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 with proven track record.

Risks

  • Zhong Ao Home Group is not covered by any analysts.

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

0%

1538

-1.5%

HK Real Estate

-1.5%

HK Market


1 Year Return

-12.8%

1538

-6.5%

HK Real Estate

-7.5%

HK Market

1538 underperformed the Real Estate industry which returned -6.5% over the past year.

1538 underperformed the Market in Hong Kong which returned -7.5% over the past year.


Share holder returns

1538IndustryMarket
7 Day0%-1.5%-1.5%
30 Day3.0%-1.4%2.1%
90 Day-2.9%-11.0%-5.5%
1 Year-9.5%-12.8%-2.5%-6.5%-4.1%-7.5%
3 Year-39.4%-44.7%29.9%16.2%14.2%2.6%
5 Yearn/a53.9%27.9%16.5%-2.9%

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

31%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Zhong Ao Home Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Zhong Ao Home Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Zhong Ao Home Group is good value based on earnings compared to the HK Real Estate industry average.

Zhong Ao Home Group is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Zhong Ao Home Group, we can't assess if its growth is good value.


Price Based on Value of Assets

Zhong Ao Home Group is overvalued based on assets compared to the HK Real Estate industry average.


Next Steps

Future Growth

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

-3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Zhong Ao Home Group is high growth as no revenue estimate data is available.

Zhong Ao Home Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Zhong Ao Home Group's revenue growth to the Hong Kong market average as no estimate data is available.

Zhong Ao Home Group's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

Zhong Ao Home Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Zhong Ao Home Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Zhong Ao Home Group has delivered over 20% year on year earnings growth in the past 5 years.

Zhong Ao Home Group's 1-year earnings growth is less than its 5-year average (9.8% vs 48.2%)

Zhong Ao Home Group's earnings growth has exceeded the HK Real Estate industry average in the past year (9.8% vs -12.4%).


Return on Equity

Zhong Ao Home Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Zhong Ao Home Group used its assets more efficiently than the HK Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

Zhong Ao Home Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Zhong Ao Home Group's financial position?


Financial Position Analysis

Zhong Ao Home Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Zhong Ao Home Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Zhong Ao Home Group's level of debt (24.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (8.9% vs 24.7% today).

Debt is well covered by operating cash flow (33.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.7x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 6.7x debt.


Next Steps

Dividend

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

3.46%

Current Dividend Yield


Dividend Yield and Payments Analysis

Zhong Ao Home Group's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Zhong Ao Home Group's dividend is below the markets top 25% of dividend payers in Hong Kong (6.19%).

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

Dividend payments have increased, but Zhong Ao Home Group only paid a dividend in the past 3 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.7x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

4.7yrs

Average management tenure


CEO

Jian Liu (51yo)

4.7yrs

Tenure

CN¥13,044,000

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

Jian's remuneration is higher than average for companies of similar size in Hong Kong.

Jian's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

4.7yrs

Average Tenure

47yo

Average Age

The tenure for the Zhong Ao Home Group management team is about average.


Board Age and Tenure

4.4yrs

Average Tenure

48.5yo

Average Age

The tenure for the Zhong Ao Home Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 0.08yrs
  • Jian Liu (51yo)

    Chairman & CEO

    • Tenure: 4.7yrs
    • Compensation: CN¥13.04m
  • Zhuo Chen (41yo)

    Founder

    • Tenure: 4.7yrs
    • Compensation: CN¥6.98m
  • Bing Liang (47yo)

    VP & Executive Director

    • Tenure: 4.7yrs
    • Compensation: CN¥6.98m
  • Weimin Long (56yo)

    VP & Executive Director

    • Tenure: 4.7yrs
    • Compensation: CN¥6.98m
  • Ho Yu (42yo)

    Chief Financial Officer

    • Tenure: 4.4yrs
  • Tao Luo (32yo)

    Chief Executive Officer of Hangzhou Yidao

    • Tenure: 4.4yrs

Board Members

  • David Wei (49yo)

    Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥150.00k
  • Wai Cheung Chan (46yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥152.00k
  • Kevin Chan (49yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥152.00k
  • Qimin Wu (48yo)

    Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥102.00k
  • Jian Liu (51yo)

    Chairman & CEO

    • Tenure: 4.7yrs
    • Compensation: CN¥13.04m
  • Zhuo Chen (41yo)

    Founder

    • Tenure: 4.7yrs
    • Compensation: CN¥6.98m
  • Bing Liang (47yo)

    VP & Executive Director

    • Tenure: 4.7yrs
    • Compensation: CN¥6.98m
  • Weimin Long (56yo)

    VP & Executive Director

    • Tenure: 4.7yrs
    • Compensation: CN¥6.98m
  • Weilun Zhang (47yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥152.00k
  • Anxin Huang (56yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • 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$555.983m
  • 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 Analysis2019/09/20 12:51
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.