SEHK:1125

Stock Analysis Report

Executive Summary

Lai Fung Holdings Limited, an investment holding company, engages in the property development and investment businesses in Mainland China.


Snowflake Analysis

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

How has Lai Fung Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1125 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

13.5%

1125

8.8%

HK Real Estate

5.3%

HK Market


1 Year Return

-13.0%

1125

-26.1%

HK Real Estate

-20.4%

HK Market

Return vs Industry: 1125 exceeded the Hong Kong Real Estate industry which returned -28.7% over the past year.

Return vs Market: 1125 exceeded the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

1125IndustryMarket
7 Day13.5%8.8%5.3%
30 Day-7.3%-10.4%-8.5%
90 Day-12.0%-18.2%-14.7%
1 Year-11.3%-13.0%-22.9%-26.1%-17.6%-20.4%
3 Year-11.3%-16.2%17.0%4.3%-2.5%-12.3%
5 Year34.4%20.5%36.7%13.4%-5.7%-20.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Lai Fung Holdings undervalued compared to its fair value and its price relative to the market?

18.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1125 (HK$8.8) is trading above our estimate of fair value (HK$2.49)

Significantly Below Fair Value: 1125 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1125 is poor value based on its PE Ratio (18.3x) compared to the Real Estate industry average (6.1x).

PE vs Market: 1125 is poor value based on its PE Ratio (18.3x) compared to the Hong Kong market (8.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1125's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1125 is good value based on its PB Ratio (0.2x) compared to the HK Real Estate industry average (0.4x).


Next Steps

Future Growth

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

11.1%

Forecasted Real Estate 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 Lai Fung 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 Lai Fung Holdings performed over the past 5 years?

-6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1125 has a large one-off gain of HK$183.7M impacting its January 31 2020 financial results.

Growing Profit Margin: 1125's current net profit margins (10.6%) are lower than last year (67.5%).


Past Earnings Growth Analysis

Earnings Trend: 1125's earnings have declined by -6.6% per year over the past 5 years.

Accelerating Growth: 1125's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1125 had negative earnings growth (-82.3%) over the past year, making it difficult to compare to the Real Estate industry average (1.3%).


Return on Equity

High ROE: 1125's Return on Equity (0.6%) is considered low.


Next Steps

Financial Health

How is Lai Fung Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1125's short term assets (HK$6.1B) exceed its short term liabilities (HK$4.1B).

Long Term Liabilities: 1125's short term assets (HK$6.1B) do not cover its long term liabilities (HK$12.1B).


Debt to Equity History and Analysis

Debt Level: 1125's debt to equity ratio (65.4%) is considered high.

Reducing Debt: 1125's debt to equity ratio has increased from 41.1% to 65.4% over the past 5 years.

Debt Coverage: 1125's debt is not well covered by operating cash flow (1.3%).

Interest Coverage: 1125's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

Inventory Level: 1125 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1125's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Lai Fung Holdings's current dividend yield, its reliability and sustainability?

2.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1125's dividend (2.27%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.63%).

High Dividend: 1125's dividend (2.27%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.28%).


Stability and Growth of Payments

Stable Dividend: 1125's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1125's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.7%), 1125'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?

13.7yrs

Average board tenure


CEO

Lester Lam (38yo)

14.83s

Tenure

HK$1,752,000

Compensation

Mr. Hau Yin Lam, also known as Lester, has been the Chief Executive Officer of Lai Fung Holdings Ltd., of Lai Sun Garment (International) Limited since April 25, 2005. Mr. Lam has been a Vice President of  ...


CEO Compensation Analysis

Compensation vs Market: Lester's total compensation ($USD225.95K) is below average for companies of similar size in the Hong Kong market ($USD335.42K).

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


Board Members

NamePositionTenureCompensationOwnership
Fook Aun Chew
Chairman7.25yrsHK$4.61m0.21% HK$6.3m
Hau Yin Lam
CEO & Executive Director14.83yrsHK$1.75mno data
Kin Hong Lam
Executive Deputy Chairman14.83yrsHK$1.20mno data
Kin Ming Lam
Deputy Chairmanno dataHK$1.14mno data
Po Chu U
Executive Director17yrsHK$4.28mno data
Shin How Cheng
Executive Director12.67yrsHK$7.55mno data
Tze Yan Lee
Executive Director5.17yrsHK$1.61mno data
Bing Lam
Independent Non-Executive Director18.67yrsHK$300.00kno data
Kin Ho Law
Independent Non-Executive Director11yrsHK$300.00kno data
Moon Lun Ku
Independent Non-Executive Director13.67yrsHK$300.00kno data

13.7yrs

Average Tenure

56yo

Average Age

Experienced Board: 1125's board of directors are seasoned and experienced ( 13.7 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

Lai Fung Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • Lai Fung Holdings Limited
  • AIA Central
  • 19th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1125SEHK (The Stock Exchange of Hong Kong Ltd.)HKD5HKHKDNo data
LFHL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1997
1125SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 1997

Biography

Lai Fung Holdings Limited, an investment holding company, engages in the property development and investment businesses in Mainland China. The company invests in and develops hotels and serviced apartments, as well as residential, office, and commercial properties; and invests in, develops, and operates cultural, leisure, and entertainment and related facilities. It is also involved in the property and building management business. In addition, the company operates theme parks. The company is headquartered in Central, Hong Kong. Lai Fung Holdings Limited is a subsidiary of eSun Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 12:46
End of Day Share Price2020/03/31 00:00
Earnings2020/01/31
Annual Earnings2019/07/31


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.