SEHK:1813

Stock Analysis Report

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Executive Summary

KWG Group Holdings Limited, an investment holding company, engages in the investment, development, management, and sale of real estate properties. More Details


Snowflake Analysis

Undervalued established dividend payer.


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

Stable Share Price: 1813 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 1813's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-7.1%

1813

-3.6%

HK Real Estate

-1.0%

HK Market


1 Year Return

3.4%

1813

-10.6%

HK Real Estate

9.0%

HK Market

Return vs Industry: 1813 exceeded the Hong Kong Real Estate industry which returned -8.5% over the past year.

Return vs Market: 1813 underperformed the Hong Kong Market which returned 9.8% over the past year.


Shareholder returns

1813IndustryMarket
7 Day-7.1%-3.6%-1.0%
30 Day-6.0%1.9%5.9%
90 Day-32.1%-3.0%7.5%
1 Year10.8%3.4%-5.7%-10.6%13.4%9.0%
3 Year58.6%22.1%-1.4%-13.9%2.4%-8.3%
5 Year172.7%75.0%45.7%16.9%36.9%13.8%

Long-Term 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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1813 (HK$9.96) is trading below our estimate of fair value (HK$96.22)

Significantly Below Fair Value: 1813 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1813 is good value based on its PE Ratio (3.6x) compared to the HK Real Estate industry average (8.5x).

PE vs Market: 1813 is good value based on its PE Ratio (3.6x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1813 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 1813 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 KWG Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1813's forecast earnings growth (17.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 1813's earnings (17.9% per year) are forecast to grow slower than the Hong Kong market (21.2% per year).

High Growth Earnings: 1813's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1813's revenue (24.2% per year) is forecast to grow faster than the Hong Kong market (13.6% per year).

High Growth Revenue: 1813's revenue (24.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1813's Return on Equity is forecast to be low in 3 years time (19.8%).


Next Steps

Past Performance

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

23.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1813 has high quality earnings.

Growing Profit Margin: 1813's current net profit margins (26.5%) are lower than last year (53.3%).


Past Earnings Growth Analysis

Earnings Trend: 1813's earnings have grown significantly by 23.4% per year over the past 5 years.

Accelerating Growth: 1813's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1813 had negative earnings growth (-6.1%) over the past year, making it difficult to compare to the Real Estate industry average (1.9%).


Return on Equity

High ROE: 1813's Return on Equity (16.7%) is considered low.


Next Steps

Financial Health

How is KWG Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1813's short term assets (CN¥127.3B) exceed its short term liabilities (CN¥120.0B).

Long Term Liabilities: 1813's short term assets (CN¥127.3B) exceed its long term liabilities (CN¥52.5B).


Debt to Equity History and Analysis

Debt Level: 1813's debt to equity ratio (179.1%) is considered high.

Reducing Debt: 1813's debt to equity ratio has increased from 123.7% to 179.1% over the past 5 years.

Debt Coverage: 1813's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1813's interest payments on its debt are well covered by EBIT (42.5x coverage).


Balance Sheet


Next Steps

Dividend

What is KWG Group Holdings's current dividend yield, its reliability and sustainability?

9.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1813's dividend (9.99%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.2%).

High Dividend: 1813's dividend (9.99%) is in the top 25% of dividend payers in the Hong Kong market (6.66%)


Stability and Growth of Payments

Stable Dividend: 1813's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1813's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.4%), 1813's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1813's dividends in 3 years are forecast to be well covered by earnings (46.1% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Jiantao Kong (49 yo)

no data

Tenure

CN¥4,951,000

Compensation

Mr. Jiantao Kong is an Executive Director and the Chief Executive Officer of KWG Group Holdings Limited (formerly known as KWG Property Holdings Ltd). Mr. Kong have been a Director of KWG Group Holdings Li...


CEO Compensation Analysis

Compensation vs Market: Jiantao's total compensation ($USD756.77K) is about average for companies of similar size in the Hong Kong market ($USD722.26K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jianmin Kong
Chairman of the Boardno dataCN¥4.90m9.31%
CN¥ 3.1b
Jiantao Kong
CEO & Directorno dataCN¥4.95m0.066%
CN¥ 21.7m
Jiannan Kong
Executive VP & Directorno dataCN¥5.04m4.54%
CN¥ 1.5b
Fengjia Cai
CEO of Real Estate Business & Executive Director2.25yrsCN¥2.85m0.0082%
CN¥ 2.7m
Yanping Huang
Vice President of Finance Department & Treasury1.33yrsno datano data
Zhimin Yao
Vice President of Finance & Treasury Department1.33yrsno datano data
Linda Wu
Director of Investor Relationsno datano datano data
Huan Yang
General Manager of Sales Management Centre5.83yrsno datano data
Yan Long Jin
General Manager of Northern China District & Suzhou Real Estate Sectorno datano datano data
Qing Luo
General Manager of Construction Sector1.5yrsno datano data
Kin Wai Chan
Company Secretary & Deputy Finance Director1.33yrsno datano data

1.3yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 1813's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jianmin Kong
Chairman of the Boardno dataCN¥4.90m9.31%
CN¥ 3.1b
Jiantao Kong
CEO & Directorno dataCN¥4.95m0.066%
CN¥ 21.7m
Jiannan Kong
Executive VP & Directorno dataCN¥5.04m4.54%
CN¥ 1.5b
Fengjia Cai
CEO of Real Estate Business & Executive Director2.25yrsCN¥2.85m0.0082%
CN¥ 2.7m
Ka Sze Lee
Independent Non-Executive Director13.5yrsCN¥466.00k0.00094%
CN¥ 309.9k
Chun Fai Tam
Independent Non-Executive Director13.5yrsCN¥466.00k0.00094%
CN¥ 309.9k
Binhai Li
Independent Non-Executive Director8.42yrsCN¥466.00kno data

13.5yrs

Average Tenure

54yo

Average Age

Experienced Board: 1813's board of directors are seasoned and experienced ( 13.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1813 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$32.968b
  • Shares outstanding: 3.18b
  • Website: https://www.kwggroupholdings.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. It operates through four segments: Property Development, P...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 10:21
End of Day Share Price2020/12/04 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.