Yuzhou Group Holdings (SEHK:1628) - Share price, News & Analysis

1628 fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	3/6
Financial Health	4/6
Dividends	0/6

1628 Stock Overview

Yuzhou Group Holdings Company Limited, an investment holding company, engages in the property development activities in the People’s Republic of China.

Rewards

Trading at 59.4% below our estimate of its fair value

Earnings are forecast to grow 38.37% per year

Earnings grew by 16145.4% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over the past 3 months

Large one-off items impacting financial results

Yuzhou Group Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Yuzhou Group Holdings
Historical stock prices
Current Share Price	HK$0.48
52 Week High	HK$2.04
52 Week Low	HK$0.34
Beta	0.52
1 Month Change	5.50%
3 Month Change	3.23%
1 Year Change	-75.21%
3 Year Change	-84.97%
5 Year Change	-88.06%
Change since IPO	-70.36%

Recent News & Updates

May 27

These 4 Measures Indicate That Yuzhou Group Holdings (HKG:1628) Is Using Debt Extensively

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Feb 10

When Should You Buy Yuzhou Group Holdings Company Limited (HKG:1628)?

Yuzhou Group Holdings Company Limited ( HKG:1628 ), might not be a large cap stock, but it saw a decent share price...

Shareholder Returns

	1628	HK Real Estate	HK Market
7D	6.7%	3.8%	1.2%
1Y	-75.2%	-34.6%	-23.3%

Return vs Industry: 1628 underperformed the Hong Kong Real Estate industry which returned -34.6% over the past year.

Return vs Market: 1628 underperformed the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 1628's price volatile compared to industry and market?
1628 volatility
1628 Average Weekly Movement	14.0%
Real Estate Industry Average Movement	6.3%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.7%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 1628 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: 1628's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

Founded	Employees	CEO	Website
1994	7,295	Lung Lam	https://www.yuzhou-group.com

Yuzhou Group Holdings Company Limited, an investment holding company, engages in the property development activities in the People’s Republic of China. It operates through five segments: Property Development, Property Investment, Property Management, Hotel Operation, and Others. The company develops, sells, manages, and invests in properties.

Yuzhou Group Holdings Fundamentals Summary

How do Yuzhou Group Holdings's earnings and revenue compare to its market cap?
1628 fundamental statistics
Market Cap	CN¥2.68b
Earnings (TTM)	CN¥758.34m
Revenue (TTM)	CN¥27.07b

3.5x

P/E Ratio

0.1x

P/S Ratio

Is 1628 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1628 income statement (TTM)
Revenue	CN¥27.07b
Cost of Revenue	CN¥23.40b
Gross Profit	CN¥3.67b
Other Expenses	CN¥2.91b
Earnings	CN¥758.34m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.12
Gross Margin	13.56%
Net Profit Margin	2.80%
Debt/Equity Ratio	136.7%

How did 1628 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 1628 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1628?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1628. This is calculated by dividing 1628's market cap by their current preferred multiple.
What is 1628's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥2.68b

1628 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.2x
Enterprise Value/EBITDA	27.4x
PEG Ratio	0.09x

Price to Earnings Ratio vs Peers

How does 1628's PE Ratio compare to its peers?

1628 PE Ratio vs Peers

The above table shows the PE ratio for 1628 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	11.1x

Forward PE

Price-To-Earnings vs Peers: 1628 is good value based on its Price-To-Earnings Ratio (3.5x) compared to the peer average (11.1x).

Price to Earnings Ratio vs Industry

How does 1628's PE Ratio compare vs other companies in the Hong Kong Real Estate Industry?

Price-To-Earnings vs Industry: 1628 is good value based on its Price-To-Earnings Ratio (3.5x) compared to the Hong Kong Real Estate industry average (6.5x)

Price to Earnings Ratio vs Fair Ratio

What is 1628's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1628 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3.5x
Fair PE Ratio	6.7x

Price-To-Earnings vs Fair Ratio: 1628 is good value based on its Price-To-Earnings Ratio (3.5x) compared to the estimated Fair Price-To-Earnings Ratio (6.7x).

Share Price vs Fair Value

What is the Fair Price of 1628 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1628 (HK$0.48) is trading below our estimate of fair value (HK$1.18)

Significantly Below Fair Value: 1628 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 1628 is good value based on its PEG Ratio (0.1x)

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Future Growth

How is Yuzhou Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

38.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1628's forecast earnings growth (38.4% per year) is above the savings rate (1.5%).

Earnings vs Market: 1628's earnings (38.4% per year) are forecast to grow faster than the Hong Kong market (16.8% per year).

High Growth Earnings: 1628's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1628's revenue (2.6% per year) is forecast to grow slower than the Hong Kong market (10.1% per year).

High Growth Revenue: 1628's revenue (2.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 1628's Return on Equity is forecast to be low in 3 years time (3.1%).

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Past Performance

How has Yuzhou Group Holdings performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-17.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1628 has a large one-off gain of CN¥817.0M impacting its December 31 2021 financial results.

Growing Profit Margin: 1628's current net profit margins (2.8%) are higher than last year (0.04%).

Past Earnings Growth Analysis

Earnings Trend: 1628's earnings have declined by 17.2% per year over the past 5 years.

Accelerating Growth: 1628's earnings growth over the past year (16145.4%) exceeds its 5-year average (-17.2% per year).

Earnings vs Industry: 1628 earnings growth over the past year (16145.4%) exceeded the Real Estate industry 14.7%.

Return on Equity

High ROE: 1628's Return on Equity (3.1%) is considered low.

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Financial Health

How is Yuzhou Group Holdings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1628's short term assets (CN¥142.2B) exceed its short term liabilities (CN¥86.4B).

Long Term Liabilities: 1628's short term assets (CN¥142.2B) exceed its long term liabilities (CN¥46.6B).

Debt to Equity History and Analysis

Debt Level: 1628's net debt to equity ratio (96.7%) is considered high.

Reducing Debt: 1628's debt to equity ratio has reduced from 221.2% to 136.7% over the past 5 years.

Debt Coverage: 1628's debt is not well covered by operating cash flow (3.1%).

Interest Coverage: 1628's interest payments on its debt are well covered by EBIT (51.9x coverage).

Balance Sheet

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Dividend

What is Yuzhou Group Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

16.52%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1628's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1628's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1628's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1628's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 1628 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 1628 has not reported any payouts.

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Management

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

12.7yrs

Average board tenure

CEO

Lung Lam (57 yo)

27.5yrs

Tenure

CN¥2,247,000

Compensation

Mr. Lung On Lam, JP founded Yuzhou Group Holdings Company Limited (formerly known as Yuzhou Properties Company Limited) in December 1994 and has been its Group Chief Executive Officer since January 01, 201...

CEO Compensation Analysis

Compensation vs Market: Lung's total compensation ($USD335.48K) is about average for companies of similar size in the Hong Kong market ($USD383.94K).

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

Board Members

Experienced Board: 1628's board of directors are seasoned and experienced ( 12.7 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31