SEHK:1813

Stock Analysis Report

Executive Summary

KWG Group Holdings Limited, an investment holding company, engages in the investment, development, management, and sale of real estate properties in the People’s Republic of China.

Snowflake

Fundamentals

Undervalued with high growth potential and pays a dividend.

Risks

  • KWG Group Holdings has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has KWG Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.7%

SEHK:1813

6.7%

HK Real Estate

3.3%

HK Market


1 Year Return

-28.1%

SEHK:1813

-7.0%

HK Real Estate

-12.3%

HK Market

1813 underperformed the Real Estate industry which returned -7% over the past year.

1813 underperformed the Market in Hong Kong which returned -12.3% over the past year.


Share holder returns

1813IndustryMarket
7 Day3.7%6.7%3.3%
30 Day-16.1%-8.7%-8.0%
90 Day-18.2%-5.6%-5.5%
1 Year-22.0%-28.1%-3.2%-7.0%-9.2%-12.3%
3 Year60.6%24.6%38.4%24.1%11.5%0.8%
5 Year62.0%10.8%49.0%23.7%6.7%-10.5%

Price Volatility Vs. Market

How volatile is KWG Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is KWG Group 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

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

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


Price Based on Earnings

KWG Group Holdings is good value based on earnings compared to the HK Real Estate industry average.

KWG Group Holdings is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

KWG Group Holdings is good value based on expected growth next year.


Price Based on Value of Assets

KWG Group Holdings is overvalued based on assets compared to the HK Real Estate industry average.


Next Steps

Future Growth

How is KWG Group Holdings expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

21.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

KWG Group Holdings's revenue is expected to grow significantly at over 20% yearly.

KWG Group Holdings's earnings are expected to grow significantly at over 20% yearly.

KWG Group Holdings's revenue growth is expected to exceed the Hong Kong market average.

KWG Group Holdings's earnings growth is expected to exceed the Hong Kong market average.

KWG Group Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has KWG Group Holdings performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

KWG Group Holdings's year on year earnings growth rate has been positive over the past 5 years.

KWG Group Holdings's 1-year earnings growth exceeds its 5-year average (11.5% vs 7.4%)

KWG Group Holdings's earnings growth has exceeded the HK Real Estate industry average in the past year (11.5% vs -1.8%).


Return on Equity

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


Return on Assets

KWG Group Holdings used its assets less efficiently than the HK Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

KWG Group Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is KWG Group Holdings's financial position?


Financial Position Analysis

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

KWG Group Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

KWG Group Holdings's level of debt (243.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (117.3% vs 243.8% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are not well covered by earnings (EBIT is 1x annual interest expense, ideally 3x 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 KWG Group Holdings's current dividend yield, its reliability and sustainability?

12.60%

Expected Dividend Yield


Dividend Yield and Payments Analysis

KWG Group Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.27%).

KWG Group Holdings's dividend is above the markets top 25% of dividend payers in Hong Kong (6.12%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

What is the CEO of KWG Group Holdings's salary, the management and board of directors tenure and is there insider trading?

12.2yrs

Average board tenure


CEO

Jian Tao Kong (48yo)

0.0yrs

Tenure

CN¥8,506,000

Compensation

Jian Tao Kong is an Executive Director and the Chief Executive Officer of KWG Group Holdings Limited (formerly known as KWG Property Holdings Ltd). Mr. Kong has over 22 years of experience in property deve ...


CEO Compensation Analysis

Jian Tao's remuneration is higher than average for companies of similar size in Hong Kong.

Jian Tao's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Board Age and Tenure

12.2yrs

Average Tenure

53yo

Average Age

The average tenure for the KWG Group Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellCN¥2,180,879,49307 Jan 19
Plus Earn Consultants Limited
EntityCompany
Shares324,053,500
Max PriceCN¥6.73
BuyCN¥971,397,85507 Jan 19
Jian Nan Kong
EntityIndividual
Role
Member of the Board of Directors
Executive VP & Director
Shares144,338,500
Max PriceCN¥6.73
BuyCN¥1,209,481,63807 Jan 19
Right Rich Consultants Limited
EntityCompany
Shares179,715,000
Max PriceCN¥6.73
BuyCN¥5,863,03330 Oct 18
Jian Min Kong
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,000,500
Max PriceCN¥5.86
BuyCN¥13,717,11029 Oct 18
Jian Min Kong
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares2,368,000
Max PriceCN¥5.79
BuyCN¥18,338,05626 Oct 18
Jian Min Kong
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares3,100,000
Max PriceCN¥5.92
BuyCN¥10,833,39124 Oct 18
Jian Min Kong
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,939,000
Max PriceCN¥5.59
BuyCN¥3,072,98724 Oct 18
Jian Min Kong
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares541,000
Max PriceCN¥5.68
BuyCN¥8,432,60822 Oct 18
Jian Min Kong
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,545,000
Max PriceCN¥5.46
BuyCN¥7,516,10122 Oct 18
Jian Min Kong
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,322,000
Max PriceCN¥5.69
BuyCN¥6,051,03712 Sep 18
Jian Min Kong
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares800,000
Max PriceCN¥7.56
BuyCN¥5,572,97807 Sep 18
Jian Min Kong
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares700,000
Max PriceCN¥7.96
BuyCN¥6,460,47806 Sep 18
Jian Min Kong
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares800,000
Max PriceCN¥8.08
BuyCN¥33,631,98705 Sep 18
Jian Min Kong
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares4,000,000
Max PriceCN¥8.41

Ownership Breakdown


Management Team

  • Jian Tao Kong (48yo)

    CEO & Director

    • Tenure: 0.0yrs
    • Compensation: CN¥8.51m
  • Jian Min Kong (51yo)

    Chairman of the Board

    • Tenure: 0.0yrs
    • Compensation: CN¥11.99m
  • Jian Nan Kong (53yo)

    Executive VP & Director

    • Tenure: 0.0yrs
    • Compensation: CN¥11.99m
  • Xiao Luo (51yo)

    Director of Legal Affairs Division & Assistant to the Chairman

    • Tenure: 0.0yrs
  • Kai Ping Lin (45yo)

    General Manager of Commercial Affairs Division

    • Tenure: 0.0yrs
  • Fengjia Cai (49yo)

    CEO of Real Estate Business & Executive Director

    • Tenure: 0.9yrs
    • Compensation: CN¥8.23m
  • Linda Wu

    Director of Investor Relations

    • Tenure: 0.0yrs
  • Yan Long Jin (39yo)

    General Manager of Northern China District & Suzhou Real Estate Sector

    • Tenure: 0.0yrs
  • Huan Yang (37yo)

    General Manager of Sales Management Centre

    • Tenure: 4.5yrs
  • Yanping Huang (45yo)

    Vice President of Finance Department

    • Tenure: 0.0yrs

Board Members

  • Carmelo Lee (59yo)

    Independent Non-Executive Director

    • Tenure: 12.2yrs
    • Compensation: CN¥456.00k
  • Chun Fai Tam (57yo)

    Independent Non-Executive Director

    • Tenure: 12.2yrs
    • Compensation: CN¥456.00k
  • Jian Tao Kong (48yo)

    CEO & Director

    • Tenure: 0.0yrs
    • Compensation: CN¥8.51m
  • Jian Min Kong (51yo)

    Chairman of the Board

    • Tenure: 0.0yrs
    • Compensation: CN¥11.99m
  • Jian Nan Kong (53yo)

    Executive VP & Director

    • Tenure: 0.0yrs
    • Compensation: CN¥11.99m
  • Bin Hai Li (69yo)

    Independent Non-Executive Director

    • Tenure: 7.1yrs
    • Compensation: CN¥456.00k
  • Fengjia Cai (49yo)

    CEO of Real Estate Business & Executive Director

    • Tenure: 0.9yrs
    • Compensation: CN¥8.23m

Company Information

KWG Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KWG Group Holdings Limited
  • Ticker: 1813
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$20.668b
  • Shares outstanding: 3.17b
  • Website: https://www.kwgproperty.com

Number of Employees


Location

  • KWG Group Holdings Limited
  • International Finance Place
  • No. 8 Huaxia Road
  • Guangzhou
  • Guangdong Province
  • 510623
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1813SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2007
KOUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2007
KWGP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2007
1813SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2007
1813SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2007

Biography

KWG Group Holdings Limited, an investment holding company, engages in the investment, development, management, and sale of real estate properties in the People’s Republic of China. The company operates thr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 12:46
End of Day Share Price2019/08/22 00:00
Earnings2018/12/31
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.