SEHK:1668

Stock Analysis Report

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.

Snowflake

Fundamentals

Very undervalued with high growth potential.

Risks

  • China South City Holdings is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-4.8%

SEHK:1668

0.8%

HK Real Estate

0.7%

HK Market


1 Year Return

-23.3%

SEHK:1668

-4.5%

HK Real Estate

-5.3%

HK Market

1668 underperformed the Real Estate industry which returned -2.8% over the past year.

1668 underperformed the Market in Hong Kong which returned -3.3% over the past year.


Share holder returns

1668IndustryMarket
7 Day-4.8%0.8%0.7%
30 Day2.1%1.5%4.9%
90 Day-13.2%-9.9%-3.7%
1 Year-19.4%-23.3%-0.4%-4.5%-1.8%-5.3%
3 Year-36.5%-43.4%33.7%19.5%16.4%4.6%
5 Year-64.8%-71.6%54.3%27.9%18.0%-1.7%

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 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

China South City Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

China South City Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

China South City Holdings is good value based on earnings compared to the HK Real Estate industry average.

China South City Holdings is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

China South City Holdings is good value based on expected growth next year.


Price Based on Value of Assets

China South City Holdings is good value based on assets compared to the HK Real Estate industry average.


Next Steps

Future Growth

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

38.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

China South City Holdings's revenue is expected to grow significantly at over 20% yearly.

China South City Holdings's earnings are expected to grow significantly at over 20% yearly.

China South City Holdings's revenue growth is expected to exceed the Hong Kong market average.

China South City Holdings's earnings growth is expected to exceed the Hong Kong market average.

China South City Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

China South City Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

3.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

China South City Holdings's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

China South City Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

China South City Holdings's 1-year earnings growth is negative, it can't be compared to the HK Real Estate industry average.


Return on Equity

China South City Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China South City Holdings used its assets more efficiently than the HK Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

China South City Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is China South City Holdings's financial position?


Financial Position Analysis

China South City Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

China South City Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

China South City Holdings's level of debt (94.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (87% vs 94.8% today).

Debt is well covered by operating cash flow (20.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.6x debt.


Next Steps

Dividend

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

7.36%

Expected Dividend Yield


Dividend Yield and Payments Analysis

China South City Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).

China South City Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.08%).

China South City Holdings 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 China South City Holdings only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (8.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.9x coverage).


Next Steps

Management

What is the CEO of China South City Holdings's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average management tenure


CEO

Lidong Zhao (49yo)

0.6yrs

Tenure

HK$1,270,000

Compensation

Mr. Lidong Zhao has been Chief Executive Officer and Executive Director at China South City Holdings Limited since February 01, 2019. Mr. Zhao serves as Vice President of Wuzhou Int'l Group Investment at W ...


CEO Compensation Analysis

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

Insufficient data for Lidong to compare compensation growth.


Management Age and Tenure

0.6yrs

Average Tenure

52.5yo

Average Age

The average tenure for the China South City Holdings management team is less than 2 years, this suggests a new team.


Board Age and Tenure

7.5yrs

Average Tenure

61yo

Average Age

The tenure for the China South City Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyHK$111,607,51412 Oct 18
Chung Hing Cheng
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares74,404,960
Max PriceHK$1.50

Ownership Breakdown


Management Team

  • Ricky Cheng (58yo)

    Chairman of the Board

    • Tenure: 2.2yrs
    • Compensation: HK$23.71m
  • Stephen Fung (54yo)

    Vice Chairman

    • Tenure: 2.3yrs
    • Compensation: HK$24.09m
  • Kai Cheung Ma (77yo)

    Co-Founder & Non-Executive Director

    • Tenure: 17.1yrs
    • Compensation: HK$680.00k
  • Cliff Sun (65yo)

    Co-Founder & Honourable Adviser

    • Tenure: 0yrs
    • Compensation: HK$216.00k
  • Wai Mo Ma (74yo)

    Co-Founder & Honourable Adviser

    • Tenure: 0yrs
    • Compensation: HK$216.00k
  • Lidong Zhao (49yo)

    CEO & Executive Director

    • Tenure: 0.6yrs
    • Compensation: HK$1.27m
  • Carman Cheng (30yo)

    Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$5.09m
  • Chun Yip Hui (39yo)

    Chief Financial Officer

    • Tenure: 1.4yrs
  • Weiguo Chen (51yo)

    Executive Vice President of Business Management Division

    • Tenure: 0yrs
  • Wen Qiu (46yo)

    Executive Vice President of Investment Development Division

    • Tenure: 0.3yrs

Board Members

  • Wai Keung Li (62yo)

    Independent Non-Executive Director

    • Tenure: 10yrs
    • Compensation: HK$1.32m
  • Ricky Cheng (58yo)

    Chairman of the Board

    • Tenure: 2.2yrs
    • Compensation: HK$23.71m
  • Tai Po Cheng (67yo)

    Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: HK$680.00k
  • Samuel Yung (60yo)

    Independent Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: HK$1.32m
  • Stephen Fung (54yo)

    Vice Chairman

    • Tenure: 2.3yrs
    • Compensation: HK$24.09m
  • Stephen Hui (72yo)

    Independent Non Executive Director

    • Tenure: 8.4yrs
    • Compensation: HK$1.32m
  • Kai Cheung Ma (77yo)

    Co-Founder & Non-Executive Director

    • Tenure: 17.1yrs
    • Compensation: HK$680.00k
  • Andrew Leung (68yo)

    Independent Non-Executive Director

    • Tenure: 10yrs
    • Compensation: HK$1.32m
  • Lidong Zhao (49yo)

    CEO & Executive Director

    • Tenure: 0.6yrs
    • Compensation: HK$1.27m
  • Carman Cheng (30yo)

    Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$5.09m

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$8.432b
  • Shares outstanding: 8.11b
  • Website: https://www.chinasouthcity.com

Number of Employees


Location

  • China South City Holdings Limited
  • Sun Life Tower
  • Room 2205, 22nd Floor
  • Tsim Sha Tsui
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1668SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 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 Analysis2019/09/17 12:49
End of Day Share Price2019/09/17 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.