SEHK:373

Stock Analysis Report

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Executive Summary

Allied Group Limited, an investment holding company, engages in the property investment and development, and financial service businesses in Hong Kong, Mainland China, and internationally. More Details


Snowflake Analysis

Fair value with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 373's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-14.8%

373

-4.1%

HK Consumer Finance

-0.6%

HK Market


1 Year Return

38.7%

373

-4.4%

HK Consumer Finance

0.9%

HK Market

Return vs Industry: 373 exceeded the Hong Kong Consumer Finance industry which returned -4.4% over the past year.

Return vs Market: 373 exceeded the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

373IndustryMarket
7 Day-14.8%-4.1%-0.6%
30 Day-14.2%-5.4%0.02%
90 Day4.8%-4.2%-1.7%
1 Year53.3%38.7%-1.3%-4.4%5.1%0.9%
3 Year44.8%18.2%-7.2%-17.3%-6.1%-16.3%
5 Year104.9%53.8%-25.1%-37.0%14.1%-5.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

33.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 373 (HK$2.83) is trading below our estimate of fair value (HK$4.26)

Significantly Below Fair Value: 373 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 373 is poor value based on its PE Ratio (6.5x) compared to the HK Consumer Finance industry average (5.8x).

PE vs Market: 373 is good value based on its PE Ratio (6.5x) compared to the Hong Kong market (11.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 373's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 373's PB Ratio (0.4x) is in line with the HK Consumer Finance industry average.


Next Steps

Future Growth

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

25.4%

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 Allied 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 Allied Group performed over the past 5 years?

-1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 373 has a large one-off gain of HK$1.5B impacting its June 30 2020 financial results.

Growing Profit Margin: 373's current net profit margins (33%) are higher than last year (31.4%).


Past Earnings Growth Analysis

Earnings Trend: 373's earnings have declined by 1.5% per year over the past 5 years.

Accelerating Growth: 373's earnings growth over the past year (0.7%) exceeds its 5-year average (-1.5% per year).

Earnings vs Industry: 373 earnings growth over the past year (0.7%) exceeded the Consumer Finance industry -19.7%.


Return on Equity

High ROE: 373's Return on Equity (6.2%) is considered low.


Next Steps

Financial Health

How is Allied Group's financial position?


Financial Position Analysis

Short Term Liabilities: 373's short term assets (HK$29.9B) exceed its short term liabilities (HK$14.3B).

Long Term Liabilities: 373's short term assets (HK$29.9B) exceed its long term liabilities (HK$8.6B).


Debt to Equity History and Analysis

Debt Level: 373's debt to equity ratio (43.8%) is considered high.

Reducing Debt: 373's debt to equity ratio has increased from 27.5% to 43.8% over the past 5 years.

Debt Coverage: 373's debt is not well covered by operating cash flow (18.6%).

Interest Coverage: Insufficient data to determine if 373's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Allied Group current dividend yield, its reliability and sustainability?

4.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 373's dividend (4.42%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 373's dividend (4.42%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.81%).


Stability and Growth of Payments

Stable Dividend: 373's dividend payments have been volatile in the past 10 years.

Growing Dividend: 373's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.7%), 373'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?

4.6yrs

Average management tenure


CEO

Seng-Hui Lee (51 yo)

22.75yrs

Tenure

HK$61,950,000

Compensation

Mr. Seng-Hui Lee, LLB (Hons), has been the Chief Executive Officer of Allied Group Limited since January 1998. Mr. Lee has been the Chief Executive of Allied Properties (H.K.) Limited since June 18, 2010. ...


CEO Compensation Analysis

Compensation vs Market: Seng-Hui's total compensation ($USD7.99M) is above average for companies of similar size in the Hong Kong market ($USD559.67K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Seng-Hui Lee
CEO & Executive Director22.75yrsHK$61.95m0.013%
HK$ 1.3m
King Yau Lo
Executive Director20.42yrsHK$8.93mno data
Pak Hung Mak
Executive Director14.75yrsHK$4.29mno data
Kam Wing Lam
Group Financial Controller2.25yrsno datano data
Tai Chun Wong
Director of Investment13.08yrsno datano data
Chi Kong Li
General Consultant2.25yrsno datano data
Seng Wei Lee
Chief Executive of Allied Properties and Director of Allied Propertiesno datano datano data
Tung Ni Lau
Company Secretary4.58yrsno datano data

4.6yrs

Average Tenure

57yo

Average Age

Experienced Management: 373's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Seng-Hui Lee
CEO & Executive Director22.75yrsHK$61.95m0.013%
HK$ 1.3m
King Yau Lo
Executive Director20.42yrsHK$8.93mno data
Pak Hung Mak
Executive Director14.75yrsHK$4.29mno data
Seng Wei Lee
Chief Executive of Allied Properties and Director of Allied Propertiesno datano datano data
Su Hwei Lee
Non-Executive Director20.42yrsno datano data
Arthur George Dew
Chairman of the Board13.75yrsHK$4.61mno data
David Craig Bartlett
Independent Non-Executive Director20.83yrsHK$410.00kno data
Lai Sum Yang
Independent Non-Executive Director6.92yrsHK$110.00kno data
Alan Stephen Jones
Independent Non-Executive Director14.75yrsHK$840.00kno data
Kwok Wing Chau
Independent Non-Executive Director0.33yrno datano data

14.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 373's board of directors are seasoned and experienced ( 14.8 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

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


Key Information

  • Name: Allied Group Limited
  • Ticker: 373
  • Exchange: SEHK
  • Founded: 1972
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: HK$9.948b
  • Shares outstanding: 3.52b
  • Website: https://www.alliedgroup.com.hk

Number of Employees


Location

  • Allied Group Limited
  • Allied Kajima Building
  • 22nd Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
373SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
ALED.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJan 2011

Biography

Allied Group Limited, an investment holding company, engages in the property investment and development, and financial service businesses in Hong Kong, Mainland China, and internationally. The company oper ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/17 12:33
End of Day Share Price2020/10/16 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.