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.

Rewards

Trading at 34.7% below its fair value

Earnings are forecast to grow 17.17% per year

Earnings grew by 13.8% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Unstable dividend track record

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Undervalued with high growth potential 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

Stable Share Price: 1628's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.0%

1628

10.5%

HK Real Estate

7.4%

HK Market


1 Year Return

-29.3%

1628

-28.7%

HK Real Estate

-22.7%

HK Market

Return vs Industry: 1628 matched the Hong Kong Real Estate industry which returned -28.7% over the past year.

Return vs Market: 1628 underperformed the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

1628IndustryMarket
7 Day15.0%10.5%7.4%
30 Day-13.6%-13.3%-11.2%
90 Day-23.1%-20.8%-17.3%
1 Year-22.1%-29.3%-25.5%-28.7%-19.9%-22.7%
3 Year29.0%0.6%13.8%1.3%-5.3%-14.8%
5 Year150.2%80.3%32.7%10.1%-8.7%-23.4%

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?

34.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1628 (HK$3.3) is trading below our estimate of fair value (HK$5.05)

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 (6.1x).

PE vs Market: 1628 is good value based on its PE Ratio (3.8x) compared to the Hong Kong market (8.9x).


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 (0.4x).


Next Steps

Future Growth

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

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1628's forecast earnings growth (17.2% per year) is above the savings rate (1.6%).

Earnings vs Market: 1628's earnings (17.2% per year) are forecast to grow faster than the Hong Kong market (12.7% per year).

High Growth Earnings: 1628's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1628's revenue (21.5% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 1628's revenue (21.5% 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%)


Next Steps

Past Performance

How has Yuzhou Properties performed over the past 5 years?

21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1628 has a high level of non-cash earnings.

Growing Profit Margin: 1628's current net profit margins (13.9%) are higher than last year (13.7%).


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 1.3%.


Return on Equity

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


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) exceed its short term liabilities (CN¥76.3B).

Long Term Liabilities: 1628's short term assets (CN¥115.0B) exceed its long term liabilities (CN¥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 2.1x debt).


Next Steps

Dividend

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

9.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1628's dividend (9.5%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.63%).

High Dividend: 1628's dividend (9.5%) is in the top 25% of dividend payers in the Hong Kong market (7.28%)


Stability and Growth of Payments

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 (35.5% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Lung Lam (55yo)

8.17s

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 ($USD330.48K) is about average for companies of similar size in the Hong Kong market ($USD469.46K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lung Lam
Founder8.17yrsCN¥2.35m28.69% CN¥4.7b
Conghui Lin
VP & Executive Director10.42yrsCN¥1.08m0.13% CN¥20.9m
Yu Fong Lam
Executive Director1.42yrsCN¥253.47kno data
Xu Ke
Executive Presidentno datano datano data
Yu Kang Chiu
CFO, VP & Company Secretary0.67yrno datano data
Wenhui Huang
Head of Investment and General Manager of Investment Departmentno datano datano data
Saihong Chen
Chief Marketing Officerno datano datano data
Xingmin Zheng
Chief Engineerno datano datano data
Hongguang Li
Head of Internal Audit Departmentno datano datano data
Yuhua Lin
Assistant General Managerno datano datano data

1.4yrs

Average Tenure

48yo

Average Age

Experienced Management: 1628's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Lung Lam
Founder8.17yrsCN¥2.35m28.69% CN¥4.7b
Conghui Lin
VP & Executive Director10.42yrsCN¥1.08m0.13% CN¥20.9m
Yu Fong Lam
Executive Director1.42yrsCN¥253.47kno data
Soon Wee
Independent Non-Executive Director10.42yrsCN¥169.00kno data
Pu Zhai
Independent Non-Executive Director3.25yrsCN¥169.00kno data
Kwong Siu Lam
Independent Non-Executive Director10.42yrsCN¥169.00kno data
Mei Xie
Non-Executive Director1.42yrsno datano data
Ying Kwok
Vice Chairmanno dataCN¥2.32m28.69% CN¥4.7b

10.4yrs

Average Tenure

50yo

Average Age

Experienced Board: 1628's board of directors are seasoned and experienced ( 10.4 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 12.6%.


Top Shareholders

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$16.448b
  • Shares outstanding: 5.22b
  • 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: Property Development, Property Investment, Property Management, Hotel Operation, and Others. The company develops residential, retail, and commercial properties. As of December 31, 2018, it had approximately 17.38 million square meters of land reserve. The company also manages and operates hotels; trades in building and construction materials; and provides marketing services. Yuzhou Properties Company Limited was founded in 1994 and is headquartered in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 13:15
End of Day Share Price2020/03/31 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.