Powerlong Real Estate Holdings (SEHK:1238) - Share price, News & Analysis

1238 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	1/6
Financial Health	3/6
Dividends	5/6

1238 Stock Overview

Powerlong Real Estate Holdings Limited, an investment holding company, invests in, develops, operates, and manages commercial real estate projects in the People’s Republic of China.

Rewards

Trading at 89.5% below our estimate of its fair value

Revenue is forecast to grow 11.52% per year

Risk Analysis

Earnings are forecast to decline by an average of 6.4% per year for the next 3 years

Debt is not well covered by operating cash flow

Highly volatile share price over the past 3 months

Unstable dividend track record

+ 1 more risk

Powerlong Real Estate Holdings Competitors

Greentown China Holdings

SEHK:3900

HK$33.7b

Sunac China Holdings

SEHK:1918

HK$25.0b

Yuexiu Property

SEHK:123

HK$24.8b

Mingfa Group (International)

SEHK:846

HK$11.5b

Price History & Performance

Summary of all time highs, changes and price drops for Powerlong Real Estate Holdings
Historical stock prices
Current Share Price	HK$2.19
52 Week High	HK$8.39
52 Week Low	HK$1.95
Beta	0.48
1 Month Change	-21.51%
3 Month Change	-49.42%
1 Year Change	-72.56%
3 Year Change	-36.34%
5 Year Change	-32.82%
Change since IPO	-21.79%

Recent News & Updates

Apr 10

Calculating The Fair Value Of Powerlong Real Estate Holdings Limited (HKG:1238)

Does the April share price for Powerlong Real Estate Holdings Limited ( HKG:1238 ) reflect what it's really worth...

Shareholder Returns

	1238	HK Real Estate	HK Market
7D	-8.0%	-0.1%	0.05%
1Y	-72.6%	-33.3%	-25.2%

Return vs Industry: 1238 underperformed the Hong Kong Real Estate industry which returned -33.3% over the past year.

Return vs Market: 1238 underperformed the Hong Kong Market which returned -25.2% over the past year.

Price Volatility

Is 1238's price volatile compared to industry and market?
1238 volatility
1238 Average Weekly Movement	17.2%
Real Estate Industry Average Movement	7.3%
Market Average Movement	8.0%
10% most volatile stocks in HK Market	14.9%
10% least volatile stocks in HK Market	3.9%

Stable Share Price: 1238 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 17% a week.

Volatility Over Time: 1238's weekly volatility has increased from 10% to 17% over the past year.

About the Company

Founded	Employees	CEO	Website
2007	13,212	Wa Fong Hoi	https://www.powerlong.com

Powerlong Real Estate Holdings Limited, an investment holding company, invests in, develops, operates, and manages commercial real estate projects in the People’s Republic of China. The company operates through four segments: Property Development, Property Investment, Commercial Operation and Residential Property Management, and Other Property Development Related Businesses. It develops commercial and residential properties.

Powerlong Real Estate Holdings Fundamentals Summary

How do Powerlong Real Estate Holdings's earnings and revenue compare to its market cap?
1238 fundamental statistics
Market Cap	CN¥7.84b
Earnings (TTM)	CN¥5.99b
Revenue (TTM)	CN¥39.90b

1.3x

P/E Ratio

0.2x

P/S Ratio

Is 1238 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1238 income statement (TTM)
Revenue	CN¥39.90b
Cost of Revenue	CN¥27.38b
Gross Profit	CN¥12.52b
Other Expenses	CN¥6.53b
Earnings	CN¥5.99b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	1.45
Gross Margin	31.37%
Net Profit Margin	15.02%
Debt/Equity Ratio	116.9%

How did 1238 perform over the long term?

See historical performance and comparison

Dividends

12.7%

Current Dividend Yield

16%

Payout Ratio

Does 1238 pay a reliable dividends?

See 1238 dividend history and benchmarks

When do you need to buy 1238 by to receive an upcoming dividend?
Powerlong Real Estate Holdings dividend dates
Ex Dividend Date	Jun 21 2022
Dividend Pay Date	Oct 21 2022
Days until Ex dividend	34 days
Days until Dividend pay date	156 days

Does 1238 pay a reliable dividends?

See 1238 dividend history and benchmarks

Valuation

Is Powerlong Real Estate Holdings undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 1238 (HK$2.19) is trading below our estimate of fair value (HK$20.76)

Significantly Below Fair Value: 1238 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 1238 is good value based on its PE Ratio (1.3x) compared to the Hong Kong Real Estate industry average (6.5x).

PE vs Market: 1238 is good value based on its PE Ratio (1.3x) compared to the Hong Kong market (8.7x).

Price to Earnings Growth Ratio

PEG Ratio: 1238's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: 1238 is good value based on its PB Ratio (0.2x) compared to the HK Real Estate industry average (0.4x).

Future Growth

How is Powerlong Real Estate Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-6.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1238's earnings are forecast to decline over the next 3 years (-6.4% per year).

Earnings vs Market: 1238's earnings are forecast to decline over the next 3 years (-6.4% per year).

High Growth Earnings: 1238's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 1238's revenue (11.5% per year) is forecast to grow faster than the Hong Kong market (9.9% per year).

High Growth Revenue: 1238's revenue (11.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 1238's Return on Equity is forecast to be low in 3 years time (7.4%).

Past Performance

How has Powerlong Real Estate Holdings performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

22.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1238 has a large one-off gain of CN¥2.8B impacting its December 31 2021 financial results.

Growing Profit Margin: 1238's current net profit margins (15%) are lower than last year (17.2%).

Past Earnings Growth Analysis

Earnings Trend: 1238's earnings have grown significantly by 22% per year over the past 5 years.

Accelerating Growth: 1238's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1238 had negative earnings growth (-1.7%) over the past year, making it difficult to compare to the Real Estate industry average (14.7%).

Return on Equity

High ROE: 1238's Return on Equity (11.8%) is considered low.

Financial Health

How is Powerlong Real Estate Holdings's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1238's short term assets (CN¥148.5B) exceed its short term liabilities (CN¥120.8B).

Long Term Liabilities: 1238's short term assets (CN¥148.5B) exceed its long term liabilities (CN¥61.9B).

Debt to Equity History and Analysis

Debt Level: 1238's net debt to equity ratio (85.5%) is considered high.

Reducing Debt: 1238's debt to equity ratio has increased from 116.2% to 116.9% over the past 5 years.

Debt Coverage: 1238's debt is not well covered by operating cash flow (2.7%).

Interest Coverage: 1238's interest payments on its debt are well covered by EBIT (10.5x coverage).

Balance Sheet

Dividend

What is Powerlong Real Estate Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

12.67%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 1238's dividend (12.67%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.88%).

High Dividend: 1238's dividend (12.67%) is in the top 25% of dividend payers in the Hong Kong market (7.8%)

Stability and Growth of Payments

Stable Dividend: 1238's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1238's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (15.8%), 1238's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (66.9%), 1238's dividend payments are covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Real Estate industry.

Management

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

4.1yrs

Average management tenure

CEO

Wa Fong Hoi (44 yo)

12.75yrs

Tenure

CN¥1,635,000

Compensation

Mr. Wa Fong Hoi serves as President at Powerlong Commercial Management Holdings Limited since February 2013. He serves as a Director at Powerlong Commercial Management Holdings Limited since March 25, 2019...

CEO Compensation Analysis

Compensation vs Market: Wa Fong's total compensation ($USD240.99K) is below average for companies of similar size in the Hong Kong market ($USD526.09K).

Compensation vs Earnings: Wa Fong's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: 1238's management team is considered experienced (4.1 years average tenure).

Board Members

Experienced Board: 1238's board of directors are seasoned and experienced ( 14.2 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31