SEHK:1275

Stock Analysis Report

New Century Real Estate Investment Trust

Executive Summary

New Century Real Estate Investment Trust is a real estate investment trust externally managed by New Century Asset Management Ltd.

Snowflake

Fundamentals

Moderate growth potential unattractive dividend payer.

Share Price & News

How has New Century Real Estate Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1275 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

1275

-5.2%

HK REITs

-4.2%

HK Market


1 Year Return

-15.0%

1275

4.4%

HK REITs

-2.6%

HK Market

Return vs Industry: 1275 underperformed the Hong Kong REITs industry which returned 4.4% over the past year.

Return vs Market: 1275 underperformed the Hong Kong Market which returned -2.6% over the past year.


Shareholder returns

1275IndustryMarket
7 Day1.3%-5.2%-4.2%
30 Day-2.5%-2.7%-0.9%
90 Day-4.4%-11.8%1.7%
1 Year-10.2%-15.0%8.9%4.4%0.9%-2.6%
3 Year-19.6%-33.8%50.0%30.3%19.6%7.6%
5 Year-35.0%-54.2%80.2%41.0%18.6%-1.0%

Price Volatility Vs. Market

How volatile is New Century Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is New Century Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

266.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1275 (HK$1.53) is trading above our estimate of fair value (HK$1.23)

Significantly Below Fair Value: 1275 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1275 is poor value based on its PE Ratio (266.9x) compared to the REITs industry average (9.4x).

PE vs Market: 1275 is poor value based on its PE Ratio (266.9x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1275's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1275 is overvalued based on its PB Ratio (0.6x) compared to the HK REITs industry average (0.6x).


Next Steps

Future Growth

How is New Century Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1275's forecast earnings growth (20.2% per year) is above the savings rate (2%).

Earnings vs Market: 1275's earnings (20.2% per year) are forecast to grow faster than the Hong Kong market (11.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if 1275's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1275's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1275's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has New Century Real Estate Investment Trust performed over the past 5 years?

49.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1275 has large one-off items impacting its financial results.

Growing Profit Margin: 1275's current net profit margins (1.8%) are lower than last year (55.6%).


Past Earnings Growth Analysis

Earnings Trend: 1275 has become profitable over the past 5 years, growing earnings by 49.2% per year.

Accelerating Growth: 1275's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1275 had negative earnings growth (-96.7%) over the past year, making it difficult to compare to the REITs industry average (-46.5%).


Return on Equity

High ROE: 1275's Return on Equity (0.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is New Century Real Estate Investment Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 1275 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1275's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: 1275's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 1275 has a sufficient allowance for bad loans.

Low Risk Liabilities: 1275 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 1275 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 1275 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 1275 has an appropriate level of bad loans.


Next Steps

Dividend

What is New Century Real Estate Investment Trust's current dividend yield, its reliability and sustainability?

5.11%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%2.3%markettop25%6.4%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1275's dividend (5.11%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1275's dividend (5.11%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.38%).


Stability and Growth of Payments

Stable Dividend: 1275 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1275 has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.2%), 1275'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

What is the CEO of New Century Real Estate Investment Trust's salary, the management and board of directors tenure and is there insider trading?

6.2yrs

Average management tenure


CEO

Yat Ming Cheung (50yo)

6.4yrs

Tenure

0

Mr. Yat Ming Cheung has been the Chief Executive Officer, Executive Director and Responsible Officer at New Century Real Estate Investment Trustmanaged by New Century Asset Management Limited since June, 2 ...


Management Age and Tenure

6.2yrs

Average Tenure

Experienced Management: 1275's management team is seasoned and experienced (6.2 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

62yo

Average Age

Experienced Board: 1275's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥6,870,83827 Sep 19
New Century Asset Management Limited
EntityCompany
Shares4,486,341
Max PriceCN¥1.53
SellCN¥3,280,00410 Sep 19
New Century Asset Management Limited
EntityCompany
Shares2,000,000
Max PriceCN¥1.64
BuyCN¥7,639,59924 May 19
New Century Asset Management Limited
EntityCompany
Shares4,470,745
Max PriceCN¥1.71
SellCN¥1,655,99802 May 19
New Century Asset Management Limited
EntityCompany
Shares900,000
Max PriceCN¥1.84

Ownership Breakdown

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


Management Team

  • Wai Chu Ho

    COO & Responsible Officer of New Century Asset Management Limited

    • Tenure: 6.2yrs
  • Yat Ming Cheung (50yo)

    CEO, Company Secretary & Executive Director of New Century Asset Management Limited

    • Tenure: 6.4yrs
  • Hai Jiang Ding (40yo)

    Property & Technical Manager of New Century Asset Management Limited

    • Tenure: 6.4yrs
  • Chi Shan Cheung

    Investment & Investor Relations Manager of New Century Asset Management Limited

    • Tenure: 1.3yrs
  • Chun Tung Chan

    Compliance Manager of New Century Asset Management Limited

    • Tenure: 0.8yrs

Board Members

  • David Yu (71yo)

    Independent Non-Executive Director of New Century Asset Management Limited

    • Tenure: 6.4yrs
  • Giovanni Angelini (73yo)

    Independent Non-Executive Director of New Century Asset Management Limited

    • Tenure: 6.4yrs
  • Guanming Zhang (53yo)

    Non-Executive Director of New Century Asset Management Limited

    • Tenure: 6.4yrs
  • Jinquan Tong (64yo)

    Non-Executive Director of New Century Asset Management Limited

    • Tenure: 4.8yrs
  • Yat Ming Cheung (50yo)

    CEO, Company Secretary & Executive Director of New Century Asset Management Limited

    • Tenure: 6.4yrs
  • Jian He (62yo)

    Independent Non-Executive Director of New Century Asset Management Limited

    • Tenure: 5.8yrs
  • Jin Wenjie (50yo)

    Chairman of New Century Asset Management Limited

    • Tenure: 2.5yrs

Company Information

New Century Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New Century Real Estate Investment Trust
  • Ticker: 1275
  • Exchange: SEHK
  • Founded:
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Market Cap: HK$1.486b
  • Shares outstanding: 971.16m
  • Website: https://www.ncreit.com

Number of Employees


Location

  • New Century Real Estate Investment Trust
  • The Center
  • 47th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1275SEHK (The Stock Exchange of Hong Kong Ltd.)YesUNITSHKHKDJul 2013
NC8ADB (Deutsche Boerse AG)YesUNITSDEEURJul 2013

Biography

New Century Real Estate Investment Trust is a real estate investment trust externally managed by New Century Asset Management Ltd. It invests in the real estate properties of China. The firm mainly invests ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 12:51
End of Day Share Price2019/11/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.