SEHK:194

Stock Analysis Report

Liu Chong Hing Investment

Executive Summary

Liu Chong Hing Investment Limited, an investment holding company, engages in the investment and development of real estate properties in Hong Kong and the People’s Republic of China.

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.

Share Price & News

How has Liu Chong Hing Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.3%

194

4.8%

HK Real Estate

3.1%

HK Market


1 Year Return

-9.6%

194

11.7%

HK Real Estate

0.5%

HK Market

Return vs Industry: 194 underperformed the Hong Kong Real Estate industry which returned 11.7% over the past year.

Return vs Market: 194 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

194IndustryMarket
7 Day2.3%4.8%3.1%
30 Day-2.6%1.2%-1.8%
90 Day-14.6%-9.1%-4.8%
1 Year-4.2%-9.6%16.0%11.7%4.1%0.5%
3 Year12.3%-3.1%39.1%24.7%15.8%4.2%
5 Year41.7%12.1%60.5%34.7%18.9%-0.9%

Price Volatility Vs. Market

How volatile is Liu Chong Hing Investment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Liu Chong Hing Investment undervalued compared to its fair value and its price relative to the market?

4.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 194 (HK$10.54) is trading above our estimate of fair value (HK$7.96)

Significantly Undervalued: 194 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 194 is good value based on its PE Ratio (4.4x) compared to the Real Estate industry average (6.1x).

PE vs Market: 194 is good value based on its PE Ratio (4.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 194's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 194 is good value based on its PB Ratio (0.3x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Liu Chong Hing Investment forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 194's forecast earnings growth (8.6% per year) is above the savings rate (2%).

Earnings vs Market: 194's earnings (8.6% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 194's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 194's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 194's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 194's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Liu Chong Hing Investment performed over the past 5 years?

23.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 194's earnings have grown significantly by 23.7% per year over the past 5 years.

Accelerating Growth: 194's earnings growth over the past year (9.6%) is below its 5-year average (23.7% per year).

Earnings vs Industry: 194 earnings growth over the past year (9.6%) exceeded the Real Estate industry -12.4%.


Return on Equity

High ROE: 194's Return on Equity (7.6%) is considered low.


Return on Assets

ROA vs Industry: 194 has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 194 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Liu Chong Hing Investment's financial position?


Financial Position Analysis

Short Term Liabilities: 194's short term assets (HK$3.8B) exceeds its short term liabilities (HK$2.1B)

Long Term Liabilities: 194's short term assets (3.8B) exceeds its long term liabilities (331.2M)


Debt to Equity History and Analysis

Debt Level: 194's debt to equity ratio (11.3%) is considered satisfactory

Reducing Debt: 194's debt to equity ratio has reduced from 23.6% to 11.3% over the past 5 years.

Debt Coverage: 194's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 194's interest payments on its debt are well covered by EBIT (34x coverage).


Balance Sheet

Inventory Level: 194 has a high level of physical assets or inventory.

Debt Coverage by Assets: 194's debt is covered by short term assets (assets are 2.681100x debt).


Next Steps

Dividend

What is Liu Chong Hing Investment's current dividend yield, its reliability and sustainability?

6.64%

Current Dividend Yield


Dividend Yield vs Market

company6.6%marketbottom25%2.3%markettop25%6.3%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 194's dividend (6.64%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 194's dividend (6.64%) is in the top 25% of dividend payers in the Hong Kong market (6.25%)

Stable Dividend: 194's dividends per share have been stable in the past 10 years.

Growing Dividend: 194's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.2%), 194's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Liu Chong Hing Investment's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Lit Chi Liu (79yo)

5.7yrs

Tenure

HK$9,917,000

Compensation

Mr. Lit Chi Liu has been the Chief Executive Officer of Liu Chong Hing Investment Limited since February 26, 2014. Mr. Liu serves as the Chief Executive Officer and Managing Director of Liu Chong Hing Bank ...


CEO Compensation Analysis

Compensation vs. Market: Lit Chi's total compensation ($USD1.26M) is about average for companies of similar size in the Hong Kong market ($USD299.32K).

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


Management Age and Tenure

2.5yrs

Average Tenure

53yo

Average Age

Experienced Management: 194's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

9.2yrs

Average Tenure

58yo

Average Age

Experienced Board: 194's board of directors are considered experienced (9.2 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

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Ownership Breakdown


Management Team

  • Christopher Liu (43yo)

    Executive Director

    • Tenure: 19.8yrs
    • Compensation: HK$4.98m
  • Lit Chi Liu (79yo)

    Chairman of the Board

    • Tenure: 5.7yrs
    • Compensation: HK$9.92m
  • Wai Hung Lee (58yo)

    Company Secretary & Executive Director

    • Tenure: 25.1yrs
    • Compensation: HK$4.06m
  • Eva Liu (55yo)

    Head of Property Development

    • Tenure: 2.5yrs
  • Winston Liu (52yo)

    Deputy MD & Executive Director

    • Tenure: 22.6yrs
    • Compensation: HK$6.34m
  • Cavior Liu (54yo)

    Head of Human Resources

    • Tenure: 2.5yrs
  • Tse Hon Tong (50yo)

    Head of Leasing

    • Tenure: 2.5yrs
  • Charmaine Yan (44yo)

    Head of China Budget Hotel

    • Tenure: 2.5yrs
  • Cecil Pan (55yo)

    Head of Project Development

    • Tenure: 2.5yrs
  • Chi Chung Luk (52yo)

    Head of Finance Management & Information Technology

    • Tenure: 2.5yrs

Board Members

  • Moses Cheng (69yo)

    Independent Non Executive Director

    • Tenure: 20.2yrs
    • Compensation: HK$300.00k
  • Christopher Liu (43yo)

    Executive Director

    • Tenure: 19.8yrs
    • Compensation: HK$4.98m
  • Lit Chi Liu (79yo)

    Chairman of the Board

    • Tenure: 5.7yrs
    • Compensation: HK$9.92m
  • Wai Hung Lee (58yo)

    Company Secretary & Executive Director

    • Tenure: 25.1yrs
    • Compensation: HK$4.06m
  • Lit Man Liu (89yo)

    Honorary Chairman

    • Tenure: 9.9yrs
    • Compensation: HK$120.00k
  • Winston Liu (52yo)

    Deputy MD & Executive Director

    • Tenure: 22.6yrs
    • Compensation: HK$6.34m
  • Erik Cheng (58yo)

    Independent Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: HK$300.00k
  • John Ma (52yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: HK$300.00k
  • Christopher Kho (56yo)

    Non-Executive Director

    • Tenure: 8.4yrs
    • Compensation: HK$300.00k
  • Arthur Au (80yo)

    Independent Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: HK$300.00k

Company Information

Liu Chong Hing Investment Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Liu Chong Hing Investment Limited
  • Ticker: 194
  • Exchange: SEHK
  • Founded: 1970
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$3.937b
  • Shares outstanding: 378.58m
  • Website: https://www.lchi.com.hk

Number of Employees


Location

  • Liu Chong Hing Investment Limited
  • Chong Hing Bank Centre
  • 23rd Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
194SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Liu Chong Hing Investment Limited, an investment holding company, engages in the investment and development of real estate properties in Hong Kong and the People’s Republic of China. It operates in Propert ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:32
End of Day Share Price2019/10/17 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.