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

-1.8%

1528

-2.9%

HK Real Estate

-2.7%

HK Market


1 Year Return

-17.7%

1528

-8.5%

HK Real Estate

-9.4%

HK Market

1528 underperformed the Real Estate industry which returned -8.5% over the past year.

1528 underperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

1528IndustryMarket
7 Day-1.8%-2.9%-2.7%
30 Day3.5%-0.7%2.4%
90 Day-2.7%-10.9%-5.6%
1 Year-13.8%-17.7%-4.5%-8.5%-6.2%-9.4%
3 Year1.6%-11.7%29.3%15.7%14.3%2.7%
5 Yearn/a54.1%27.9%16.7%-2.8%

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 based on future cash flows and its price relative to the stock market?

5.1x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Red Star Macalline Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Red Star Macalline Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Red Star Macalline Group is good value based on earnings compared to the HK Real Estate industry average.

Red Star Macalline Group is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Red Star Macalline Group is good value based on expected growth next year.


Price Based on Value of Assets

Red Star Macalline Group is good value based on assets compared to the HK Real Estate industry average.


Next Steps

Future Growth

How is Red Star Macalline Group expected 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 Estimates


Future Annual Growth Analysis

Red Star Macalline Group's revenue is expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).

Red Star Macalline Group's earnings are expected to grow by 16.9% yearly, however this is not considered high growth (20% yearly).

Red Star Macalline Group's revenue growth is positive but not above the Hong Kong market average.

Red Star Macalline Group's earnings growth is expected to exceed the Hong Kong market average.

Red Star Macalline Group's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Red Star Macalline Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Red Star Macalline Group's year on year earnings growth rate has been positive over the past 5 years.

Red Star Macalline Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Red Star Macalline Group's 1-year earnings growth is negative, it can't be compared to the HK Real Estate industry average.


Return on Equity

Red Star Macalline Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Red Star Macalline Group used its assets more efficiently than the HK Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

Red Star Macalline Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Red Star Macalline Group's financial position?


Financial Position Analysis

Red Star Macalline Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Red Star Macalline Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Red Star Macalline Group's level of debt (86.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (193.7% vs 86.2% today).

Debt is not well covered by operating cash flow (14.6%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.5x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

4.42%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Red Star Macalline Group's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Red Star Macalline Group's dividend is below the markets top 25% of dividend payers in Hong Kong (6.16%).

Red Star Macalline Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Red Star Macalline Group has only been paying a dividend for 4 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.7x coverage).


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?

6.5yrs

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

Jianxing's remuneration is lower than average for companies of similar size in Hong Kong.

Jianxing's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.5yrs

Average Tenure

47yo

Average Age

The average tenure for the Red Star Macalline Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.7yrs

Average Tenure

51yo

Average Age

The tenure for the Red Star Macalline Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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Ownership Breakdown


Management Team

  • Jianhong Li (45yo)

    Vice General Manager

    • Tenure: 6.5yrs
  • Binghe Guo (45yo)

    Vice Chairman

    • Tenure: 0.8yrs
    • 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: 3.7yrs
  • 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: 3.4yrs
  • Eddie Lee (54yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
  • Binghe Guo (45yo)

    Vice Chairman

    • Tenure: 0.8yrs
    • 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: 3.7yrs
  • Chongyi Zhao (44yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs

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$39.552b
  • 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 Analysis2019/09/21 12:59
End of Day Share Price2019/09/20 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.