SEHK:1200

Stock Analysis Report

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Executive Summary

Midland Holdings Limited, an investment holding company, provides property agency services in the Hong Kong, Macau, and the People’s Republic of China.


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1200's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.6%

1200

7.0%

HK Real Estate

5.8%

HK Market


1 Year Return

-43.0%

1200

-12.0%

HK Real Estate

-4.0%

HK Market

Return vs Industry: 1200 underperformed the Hong Kong Real Estate industry which returned -13.4% over the past year.

Return vs Market: 1200 underperformed the Hong Kong Market which returned -5.3% over the past year.


Shareholder returns

1200IndustryMarket
7 Day-3.6%7.0%5.8%
30 Day-12.0%2.2%4.0%
90 Day-30.2%-8.2%-2.6%
1 Year-43.0%-43.0%-7.9%-12.0%-0.6%-4.0%
3 Year-59.1%-60.7%12.4%-0.3%1.3%-9.2%
5 Year-75.1%-78.3%22.0%1.0%-9.2%-23.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

32.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1200 (HK$0.81) is trading below our estimate of fair value (HK$1.2)

Significantly Below Fair Value: 1200 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1200 is unprofitable, so we can't compare its PE Ratio to the Real Estate industry average.

PE vs Market: 1200 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1200's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1200 is good value based on its PB Ratio (0.4x) compared to the HK Real Estate industry average (0.4x).


Next Steps

Future Growth

How is Midland Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

92.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1200 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: 1200 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 1200's is expected to become profitable in the next 3 years.

Revenue vs Market: 1200's revenue (4.2% per year) is forecast to grow slower than the Hong Kong market (10.6% per year).

High Growth Revenue: 1200's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1200's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has Midland Holdings performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1200 is currently unprofitable.

Growing Profit Margin: 1200 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1200 is unprofitable, but has reduced losses over the past 5 years at a rate of 10.8% per year.

Accelerating Growth: Unable to compare 1200's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1200 is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (2.8%).


Return on Equity

High ROE: 1200 has a negative Return on Equity (-5.2%), as it is currently unprofitable.


Next Steps

Financial Health

How is Midland Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1200's short term assets (HK$3.8B) exceed its short term liabilities (HK$3.6B).

Long Term Liabilities: 1200's short term assets (HK$3.8B) exceed its long term liabilities (HK$247.6M).


Debt to Equity History and Analysis

Debt Level: 1200's debt to equity ratio (36.9%) is considered satisfactory.

Reducing Debt: 1200's debt to equity ratio has increased from 26.4% to 36.9% over the past 5 years.

Debt Coverage: 1200's debt is well covered by operating cash flow (132.4%).

Interest Coverage: Insufficient data to determine if 1200's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

3.48%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1200's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1200's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1200's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1200's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1200 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1200's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.5yrs

Average management tenure


CEO

Pierre Wong (55yo)

7.58yrs

Tenure

HK$9,435,000

Compensation

Mr. Tsz Wa Wong, also known as Pierre, has been Managing Director of Midland Holdings Ltd. since November 23, 2012. Mr. Wong served as the Chief Executive Officer of Midland IC&I limited, a subsidiary of M ...


CEO Compensation Analysis

Compensation vs Market: Pierre's total compensation ($USD1.22M) is above average for companies of similar size in the Hong Kong market ($USD228.97K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tsz Wa Wong
MD & Executive Director7.58yrsHK$9.44mno data
Ching Yi Wong
Deputy Chairman & MD9.25yrsHK$7.60mno data
Kam Shing Cheung
Executive Director9.25yrsHK$2.18mno data
Ka Ming Sze
Chief Financial Officerno datano datano data
Tsz Man Tse
Senior Director of Corporate Developmentno datano datano data
Ying Lung Kwok
Co-Chief Executive Officer of the Midland Chinano dataHK$258.00kno data
Yat Wu
CEO & Director of Sales Operation - Hong Kong Property Svcs (agency) Ltd15.67yrsno datano data
Ngar May Mui
Company Secretary7.5yrsno datano data

7.5yrs

Average Tenure

55yo

Average Age

Experienced Management: 1200's management team is seasoned and experienced (7.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tsz Wa Wong
MD & Executive Director7.58yrsHK$9.44mno data
Ching Yi Wong
Deputy Chairman & MD9.25yrsHK$7.60mno data
Kam Shing Cheung
Executive Director9.25yrsHK$2.18mno data
Kin Yip Wong
Founder & Chairman27.42yrsHK$10.28m34.57% HK$201.1m
Kwan Tat Ho
Independent Non-Executive Director3yrsHK$260.00kno data
Tak Chiu Sun
Independent Non-Executive Director15.75yrsHK$260.00kno data
San Wong
Independent Non-Executive Director6.75yrsHK$260.00kno data
Wing Cheung Wong
Non-Executive Director2.58yrsHK$260.00kno data

8.4yrs

Average Tenure

55yo

Average Age

Experienced Board: 1200's board of directors are considered experienced (8.4 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

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


Key Information

  • Name: Midland Holdings Limited
  • Ticker: 1200
  • Exchange: SEHK
  • Founded: 1973
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Market Cap: HK$581.617m
  • Shares outstanding: 718.05m
  • Website: https://www.midland.com.hk

Number of Employees


Location

  • Midland Holdings Limited
  • World-Wide House
  • Rooms 2505-8, 25th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1200SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 1995
MTKDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1995

Biography

Midland Holdings Limited, an investment holding company, provides property agency services in the Hong Kong, Macau, and the People’s Republic of China. The company offers residential property agency services; and money lending, project planning, commercial property management, and marketing and sales planning services, as well as surveying, leasing, and property management services. It also provides immigration consultancy services; surveying consultancy services, including valuation advisory, development study, sales, marketing, tender, and auction for projects; and operates internet website. In addition, the company offers property investment services; and overseas property projects’ marketing and referral services in Hong Kong. Midland Holdings Limited was founded in 1973 and is headquartered in Central, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 12:39
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
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.