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1238

Powerlong Real Estate Holdings SEHK:1238 Stock Report

Last Price

HK$2.19

Market Cap

HK$9.1b

7D

-8.0%

1Y

-72.6%

Updated

17 May, 2022

Data

Company Financials +
1238 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance1/6
Financial Health3/6
Dividends5/6

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.

Powerlong Real Estate Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Powerlong Real Estate Holdings
Historical stock prices
Current Share PriceHK$2.19
52 Week HighHK$8.39
52 Week LowHK$1.95
Beta0.48
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)

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

1238HK Real EstateHK 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 Movement17.2%
Real Estate Industry Average Movement7.3%
Market Average Movement8.0%
10% most volatile stocks in HK Market14.9%
10% least volatile stocks in HK Market3.9%

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

FoundedEmployeesCEOWebsite
200713,212Wa Fong Hoihttps://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 CapCN¥7.84b
Earnings (TTM)CN¥5.99b
Revenue (TTM)CN¥39.90b

1.3x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1238 income statement (TTM)
RevenueCN¥39.90b
Cost of RevenueCN¥27.38b
Gross ProfitCN¥12.52b
Other ExpensesCN¥6.53b
EarningsCN¥5.99b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.45
Gross Margin31.37%
Net Profit Margin15.02%
Debt/Equity Ratio116.9%

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 DateJun 21 2022
Dividend Pay DateOct 21 2022
Days until Ex dividend34 days
Days until Dividend pay date156 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

TodayMay 17 2022Ex Dividend DateJun 21 2022Dividend Pay DateOct 21 2022122 days from Ex DividendBuy in the next 34 days to receive the upcoming dividend

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

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.


Top Shareholders

Company Information

Powerlong Real Estate Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Powerlong Real Estate Holdings Limited
  • Ticker: 1238
  • Exchange: SEHK
  • Founded: 2007
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Implied Market Cap: HK$9.067b
  • Shares outstanding: 4.14b
  • Website: https://www.powerlong.com

Number of Employees


Location

  • Powerlong Real Estate Holdings Limited
  • Powerlong Tower
  • 1399 Xinzhen Road
  • Shanghai
  • 201101
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/17 00:00
End of Day Share Price2022/05/17 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.