SEHK:1538

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Executive Summary

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


Snowflake Analysis

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

Stable Share Price: 1538's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-22.2%

1538

-3.4%

HK Real Estate

-3.9%

HK Market


1 Year Return

33.8%

1538

-6.8%

HK Real Estate

-1.5%

HK Market

Return vs Industry: 1538 exceeded the Hong Kong Real Estate industry which returned -6.8% over the past year.

Return vs Market: 1538 exceeded the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

1538IndustryMarket
7 Day-22.2%-3.4%-3.9%
30 Day-34.1%-6.3%-7.1%
90 Day-48.0%-3.5%-0.7%
1 Year40.7%33.8%-1.9%-6.8%2.4%-1.5%
3 Year24.8%8.3%-5.7%-20.2%-7.2%-17.2%
5 Yearn/a44.8%15.1%20.1%-0.1%

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

Below Fair Value: 1538 (HK$0.91) is trading below our estimate of fair value (HK$6.09)

Significantly Below Fair Value: 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 (5.5x) compared to the HK Real Estate industry average (8.8x).

PE vs Market: 1538 is good value based on its PE Ratio (5.5x) compared to the Hong Kong market (11x).


Price to Earnings Growth Ratio

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 (0.9x) compared to the HK Real Estate industry average (0.4x).


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?

18.3%

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

46.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1538 has high quality earnings.

Growing Profit Margin: 1538's current net profit margins (7%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: 1538's earnings have grown significantly by 46.9% per year over the past 5 years.

Accelerating Growth: 1538's earnings growth over the past year (17.6%) is below its 5-year average (46.9% per year).

Earnings vs Industry: 1538 earnings growth over the past year (17.6%) exceeded the Real Estate industry -6.8%.


Return on Equity

High ROE: 1538's Return on Equity (18.5%) is considered low.


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¥1.3B) exceed its short term liabilities (CN¥1.2B).

Long Term Liabilities: 1538's short term assets (CN¥1.3B) exceed its long term liabilities (CN¥108.4M).


Debt to Equity History and Analysis

Debt Level: 1538's debt to equity ratio (22.4%) is considered satisfactory.

Reducing Debt: 1538's debt to equity ratio has increased from 7% to 22.4% over the past 5 years.

Debt Coverage: 1538's debt is well covered by operating cash flow (122.2%).

Interest Coverage: 1538's interest payments on its debt are well covered by EBIT (11.4x coverage).


Balance Sheet


Next Steps

Dividend

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

3.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1538's dividend (3%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1538's dividend (3%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.04%).


Stability and Growth of Payments

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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.9%), 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

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

5.7yrs

Average management tenure


CEO

Jian Liu (52 yo)

5.67yrs

Tenure

CN¥700,000

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 ($USD102.86K) is below average for companies of similar size in the Hong Kong market ($USD229.69K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jian Liu
Chairman & CEO5.67yrsCN¥700.00kno data
Zhuo Chen
Founder5.67yrsCN¥2.39mno data
Bing Liang
VP & Executive Director5.67yrsCN¥2.65mno data
Weimin Long
VP & Executive Director5.67yrsCN¥2.66mno data
Ho Ming Yu
Chief Financial Officer5.42yrsno datano data
Tao Luo
Chief Executive Officer of Hangzhou Yidao5.42yrsno datano data
Kai Chun Siu
Financial Controller & Company Secretary1.08yrsno datano data

5.7yrs

Average Tenure

48yo

Average Age

Experienced Management: 1538's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jian Liu
Chairman & CEO5.67yrsCN¥700.00kno data
Zhuo Chen
Founder5.67yrsCN¥2.39mno data
Bing Liang
VP & Executive Director5.67yrsCN¥2.65mno data
Weimin Long
VP & Executive Director5.67yrsCN¥2.66mno data
Wai Cheung Chan
Independent Non-Executive Director3.33yrsCN¥159.00kno data
Ka Leung Chan
Independent Non-Executive Director3.33yrsCN¥159.00kno data
Weilun Zhang
Independent Non-Executive Director4.83yrsCN¥159.00kno data
Zhihua Wu
Non-Executive Director0.25yrno datano data
Anxin Huang
Independent Non-Executive Director2.92yrsCN¥159.00kno data
Keli Jin
Non-Executive Director0.17yrno datano data

4.1yrs

Average Tenure

48yo

Average Age

Experienced Board: 1538's board of directors are considered experienced (4.1 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.5%.


Top Shareholders

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$777.641m
  • Shares outstanding: 854.55m
  • Website: https://www.gdzawy.com

Number of Employees


Location

  • Zhong Ao Home Group Limited
  • Han Xi Avenue
  • 1–2/Floor, 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. The company offers property management services; ancillary services, such as cleaning, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/25 20:20
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.