SEHK:20

Stock Analysis Report

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Executive Summary

Wheelock and Company Limited (HKSE: 00020) is a listed property group headquartered in Hong Kong.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 20 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

20

5.9%

HK Real Estate

4.1%

HK Market


1 Year Return

10.0%

20

-12.3%

HK Real Estate

-4.7%

HK Market

Return vs Industry: 20 exceeded the Hong Kong Real Estate industry which returned -12.3% over the past year.

Return vs Market: 20 exceeded the Hong Kong Market which returned -4.7% over the past year.


Shareholder returns

20IndustryMarket
7 Day0%5.9%4.1%
30 Day4.4%5.6%4.2%
90 Day14.8%9.3%11.7%
1 Year13.5%10.0%-7.7%-12.3%-1.2%-4.7%
3 Year17.9%7.9%22.4%7.8%7.7%-3.5%
5 Year75.7%51.9%43.5%17.7%7.2%-10.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Wheelock 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: 20 (HK$61.3) is trading below our estimate of fair value (HK$157.97)

Significantly Below Fair Value: 20 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 20 is poor value based on its PE Ratio (13.7x) compared to the Real Estate industry average (6.8x).

PE vs Market: 20 is poor value based on its PE Ratio (13.7x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 20 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 20 is overvalued based on its PB Ratio (0.5x) compared to the HK Real Estate industry average (0.4x).

Future Growth

How is Wheelock forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 20's forecast earnings growth (18.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 20's earnings (18.4% per year) are forecast to grow faster than the Hong Kong market (17.6% per year).

High Growth Earnings: 20's earnings are forecast to grow, but not significantly.

Revenue vs Market: 20's revenue (9% per year) is forecast to grow slower than the Hong Kong market (10.9% per year).

High Growth Revenue: 20's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 20's Return on Equity is forecast to be low in 3 years time (5.3%).

Past Performance

How has Wheelock performed over the past 5 years?

-3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 20 has high quality earnings.

Growing Profit Margin: 20's current net profit margins (18.9%) are lower than last year (35.6%).


Past Earnings Growth Analysis

Earnings Trend: 20's earnings have declined by -3.9% per year over the past 5 years.

Accelerating Growth: 20's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 20 had negative earnings growth (-46.8%) over the past year, making it difficult to compare to the Real Estate industry average (3.8%).


Return on Equity

High ROE: 20's Return on Equity (3%) is considered low.

Financial Health

How is Wheelock's financial position?


Financial Position Analysis

Short Term Liabilities: 20's short term assets (HK$144.5B) exceed its short term liabilities (HK$97.4B).

Long Term Liabilities: 20's short term assets (HK$144.5B) exceed its long term liabilities (HK$118.3B).


Debt to Equity History and Analysis

Debt Level: 20's debt to equity ratio (32.1%) is considered satisfactory.

Reducing Debt: 20's debt to equity ratio has reduced from 35.3% to 32.1% over the past 5 years.

Debt Coverage: 20's debt is not well covered by operating cash flow (16.9%).

Interest Coverage: 20's interest payments on its debt are well covered by EBIT (12.2x coverage).


Balance Sheet

Dividend

What is Wheelock current dividend yield, its reliability and sustainability?

2.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 20's dividend (2.57%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.35%).

High Dividend: 20's dividend (2.57%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.69%).


Stability and Growth of Payments

Stable Dividend: 20's dividend payments have been volatile in the past 10 years.

Growing Dividend: 20's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.2%), 20's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 20's dividends in 3 years are forecast to be well covered by earnings (23.3% payout ratio).

Management

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

9.5yrs

Average board tenure


CEO

Douglas Woo (42yo)

7yrs

Tenure

HK$20,978,000

Compensation

Chun Kuen Woo has been Chairman of Wheelock and Co. Ltd. (the “Company”) since 2014 and a Director and Managing Director since 2013. He is also Vice Chairman and managing Director of Wheelock Properties Li ...


CEO Compensation Analysis

Compensation vs Market: Douglas's total compensation ($USD2.71M) is above average for companies of similar size in the Hong Kong market ($USD816.97K).

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


Board Members

NamePositionTenureCompensationOwnership
Chun Kuen Woo
Chairman & MD7yrsHK$20.98m0.34% HK$429.1m
Yiu Cheung Tsui
Group CFO & Executive Director22.5yrsHK$20.99m0.015% HK$18.4m
Kwong Yiu Wong
Executive Director10.5yrsHK$15.24m0.030% HK$37.3m
Wai Chung Lee
Executive Director0.50yrno datano data
Tin Hoi Ng
Deputy Chairman25.5yrsHK$32.26m0.0086% HK$10.8m
Glenn Sekkemn Yee
Independent Non-Executive Director10.5yrsHK$400.00kno data
Woo-Shou Ting
Independent Non-Executive Director17.5yrsHK$450.00kno data
Chi-Kin Leung
Vice Chairman8.42yrsHK$14.77m0.0024% HK$3.1m
Alan Howard Smith
Independent Non-Executive Director8yrsHK$450.00kno data
Cheng Dao
Non-Executive Director8yrsHK$250.00kno data

9.5yrs

Average Tenure

71yo

Average Age

Experienced Board: 20's board of directors are considered experienced (9.5 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Wheelock and Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wheelock and Company Limited
  • Ticker: 20
  • Exchange: SEHK
  • Founded: 1857
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: HK$125.840b
  • Shares outstanding: 2.05b
  • Website: https://www.wheelockcompany.com

Number of Employees


Location

  • Wheelock and Company Limited
  • Wheelock House
  • 23rd Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WHLK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
20SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
WHLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
20SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
20SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
WHLK.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2008

Biography

Wheelock and Company Limited (HKSE: 00020) is a listed property group headquartered in Hong Kong. We are principally engaged in property development in Hong Kong. Our major subsidiaries include Wharf (Holdings) Limited (HKSE: 00004), Wharf REIC Limited (HKSE: 01997) and Wheelock Properties Limited. Wheelock Properties (Singapore) Pte. Ltd has become a wholly-owned subsidiary of Wharf REIC since December 2019. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 12:36
End of Day Share Price2020/06/18 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.