SEHK:158

Stock Analysis Report

Melbourne Enterprises

Executive Summary

Melbourne Enterprises Limited, an investment holding company, engages in property investment activities in Hong Kong.


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Melbourne Enterprises's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 158 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

158

3.8%

HK Real Estate

2.7%

HK Market


1 Year Return

-24.4%

158

-24.4%

HK Real Estate

-19.8%

HK Market

Return vs Industry: 158 exceeded the Hong Kong Real Estate industry which returned -25.2% over the past year.

Return vs Market: 158 underperformed the Hong Kong Market which returned -21.1% over the past year.


Shareholder returns

158IndustryMarket
7 Day-0.5%3.8%2.7%
30 Day-6.4%-8.7%-7.2%
90 Day-9.6%-14.0%-12.1%
1 Year-22.6%-24.4%-20.8%-24.4%-16.9%-19.8%
3 Year10.2%2.1%19.4%6.2%0.9%-9.3%
5 Year56.7%36.0%31.9%8.6%-12.6%-26.7%

Price Volatility Vs. Market

How volatile is Melbourne Enterprises's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Melbourne Enterprises undervalued compared to its fair value and its price relative to the market?

0.49x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 158 (HK$182.5) is trading above our estimate of fair value (HK$99.09)

Significantly Below Fair Value: 158 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 158 is unprofitable, so we can't compare its PE Ratio to the Real Estate industry average.

PE vs Market: 158 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 158's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 158 is overvalued based on its PB Ratio (0.5x) compared to the HK Real Estate industry average (0.4x).


Next Steps

Future Growth

How is Melbourne Enterprises forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.1%

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 Melbourne Enterprises 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 Melbourne Enterprises performed over the past 5 years?

27.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 158 is currently unprofitable.

Growing Profit Margin: 158 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 158 is unprofitable, but has reduced losses over the past 5 years at a rate of 27% per year.

Accelerating Growth: Unable to compare 158's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 158 is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (2.8%).


Return on Equity

High ROE: 158 has a negative Return on Equity (-5.97%), as it is currently unprofitable.


Next Steps

Financial Health

How is Melbourne Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: 158's short term assets (HK$308.2M) exceed its short term liabilities (HK$79.3M).

Long Term Liabilities: 158's short term assets (HK$308.2M) exceed its long term liabilities (HK$16.3M).


Debt to Equity History and Analysis

Debt Level: 158 is debt free.

Reducing Debt: 158 has not had any debt for past 5 years.

Debt Coverage: 158 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 158 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Melbourne Enterprises's current dividend yield, its reliability and sustainability?

2.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 158's dividend (2.79%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.71%).

High Dividend: 158's dividend (2.79%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.21%).


Stability and Growth of Payments

Stable Dividend: 158's dividends per share have been stable in the past 10 years.

Growing Dividend: 158's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: 158 is paying a dividend but the company is unprofitable.


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?

20.5yrs

Average board tenure


CEO

Melbourne Enterprises has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Ming Fai Chung
Co-Founder & Executive Chairman of the Board5yrsHK$150.00k48.01% HK$2.2b
On Yip Tsang
Executive Director5yrsHK$150.00kno data
Yin Shu Chung
Company Secretary & Executive Director52.33yrsHK$1.52m0.0075% HK$342.2k
Yun Wah Fong
Independent Non-Executive Director25.42yrsHK$150.00kno data
Pak Shiu Lo
Independent Non-Executive Director31.08yrsHK$150.00kno data
Wai Shu Chung
Non-Executive Director44.33yrsHK$150.00kno data
Sik Ming Yuen
Independent Non-Executive Director15.58yrsHK$150.00kno data
Kenneth Lau
Alternate Director0.92yrno datano data

20.5yrs

Average Tenure

68yo

Average Age

Experienced Board: 158's board of directors are seasoned and experienced ( 20.5 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Melbourne Enterprises Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Melbourne Enterprises Limited
  • Ticker: 158
  • Exchange: SEHK
  • Founded:
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$4.563b
  • Shares outstanding: 25.00m
  • Website: https://null

Number of Employees


Location

  • Melbourne Enterprises Limited
  • Melbourne Plaza
  • Rooms 2102-4
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
158SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Melbourne Enterprises Limited, an investment holding company, engages in property investment activities in Hong Kong. Its investment properties include commercial and retail. The company is based in Central, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 12:38
End of Day Share Price2020/04/08 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.