Declared Dividend • Mar 30
Final dividend reduced to HK$0.01 Dividend of HK$0.01 is 80% lower than last year. Ex-date: 23rd June 2026 Payment date: 31st July 2026 Dividend yield will be 1.3%, which is lower than the industry average of 6.6%. Sustainability & Growth The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Reported Earnings • Mar 28
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: HK$0.28 loss per share (down from HK$0.11 profit in FY 2024). Revenue: HK$1.99b (down 72% from FY 2024). Net loss: HK$869.3m (down 359% from profit in FY 2024). Revenue exceeded analyst estimates by 9.7%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 2.8% growth forecast for the Real Estate industry in Hong Kong. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 78 percentage points per year, which is a significant difference in performance. Announcement • Mar 27
K. Wah International Holdings Limited, Annual General Meeting, Jun 17, 2026 K. Wah International Holdings Limited, Annual General Meeting, Jun 17, 2026. Announcement • Mar 13
K. Wah International Holdings Limited to Report Fiscal Year 2025 Results on Mar 27, 2026 K. Wah International Holdings Limited announced that they will report fiscal year 2025 results at 9:30 AM, China Standard Time on Mar 27, 2026 New Risk • Mar 09
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2025. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported June 2025 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (4.2% net profit margin). Valuation Update With 7 Day Price Move • Jan 27
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$2.52, the stock trades at a forward P/E ratio of 56x. Average forward P/E is 11x in the Real Estate industry in Hong Kong. Total returns to shareholders of 4.9% over the past three years. Major Estimate Revision • Aug 28
Consensus revenue estimates increase by 20%, EPS downgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from HK$4.83b to HK$5.81b. EPS estimate fell from HK$0.26 to HK$0.114. Net income forecast to grow 0.9% next year vs 42% growth forecast for Real Estate industry in Hong Kong. Consensus price target up from HK$2.36 to HK$2.62. Share price was steady at HK$2.24 over the past week. Declared Dividend • Aug 23
First half dividend reduced to HK$0.02 Dividend of HK$0.02 is 50% lower than last year. Ex-date: 8th September 2025 Payment date: 27th October 2025 Dividend yield will be 3.1%, which is lower than the industry average of 6.6%. Sustainability & Growth Dividend is covered by both earnings (75% earnings payout ratio) and cash flows (9% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to decline by 17% over the next year. A fall of 17% would increase the payout ratio to a potentially unsustainable range, which means the dividend may be at risk. Price Target Changed • Aug 23
Price target increased by 11% to HK$2.62 Up from HK$2.36, the current price target is provided by 1 analyst. New target price is 16% above last closing price of HK$2.26. Stock is up 31% over the past year. The company is forecast to post earnings per share of HK$0.11 for next year compared to HK$0.11 last year. Reported Earnings • Aug 22
First half 2025 earnings released: EPS: HK$0.036 (vs HK$0.049 in 1H 2024) First half 2025 results: EPS: HK$0.036 (down from HK$0.049 in 1H 2024). Revenue: HK$1.05b (down 13% from 1H 2024). Net income: HK$113.9m (down 26% from 1H 2024). Profit margin: 11% (down from 13% in 1H 2024). The decrease in margin was driven by lower revenue. Revenue is expected to decline by 52% p.a. on average during the next 2 years, while revenues in the Real Estate industry in Hong Kong are expected to grow by 3.3%. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 73 percentage points per year, which is a significant difference in performance. Announcement • Aug 09
K. Wah International Holdings Limited to Report First Half, 2025 Results on Aug 21, 2025 K. Wah International Holdings Limited announced that they will report first half, 2025 results on Aug 21, 2025 Upcoming Dividend • Jun 16
Upcoming dividend of HK$0.05 per share Eligible shareholders must have bought the stock before 23 June 2025. Payment date: 31 July 2025. Payout ratio is on the higher end at 85%, however this is supported by cash flows. Trailing yield: 4.9%. Lower than top quartile of Hong Kong dividend payers (7.5%). In line with average of industry peers (5.0%). Reported Earnings • May 04
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: HK$0.11 (down from HK$0.26 in FY 2023). Revenue: HK$7.19b (up 18% from FY 2023). Net income: HK$335.1m (down 58% from FY 2023). Profit margin: 4.7% (down from 13% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 37%. Revenue is expected to decline by 42% p.a. on average during the next 2 years, while revenues in the Real Estate industry in Hong Kong are expected to grow by 4.1%. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 63 percentage points per year, which is a significant difference in performance. Declared Dividend • Mar 30
Final dividend reduced to HK$0.05 Dividend of HK$0.05 is 44% lower than last year. Ex-date: 23rd June 2025 Payment date: 31st July 2025 Dividend yield will be 4.8%, which is lower than the industry average of 6.6%. Sustainability & Growth The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to decline by 30% over the next 2 years. Since a fall of 5.9% would increase the payout ratio to a potentially unsustainable range, the dividend may be at risk. New Risk • Mar 28
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 4.7% Last year net profit margin: 13% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 14% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (4.7% net profit margin). Reported Earnings • Mar 28
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: HK$0.11 (down from HK$0.26 in FY 2023). Revenue: HK$7.19b (up 18% from FY 2023). Net income: HK$335.1m (down 58% from FY 2023). Profit margin: 4.7% (down from 13% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 37%. Revenue is expected to decline by 42% p.a. on average during the next 2 years, while revenues in the Real Estate industry in Hong Kong are expected to grow by 4.2%. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 64 percentage points per year, which is a significant difference in performance. Announcement • Mar 13
K. Wah International Holdings Limited to Report Q4, 2024 Results on Mar 27, 2025 K. Wah International Holdings Limited announced that they will report Q4, 2024 results on Mar 27, 2025 New Risk • Jan 24
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 14% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 14% per year for the foreseeable future. Minor Risk Paying a dividend despite having no free cash flows. Price Target Changed • Jan 23
Price target decreased by 12% to HK$2.43 Down from HK$2.76, the current price target is provided by 1 analyst. New target price is 44% above last closing price of HK$1.69. Stock is down 13% over the past year. The company is forecast to post earnings per share of HK$0.17 for next year compared to HK$0.26 last year. New Risk • Jan 23
New major risk - Revenue and earnings growth Earnings have declined by 31% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 31% per year over the past 5 years. Minor Risk Paying a dividend despite having no free cash flows. Valuation Update With 7 Day Price Move • Oct 02
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$2.02, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 8x in the Real Estate industry in Hong Kong. Total loss to shareholders of 21% over the past three years. Reported Earnings • Sep 26
First half 2024 earnings released: EPS: HK$0.049 (vs HK$0.15 in 1H 2023) First half 2024 results: EPS: HK$0.049 (down from HK$0.15 in 1H 2023). Revenue: HK$1.21b (down 61% from 1H 2023). Net income: HK$153.8m (down 68% from 1H 2023). Profit margin: 13% (down from 16% in 1H 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 4.7% growth forecast for the Real Estate industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Aug 28
Consensus EPS estimates fall by 34% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from HK$6.51b to HK$6.43b. EPS estimate also fell from HK$0.29 per share to HK$0.19 per share. Net income forecast to grow 59% next year vs 20% growth forecast for Real Estate industry in Hong Kong. Consensus price target broadly unchanged at HK$2.72. Share price fell 4.4% to HK$1.72 over the past week. Reported Earnings • Aug 24
First half 2024 earnings released: EPS: HK$0.049 (vs HK$0.15 in 1H 2023) First half 2024 results: EPS: HK$0.049 (down from HK$0.15 in 1H 2023). Revenue: HK$1.21b (down 61% from 1H 2023). Net income: HK$153.8m (down 68% from 1H 2023). Profit margin: 13% (down from 16% in 1H 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 5.5% growth forecast for the Real Estate industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has only fallen by 21% per year, which means it has not declined as severely as earnings. Declared Dividend • Aug 23
First half dividend reduced to HK$0.04 Dividend of HK$0.04 is 43% lower than last year. Ex-date: 6th September 2024 Payment date: 25th October 2024 Dividend yield will be 7.6%, which is higher than the industry average of 6.6%. Sustainability & Growth Dividend is covered by both earnings (59% earnings payout ratio) and cash flows (75% cash payout ratio). The dividend has increased over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 44% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • Aug 21
K. Wah International Holdings Limited Declares an Interim Cash Dividend for the Six Months Ended 30 June 2024, Payable on 25 October 2024 K. Wah International Holdings Limited has declared an interim cash dividend of HKD 0.04 per share for the six months ended 30 June 2024, payable on 25 October 2024. Ex-dividend date is 06 September 2024. Record date is 13 September 2024. Announcement • Aug 07
K. Wah International Holdings Limited to Report First Half, 2024 Results on Aug 21, 2024 K. Wah International Holdings Limited announced that they will report first half, 2024 results on Aug 21, 2024 Buy Or Sell Opportunity • Jul 02
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.5% to HK$1.71. The fair value is estimated to be HK$2.18, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 15% over the last 3 years. Earnings per share has declined by 36%. Revenue is forecast to grow by 13% in 2 years. Earnings are forecast to grow by 19% in the next 2 years. Announcement • Jun 26
K. Wah International Holdings Limited Approves Final Dividend for the Year Ended 31 December 2023, Payable on July 24, 2024 On 28 March 2024, the board of directors of K. Wah International Holdings Limited had resolved to recommend that a final dividend for the year ended 31 December 2023 of HKD 0.09 per issued share of the Company be paid on 24 July 2024 to the shareholders of the Company whose names appear on the registers of members of the Company at the close of business on 24 June 2024. It was also resolved by the Board that the Final Dividend shall be satisfied by way of scrip dividend (with a cash option). An ordinary resolution to approve the Final Dividend was passed by the Shareholders at the annual general meeting of the Company held on 12 June 2024. To determine the entitlement of the Shareholders to the Final Dividend, the registers of members of the Company were closed from 19 June 2024 to 24 June 2024 (both dates inclusive) during which period no transfer of Shares will be registered. The latest date on which transfers were accepted for registration in order to qualify for the Final Dividend was before 4: 30 p.m. on 18 June 2024. Buy Or Sell Opportunity • Jun 24
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 12% to HK$1.71. The fair value is estimated to be HK$2.17, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 15% over the last 3 years. Earnings per share has declined by 36%. Revenue is forecast to grow by 13% in 2 years. Earnings are forecast to grow by 19% in the next 2 years. Recent Insider Transactions • Jun 19
Non-Executive Director recently bought HK$361k worth of stock On the 12th of June, Mo Chi Cheng bought around 200k shares on-market at roughly HK$1.80 per share. This transaction amounted to 54% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Upcoming Dividend • Jun 10
Upcoming dividend of HK$0.09 per share Eligible shareholders must have bought the stock before 17 June 2024. Payment date: 24 July 2024. Payout ratio is a comfortable 62% and the cash payout ratio is 97%. Trailing yield: 8.7%. Within top quartile of Hong Kong dividend payers (7.6%). Higher than average of industry peers (5.7%). Buy Or Sell Opportunity • Apr 02
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.7% to HK$1.76. The fair value is estimated to be HK$2.22, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 15% over the last 3 years. Earnings per share has declined by 36%. Revenue is forecast to grow by 13% in 2 years. Earnings are forecast to grow by 19% in the next 2 years. New Risk • Mar 31
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 8.9% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Announcement • Mar 29
K. Wah International Holdings Limited, Annual General Meeting, Jun 12, 2024 K. Wah International Holdings Limited, Annual General Meeting, Jun 12, 2024. Reported Earnings • Mar 29
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: HK$0.26 (down from HK$0.44 in FY 2022). Revenue: HK$6.10b (down 31% from FY 2022). Net income: HK$802.2m (down 42% from FY 2022). Profit margin: 13% (down from 16% in FY 2022). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 13%. Earnings per share (EPS) missed analyst estimates by 12%. Revenue is expected to decline by 19% p.a. on average during the next 2 years, while revenues in the Real Estate industry in Hong Kong are expected to grow by 6.2%. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 23% per year, which means it has not declined as severely as earnings. Announcement • Mar 15
K. Wah International Holdings Limited to Report Fiscal Year 2023 Results on Mar 28, 2024 K. Wah International Holdings Limited announced that they will report fiscal year 2023 results on Mar 28, 2024 Buying Opportunity • Oct 11
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 15%. The fair value is estimated to be HK$2.73, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.2% over the last 3 years. Earnings per share has declined by 30%. Revenue is forecast to decline by 14% in a year. Earnings is forecast to grow by 86% in the next year. Buying Opportunity • Sep 25
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 13%. The fair value is estimated to be HK$2.70, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.2% over the last 3 years. Earnings per share has declined by 30%. Revenue is forecast to decline by 14% in a year. Earnings is forecast to grow by 86% in the next year. Upcoming Dividend • Sep 05
Upcoming dividend of HK$0.07 per share at 8.8% yield Eligible shareholders must have bought the stock before 12 September 2023. Payment date: 26 October 2023. Payout ratio is on the higher end at 85%, however this is supported by cash flows. Trailing yield: 8.8%. Within top quartile of Hong Kong dividend payers (7.6%). Higher than average of industry peers (5.2%). Major Estimate Revision • Aug 30
Consensus revenue estimates fall by 22% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from HK$9.03b to HK$7.05b. EPS estimate fell from HK$0.41 to HK$0.37 per share. Net income forecast to grow 86% next year vs 35% growth forecast for Real Estate industry in Hong Kong. Consensus price target down from HK$3.87 to HK$3.50. Share price was steady at HK$2.40 over the past week. Price Target Changed • Aug 25
Price target decreased by 9.6% to HK$3.50 Down from HK$3.87, the current price target is provided by 1 analyst. New target price is 50% above last closing price of HK$2.33. Stock is down 21% over the past year. The company is forecast to post earnings per share of HK$0.37 for next year compared to HK$0.44 last year. Announcement • Aug 24
K. Wah International Holdings Limited Declares Interim Cash Dividend for the Six Months Ended 30 June 2023, Payable on 26 October 2023 K. Wah International Holdings Limited has declared an interim cash dividend for the six months ended 30 June 2023 of HKD 0.07 per share, payable on 26 October 2023. Ex-dividend date:12 September 2023. Record date:19 September 2023. Reported Earnings • Aug 24
First half 2023 earnings released: EPS: HK$0.15 (vs HK$0.34 in 1H 2022) First half 2023 results: EPS: HK$0.15 (down from HK$0.34 in 1H 2022). Revenue: HK$3.10b (down 43% from 1H 2022). Net income: HK$481.9m (down 55% from 1H 2022). Profit margin: 16% (down from 20% in 1H 2022). The decrease in margin was driven by lower revenue. Revenue is expected to decline by 28% p.a. on average during the next 2 years, while revenues in the Real Estate industry in Hong Kong are expected to grow by 10%. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Announcement • Aug 10
K. Wah International Holdings Limited to Report First Half, 2023 Results on Aug 23, 2023 K. Wah International Holdings Limited announced that they will report first half, 2023 results on Aug 23, 2023 Announcement • Jun 08
K. Wah International Holdings Limited Announces Executive Changes with Effect from the Conclusion of the AGM Held on June 7, 2023 K. Wah International Holdings Limited announced executive changes with effect from the conclusion of the AGM held on June 7, 2023. Dr. William Yip Shue Lam retired as an independent non-executive director of the Company and ceased to act as the chairman of each of the Audit Committee and the Remuneration Committee of the Company and a member of the Nomination Committee of the Company. Dr. William Yip Shue Lam had decided to allocate more time for his personal affairs and not to stand for re-election as an INED at the AGM. Mr. Nip Yun Wing, currently an INED and a member of the Audit Committee, has been appointed as the chairman of the Audit Committee and a member of the Remuneration Committee. Mr. Wong Kwai Lam, currently an INED and a member of each of the Remuneration Committee and the Nomination Committee, has been appointed as the chairman of the Remuneration Committee and will continue to be a member of the Nomination Committee. Mr. Cheung Kin Sang, currently an INED, has been appointed as a member of each of the Audit Committee and the Nomination Committee. Upcoming Dividend • Jun 07
Upcoming dividend of HK$0.14 per share at 8.0% yield Eligible shareholders must have bought the stock before 14 June 2023. Payment date: 21 July 2023. Payout ratio is a comfortable 48% and this is well supported by cash flows. Trailing yield: 8.0%. Within top quartile of Hong Kong dividend payers (7.7%). Higher than average of industry peers (5.2%). Major Estimate Revision • Mar 29
Consensus revenue estimates fall by 17% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from HK$10.8b to HK$9.03b. EPS estimate fell from HK$0.48 to HK$0.41 per share. Net income forecast to shrink 6.1% next year vs 12% growth forecast for Real Estate industry in Hong Kong . Consensus price target broadly unchanged at HK$3.87. Share price fell 2.1% to HK$2.79 over the past week. Reported Earnings • Mar 23
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: HK$0.44 (down from HK$1.07 in FY 2021). Revenue: HK$8.79b (down 46% from FY 2021). Net income: HK$1.37b (down 59% from FY 2021). Profit margin: 16% (down from 21% in FY 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 6.6%. Earnings per share (EPS) also missed analyst estimates by 8.7%. Revenue is expected to decline by 27% p.a. on average during the next 2 years, while revenues in the Real Estate industry in Hong Kong are expected to grow by 9.7%. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 7 highly experienced directors. 3 independent directors (5 non-independent directors). Independent Non-Executive Director Yun Wing Nip was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Sep 02
Upcoming dividend of HK$0.07 per share Eligible shareholders must have bought the stock before 09 September 2022. Payment date: 26 October 2022. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 7.2%. Lower than top quartile of Hong Kong dividend payers (8.2%). Higher than average of industry peers (5.9%). Major Estimate Revision • Aug 31
Consensus revenue estimates fall by 34% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from HK$16.2b to HK$10.6b. EPS estimate fell from HK$0.50 to HK$0.45 per share. Net income forecast to shrink 58% next year vs 10% growth forecast for Real Estate industry in Hong Kong . Consensus price target down from HK$3.92 to HK$3.84. Share price was steady at HK$2.96 over the past week. Reported Earnings • Aug 26
First half 2022 earnings released: EPS: HK$0.34 (vs HK$0.25 in 1H 2021) First half 2022 results: EPS: HK$0.34 (up from HK$0.25 in 1H 2021). Revenue: HK$5.39b (up 115% from 1H 2021). Net income: HK$1.08b (up 39% from 1H 2021). Profit margin: 20% (down from 31% in 1H 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is expected to shrink by 50% compared to a 13% growth forecast for the Real Estate industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 13% per year whereas the company’s share price has fallen by 10% per year. Upcoming Dividend • Jun 08
Upcoming dividend of HK$0.14 per share Eligible shareholders must have bought the stock before 15 June 2022. Payment date: 22 July 2022. Payout ratio is a comfortable 20% and this is well supported by cash flows. Trailing yield: 7.0%. Lower than top quartile of Hong Kong dividend payers (7.7%). Higher than average of industry peers (5.7%). Reported Earnings • Apr 28
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: HK$1.07 (up from HK$1.05 in FY 2020). Revenue: HK$16.2b (up 38% from FY 2020). Net income: HK$3.35b (up 2.6% from FY 2020). Profit margin: 21% (down from 28% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) exceeded analyst estimates by 18%. Over the next year, revenue is forecast to stay flat compared to a 16% growth forecast for the industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 21% per year whereas the company’s share price has fallen by 17% per year. Buying Opportunity • Apr 28
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 5.9%. The fair value is estimated to be HK$3.59, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 4.5% over the last 3 years. Earnings per share has declined by 21%. Revenue is forecast to decline by 46% in 2 years. Earnings is forecast to decline by 51% in the next 2 years. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 1 experienced director. 7 highly experienced directors. 3 independent directors (5 non-independent directors). Independent Non-Executive Director Yun Wing Nip was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Price Target Changed • Feb 10
Price target decreased to HK$3.92 Down from HK$4.82, the current price target is provided by 1 analyst. New target price is 24% above last closing price of HK$3.16. Stock is down 18% over the past year. The company is forecast to post earnings per share of HK$0.91 for next year compared to HK$1.05 last year. Recent Insider Transactions Derivative • Jan 27
Board Member exercised options to buy HK$4.0m worth of stock. On the 20th of January, Yiu Tung Lui exercised options to buy 1m shares at a strike price of around HK$2.80, costing a total of HK$3.6m. This transaction amounted to 22% of their direct individual holding at the time of the trade. Since September 2021, Yiu Tung has owned 5.94m shares directly. Company insiders have collectively bought HK$55m more than they sold, via options and on-market transactions, in the last 12 months. Recent Insider Transactions • Nov 13
Chairman recently bought HK$1.1m worth of stock On the 8th of November, Che-Woo Lui bought around 357k shares on-market at roughly HK$3.13 per share. In the last 3 months, they made an even bigger purchase worth HK$2.6m. Che-Woo has been a buyer over the last 12 months, purchasing a net total of HK$50m worth in shares. Recent Insider Transactions • Oct 21
Chairman recently bought HK$1.4m worth of stock On the 15th of October, Che-Woo Lui bought around 434k shares on-market at roughly HK$3.27 per share. In the last 3 months, they made an even bigger purchase worth HK$2.6m. Che-Woo has been a buyer over the last 12 months, purchasing a net total of HK$44m worth in shares. Recent Insider Transactions Derivative • Oct 13
Chairman exercised options to buy HK$9.2m worth of stock. On the 6th of October, Che-Woo Lui exercised options to buy 3m shares at a strike price of around HK$2.80, costing a total of HK$7.8m. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. Since December 2020, Che-Woo's direct individual holding has increased from 1.62b shares to 1.64b. Company insiders have collectively bought HK$50m more than they sold, via options and on-market transactions, in the last 12 months. Recent Insider Transactions • Oct 11
Chairman recently bought HK$1.5m worth of stock On the 5th of October, Che-Woo Lui bought around 480k shares on-market at roughly HK$3.20 per share. In the last 3 months, they made an even bigger purchase worth HK$2.6m. Che-Woo has been a buyer over the last 12 months, purchasing a net total of HK$38m worth in shares. Recent Insider Transactions • Oct 05
Chairman recently bought HK$1.1m worth of stock On the 28th of September, Che-Woo Lui bought around 364k shares on-market at roughly HK$3.13 per share. In the last 3 months, they made an even bigger purchase worth HK$2.5m. Che-Woo has been a buyer over the last 12 months, purchasing a net total of HK$30m worth in shares. Recent Insider Transactions • Sep 30
Chairman recently bought HK$2.5m worth of stock On the 24th of September, Che-Woo Lui bought around 800k shares on-market at roughly HK$3.13 per share. This was the largest purchase by an insider in the last 3 months. Che-Woo has been a buyer over the last 12 months, purchasing a net total of HK$26m worth in shares. Reported Earnings • Sep 26
First half 2021 earnings released: EPS HK$0.25 (vs HK$0.82 in 1H 2020) The company reported a poor first half result with weaker earnings and revenues, although profit margins were flat. First half 2021 results: Revenue: HK$2.51b (down 70% from 1H 2020). Net income: HK$776.3m (down 70% from 1H 2020). Profit margin: 31% (in line with 1H 2020). Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 6% per year. Upcoming Dividend • Sep 03
Upcoming dividend of HK$0.07 per share Eligible shareholders must have bought the stock before 10 September 2021. Payment date: 28 October 2021. Trailing yield: 6.1%. Lower than top quartile of Hong Kong dividend payers (6.6%). Higher than average of industry peers (5.1%). Reported Earnings • Aug 26
First half 2021 earnings released: EPS HK$0.25 (vs HK$0.82 in 1H 2020) The company reported a poor first half result with weaker earnings and revenues, although profit margins were flat. First half 2021 results: Revenue: HK$2.51b (down 70% from 1H 2020). Net income: HK$776.3m (down 70% from 1H 2020). Profit margin: 31% (in line with 1H 2020). Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 7% per year. Upcoming Dividend • Jun 09
Upcoming dividend of HK$0.14 per share Eligible shareholders must have bought the stock before 16 June 2021. Payment date: 23 July 2021. Trailing yield: 5.4%. Lower than top quartile of Hong Kong dividend payers (6.0%). Higher than average of industry peers (4.5%). Reported Earnings • Apr 28
Full year 2020 earnings released: EPS HK$1.05 (vs HK$1.01 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: HK$11.7b (up 10% from FY 2019). Net income: HK$3.27b (up 3.8% from FY 2019). Profit margin: 28% (down from 30% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Price Target Changed • Apr 14
Price target increased to HK$4.82 Up from HK$4.50, the current price target is provided by 1 analyst. New target price is 24% above last closing price of HK$3.90. Stock is up 13% over the past year.