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1997

Wharf Real Estate InvestmentSEHK:1997 Stock Report

Last Price

HK$39.10

Market Cap

HK$118.7b

7D

0.4%

1Y

-6.8%

Updated

20 Jan, 2022

Data

Company Financials +
1997 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health2/6
Dividends2/6

1997 Stock Overview

Wharf Real Estate Investment Company Limited, an investment holding company, invests in, develops, constructs, owns, operates, trades in, and sells real estate properties in Hong Kong, Mainland China, and Singapore.

Wharf Real Estate Investment Competitors

Henderson Land Development

SEHK:12

HK$163.9b

Greentown China Holdings

SEHK:3900

HK$32.8b

Miramar Hotel and Investment Company

SEHK:71

HK$9.0b

Harbour Centre Development

SEHK:51

HK$4.8b

Price History & Performance

Summary of all time highs, changes and price drops for Wharf Real Estate Investment
Historical stock prices
Current Share PriceHK$39.10
52 Week HighHK$49.60
52 Week LowHK$35.10
Beta1.19
1 Month Change-1.88%
3 Month Change-7.78%
1 Year Change-6.79%
3 Year Change-26.16%
5 Year Changen/a
Change since IPO-21.80%

Recent News & Updates

Jan 03
At HK$38.90, Is It Time To Put Wharf Real Estate Investment Company Limited (HKG:1997) On Your Watch List?

At HK$38.90, Is It Time To Put Wharf Real Estate Investment Company Limited (HKG:1997) On Your Watch List?

Wharf Real Estate Investment Company Limited ( HKG:1997 ) received a lot of attention from a substantial price movement...

Oct 22
Estimating The Intrinsic Value Of Wharf Real Estate Investment Company Limited (HKG:1997)

Estimating The Intrinsic Value Of Wharf Real Estate Investment Company Limited (HKG:1997)

Today we will run through one way of estimating the intrinsic value of Wharf Real Estate Investment Company Limited...

Oct 01
Is Wharf Real Estate Investment (HKG:1997) A Risky Investment?

Is Wharf Real Estate Investment (HKG:1997) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Sep 10
At HK$41.15, Is It Time To Put Wharf Real Estate Investment Company Limited (HKG:1997) On Your Watch List?

At HK$41.15, Is It Time To Put Wharf Real Estate Investment Company Limited (HKG:1997) On Your Watch List?

Let's talk about the popular Wharf Real Estate Investment Company Limited ( HKG:1997 ). The company's shares saw a...

Shareholder Returns

1997HK Real EstateHK Market
7D0.4%0.6%-0.2%
1Y-6.8%-25.4%-16.2%

Return vs Industry: 1997 exceeded the Hong Kong Real Estate industry which returned -25.4% over the past year.

Return vs Market: 1997 exceeded the Hong Kong Market which returned -16.2% over the past year.

Price Volatility

Is 1997's price volatile compared to industry and market?
1997 volatility
1997 Average Weekly Movement3.4%
Real Estate Industry Average Movement5.6%
Market Average Movement6.7%
10% most volatile stocks in HK Market13.2%
10% least volatile stocks in HK Market3.0%

Stable Share Price: 1997 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 1997's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18862,900Stephen Nghttps://www.wharfreic.com

Wharf Real Estate Investment Company Limited, an investment holding company, invests in, develops, constructs, owns, operates, trades in, and sells real estate properties in Hong Kong, Mainland China, and Singapore. The company operates through Investment Property, Development Property, Hotels, and Investment segments. It primarily operates Harbour City, a commercial space comprising offices, retail shops, serviced apartments, hotels and club, and car parking spaces; and Times Square, a retail space that consists of office and car parking spaces.

Wharf Real Estate Investment Fundamentals Summary

How do Wharf Real Estate Investment's earnings and revenue compare to its market cap?
1997 fundamental statistics
Market CapHK$118.72b
Earnings (TTM)-HK$430.00m
Revenue (TTM)HK$16.23b

7.3x

P/S Ratio

-276.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1997 income statement (TTM)
RevenueHK$16.23b
Cost of RevenueHK$5.24b
Gross ProfitHK$10.98b
ExpensesHK$11.41b
Earnings-HK$430.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.14
Gross Margin67.69%
Net Profit Margin-2.65%
Debt/Equity Ratio25.4%

How did 1997 perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

-960%

Payout Ratio

Valuation

Is Wharf Real Estate Investment undervalued compared to its fair value and its price relative to the market?

12.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1997 (HK$39.1) is trading below our estimate of fair value (HK$44.63)

Significantly Below Fair Value: 1997 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1997 is unprofitable, so we can't compare its PE Ratio to the Hong Kong Real Estate industry average.

PE vs Market: 1997 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1997's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1997 is overvalued based on its PB Ratio (0.6x) compared to the HK Real Estate industry average (0.4x).


Future Growth

How is Wharf Real Estate Investment forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1997 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: 1997 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 1997's is expected to become profitable in the next 3 years.

Revenue vs Market: 1997's revenue (1.7% per year) is forecast to grow slower than the Hong Kong market (11.6% per year).

High Growth Revenue: 1997's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1997's Return on Equity is forecast to be low in 3 years time (4%).


Past Performance

How has Wharf Real Estate Investment performed over the past 5 years?

-46.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1997 is currently unprofitable.

Growing Profit Margin: 1997 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1997 is unprofitable, and losses have increased over the past 5 years at a rate of 46.6% per year.

Accelerating Growth: Unable to compare 1997's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1997 is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (21.7%).


Return on Equity

High ROE: 1997 has a negative Return on Equity (-0.16%), as it is currently unprofitable.


Financial Health

How is Wharf Real Estate Investment's financial position?


Financial Position Analysis

Short Term Liabilities: 1997's short term assets (HK$8.4B) do not cover its short term liabilities (HK$11.5B).

Long Term Liabilities: 1997's short term assets (HK$8.4B) do not cover its long term liabilities (HK$54.6B).


Debt to Equity History and Analysis

Debt Level: 1997's net debt to equity ratio (24%) is considered satisfactory.

Reducing Debt: 1997's debt to equity ratio has increased from 17.6% to 25.4% over the past 5 years.

Debt Coverage: 1997's debt is not well covered by operating cash flow (14.1%).

Interest Coverage: 1997's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet


Dividend

What is Wharf Real Estate Investment current dividend yield, its reliability and sustainability?

3.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1997's dividend (3.43%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.32%).

High Dividend: 1997's dividend (3.43%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.03%).


Stability and Growth of Payments

Stable Dividend: 1997 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1997's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: 1997 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: 1997's dividends in 3 years are forecast to be covered by earnings (61.6% payout ratio).


Next Steps

Management

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

3.6yrs

Average board tenure


CEO

Stephen Ng (69 yo)

4.25yrs

Tenure

HK$11,543,000

Compensation

Mr. Tin Hoi Ng, also known as Stephen, serves as Non-Executive Director of Greentown China Holdings Limited since June 15, 2012. Mr. Ng serves as the Chief Executive Officer of Harbour Centre Development L...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD1.48M) is about average for companies of similar size in the Hong Kong market ($USD1.23M).

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


Board Members

Experienced Board: 1997's board of directors are considered experienced (3.6 years average tenure).


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.


Ownership Breakdown

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


Top Shareholders

Company Information

Wharf Real Estate Investment Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Wharf Real Estate Investment Company Limited
  • Ticker: 1997
  • Exchange: SEHK
  • Founded: 1886
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Implied Market Cap: HK$118.716b
  • Shares outstanding: 3.04b
  • Website: https://www.wharfreic.com

Number of Employees


Location

  • Wharf Real Estate Investment Company Limited
  • Ocean Centre
  • 16th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 16:15
End of Day Share Price2022/01/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.