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 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.1%

1813

2.2%

HK Real Estate

0.9%

HK Market


1 Year Return

26.2%

1813

2.8%

HK Real Estate

-0.3%

HK Market

Return vs Industry: 1813 exceeded the Hong Kong Real Estate industry which returned 2.8% over the past year.

Return vs Market: 1813 exceeded the Hong Kong Market which returned -0.3% over the past year.


Shareholder returns

1813IndustryMarket
7 Day5.1%2.2%0.9%
30 Day13.9%0.6%0.7%
90 Day35.3%3.2%3.9%
1 Year38.3%26.2%6.8%2.8%3.3%-0.3%
3 Year166.2%96.6%46.7%31.5%19.9%7.8%
5 Year128.0%48.3%57.7%32.2%17.1%-2.3%

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$8.63) is trading below our estimate of fair value (HK$52.77)

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 (3.1x) compared to the Real Estate industry average (6.5x).

PE vs Market: 1813 is good value based on its PE Ratio (3.1x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1813 is good value based on its PEG Ratio (0.3x)


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 (0.5x).


Next Steps

Future Growth

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

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1813's forecast earnings growth (10.6% per year) is above the savings rate (2%).

Earnings vs Market: 1813's earnings (10.6% per year) are forecast to grow slower than the Hong Kong market (11.5% per year).

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

Revenue vs Market: 1813's revenue (30.5% per year) is forecast to grow faster than the Hong Kong market (10.7% per year).

High Growth Revenue: 1813's revenue (30.5% 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 (17.8%).


Next Steps

Past Performance

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

13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1813 has large one-off items impacting its financial results.

Growing Profit Margin: 1813's current net profit margins (53.4%) are lower than last year (59.2%).


Past Earnings Growth Analysis

Earnings Trend: 1813's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: 1813's earnings growth over the past year (84.8%) exceeds its 5-year average (13.4% per year).

Earnings vs Industry: 1813 earnings growth over the past year (84.8%) exceeded the Real Estate industry -13%.


Return on Equity

High ROE: Whilst 1813's Return on Equity (22.92%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is KWG Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1813's short term assets (CN¥127.0B) exceeds its short term liabilities (CN¥88.7B)

Long Term Liabilities: 1813's short term assets (CN¥127.0B) exceeds its long term liabilities (77.9B)


Debt to Equity History and Analysis

Debt Level: 1813's debt to equity ratio (242%) is considered high.

Reducing Debt: 1813's debt to equity ratio has increased from 125.8% to 242% over the past 5 years.

Debt Coverage: 1813's debt is not well covered by operating cash flow (3%).

Interest Coverage: 1813's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet

Inventory Level: 1813 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1813's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

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

7.23%

Current Dividend Yield


Dividend Yield vs Market

company7.2%marketbottom25%2.2%markettop25%6.3%industryaverage4.4%forecastin3Years9.7%

Current dividend yield vs market & industry

Notable Dividend: 1813's dividend (7.23%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 1813's dividend (7.23%) is in the top 25% of dividend payers in the Hong Kong market (6.34%)


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 (25.5%), 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 (37.8% payout ratio).


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?

12.4yrs

Average board tenure


CEO

Jian Tao Kong (48yo)

0yrs

Tenure

CN¥4,910,000

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

Compensation vs Market: Jian Tao's total compensation ($USD698.76K) is above average for companies of similar size in the Hong Kong market ($USD512.90K).

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


Board Age and Tenure

12.4yrs

Average Tenure

53yo

Average Age

Experienced Board: 1813's board of directors are seasoned and experienced ( 12.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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

Ownership Breakdown

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


Management Team

  • Jian Tao Kong (48yo)

    CEO & Director

    • Tenure: 0yrs
    • Compensation: CN¥4.91m
  • Jian Min Kong (51yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CN¥4.87m
  • Jian Nan Kong (53yo)

    Executive VP & Director

    • Tenure: 0yrs
    • Compensation: CN¥4.87m
  • Xiao Luo (51yo)

    Director of Legal Affairs Division & Assistant to the Chairman

    • Tenure: 0yrs
  • Kai Ping Lin (45yo)

    General Manager of Commercial Affairs Division

    • Tenure: 0yrs
  • Fengjia Cai (49yo)

    CEO of Real Estate Business & Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥2.82m
  • Linda Wu

    Director of Investor Relations

    • Tenure: 0yrs
  • Yan Long Jin (39yo)

    General Manager of Northern China District & Suzhou Real Estate Sector

    • Tenure: 0yrs
  • Huan Yang (37yo)

    General Manager of Sales Management Centre

    • Tenure: 4.8yrs
  • Yanping Huang (45yo)

    Vice President of Finance Department

    • Tenure: 0.3yrs

Board Members

  • Carmelo Lee (59yo)

    Independent Non-Executive Director

    • Tenure: 12.4yrs
    • Compensation: CN¥456.00k
  • Chun Fai Tam (57yo)

    Independent Non-Executive Director

    • Tenure: 12.4yrs
    • Compensation: CN¥456.00k
  • Jian Tao Kong (48yo)

    CEO & Director

    • Tenure: 0yrs
    • Compensation: CN¥4.91m
  • Jian Min Kong (51yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CN¥4.87m
  • Jian Nan Kong (53yo)

    Executive VP & Director

    • Tenure: 0yrs
    • Compensation: CN¥4.87m
  • Bin Hai Li (69yo)

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: CN¥456.00k
  • Fengjia Cai (49yo)

    CEO of Real Estate Business & Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥2.82m

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$27.462b
  • 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 Analysis2019/11/20 12:40
End of Day Share Price2019/11/20 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.