SEHK:1528

Stock Analysis Report

Red Star Macalline Group

Executive Summary

Red Star Macalline Group Corporation Ltd.

Snowflake

Fundamentals

Good value with acceptable track record.

Share Price & News

How has Red Star Macalline Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.9%

1528

5.3%

HK Real Estate

3.3%

HK Market


1 Year Return

-4.9%

1528

12.5%

HK Real Estate

1.6%

HK Market

Return vs Industry: 1528 underperformed the Hong Kong Real Estate industry which returned 12.5% over the past year.

Return vs Market: 1528 underperformed the Hong Kong Market which returned 1.6% over the past year.


Shareholder returns

1528IndustryMarket
7 Day-1.9%5.3%3.3%
30 Day-2.5%2.9%-0.009%
90 Day-9.0%-9.1%-5.1%
1 Year-0.4%-4.9%16.8%12.5%5.3%1.6%
3 Year-19.5%-30.0%40.6%25.9%16.1%4.4%
5 Yearn/a62.1%36.0%20.4%0.3%

Price Volatility Vs. Market

How volatile is Red Star Macalline Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Red Star Macalline Group undervalued compared to its fair value and its price relative to the market?

4.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 1528 (HK$6.24) is trading above our estimate of fair value (HK$3.64)

Significantly Undervalued: 1528 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1528 is good value based on its PE Ratio (4.8x) compared to the Real Estate industry average (6.2x).

PE vs Market: 1528 is good value based on its PE Ratio (4.8x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 1528 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 1528 is good value based on its PB Ratio (0.5x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Red Star Macalline Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1528's forecast earnings growth (16.9% per year) is above the savings rate (2%).

Earnings vs Market: 1528's earnings (16.9% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

High Growth Earnings: 1528's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1528's revenue (10.1% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 1528's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 1528's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has Red Star Macalline Group performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1528's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: 1528's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1528 had negative earnings growth (-18.3%) over the past year, making it difficult to compare to the Real Estate industry average (-12.4%).


Return on Equity

High ROE: 1528's Return on Equity (9.3%) is considered low.


Return on Assets

ROA vs Industry: 1528 has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 1528 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Red Star Macalline Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1528's short term assets (CN¥15.5B) do not cover its short term liabilities (CN¥23.2B)

Long Term Liabilities: 1528's short term assets (15.5B) do not cover its long term liabilities (48.3B)


Debt to Equity History and Analysis

Debt Level: 1528's debt to equity ratio (86.2%) is considered high

Reducing Debt: 1528's debt to equity ratio has reduced from 193.7% to 86.2% over the past 5 years.

Debt Coverage: 1528's debt is not well covered by operating cash flow (14.6%).

Interest Coverage: 1528's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet

Inventory Level: 1528 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1528's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Red Star Macalline Group's current dividend yield, its reliability and sustainability?

3.65%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%2.3%markettop25%6.3%industryaverage4.4%forecastin3Years4.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1528's dividend (3.65%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1528's dividend (3.65%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 1528 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1528 has only been paying a dividend for 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.2%), 1528's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1528's dividends in 3 years are forecast to be well covered by earnings (27.3% payout ratio).


Next Steps

Management

What is the CEO of Red Star Macalline Group's salary, the management and board of directors tenure and is there insider trading?

6.6yrs

Average management tenure


CEO

Jianxing Che (52yo)

12.3yrs

Tenure

CN¥3,513,000

Compensation

Mr. Che Jianxing has been the Chairman, Chief Executive Officer and General Manager at Red Star Macalline Group Corporation Ltd. since June 2007. Mr. Che is primarily responsible for the overall management ...


CEO Compensation Analysis

Compensation vs. Market: Jianxing's total compensation ($USD496.40K) is about average for companies of similar size in the Hong Kong market ($USD607.86K).

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


Management Age and Tenure

6.6yrs

Average Tenure

47yo

Average Age

Experienced Management: 1528's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

51yo

Average Age

Experienced Board: 1528's board of directors are considered experienced (6.8 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

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Ownership Breakdown


Management Team

  • Jianhong Li (45yo)

    Vice General Manager

    • Tenure: 6.6yrs
  • Binghe Guo (45yo)

    Vice Chairman

    • Tenure: 0.9yrs
    • Compensation: CN¥16.94m
  • Jianxing Che (52yo)

    Chairman

    • Tenure: 12.3yrs
    • Compensation: CN¥3.51m
  • Xiaozhong Jiang (50yo)

    Vice GM & Executive Director

    • Tenure: 8.8yrs
    • Compensation: CN¥5.49m
  • Jianfang Che (50yo)

    Vice GM & Executive Director

    • Tenure: 12.3yrs
    • Compensation: CN¥4.68m
  • Shichang Xi (44yo)

    Chief Financial Officer

    • Tenure: 8.8yrs
  • Wei Wang (49yo)

    Vice President

    • Tenure: 0yrs
  • Qinhua Chu

    Chief Auditor

    • Tenure: 0yrs
  • Bin Li (45yo)

    Vice General Manager

    • Tenure: 3.8yrs
  • Che Jianfang

    General manager and Chairman of the board

    • Tenure: 0yrs
    • Compensation: CN¥4.68m

Board Members

  • Shizheng Qian (67yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
  • Eddie Lee (54yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
  • Binghe Guo (45yo)

    Vice Chairman

    • Tenure: 0.9yrs
    • Compensation: CN¥16.94m
  • Jianxing Che (52yo)

    Chairman

    • Tenure: 12.3yrs
    • Compensation: CN¥3.51m
  • Xiaozhong Jiang (50yo)

    Vice GM & Executive Director

    • Tenure: 8.8yrs
    • Compensation: CN¥5.49m
  • Jianfang Che (50yo)

    Vice GM & Executive Director

    • Tenure: 12.3yrs
    • Compensation: CN¥4.68m
  • Guofeng Xu (53yo)

    Non-Executive Director

    • Tenure: 8.8yrs
  • Shuhong Chen (46yo)

    Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: CN¥1.81m
  • Ning Pan (52yo)

    Chairman of Supervisors

    • Tenure: 3.8yrs
  • Chongyi Zhao (44yo)

    Independent Non-Executive Director

    • Tenure: 1yrs

Company Information

Red Star Macalline Group Corporation Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Red Star Macalline Group Corporation Ltd.
  • Ticker: 1528
  • Exchange: SEHK
  • Founded: 1992
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$39.914b
  • Shares outstanding: 3.55b
  • Website: https://www.chinaredstar.com

Number of Employees


Location

  • Red Star Macalline Group Corporation Ltd.
  • Red Star World Trade Building
  • 9th Floor
  • Shanghai
  • 200333
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1528SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJun 2015
1528SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJun 2015
1528SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJun 2015
3S5DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJun 2015
601828SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJan 2018
601828XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJan 2018

Biography

Red Star Macalline Group Corporation Ltd. operates and manages home improvement and furnishings shopping malls. The company operates its shopping malls under the Red Star Macalline brand name. As of Decemb ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:58
End of Day Share Price2019/10/18 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.