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Sunac China Holdings

SEHK:1918
Snowflake Description

Exceptional growth potential and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1918
SEHK
HK$163B
Market Cap
  1. Home
  2. HK
  3. Real Estate
Company description

Sunac China Holdings Limited, together with its subsidiaries, develops residential and commercial properties in the People's Republic of China. The last earnings update was 70 days ago. More info.


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1918 Share Price and Events
7 Day Returns
5.3%
SEHK:1918
1.1%
HK Real Estate
0.5%
HK Market
1 Year Returns
15.2%
SEHK:1918
-10.1%
HK Real Estate
-15.9%
HK Market
1918 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sunac China Holdings (1918) 5.3% 7.3% -2.5% 15.2% 707% 802%
HK Real Estate 1.1% -1.4% -6.4% -10.1% 53.1% 49.3%
HK Market 0.5% -2.7% -9.9% -15.9% 20.6% 3%
1 Year Return vs Industry and Market
  • 1918 outperformed the Real Estate industry which returned -10.1% over the past year.
  • 1918 outperformed the Market in Hong Kong which returned -15.9% over the past year.
Price Volatility
1918
Industry
5yr Volatility vs Market

1918 Value

 Is Sunac China Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sunac China Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sunac China Holdings.

SEHK:1918 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.9%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1918
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 1.02
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.025 (1 + (1- 25%) (158.77%))
1.834
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.83
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.834 * 5.96%)
12.93%

Discounted Cash Flow Calculation for SEHK:1918 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sunac China Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:1918 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 12.93%)
2019 69,443.11 Analyst x2 61,490.79
2020 -279.47 Analyst x3 -219.13
2021 57,544.76 Analyst x2 39,952.93
2022 55,698.27 Est @ -3.21% 34,242.51
2023 54,781.90 Est @ -1.65% 29,822.36
2024 54,480.18 Est @ -0.55% 26,261.79
2025 54,597.51 Est @ 0.22% 23,304.49
2026 55,007.89 Est @ 0.75% 20,790.88
2027 55,627.86 Est @ 1.13% 18,617.49
2028 56,401.00 Est @ 1.39% 16,714.62
Present value of next 10 years cash flows CN¥270,978.74
SEHK:1918 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥56,401.00 × (1 + 2%) ÷ (12.93% – 2%)
CN¥526,379.01
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥526,379.01 ÷ (1 + 12.93%)10
CN¥155,994.15
SEHK:1918 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥270,978.74 + CN¥155,994.15
CN¥426,972.88
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥426,972.88 / 4,437.46
CN¥96.22
SEHK:1918 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1918)
1.13
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥96.22 x 1.13
HK$108.75
Value per share (HKD) From above. HK$108.75
Current discount Discount to share price of HK$36.80
= -1 x (HK$36.80 - HK$108.75) / HK$108.75
66.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Sunac China Holdings is available for.
Intrinsic value
>50%
Share price is HK$36.8 vs Future cash flow value of HK$108.75
Current Discount Checks
For Sunac China Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Sunac China Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Sunac China Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sunac China Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sunac China Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1918 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥3.79
SEHK:1918 Share Price ** SEHK (2019-06-14) in HKD HK$36.8
SEHK:1918 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.885 CN¥32.56
Hong Kong Real Estate Industry PE Ratio Median Figure of 188 Publicly-Listed Real Estate Companies 6.28x
Hong Kong Market PE Ratio Median Figure of 1,487 Publicly-Listed Companies 10.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sunac China Holdings.

SEHK:1918 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1918 Share Price ÷ EPS (both in CNY)

= 32.56 ÷ 3.79

8.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sunac China Holdings is overvalued based on earnings compared to the HK Real Estate industry average.
  • Sunac China Holdings is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Sunac China Holdings's expected growth come at a high price?
Raw Data
SEHK:1918 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
28.2%per year
Hong Kong Real Estate Industry PEG Ratio Median Figure of 60 Publicly-Listed Real Estate Companies 0.27x
Hong Kong Market PEG Ratio Median Figure of 466 Publicly-Listed Companies 0.76x

*Line of best fit is calculated by linear regression .

SEHK:1918 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.6x ÷ 28.2%

0.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sunac China Holdings is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Sunac China Holdings's assets?
Raw Data
SEHK:1918 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥14.15
SEHK:1918 Share Price * SEHK (2019-06-14) in HKD HK$36.8
SEHK:1918 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.885 CN¥32.56
Hong Kong Real Estate Industry PB Ratio Median Figure of 229 Publicly-Listed Real Estate Companies 0.56x
Hong Kong Market PB Ratio Median Figure of 2,169 Publicly-Listed Companies 0.93x
SEHK:1918 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1918 Share Price ÷ Book Value per Share (both in CNY)

= 32.56 ÷ 14.15

2.3x

* Primary Listing of Sunac China Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sunac China Holdings is overvalued based on assets compared to the HK Real Estate industry average.
X
Value checks
We assess Sunac China Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. Sunac China Holdings has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

1918 Future Performance

 How is Sunac China Holdings expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
28.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sunac China Holdings expected to grow at an attractive rate?
  • Sunac China Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Sunac China Holdings's earnings growth is expected to exceed the Hong Kong market average.
  • Sunac China Holdings's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:1918 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1918 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 28.2%
SEHK:1918 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 29.4%
Hong Kong Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 5.4%
Hong Kong Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 16.6%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.2%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1918 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1918 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 325,284 59,439 39,542 10
2020-12-31 258,619 36,068 29,888 11
2019-12-31 196,611 38,885 23,421 11
SEHK:1918 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 124,746 52,055 16,567
2018-09-30 111,213 69,161 16,145
2018-06-30 97,681 86,267 15,724
2018-03-31 81,777 80,683 13,364
2017-12-31 65,874 75,099 11,004
2017-09-30 52,703 54,356 7,525
2017-06-30 39,533 33,612 4,046
2017-03-31 37,438 19,114 3,262
2016-12-31 35,343 4,616 2,478
2016-09-30 31,749 8,681 2,449
2016-06-30 28,154 12,746 2,419
2016-03-31 25,583 14,344 2,859

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sunac China Holdings's earnings are expected to grow significantly at over 20% yearly.
  • Sunac China Holdings's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1918 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Sunac China Holdings Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1918 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 8.46 9.92 6.57 8.00
2020-12-31 6.97 8.85 5.25 10.00
2019-12-31 5.46 6.42 4.50 10.00
SEHK:1918 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 3.79
2018-09-30 3.74
2018-06-30 3.70
2018-03-31 3.24
2017-12-31 2.76
2017-09-30 1.96
2017-06-30 1.09
2017-03-31 0.91
2016-12-31 0.71
2016-09-30 0.71
2016-06-30 0.71
2016-03-31 0.84

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Sunac China Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Sunac China Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sunac China Holdings has a total score of 6/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

1918 Past Performance

  How has Sunac China Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sunac China Holdings's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sunac China Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Sunac China Holdings's 1-year earnings growth exceeds its 5-year average (50.6% vs 42%)
  • Sunac China Holdings's earnings growth has exceeded the HK Real Estate industry average in the past year (50.6% vs 6.3%).
Earnings and Revenue History
Sunac China Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sunac China Holdings Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1918 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 124,745.62 16,566.54 14,958.83
2018-09-30 111,213.41 16,145.32 13,632.18
2018-06-30 97,681.19 15,724.11 12,305.54
2018-03-31 81,777.35 13,363.99 10,642.14
2017-12-31 65,873.52 11,003.86 8,978.74
2017-09-30 52,703.01 7,525.12 6,024.58
2017-06-30 39,532.51 4,046.38 3,070.42
2017-03-31 37,438.00 3,262.37 2,663.04
2016-12-31 35,343.49 2,478.35 2,255.67
2016-09-30 31,748.90 2,448.86 1,924.17
2016-06-30 28,154.31 2,419.36 1,592.67
2016-03-31 25,582.62 2,858.60 1,514.37
2015-12-31 23,010.94 3,297.83 1,436.07
2015-09-30 22,229.31 3,329.34 1,426.16
2015-06-30 21,447.68 3,360.86 1,416.26
2015-03-31 23,259.82 3,291.46 1,397.15
2014-12-31 25,071.96 3,222.07 1,378.04
2014-09-30 28,206.46 3,230.33 1,298.74
2014-06-30 31,340.96 3,238.60 1,219.44
2014-03-31 31,088.84 3,208.50 1,177.51
2013-12-31 30,836.71 3,178.40 1,135.59
2013-09-30 27,969.85 3,005.35 1,026.72
2013-06-30 25,102.99 2,832.29 970.86
2013-03-31 22,972.79 2,719.80 927.68
2012-12-31 20,842.59 2,607.30 831.49
2012-09-30 17,211.39 2,586.10 799.78
2012-06-30 13,580.19 2,564.90 768.08

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Sunac China Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Sunac China Holdings used its assets less efficiently than the HK Real Estate industry average last year based on Return on Assets.
  • Sunac China Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Sunac China Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sunac China Holdings has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

1918 Health

 How is Sunac China Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sunac China Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sunac China Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sunac China Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sunac China Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sunac China Holdings Company Filings, last reported 5 months ago.

SEHK:1918 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 73,106.57 229,409.06 76,314.54
2018-09-30 73,106.57 229,409.06 76,314.54
2018-06-30 63,539.74 209,766.86 68,966.52
2018-03-31 63,539.74 209,766.86 68,966.52
2017-12-31 60,638.23 219,269.85 71,494.06
2017-09-30 60,638.23 219,269.85 71,494.06
2017-06-30 34,242.48 181,296.98 72,055.05
2017-03-31 34,242.48 181,296.98 72,055.05
2016-12-31 35,411.15 112,844.02 53,661.90
2016-09-30 35,411.15 112,844.02 53,661.90
2016-06-30 26,615.16 62,798.52 28,872.75
2016-03-31 26,615.16 62,798.52 28,872.75
2015-12-31 19,420.17 41,798.63 22,899.63
2015-09-30 19,420.17 41,798.63 22,899.63
2015-06-30 20,338.32 31,173.15 12,613.35
2015-03-31 20,338.32 31,173.15 12,613.35
2014-12-31 20,982.63 34,383.80 20,823.87
2014-09-30 20,982.63 34,383.80 20,823.87
2014-06-30 18,948.97 35,626.92 21,121.32
2014-03-31 18,948.97 35,626.92 21,121.32
2013-12-31 18,211.32 28,706.29 13,614.38
2013-09-30 18,211.32 28,706.29 13,614.38
2013-06-30 14,399.81 24,827.69 10,860.73
2013-03-31 14,399.81 24,827.69 10,860.73
2012-12-31 11,994.18 21,725.03 8,613.68
2012-09-30 11,994.18 21,725.03 8,613.68
2012-06-30 8,165.07 12,453.99 2,640.51
  • Sunac China Holdings's level of debt (313.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (158% vs 313.8% today).
  • Debt is well covered by operating cash flow (22.7%, greater than 20% of total debt).
  • Sunac China Holdings earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Sunac China Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sunac China Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

1918 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.54%
Current annual income from Sunac China Holdings dividends. Estimated to be 5.01% next year.
If you bought HK$2,000 of Sunac China Holdings shares you are expected to receive HK$51 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Sunac China Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Sunac China Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.95%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1918 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Hong Kong Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 143 Stocks 4.1%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1918 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.07 10.00
2020-12-31 1.66 13.00
2019-12-31 1.26 13.00
SEHK:1918 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-03-29 0.827 2.547
2018-03-29 0.501 2.140
2017-05-22 0.257 1.229
2016-03-29 0.194 3.699
2015-05-28 0.190 4.191
2014-12-02 0.191 3.222
2014-04-11 0.191 4.573
2014-03-24 0.191 5.306
2013-03-27 0.079 1.965
2012-03-30 0.079 2.632

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Sunac China Holdings has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Sunac China Holdings only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Sunac China Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.3x coverage).
X
Income/ dividend checks
We assess Sunac China Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sunac China Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sunac China Holdings has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

1918 Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mengde Wang
COMPENSATION CN¥20,594,000
AGE 46
TENURE AS CEO 3.8 years
CEO Bio

Mr. Mengde Wang has been the Chief Executive Officer of Sunac China Holdings Limited since September 07, 2015. Mr. Wang served as an Executive President of Sunac China Holdings Limited since 2011 until September 07, 2015 and served as its Chief Financial Officer and General Manager of the Finance Department from 2006 to November 05, 2012. From 1997 to 1999, Mr. Wang worked at Tianjin Samsung Wool Textile Co., Ltd., where he was in charge of corporate finance and accounting management. Mr. Wang has accumulated experience and knowledge in financial management and in the real estate industry in China through his work experience in various positions including General Manager of a subsidiary of Sunco China in the East China region and Chief Operations Officer and Chief Financial Officer of Sunco China, a company engaged in the business of property development in the PRC. He joined Sunac Group in October 2006. He is primarily responsible for matters in relation to finance and audit. He has been an Executive Director of Sunac China Holdings Limited since November 23, 2007. Mr. Wang graduated from Nankai University with a bachelor's degree in Auditing in 1997.

CEO Compensation
  • Mengde's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mengde's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Sunac China Holdings management team in years:

3.8
Average Tenure
43
Average Age
  • The tenure for the Sunac China Holdings management team is about average.
Management Team

Hongbin Sun

TITLE
Founder & Executive Chairman
COMPENSATION
CN¥17M
AGE
55

Mengde Wang

TITLE
CEO & Executive Director
COMPENSATION
CN¥21M
AGE
46
TENURE
3.8 yrs

Qiang Tian

TITLE
Executive Director
COMPENSATION
CN¥17M
AGE
41
TENURE
4.4 yrs

Xun Chi

TITLE
Executive Director
COMPENSATION
CN¥19M
AGE
44

Shuping Huang

TITLE
Executive Director
COMPENSATION
CN¥13M
AGE
37

Yu Shang

TITLE
Executive Director
COMPENSATION
CN¥17M
AGE
39

Hong Jing

TITLE
Executive Director and Executive President & President of Beijing Regional Branch
COMPENSATION
CN¥19M
AGE
56

Kevin Zheyi Sun

TITLE
VP, President of Culture Group & Executive Director
COMPENSATION
CN¥3M
AGE
28
TENURE
2.1 yrs

Hongling Cao

TITLE
Executive President & CFO
AGE
42
TENURE
3.8 yrs

Zhixia Ma

TITLE
Executive President & COO
COMPENSATION
CN¥614K
AGE
45
TENURE
4.4 yrs
Board of Directors Tenure

Average tenure and age of the Sunac China Holdings board of directors in years:

9.8
Average Tenure
45
Average Age
  • The tenure for the Sunac China Holdings board of directors is about average.
Board of Directors

Hongbin Sun

TITLE
Founder & Executive Chairman
COMPENSATION
CN¥17M
AGE
55

Mengde Wang

TITLE
CEO & Executive Director
COMPENSATION
CN¥21M
AGE
46
TENURE
11.6 yrs

Qiang Tian

TITLE
Executive Director
COMPENSATION
CN¥17M
AGE
41
TENURE
2.6 yrs

Xun Chi

TITLE
Executive Director
COMPENSATION
CN¥19M
AGE
44
TENURE
9.9 yrs

Shuping Huang

TITLE
Executive Director
COMPENSATION
CN¥13M
AGE
37
TENURE
2.6 yrs

Yu Shang

TITLE
Executive Director
COMPENSATION
CN¥17M
AGE
39
TENURE
9.9 yrs

Hong Jing

TITLE
Executive Director and Executive President & President of Beijing Regional Branch
COMPENSATION
CN¥19M
AGE
56
TENURE
6.9 yrs

Kevin Zheyi Sun

TITLE
VP, President of Culture Group & Executive Director
COMPENSATION
CN¥3M
AGE
28
TENURE
2.1 yrs

Feng Min

TITLE
Chairman of Wuxi Sunan Real Estate
AGE
48
TENURE
11.5 yrs

Jonathan Zhu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥380K
AGE
55
TENURE
9.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
28. Jun 18 Buy Yu Shang Individual 27. Jun 18 27. Jun 18 200,000 HK$25.80 HK$5,160,000
28. Jun 18 Buy Mengde Wang Individual 27. Jun 18 27. Jun 18 750,000 HK$25.72 HK$19,289,327
28. Jun 18 Buy Yu Shang Individual 28. Jun 18 28. Jun 18 200,000 HK$25.00 HK$5,000,000
X
Management checks
We assess Sunac China Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sunac China Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

1918 News

Simply Wall St News

Why I Like Sunac China Holdings Limited (HKG:1918)

Exceptional growth potential and good value Investors in search for stocks with room to flourish should look no further than 1918, with its expected earnings growth of 28%. … Over the past year, 1918 has grown its earnings by 51%, with its most recent figure exceeding its annual average over the past five years. … Dividend Income vs Capital Gains: Does 1918 return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends?

Simply Wall St -

Are You An Income Investor? Don't Miss Out On Sunac China Holdings Limited (HKG:1918)

Investors might not know much about Sunac China Holdings's dividend prospects, even though it has been paying dividends for the last seven years and offers a 2.8% yield. … Sunac China Holdings has been paying a dividend for the past seven years. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Sunac China Holdings has grown its earnings per share at 32% per annum over the past five years. Earnings per share have grown rapidly, and the company is retaining a majority of its earnings. We think this is ideal from an investment perspective, if the company is able to reinvest these earnings effectively. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Have Insiders Been Buying Sunac China Holdings Limited (HKG:1918) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Sunac China Holdings Limited (HKG:1918). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … The Last 12 Months Of Insider Transactions At Sunac China Holdings

Simply Wall St -

What Do Analysts Think About Sunac China Holdings Limited's (HKG:1918) Earnings Trajectory?

The latest earnings update Sunac China Holdings Limited (HKG:1918) released in December 2018a

Simply Wall St -

I Ran A Stock Scan For Earnings Growth And Sunac China Holdings (HKG:1918) Passed With Ease

If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Sunac China Holdings (HKG:1918). … Sunac China Holdings's Earnings Per Share Are Growing. … While we note Sunac China Holdings's EBIT margins were flat over the last year, revenue grew by a solid 89% to CN¥125b.

Simply Wall St -

Is Sunac China Holdings Limited's (HKG:1918) ROE Of 23% Impressive?

Over the last twelve months Sunac China Holdings has recorded a ROE of 23%. … That means that for every HK$1 worth of shareholders' equity, it generated HK$0.23 in profit. … View our latest analysis for Sunac China Holdings?

Simply Wall St -

Don't Sell Sunac China Holdings Limited (HKG:1918) Before You Read This

We'll look at Sunac China Holdings Limited's (HKG:1918) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, Sunac China Holdings's P/E ratio is 8.26. … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

What Kind Of Shareholder Owns Most Sunac China Holdings Limited (HKG:1918) Stock?

The big shareholder groups in Sunac China Holdings Limited (HKG:1918) have power over the company. … Sunac China Holdings has a market capitalization of HK$157b, so it's too big to fly under the radar. … See our latest analysis for Sunac China Holdings

Simply Wall St -

Sunac China Holdings Shareholders Have Enjoyed A Whopping 691% Share Price Gain

Then look at the Sunac China Holdings Limited (HKG:1918) share price. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Over half a decade, Sunac China Holdings managed to grow its earnings per share at 34% a year.

Simply Wall St -

Is Sunac China Holdings Limited (HKG:1918) Potentially Underrated?

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Sunac China Holdings Limited (HKG:1918) due to its excellent fundamentals in more than one area.

Simply Wall St -

1918 Company Info

Description

Sunac China Holdings Limited, together with its subsidiaries, develops residential and commercial properties in the People's Republic of China. The company’s property portfolio includes high-rise and mid-rise apartments, detached villas, townhouses, retail stores, offices, serviced apartments, clubhouses, and parking spaces and schools. It is also involved in leasing commercial properties; and the cultural and tourism city operation activities. The company was founded in 2003 and is based in Beijing, China.

Details
Name: Sunac China Holdings Limited
1918
Exchange: SEHK
Founded: 2003
HK$163,298,624,747
4,437,462,629
Website: http://www.sunac.com.cn
Address: Sunac China Holdings Limited
Rongke Wangjing Center,
26th Floor, Block B,
Beijing,
100102,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1918 HKD Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 07. Oct 2010
OTCPK SCCC.F HKD Ordinary Shares Pink Sheets LLC US USD 07. Oct 2010
DB SCNR HKD Ordinary Shares Deutsche Boerse AG DE EUR 07. Oct 2010
SHSC 1918 HKD Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 07. Oct 2010
SZSC 1918 HKD Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 07. Oct 2010
Number of employees
Current staff
Staff numbers
38,040
Sunac China Holdings employees.
Industry
Real Estate Development
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 12:58
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/09
Last earnings filing: 2019/04/08
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.