SEHK:1243

Stock Analysis Report

Executive Summary

Wang On Properties Limited, an investment holding company, invests in, develops, and sells residential and commercial properties in Hong Kong.


Snowflake Analysis

Adequate balance sheet with questionable track record.

Share Price & News

How has Wang On Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1243 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

1243

-3.1%

HK Real Estate

-0.6%

HK Market


1 Year Return

-26.4%

1243

-9.1%

HK Real Estate

-7.6%

HK Market

Return vs Industry: 1243 underperformed the Hong Kong Real Estate industry which returned -9.1% over the past year.

Return vs Market: 1243 underperformed the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

1243IndustryMarket
7 Day2.2%-3.1%-0.6%
30 Day-2.1%-1.4%-1.2%
90 Day2.2%1.2%3.0%
1 Year-25.1%-26.4%-4.9%-9.1%-4.2%-7.6%
3 Year-34.5%-36.6%33.7%19.3%12.9%1.5%
5 Yearn/a55.1%28.9%13.1%-5.6%

Price Volatility Vs. Market

How volatile is Wang On Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wang On Properties undervalued compared to its fair value and its price relative to the market?

26.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1243 (HK$0.92) is trading above our estimate of fair value (HK$0.56)

Significantly Below Fair Value: 1243 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1243 is poor value based on its PE Ratio (26.4x) compared to the Real Estate industry average (6.6x).

PE vs Market: 1243 is poor value based on its PE Ratio (26.4x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1243's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1243 is overvalued based on its PB Ratio (2.9x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Wang On Properties forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.6%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Wang On Properties has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Wang On Properties performed over the past 5 years?

24.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1243 has high quality earnings.

Growing Profit Margin: 1243's current net profit margins (22.8%) are lower than last year (35.8%).


Past Earnings Growth Analysis

Earnings Trend: 1243's earnings have grown significantly by 24.3% per year over the past 5 years.

Accelerating Growth: 1243's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1243 had negative earnings growth (-63.6%) over the past year, making it difficult to compare to the Real Estate industry average (-8%).


Return on Equity

High ROE: 1243's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wang On Properties's financial position?


Financial Position Analysis

Short Term Liabilities: 1243's short term assets (HK$4.9B) exceed its short term liabilities (HK$2.5B).

Long Term Liabilities: 1243's short term assets (HK$4.9B) exceed its long term liabilities (HK$2.1B).


Debt to Equity History and Analysis

Debt Level: 1243's debt to equity ratio (80%) is considered high.

Reducing Debt: 1243's debt to equity ratio has reduced from 822.2% to 80% over the past 5 years.

Debt Coverage: 1243's debt is not well covered by operating cash flow (14.2%).

Interest Coverage: 1243's interest payments on its debt are well covered by EBIT (16.1x coverage).


Balance Sheet

Inventory Level: 1243 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1243's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

What is Wang On Properties's current dividend yield, its reliability and sustainability?

1.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1243's dividend (1.79%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 1243's dividend (1.79%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1243 has been paying a dividend for less than 10 years.

Growing Dividend: 1243's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.1%), 1243's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.9yrs

Average board tenure


CEO

Ho Hong Tang (33yo)

0.3yrs

Tenure

HK$1,578,000

Compensation

Mr. Ho Hong Tang has been an Executive Director at Wang On Properties Limited December 03, 2015 and serves as its Acting Chief Executive Officer since October 01, 2019. Mr. Tang is primarily responsible fo ...


CEO Compensation Analysis

Compensation vs Market: Ho Hong's total compensation ($USD202.63K) is below average for companies of similar size in the Hong Kong market ($USD558.57K).

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


Board Members

NamePositionTenureCompensationOwnership
Ho Hong Tang
Interim CEO & Executive Director0.3yrsHK$1.58mno data
Chin Han Wong
Financial Controller0.3yrsno datano data
Tak Won Ching
GM of Property Development Division & Executive Director0.7yrsno datano data
Wing Sum Li
Independent Non-Executive Director3.9yrsHK$140.00kno data
Chun Hong Chan
Non-Executive Chairman4.2yrsHK$240.00kno data
Ka Tung Leung
Independent Non-Executive Director3.9yrsHK$140.00kno data
Tze Wah Sung
Independent Non-Executive Director3.9yrsHK$140.00kno data

3.9yrs

Average Tenure

55yo

Average Age

Experienced Board: 1243's board of directors are considered experienced (3.9 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Wang On Properties Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wang On Properties Limited
  • Ticker: 1243
  • Exchange: SEHK
  • Founded: 1987
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$13.984b
  • Shares outstanding: 15.20b
  • Website: https://www.woproperties.com

Number of Employees


Location

  • Wang On Properties Limited
  • Skyline Tower
  • Suite 3201
  • Kowloon Bay
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1243SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2016

Biography

Wang On Properties Limited, an investment holding company, invests in, develops, and sells residential and commercial properties in Hong Kong. It operates through two segments, Property Development and Property Investment. The company engages in the acquisition of land to develop property, as well as the acquisition of existing buildings to be demolished and rebuilt into new property; and acquires of ready-made property for long-term investments. It also engages in the investment of car parking spaces; rental or sale of industrial and commercial premises; and provision of management and financial services. The company was founded in 1987 and is headquartered in Kowloon Bay, Hong Kong. Wang On Properties Limited is a subsidiary of Earnest Spot Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 13:03
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.