Discounted Cash Flow Calculation for SEHK:124 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Guangdong Land Holdings
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
SEHK:124 DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
Guangdong Land Holdings
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Guangdong Land Holdings's
is considered below, and whether this is a fair price.
Price based on past earnings
Guangdong Land Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
Guangdong Land Holdings's earnings are expected to grow significantly at over 20% yearly.
Guangdong Land Holdings's revenue is expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Guangdong Land Holdings's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Guangdong Land Holdings
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Guangdong Land Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
Guangdong Land Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Guangdong Land Holdings's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Guangdong Land Holdings's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 3.3x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Ms. Chunxiao Zhao serves as Deputy General Manager and Secretary at Guangdong Holdings Limited. Ms. Zhao serves as the Chief Administration Officer, Company Secretary and Executive Director of GDH Limited (also known as GDH). Ms. Zhao has been the Chief Executive Officer of Guangdong Land Holdings Limited since August 25, 2016. She serves as Secretary of the Board of Guangdong Holdings Limited. She has been an Executive Director at Guangdong Land Holdings Limited since December 18, 2014. She has been Deputy General Manager of the Administration Department of GDH Limited and Guangdong Holdings Limited since December 2008 and January 2009, respectively. She was appointed the General Manager of the Administration Department of Guangdong Holdings and GDH and also Company Secretary of GDH in December 2009. She was appointed the Chief Administration Officer of both of Guangdong Holdings and GDH in December 2010. She was appointed as Deputy General Manager of Guangdong Holdings and an Executive Director of GDH in May 2012. From 1994 to 2002, she worked for the Guangdong Branch of Xinhua News Agency as Director of the Finance Office/Economics Office and also Director of the Featured News Division. From 2003 to 2008, she held a number of positions in Asia Television Limited including Director of Information Division of News and Public Relations Department and Assistant Vice President. She has been a Non-Executive Director of Guangdong Investment Ltd. since August 30, 2011. Ms. Zhao graduated from Liaoning Normal University (Faculty of Chinese Studies) with BA and the School of China Journalism and Communication (major in Domestic News) with Bachelor’s degree.
Insufficient data for Chunxiao to compare compensation growth.
Chunxiao's remuneration is lower than average for companies of similar size in Hong Kong.
CEO & Executive Director
Wai Keung Li
Company Secretary & Executive Director
Chief Financial Officer
Board of Directors Tenure
Average tenure and age of the
Guangdong Land Holdings
board of directors in years:
The tenure for the Guangdong Land Holdings board of directors is about average.
Have Insiders Been Buying Guangdong Land Holdings Limited (HKG:124) Shares This Year?
So shareholders might well want to know whether insiders have been buying or selling shares in Guangdong Land Holdings Limited (HKG:124). … View our latest analysis for Guangdong Land Holdings The Last 12 Months Of Insider Transactions At Guangdong Land Holdings Independent Non-Executive Director Kwan Ho Lee made the biggest insider purchase in the last 12 months. … The transactions are fine but it'd be more encouraging if Guangdong Land Holdings insiders bought more shares in the company.
Should You Be Tempted To Sell Guangdong Land Holdings Limited (HKG:124) Because Of Its P/E Ratio?
To keep it practical, we'll show how Guangdong Land Holdings Limited's (HKG:124) P/E ratio could help you assess the value on offer. … What is Guangdong Land Holdings's P/E ratio? … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Should You Be Holding Guangdong Land Holdings Limited (HKG:124)?
Guangdong Land Holdings Limited (HKG:124) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of 124, it
Is Guangdong Land Holdings Limited (HKG:124) Undervalued?
Guangdong Land Holdings Limited (HKG:124), a real estate company based in Hong Kong,. … As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value? … Let’s examine Guangdong Land Holdings’s valuation and outlook in more detail to determine if there’s still a bargain opportunity
With An ROE Of 0.97%, Can Guangdong Land Holdings Limited (HKG:124) Catch Up To The Industry?
and looking to gauge the potential return on investment in Guangdong Land Holdings Limited (HKG:124). … Guangdong Land Holdings Limited (HKG:124) delivered a less impressive 0.97% ROE over the past year, compared to the 9.52% return generated by its industry. … Return on Equity (ROE) is a measure of Guangdong Land Holdings’s profit relative to its shareholders’ equity.
Guangdong Land Holdings Limited (SEHK:124) Guangdong Land Holdings Limited, an investment holding company, invests in and develops properties primarily in Mainland China. … Ltd., an investment holding company, engages in property development, investment, and management businesses in China. … SEHK:960 Future Profit Feb 23rd 18 Yuzhou Properties Company Limited (SEHK:1628) Yuzhou Properties Company Limited, an investment holding company, engages in the investment, development, and management of real estate properties.
Guangdong Land Holdings Limited, an investment holding company, invests in and develops properties primarily in Mainland China. The company was formerly known as Kingway Brewery Holdings Limited and changed its name to Guangdong Land Holdings Limited in September 2013. The company is headquartered in Central, Hong Kong and is considered as a Red Chip company due to its listing on the Hong Kong Stock Exchange. Guangdong Land Holdings Ltd. is a subsidiary of Guangdong Investment Limited.
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