SEHK:1628

Stock Analysis Report

Executive Summary

Yuzhou Properties Company Limited, an investment holding company, engages in the investment, development, and management of properties in the People’s Republic of China.

Snowflake

Fundamentals

Exceptional growth potential, undervalued and pays a dividend.

Share Price & News

How has Yuzhou Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.8%

1628

2.1%

HK Real Estate

0.9%

HK Market


1 Year Return

19.0%

1628

10.5%

HK Real Estate

0.6%

HK Market

Return vs Industry: 1628 exceeded the Hong Kong Real Estate industry which returned 10.5% over the past year.

Return vs Market: 1628 exceeded the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

1628IndustryMarket
7 Day1.8%2.1%0.9%
30 Day-4.3%2.9%0.5%
90 Day-12.4%-8.3%-4.3%
1 Year31.2%19.0%14.8%10.5%4.2%0.6%
3 Year44.3%12.5%39.9%25.3%15.6%4.0%
5 Year186.1%89.7%63.9%35.7%20.0%-0.08%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Yuzhou Properties 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: 1628 (HK$3.32) is trading below our estimate of fair value (HK$21.5)

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


Price To Earnings Ratio

PE vs Industry: 1628 is good value based on its PE Ratio (3.8x) compared to the Real Estate industry average (6.2x).

PE vs Market: 1628 is good value based on its PE Ratio (3.8x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1628 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 1628 is overvalued based on its PB Ratio (0.7x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Yuzhou Properties forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

20.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1628's forecast earnings growth (20.4% per year) is above the savings rate (2%).

Earnings vs Market: 1628's earnings (20.4% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

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

Revenue vs Market: 1628's revenue (21.6% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 1628's revenue (21.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1628's Return on Equity is forecast to be high in 3 years time (21.1%)


Next Steps

Past Performance

How has Yuzhou Properties performed over the past 5 years?

21.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1628's earnings have grown significantly by 21.9% per year over the past 5 years.

Accelerating Growth: 1628's earnings growth over the past year (13.8%) is below its 5-year average (21.9% per year).

Earnings vs Industry: 1628 earnings growth over the past year (13.8%) exceeded the Real Estate industry -12.4%.


Return on Equity

High ROE: 1628's Return on Equity (18.6%) is considered low.


Return on Assets

ROA vs Industry: 1628's Return on Assets is below or equal to the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 1628's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Yuzhou Properties's financial position?


Financial Position Analysis

Short Term Liabilities: 1628's short term assets (CN¥115.0B) exceeds its short term liabilities (CN¥76.3B)

Long Term Liabilities: 1628's short term assets (115.0B) exceeds its long term liabilities (44.1B)


Debt to Equity History and Analysis

Debt Level: 1628's debt to equity ratio (243.3%) is considered high

Reducing Debt: 1628's debt to equity ratio has increased from 161.6% to 243.3% over the past 5 years.

Debt Coverage: 1628's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1628 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1628 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1628's debt is covered by short term assets (assets are 2.071340x debt).


Next Steps

Dividend

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

9.76%

Current Dividend Yield


Dividend Yield vs Market

company9.8%marketbottom25%2.3%markettop25%6.3%industryaverage4.4%forecastin3Years12.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1628's dividend (9.76%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1628's dividend (9.76%) is in the top 25% of dividend payers in the Hong Kong market (6.25%)

Stable Dividend: 1628's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1628's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.2%), 1628's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1628's dividends in 3 years are forecast to be well covered by earnings (36% payout ratio).


Next Steps

Management

What is the CEO of Yuzhou Properties's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Lung Lam (55yo)

7.8yrs

Tenure

CN¥2,346,000

Compensation

Mr. Lung On Lam founded Yuzhou Properties Company Limited in December 1994 and has been its Group Chief Executive Officer since January 01, 2012. Mr. Lam served as the President for Yuzhou Properties Compa ...


CEO Compensation Analysis

Compensation vs. Market: Lung's total compensation ($USD331.28K) is below average for companies of similar size in the Hong Kong market ($USD556.65K).

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


Management Age and Tenure

1.0yrs

Average Tenure

48yo

Average Age

Experienced Management: 1628's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

10.0yrs

Average Tenure

50yo

Average Age

Experienced Board: 1628's board of directors are seasoned and experienced ( 10 years average tenure).


Insider Trading

Insider Buying: 1628 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥277,712,51209 Aug 19
Lung Lam
EntityIndividual
Role
Chief Executive Officer
Founder
Shares75,919,192
Max PriceCN¥3.66
BuyCN¥267,157,79109 Aug 19
Ying Kwok
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares73,033,813
Max PriceCN¥3.66
BuyCN¥1,870,99930 Jul 19
Lung Lam
EntityIndividual
Role
Chief Executive Officer
Founder
Shares500,000
Max PriceCN¥3.74
BuyCN¥1,842,20015 Jul 19
Ying Kwok
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares500,000
Max PriceCN¥3.68
BuyCN¥554,39918 Dec 18
Conghui Lin
EntityIndividual
Role
Member of the Board of Directors
VP & Executive Director
Shares205,943
Max PriceCN¥2.69
BuyCN¥143,092,53318 Dec 18
Lung Lam
EntityIndividual
Role
Chief Executive Officer
Founder
Shares53,154,680
Max PriceCN¥2.69
BuyCN¥137,680,52618 Dec 18
Ying Kwok
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares51,144,278
Max PriceCN¥2.69

Ownership Breakdown


Management Team

  • Lung Lam (55yo)

    Founder

    • Tenure: 7.8yrs
    • Compensation: CN¥2.35m
  • Steve Chiu (42yo)

    CFO, VP & Company Secretary

    • Tenure: 0.3yrs
  • Saihong Chen (51yo)

    Chief Marketing Officer

    • Tenure: 0yrs
  • Yuhua Lin (47yo)

    Assistant General Manager

    • Tenure: 0yrs
  • Xingmin Zheng (83yo)

    Chief Engineer

    • Tenure: 0yrs
  • Hongguang Li (44yo)

    Head of Internal Audit Department

    • Tenure: 0yrs
  • Conghui Lin (49yo)

    VP & Executive Director

    • Tenure: 10yrs
    • Compensation: CN¥1.08m
  • Wenhui Huang (49yo)

    Head of Investment and General Manager of Investment Department

    • Tenure: 0yrs
  • Yu Fong Lam (24yo)

    Executive Director

    • Tenure: 1yrs
    • Compensation: CN¥253.47k
  • Xu Ke (40yo)

    Executive President

    • Tenure: 0yrs

Board Members

  • Henny Wee (73yo)

    Independent Non-Executive Director

    • Tenure: 10yrs
    • Compensation: CN¥169.00k
  • Philip Zhai (44yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥169.00k
  • Kwong Siu Lam (84yo)

    Independent Non-Executive Director

    • Tenure: 10yrs
    • Compensation: CN¥169.00k
  • Mei Xie (51yo)

    Non-Executive Director

    • Tenure: 1.1yrs
  • Lung Lam (55yo)

    Founder

    • Tenure: 7.8yrs
    • Compensation: CN¥2.35m
  • Ying Kwok (49yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: CN¥2.32m
  • Conghui Lin (49yo)

    VP & Executive Director

    • Tenure: 10yrs
    • Compensation: CN¥1.08m
  • Yu Fong Lam (24yo)

    Executive Director

    • Tenure: 1yrs
    • Compensation: CN¥253.47k

Company Information

Yuzhou Properties Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yuzhou Properties Company Limited
  • Ticker: 1628
  • Exchange: SEHK
  • Founded: 1994
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$16.352b
  • Shares outstanding: 5.03b
  • Website: https://www.yuzhou-group.com

Number of Employees


Location

  • Yuzhou Properties Company Limited
  • Yuzhou Plaza
  • 299 Jingang Road
  • Shanghai
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1628SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2009
YP9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2009
1628SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2009
1628SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2009

Biography

Yuzhou Properties Company Limited, an investment holding company, engages in the investment, development, and management of properties in the People’s Republic of China. It operates through five segments:  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:55
End of Day Share Price2019/10/21 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.