SEHK:123

Stock Analysis Report

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Executive Summary

Yuexiu Property Company Limited, together with its subsidiaries, develops, sells, and manages properties primarily in Mainland China and Hong Kong.


Snowflake Analysis

Proven track record and fair value.


Similar Companies

Share Price & News

How has Yuexiu Property's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 123 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.4%

123

5.9%

HK Real Estate

4.1%

HK Market


1 Year Return

-20.2%

123

-12.3%

HK Real Estate

-4.7%

HK Market

Return vs Industry: 123 underperformed the Hong Kong Real Estate industry which returned -12.3% over the past year.

Return vs Market: 123 underperformed the Hong Kong Market which returned -4.7% over the past year.


Shareholder returns

123IndustryMarket
7 Day6.4%5.9%4.1%
30 Day4.2%7.9%5.3%
90 Day4.2%11.5%13.5%
1 Year-14.9%-20.2%-7.7%-12.3%-1.2%-4.7%
3 Year32.5%10.3%22.4%7.8%7.7%-3.5%
5 Year30.9%-0.7%43.5%17.7%7.2%-10.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Yuexiu Property undervalued compared to its fair value and its price relative to the market?

5.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 123 (HK$1.5) is trading above our estimate of fair value (HK$1.19)

Significantly Below Fair Value: 123 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 123 is good value based on its PE Ratio (5.7x) compared to the Real Estate industry average (6.8x).

PE vs Market: 123 is good value based on its PE Ratio (5.7x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 123 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 123 is overvalued based on its PB Ratio (0.5x) compared to the HK Real Estate industry average (0.4x).


Next Steps

Future Growth

How is Yuexiu Property forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

14.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 123's forecast earnings growth (14.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 123's earnings (14.4% per year) are forecast to grow slower than the Hong Kong market (17.7% per year).

High Growth Earnings: 123's earnings are forecast to grow, but not significantly.

Revenue vs Market: 123's revenue (14.8% per year) is forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Revenue: 123's revenue (14.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 123's Return on Equity is forecast to be low in 3 years time (10.2%).


Next Steps

Past Performance

How has Yuexiu Property performed over the past 5 years?

17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 123 has high quality earnings.

Growing Profit Margin: 123's current net profit margins (9.1%) are lower than last year (10.3%).


Past Earnings Growth Analysis

Earnings Trend: 123's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: 123's earnings growth over the past year (27.7%) exceeds its 5-year average (17.7% per year).

Earnings vs Industry: 123 earnings growth over the past year (27.7%) exceeded the Real Estate industry 3.8%.


Return on Equity

High ROE: 123's Return on Equity (8.6%) is considered low.


Next Steps

Financial Health

How is Yuexiu Property's financial position?


Financial Position Analysis

Short Term Liabilities: 123's short term assets (CN¥185.1B) exceed its short term liabilities (CN¥106.9B).

Long Term Liabilities: 123's short term assets (CN¥185.1B) exceed its long term liabilities (CN¥72.6B).


Debt to Equity History and Analysis

Debt Level: 123's debt to equity ratio (143.1%) is considered high.

Reducing Debt: 123's debt to equity ratio has increased from 105.9% to 143.1% over the past 5 years.

Debt Coverage: 123's debt is not well covered by operating cash flow (8.1%).

Interest Coverage: 123's interest payments on its debt are well covered by EBIT (14.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Yuexiu Property current dividend yield, its reliability and sustainability?

6.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 123's dividend (6.65%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.35%).

High Dividend: 123's dividend (6.65%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.69%).


Stability and Growth of Payments

Stable Dividend: 123 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 123's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.8%), 123's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 123's dividends in 3 years are forecast to be well covered by earnings (35.7% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Feng Lin (49yo)

1.92yrs

Tenure

CN¥8,639,000

Compensation

Mr. Lin Feng has been an Executive Director, Vice Chairman and General Manager of Yuexiu Property Company Limited since August 14, 2018. Mr. Lin is a director and deputy general manager of Guangzhou City C ...


CEO Compensation Analysis

Compensation vs Market: Feng's total compensation ($USD1.22M) is above average for companies of similar size in the Hong Kong market ($USD495.05K).

Compensation vs Earnings: Feng's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Zhaoyuan Lin
Executive Chairman1.92yrsCN¥8.75m0.036% CN¥8.3m
Feng Lin
Vice Chairman & GM1.92yrsCN¥8.64m0.047% CN¥10.9m
Jing Chen
CFO & Executive Director3yrsCN¥3.96mno data
Feng Li
Executive Director6.33yrsCN¥3.96m0.0011% CN¥260.1k
Yan Liu
Executive Director1.92yrsCN¥3.96m0.00011% CN¥25.5k
Swan Wan
IR Contact Personnelno datano datano data
Tat Fung Yu
Company Secretary16.5yrsno datano data

3.0yrs

Average Tenure

49yo

Average Age

Experienced Management: 123's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zhaoyuan Lin
Executive Chairman1.92yrsCN¥8.75m0.036% CN¥8.3m
Feng Lin
Vice Chairman & GM1.92yrsCN¥8.64m0.047% CN¥10.9m
Jing Chen
CFO & Executive Director3yrsCN¥3.96mno data
Feng Li
Executive Director6.33yrsCN¥3.96m0.0011% CN¥260.1k
Yan Liu
Executive Director1.92yrsCN¥3.96m0.00011% CN¥25.5k
Ka Lun Lee
Independent Non-Executive Director20.25yrsCN¥299.00k0.021% CN¥4.8m
Lup Fat Yu
Independent Non-Executive Director28.5yrsCN¥369.00k0.026% CN¥6.0m
Hon Chuen Lau
Independent Non-Executive Director16.5yrsCN¥299.00k0.031% CN¥7.3m
Changcheng Ouyang
Non-Executive Director1yrCN¥109.00kno data

3.0yrs

Average Tenure

51yo

Average Age

Experienced Board: 123's board of directors are considered experienced (3 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

Yuexiu Property Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yuexiu Property Company Limited
  • Ticker: 123
  • Exchange: SEHK
  • Founded:
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$23.223b
  • Shares outstanding: 15.48b
  • Website: https://www.yuexiuproperty.com

Number of Employees


Location

  • Yuexiu Property Company Limited
  • Yue Xiu Building
  • 26th Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
YUEX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1993
GUZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1993
123SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1993
123SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1993
123SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1993

Biography

Yuexiu Property Company Limited, together with its subsidiaries, develops, sells, and manages properties primarily in Mainland China and Hong Kong. It operates through Property Development, Property Management, Property Investment, and Other segments. The company is also involved in holding investment properties. Its portfolio covers residential and commercial properties, including villas, apartments, office buildings, and service apartments. As of December 31, 2019, the company owned investment properties under lease of approximately 453,000 sq.m. comprising offices, commercial properties, car parks, and others. In addition, it offers property development and management consulting, property rental, decoration and design, project management, real estate and property agency, investment consulting, metal manufacturing, information consulting, car parking management, financial, building management, commercial, greening, construction, and trade finance services. The company was formerly known as Guangzhou Investment Company Limited. The company is based in Wanchai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 12:38
End of Day Share Price2020/07/03 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.