SEHK:1821

Stock Analysis Report

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Executive Summary

ESR Cayman Limited, together with its subsidiaries, engages in the logistics real estate development, leasing, and management activities in the Public’s Republic of China, Japan, South Korea, Singapore, Australia, and India.


Snowflake Analysis

Moderate growth potential with questionable track record.


Similar Companies

Share Price & News

How has ESR Cayman's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1821's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.2%

1821

7.0%

HK Real Estate

5.8%

HK Market


1 Year Return

n/a

1821

-12.0%

HK Real Estate

-4.0%

HK Market

Return vs Industry: Insufficient data to determine how 1821 performed against the Hong Kong Real Estate industry.

Return vs Market: Insufficient data to determine how 1821 performed against the Hong Kong Market.


Shareholder returns

1821IndustryMarket
7 Day1.2%7.0%5.8%
30 Day3.3%2.2%4.0%
90 Day-2.3%-8.2%-2.6%
1 Yearn/a-7.9%-12.0%-0.6%-4.0%
3 Yearn/a12.4%-0.3%1.3%-9.2%
5 Yearn/a22.0%1.0%-9.2%-23.5%

Price Volatility Vs. Market

How volatile is ESR Cayman's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ESR Cayman undervalued compared to its fair value and its price relative to the market?

25.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1821 (HK$17.56) is trading above our estimate of fair value (HK$0.38)

Significantly Below Fair Value: 1821 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1821 is poor value based on its PE Ratio (25.4x) compared to the Real Estate industry average (6.1x).

PE vs Market: 1821 is poor value based on its PE Ratio (25.4x) compared to the Hong Kong market (9.5x).


Price to Earnings Growth Ratio

PEG Ratio: 1821 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 1821 is overvalued based on its PB Ratio (2.3x) compared to the HK Real Estate industry average (0.4x).


Next Steps

Future Growth

How is ESR Cayman forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

22.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1821's forecast earnings growth (22.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 1821's earnings (22.4% per year) are forecast to grow faster than the Hong Kong market (17.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1821's revenue (6.5% per year) is forecast to grow slower than the Hong Kong market (10.6% per year).

High Growth Revenue: 1821's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1821's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has ESR Cayman performed over the past 5 years?

31.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1821 has a large one-off gain of $325.4M impacting its December 31 2019 financial results.

Growing Profit Margin: 1821's current net profit margins (54.4%) are lower than last year (63.5%).


Past Earnings Growth Analysis

Earnings Trend: 1821's earnings have grown significantly by 31.6% per year over the past 5 years.

Accelerating Growth: 1821's earnings growth over the past year (20.8%) is below its 5-year average (31.6% per year).

Earnings vs Industry: 1821 earnings growth over the past year (20.8%) exceeded the Real Estate industry 2.8%.


Return on Equity

High ROE: 1821's Return on Equity (8.6%) is considered low.


Next Steps

Financial Health

How is ESR Cayman's financial position?


Financial Position Analysis

Short Term Liabilities: 1821's short term assets ($1.2B) exceed its short term liabilities ($489.0M).

Long Term Liabilities: 1821's short term assets ($1.2B) do not cover its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: 1821's debt to equity ratio (79.1%) is considered high.

Reducing Debt: Insufficient data to determine if 1821's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1821's debt is not well covered by operating cash flow (2.2%).

Interest Coverage: 1821's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


Next Steps

Dividend

What is ESR Cayman's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1821's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1821's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1821's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1821's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1821's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Stuart Gibson (55yo)

4.42yrs

Tenure

US$567,000

Compensation

Mr. Stuart Gibson is a Co-Founder and has been Co-Chief Executive Officer of ESR Cayman Limited since January 2016. Mr. Gibson has been an Executive Director of ESR Cayman Limited since January 20, 2016. H ...


CEO Compensation Analysis

Compensation vs Market: Stuart's total compensation ($USD567.00K) is about average for companies of similar size in the Hong Kong market ($USD595.23K).

Compensation vs Earnings: Stuart's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stuart Gibson
Co-Founder4.42yrsUS$567.00k0.0024% $1.3m
Jinchu Shen
Co-Founder9yrsUS$383.00k9.28% $4.9b
Charles de Portes
Co-Founder4.42yrsUS$576.00kno data
Dongping Sun
Co-Founderno dataUS$57.00kno data
Wee Cho
Group Chief Financial Officer3.5yrsno datano data
Bo Zhou
Chief Operating Officer of PRC Platformno datano datano data
Rui Chang
Managing Director of Group Capital Markets & Investors Relations0.75yrno datano data
Wenyi Shou
Group General Counselno datano datano data
Antonia Au
Executive Director of Group Corporate Communicationsno datano datano data
Jihun Kang
Chief Investment Officer of South Korea Platformno datano datano data

4.0yrs

Average Tenure

47.5yo

Average Age

Experienced Management: 1821's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stuart Gibson
Co-Founder4.42yrsUS$567.00k0.0024% $1.3m
Jinchu Shen
Co-Founder9yrsUS$383.00k9.28% $4.9b
Charles de Portes
Co-Founder4.42yrsUS$576.00kno data
Wai Yin Chui
CEO & Executive Director of ESR Funds Management (S) Limitedno datano datano data
Hugo George Swire
Independent Non-Executive Director1.08yrsUS$15.00kno data
Joseph Gagnon
Non-Executive Director9yrsno datano data
Jeffrey David Perlman
Non-Executive Chairman of the Board1.08yrsno datano data
Brett Harold Krause
Independent Non-Executive Director1.08yrsUS$15.00kno data
Zhenhui Wang
Non-Executive Director2.08yrsno datano data
Simon McDonald
Independent Non-Executive Director1.08yrsUS$16.00kno data

2.1yrs

Average Tenure

47.5yo

Average Age

Experienced Board: 1821's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: 1821 only recently listed within the past 12 months.


Top Shareholders

Company Information

ESR Cayman Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ESR Cayman Limited
  • Ticker: 1821
  • Exchange: SEHK
  • Founded: 2011
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: HK$53.313b
  • Shares outstanding: 3.04b
  • Website: https://www.esr.com

Number of Employees


Location

  • ESR Cayman Limited
  • 2406-07 Man Yee Building
  • 68 Des Voeux Road Central
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1821SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2019
3K6BST (Boerse-Stuttgart)YesOrdinary SharesDEEURNov 2019

Biography

ESR Cayman Limited, together with its subsidiaries, engages in the logistics real estate development, leasing, and management activities in the Public’s Republic of China, Japan, South Korea, Singapore, Australia, and India. It operates through three segments: Investment, Fund Management, and Development. The company develops, constructs, invests in, and sells logistics real estate properties. It is also involved in the fund management business. In addition, the company invests in properties, co-investments funds and investment vehicles, public REIT, and other investments. It serves e-commerce companies, 3PL providers, bricks-and-mortar retailers, manufacturers, cold-chain logistics providers, and other enterprises in various industries comprising electronics, fast-moving consumer goods, retail, food and beverage, general logistics services, auto and parts, pharmaceuticals, medical instruments, and machinery. ESR Cayman Limited was incorporated in 2011 and is headquartered in Central, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 13:44
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
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.