SEHK:1538

Stock Analysis Report

Executive Summary

Zhong Ao Home Group Limited operates as an independent property management company in the People’s Republic of China.

Snowflake

Fundamentals

Excellent balance sheet and good value.

Share Price & News

How has Zhong Ao Home Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.5%

1538

5.3%

HK Real Estate

3.3%

HK Market


1 Year Return

-4.1%

1538

12.5%

HK Real Estate

1.6%

HK Market

Return vs Industry: 1538 underperformed the Hong Kong Real Estate industry which returned 12.5% over the past year.

Return vs Market: 1538 underperformed the Hong Kong Market which returned 1.6% over the past year.


Shareholder returns

1538IndustryMarket
7 Day4.5%5.3%3.3%
30 Day1.4%2.9%-0.009%
90 Day-2.8%-9.1%-5.1%
1 Year-0.4%-4.1%16.8%12.5%5.3%1.6%
3 Year-33.9%-39.7%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 Zhong Ao Home Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Zhong Ao Home Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 1538 (HK$0.7) is trading below our estimate of fair value (HK$2.27)

Significantly Undervalued: 1538 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1538 is good value based on its PE Ratio (5.1x) compared to the Real Estate industry average (6.2x).

PE vs Market: 1538 is good value based on its PE Ratio (5.1x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 1538's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1538 is overvalued based on its PB Ratio (0.8x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Zhong Ao Home Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1538's earnings are forecast to decline over the next 3 years (-2.8% per year).

Earnings vs Market: 1538's earnings are forecast to decline over the next 3 years (-2.8% per year).

High Growth Earnings: 1538's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 1538's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1538's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 1538's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Zhong Ao Home Group performed over the past 5 years?

48.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1538's earnings have grown significantly by 48.2% per year over the past 5 years.

Accelerating Growth: 1538's earnings growth over the past year (9.8%) is below its 5-year average (48.2% per year).

Earnings vs Industry: 1538 earnings growth over the past year (9.8%) exceeded the Real Estate industry -12.4%.


Return on Equity

High ROE: 1538's Return on Equity (16.6%) is considered low.


Return on Assets

ROA vs Industry: 1538 has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 1538 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Zhong Ao Home Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1538's short term assets (CN¥1.1B) exceeds its short term liabilities (CN¥1.0B)

Long Term Liabilities: 1538's short term assets (1.1B) exceeds its long term liabilities (153.1M)


Debt to Equity History and Analysis

Debt Level: 1538's debt to equity ratio (24.7%) is considered satisfactory

Reducing Debt: 1538's debt to equity ratio has increased from 8.9% to 24.7% over the past 5 years.

Debt Coverage: 1538's debt is well covered by operating cash flow (82.5%).

Interest Coverage: 1538's interest payments on its debt are well covered by EBIT (10.7x coverage).


Balance Sheet

Inventory Level: 1538 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1538's debt is covered by short term assets (assets are 6.716350x debt).


Next Steps

Dividend

What is Zhong Ao Home Group's current dividend yield, its reliability and sustainability?

3.37%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%2.3%markettop25%6.3%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1538's dividend (3.37%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1538's dividend (3.37%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 1538 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1538's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.7%), 1538'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 Zhong Ao Home Group's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Jian Liu (51yo)

4.8yrs

Tenure

CN¥6,266,000

Compensation

Mr. Jian Liu founded Zhong Ao Home Group Limited in January 05, 2015 and has been its Chairman, Chief Executive Officer and Executive Director since January 05, 2015. Mr. Liu founded Guangdong Zhong Ao Pro ...


CEO Compensation Analysis

Compensation vs. Market: Jian's total compensation ($USD885.40K) is about average for companies of similar size in the Hong Kong market ($USD211.62K).

Compensation vs Earnings: Jian's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.8yrs

Average Tenure

47yo

Average Age

Experienced Management: 1538's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

48.5yo

Average Age

Experienced Board: 1538's board of directors are considered experienced (4.5 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

SellCN¥20,999,92329 Jul 19
Briarwood Capital Management Inc.
EntityCompany
Shares30,000,000
Max PriceCN¥0.70

Ownership Breakdown


Management Team

  • Kai Chun Siu (51yo)

    Financial Controller & Company Secretary

    • Tenure: 0.2yrs
  • Jian Liu (51yo)

    Chairman & CEO

    • Tenure: 4.8yrs
    • Compensation: CN¥6.27m
  • Zhuo Chen (41yo)

    Founder

    • Tenure: 4.8yrs
    • Compensation: CN¥3.23m
  • Bing Liang (47yo)

    VP & Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥3.23m
  • Weimin Long (56yo)

    VP & Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥3.23m
  • Ho Yu (42yo)

    Chief Financial Officer

    • Tenure: 4.5yrs
  • Tao Luo (32yo)

    Chief Executive Officer of Hangzhou Yidao

    • Tenure: 4.5yrs

Board Members

  • David Wei (49yo)

    Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: CN¥150.00k
  • Wai Cheung Chan (46yo)

    Independent Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: CN¥152.00k
  • Kevin Chan (49yo)

    Independent Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: CN¥152.00k
  • Qimin Wu (48yo)

    Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: CN¥102.00k
  • Jian Liu (51yo)

    Chairman & CEO

    • Tenure: 4.8yrs
    • Compensation: CN¥6.27m
  • Zhuo Chen (41yo)

    Founder

    • Tenure: 4.8yrs
    • Compensation: CN¥3.23m
  • Bing Liang (47yo)

    VP & Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥3.23m
  • Weimin Long (56yo)

    VP & Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥3.23m
  • Weilun Zhang (47yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: CN¥152.00k
  • Anxin Huang (56yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: CN¥152.00k

Company Information

Zhong Ao Home Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zhong Ao Home Group Limited
  • Ticker: 1538
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$580.512m
  • Shares outstanding: 817.62m
  • Website: https://www.gdzawy.com

Number of Employees


Location

  • Zhong Ao Home Group Limited
  • Han Xi Avenue
  • 1–2/F, Block 5
  • Guangzhou
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1538SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2015

Biography

Zhong Ao Home Group Limited operates as an independent property management company in the People’s Republic of China. Its Property Management business offers property management, consulting, and ancillary  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:51
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.