SEHK:1668

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China South City Holdings

Executive Summary

China South City Holdings Limited, together with its subsidiaries, develops and operates integrated logistics and trade centers in the People’s Republic of China. More Details


Snowflake Analysis

Adequate balance sheet average dividend payer.

Share Price & News

How has China South City Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1668's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.4%

1668

-5.7%

HK Real Estate

-5.5%

HK Market


1 Year Return

-20.7%

1668

-8.8%

HK Real Estate

-1.9%

HK Market

Return vs Industry: 1668 underperformed the Hong Kong Real Estate industry which returned -8.8% over the past year.

Return vs Market: 1668 underperformed the Hong Kong Market which returned -1.9% over the past year.


Shareholder returns

1668IndustryMarket
7 Day-6.4%-5.7%-5.5%
30 Day-8.8%-8.8%-7.7%
90 Day-11.0%-5.7%-1.5%
1 Year-17.5%-20.7%-4.0%-8.8%2.1%-1.9%
3 Year-62.9%-67.3%-8.8%-22.8%-8.4%-18.3%
5 Year-56.5%-63.9%38.3%9.8%16.1%-3.5%

Price Volatility Vs. Market

How volatile is China South City Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China South City Holdings undervalued compared to its fair value and its price relative to the market?

2.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1668 (HK$0.73) is trading above our estimate of fair value (HK$0.41)

Significantly Below Fair Value: 1668 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1668 is good value based on its PE Ratio (2.2x) compared to the HK Real Estate industry average (8.5x).

PE vs Market: 1668 is good value based on its PE Ratio (2.2x) compared to the Hong Kong market (10.9x).


Price to Earnings Growth Ratio

PEG Ratio: 1668's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 1668 is good value based on its PB Ratio (0.2x) compared to the HK Real Estate industry average (0.4x).


Next Steps

Future Growth

How is China South City Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1668's earnings are forecast to decline over the next 3 years (-5.8% per year).

Earnings vs Market: 1668's earnings are forecast to decline over the next 3 years (-5.8% per year).

High Growth Earnings: 1668's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 1668's revenue (16.1% per year) is forecast to grow faster than the Hong Kong market (13.2% per year).

High Growth Revenue: 1668's revenue (16.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1668's Return on Equity is forecast to be low in 3 years time (4.7%).


Next Steps

Past Performance

How has China South City Holdings performed over the past 5 years?

-2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1668 has a large one-off gain of HK$1.7B impacting its March 31 2020 financial results.

Growing Profit Margin: 1668's current net profit margins (26.6%) are lower than last year (31.6%).


Past Earnings Growth Analysis

Earnings Trend: 1668's earnings have declined by 2.1% per year over the past 5 years.

Accelerating Growth: 1668's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1668 had negative earnings growth (-19%) over the past year, making it difficult to compare to the Real Estate industry average (-6.8%).


Return on Equity

High ROE: 1668's Return on Equity (7.5%) is considered low.


Next Steps

Financial Health

How is China South City Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1668's short term assets (HK$54.4B) exceed its short term liabilities (HK$50.3B).

Long Term Liabilities: 1668's short term assets (HK$54.4B) exceed its long term liabilities (HK$28.3B).


Debt to Equity History and Analysis

Debt Level: 1668's debt to equity ratio (96.8%) is considered high.

Reducing Debt: 1668's debt to equity ratio has reduced from 100.6% to 96.8% over the past 5 years.

Debt Coverage: 1668's debt is not well covered by operating cash flow (9.5%).

Interest Coverage: 1668's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet


Next Steps

Dividend

What is China South City Holdings's current dividend yield, its reliability and sustainability?

4.11%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1668's dividend (4.11%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.31%).

High Dividend: 1668's dividend (4.11%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.06%).


Stability and Growth of Payments

Stable Dividend: 1668's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1668's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.2%), 1668's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1668's dividends in 3 years are forecast to be well covered by earnings (16% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Lidong Zhao (50 yo)

1.58yrs

Tenure

HK$7,813,000

Compensation

Mr. Lidong Zhao has been Chief Executive Officer and Executive Director at China South City Holdings Limited since February 01, 2019. Mr. Zhao joined at China South City Holdings Limited as the Chief Opera ...


CEO Compensation Analysis

Compensation vs Market: Lidong's total compensation ($USD1.01M) is above average for companies of similar size in the Hong Kong market ($USD505.42K).

Compensation vs Earnings: Lidong's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Chung Hing Cheng
Executive Chairman of the Board3.17yrsHK$21.71m28.5%
HK$ 1.7b
Lidong Zhao
CEO & Executive Director1.58yrsHK$7.81mno data
Kai Cheung Ma
Co-Founder & Honourable Advisorno dataHK$680.00k1.72%
HK$ 101.4m
Ka Man Cheng
Executive Director3.33yrsHK$4.82mno data
Wai Mo Ma
Co-Founder & Honourable Adviserno dataHK$216.00kno data
Kai Lit Sun
Co-Founder & Honourable Adviserno dataHK$216.00kno data
Mau Cheong Chan
Group Chief Financial Officer0.83yrno datano data
Weiguo Chen
President of Business Management Division1.75yrsno datano data
Wen Qiu
Executive Vice President of Investment Development Division1.25yrsno datano data
Guangquan Wu
Executive Director0.42yrno datano data
Man Yu Tse
Deputy CFO & Company Secretary12.67yrsno datano data
Moon Lam Leung
Honourable Adviser3.17yrsHK$658.00kno data

1.6yrs

Average Tenure

55yo

Average Age

Experienced Management: 1668's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Chung Hing Cheng
Executive Chairman of the Board3.17yrsHK$21.71m28.5%
HK$ 1.7b
Lidong Zhao
CEO & Executive Director1.58yrsHK$7.81mno data
Ka Man Cheng
Executive Director3.33yrsHK$4.82mno data
Guangquan Wu
Executive Director0.42yrno datano data
Wai Keung Li
Independent Non-Executive Director11yrsHK$396.00kno data
Tai Po Cheng
Non-Executive Director10.42yrsHK$680.00k7.34%
HK$ 433.6m
Chiu Chung Hui
Independent Non Executive Director9.42yrsHK$396.00kno data
Kwan-Yuen Leung
Independent Non-Executive Director11yrsHK$396.00kno data
Ching Hua Lin
Non-Executive Director6.25yrsno datano data

6.3yrs

Average Tenure

59yo

Average Age

Experienced Board: 1668's board of directors are considered experienced (6.3 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

China South City Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China South City Holdings Limited
  • Ticker: 1668
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$5.907b
  • Shares outstanding: 8.09b
  • Website: https://www.chinasouthcity.com

Number of Employees


Location

  • China South City Holdings Limited
  • 4990556
  • Suites 3306-08, 33 Floor
  • Tsim Sha Tsui
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1668SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2009
CS4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2009
1668SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 2009
1668SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 2009

Biography

China South City Holdings Limited, together with its subsidiaries, develops and operates integrated logistics and trade centers in the People’s Republic of China. The company operates a trading platform of ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/26 19:15
End of Day Share Price2020/09/25 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.