano data
Chi Ng
Independent Non-Executive Director0.6yrsno datano data

8.1yrs

Average Tenure

45.5yo

Average Age

Experienced Board: 281's board of directors are considered experienced (8.1 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

Rivera (Holdings) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rivera (Holdings) Limited
  • Ticker: 281
  • Exchange: SEHK
  • Founded: 1964
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: HK$1.252b
  • Shares outstanding: 2.61b
  • Website: https://www.rivera.com.hk

Number of Employees


Location

  • Rivera (Holdings) Limited
  • Wing On Centre
  • Rooms 1501-2 and 1507-12
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
281SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
RIADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Rivera (Holdings) Limited, an investment holding company, engages in property development and investment, and securities trading and investment businesses in Hong Kong, Macau, and Mainland China. The company develops, sells, and leases residential and commercial cum-office development projects; and holds, sells, and leases approximately 300 car parking spaces. It also engages in investment management activities. The company was incorporated in 1964 and is based in Central, Hong Kong. Rivera (Holdings) Limited is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 12:48
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.