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

-4.1%

1628

-2.9%

HK Real Estate

-2.7%

HK Market


1 Year Return

-2.3%

1628

-8.5%

HK Real Estate

-9.4%

HK Market

1628 outperformed the Real Estate industry which returned -8.5% over the past year.

1628 outperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

1628IndustryMarket
7 Day-4.1%-2.9%-2.7%
30 Day0.3%-2.4%1.8%
90 Day-1.7%-10.9%-5.6%
1 Year7.3%-2.3%-4.6%-8.5%-6.2%-9.4%
3 Year47.8%20.5%29.1%15.5%14.3%2.7%
5 Year194.5%104.1%53.8%27.6%16.7%-2.8%

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Yuzhou Properties's share price is below the future cash flow value, and at a moderate discount (> 20%).

Yuzhou Properties's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Yuzhou Properties is good value based on earnings compared to the HK Real Estate industry average.

Yuzhou Properties is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Yuzhou Properties is good value based on expected growth next year.


Price Based on Value of Assets

Yuzhou Properties is overvalued based on assets compared to the HK Real Estate industry average.


Next Steps

Future Growth

How is Yuzhou Properties expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Yuzhou Properties's revenue is expected to grow significantly at over 20% yearly.

Yuzhou Properties's earnings are expected to grow significantly at over 20% yearly.

Yuzhou Properties's revenue growth is expected to exceed the Hong Kong market average.

Yuzhou Properties's earnings growth is expected to exceed the Hong Kong market average.

Yuzhou Properties's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Yuzhou Properties is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Yuzhou Properties has delivered over 20% year on year earnings growth in the past 5 years.

Yuzhou Properties's 1-year earnings growth is less than its 5-year average (13.8% vs 21.9%)

Yuzhou Properties's earnings growth has exceeded the HK Real Estate industry average in the past year (13.8% vs -12.4%).


Return on Equity

Yuzhou Properties has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Yuzhou Properties used its assets less efficiently than the HK Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

Yuzhou Properties's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Yuzhou Properties's financial position?


Financial Position Analysis

Yuzhou Properties is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Yuzhou Properties's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Yuzhou Properties's level of debt (243.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (161.6% vs 243.3% today).

Debt is not well covered by operating cash flow (5.7%, less than 20% of total debt).

Yuzhou Properties earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

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?

12.26%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Yuzhou Properties before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Yuzhou Properties's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Yuzhou Properties's dividend is above the markets top 25% of dividend payers in Hong Kong (6.16%).

Yuzhou Properties 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 Yuzhou Properties only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Lung Lam (55yo)

7.7yrs

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

Lung's remuneration is lower than average for companies of similar size in Hong Kong.

Lung's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

0.9yrs

Average Tenure

48yo

Average Age

The average tenure for the Yuzhou Properties management team is less than 2 years, this suggests a new team.


Board Age and Tenure

9.9yrs

Average Tenure

50yo

Average Age

The tenure for the Yuzhou Properties board of directors is about average.


Insider Trading

More shares have been bought than sold by Yuzhou Properties individual insiders 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¥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
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¥3,111,30303 Oct 18
Lung Lam
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,000,000
Max PriceCN¥3.11

Ownership Breakdown


Management Team

  • Lung Lam (55yo)

    Founder

    • Tenure: 7.7yrs
    • Compensation: CN¥2.35m
  • Steve Chiu (42yo)

    CFO, VP & Company Secretary

    • Tenure: 0.2yrs
  • 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: 9.9yrs
    • 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: 0.9yrs
    • Compensation: CN¥253.47k
  • Xu Ke (40yo)

    Executive President

    • Tenure: 0yrs

Board Members

  • Henny Wee (73yo)

    Independent Non-Executive Director

    • Tenure: 9.9yrs
    • 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: 9.9yrs
    • Compensation: CN¥169.00k
  • Mei Xie (51yo)

    Non-Executive Director

    • Tenure: 1yrs
  • Lung Lam (55yo)

    Founder

    • Tenure: 7.7yrs
    • Compensation: CN¥2.35m
  • Ying Kwok (49yo)

    Vice Chairman

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

    VP & Executive Director

    • Tenure: 9.9yrs
    • Compensation: CN¥1.08m
  • Yu Fong Lam (24yo)

    Executive Director

    • Tenure: 0.9yrs
    • 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$17.459b
  • 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 Analysis2019/09/21 12:42
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.