Country Garden Holdings

SEHK:2007

Snowflake Description

Good value with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

2007

SEHK

HK$252B

Market Cap

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Last updated 2019/06/24 12:49

Company description

Country Garden Holdings Company Limited, an investment holding company, operates as a real estate enterprise in the People’s Republic of China and internationally. The last earnings update was 76 days ago. More info.

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2007 Share Price and Events

7 Day Returns

6.6%

SEHK:2007

2.4%

HK Real Estate

3.9%

HK Market

1 Year Returns

-18.9%

SEHK:2007

-4.7%

HK Real Estate

-9.3%

HK Market

2007 Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
Country Garden Holdings (2007)	6.6%	13.3%	0%	-18.9%	272.6%	288.3%
HK Real Estate	2.4%	3.4%	-3.4%	-4.7%	55.9%	53.4%
HK Market	3.9%	3.5%	-3.6%	-9.3%	24.9%	7.4%

1 Year Return vs Industry and Market

2007 underperformed the Real Estate industry which returned -4.7% over the past year.
2007 underperformed the Market in Hong Kong which returned -9.3% over the past year.

Price Volatility

2007

Industry

5yr Volatility vs Market

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2007 Value

Is Country Garden 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 Country Garden 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 Country Garden Holdings.

SEHK:2007 Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Average of 23 Analyst Estimates (S&P Global)	See below
Discount Rate (Cost of Equity)	See below	12.7%
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:2007
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	1.03
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 1.035 (1 + (1- 25%) (148.49%))	1.795
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	1.8
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 2% + (1.795 * 5.96%)	12.7%

Discounted Cash Flow Calculation for SEHK:2007 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Country Garden 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:2007 DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (CNY, Millions)	Source	Present Value Discounted (@ 12.7%)
2019	54,608.36	Analyst x7	48,453.95
2020	104,686.00	Analyst x7	82,419.26
2021	145,708.00	Analyst x3	101,787.30
2022	180,025.58	Est @ 23.55%	111,587.22
2023	210,787.46	Est @ 17.09%	115,929.80
2024	237,266.90	Est @ 12.56%	115,786.39
2025	259,556.72	Est @ 9.39%	112,388.72
2026	278,185.07	Est @ 7.18%	106,879.47
2027	293,832.40	Est @ 5.62%	100,168.28
2028	307,167.26	Est @ 4.54%	92,912.79
Present value of next 10 years cash flows			CN¥988,313.18

SEHK:2007 DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₈ × (1 + g) ÷ (Discount Rate – g) = CN¥307,167.26 × (1 + 2%) ÷ (12.7% – 2%)	CN¥2,928,615.85
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = CN¥2,928,615.85 ÷ (1 + 12.7%)¹⁰	CN¥885,855.76

SEHK:2007 Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = CN¥988,313.18 + CN¥885,855.76	CN¥1,874,168.94
Equity Value per Share (CNY)	= Total value / Shares Outstanding = CN¥1,874,168.94 / 21,367.03	CN¥87.71

SEHK:2007 Discount to Share Price
	Calculation	Result
Exchange Rate	CNY/HKD (Reporting currency to currency of SEHK:2007)	1.137
Value per Share (HKD)	= Value per Share in CNY x Exchange Rate (CNY/HKD) = CN¥87.71 x 1.137	HK$99.73
Value per share (HKD)	From above.	HK$99.73
Current discount	Discount to share price of HK$11.96 = -1 x (HK$11.96 - HK$99.73) / HK$99.73	88%

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

Current Discount

Amount off the current price Country Garden Holdings is available for.

^>50%

Share price is HK$11.96 vs Future cash flow value of HK$99.73

Current Discount Checks

For Country Garden Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.

Country Garden Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
Country Garden 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 Country Garden Holdings's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are Country Garden Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

SEHK:2007 PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-12-31) in CNY	CN¥1.61
SEHK:2007 Share Price **	SEHK (2019-06-24) in HKD	HK$11.96
SEHK:2007 Share Price converted to CNY reporting currency	Exchange rate (HKD/ CNY) 0.879	CN¥10.52
Hong Kong Real Estate Industry PE Ratio	Median Figure of 188 Publicly-Listed Real Estate Companies	6.29x
Hong Kong Market PE Ratio	Median Figure of 1,487 Publicly-Listed Companies	10.87x

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

** Primary Listing of Country Garden Holdings.

SEHK:2007 PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= SEHK:2007 Share Price ÷ EPS (both in CNY) = 10.52 ÷ 1.61	6.52x

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

Country Garden Holdings is overvalued based on earnings compared to the HK Real Estate industry average.
Country Garden Holdings is good value based on earnings compared to the Hong Kong market.

Price based on expected Growth

Does Country Garden Holdings's expected growth come at a high price?

Raw Data

SEHK:2007 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	6.52x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts	15.9%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 469 Publicly-Listed Companies	0.78x

*Line of best fit is calculated by linear regression .

SEHK:2007 PEG (Price to Earnings to Growth) Ratio Calculation
	Calculation	Outcome
PEG Ratio	= PE Ratio ÷ Net Income Annual Growth Rate = 6.52x ÷ 15.9%	0.41x

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

Country Garden Holdings is good value based on expected growth next year.

Price based on value of assets

What value do investors place on Country Garden Holdings's assets?

Raw Data

SEHK:2007 PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-12-31) in CNY	CN¥5.68
SEHK:2007 Share Price *	SEHK (2019-06-24) in HKD	HK$11.96
SEHK:2007 Share Price converted to CNY reporting currency	Exchange rate (HKD/ CNY) 0.879	CN¥10.52
Hong Kong Real Estate Industry PB Ratio	Median Figure of 229 Publicly-Listed Real Estate Companies	0.57x
Hong Kong Market PB Ratio	Median Figure of 2,172 Publicly-Listed Companies	0.94x

SEHK:2007 PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= SEHK:2007 Share Price ÷ Book Value per Share (both in CNY) = 10.52 ÷ 5.68	1.85x

* Primary Listing of Country Garden Holdings.

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

Country Garden Holdings is overvalued based on assets compared to the HK Real Estate industry average.

Show me more potentially undervalued companies in the Real Estate industry

Value checks

We assess Country Garden Holdings's value by looking at:

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. )
Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)

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

2007 Future Performance

How is Country Garden Holdings expected to perform in the next 1 to 3 years based on estimates from 23 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!

15.9%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is Country Garden Holdings expected to grow at an attractive rate?

Country Garden Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.

Growth vs Market Checks

Country Garden Holdings's earnings growth is expected to exceed the Hong Kong market average.
Country Garden Holdings's revenue growth is expected to exceed the Hong Kong market average.

Annual Growth Rates Comparison

Raw Data

SEHK:2007 Future Growth Rates Data Sources
Data Point	Source	Value (per year)
SEHK:2007 Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts	15.9%
SEHK:2007 Future Revenue Growth Rate	Line of Best Fit* through Consensus Estimate Revenue of 23 Analysts	17.8%
Hong Kong Real Estate Industry Earnings Growth Rate	Market Cap Weighted Average	5.6%
Hong Kong Real Estate Industry Revenue Growth Rate	Market Cap Weighted Average	16.5%
Hong Kong Market Earnings Growth Rate	Market Cap Weighted Average	11.1%
Hong Kong Market Revenue Growth Rate	Market Cap Weighted Average	10.4%

*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:2007 Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (5 months ago)	See Below
Future Estimates	Average of up to 23 Analyst Estimates (S&P Global)	See Below

All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2007 Future Estimates Data
Date (Data in CNY Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts
2021-12-31	653,086	57,133	56,484	18
2020-12-31	580,284	41,837	49,439	22
2019-12-31	478,968	92,739	42,384	23

SEHK:2007 Past Financials Data
Date (Data in CNY Millions)	Revenue	Cash Flow	Net Income *
2018-12-31	379,079	29,381	34,618
2018-09-30	330,068	20,104	33,060
2018-06-30	281,056	10,827	31,502
2018-03-31	253,978	17,455	28,783
2017-12-31	226,900	24,084	26,064
2017-09-30	200,181	46,727	19,846
2017-06-30	173,462	69,370	13,628
2017-03-31	163,275	55,316	12,573
2016-12-31	153,087	41,263	11,517
2016-09-30	138,172	9,678	10,627
2016-06-30	123,258	-21,907	9,736
2016-03-31	118,240	-19,748	9,506

*GAAP earnings excluding extraordinary items.

High Growth Checks

Country Garden Holdings's earnings are expected to grow by 15.9% yearly, however this is not considered high growth (20% yearly).
Country Garden Holdings's revenue is expected to grow by 17.8% yearly, however this is not considered high growth (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:2007 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 23 Analyst Estimates (S&P Global)	See Below

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

SEHK:2007 Future Estimates Data
Date (Data in CNY Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts
2021-12-31	2.59	3.16	2.15	16.00
2020-12-31	2.26	2.81	1.88	18.00
2019-12-31	1.95	2.24	1.66	19.00

SEHK:2007 Past Financials Data
Date (Data in CNY Millions)	EPS *
2018-12-31	1.61
2018-09-30	1.55
2018-06-30	1.48
2018-03-31	1.35
2017-12-31	1.23
2017-09-30	0.93
2017-06-30	0.63
2017-03-31	0.57
2016-12-31	0.52
2016-09-30	0.48
2016-06-30	0.43
2016-03-31	0.43

*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.

Country Garden Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).

Show me more growth companies in the Real Estate industry

Future performance checks

We assess Country Garden Holdings's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
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.
Country Garden Holdings has a total score of 4/6, 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.

2007 Past Performance

How has Country Garden 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 Country Garden 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.

Country Garden Holdings has delivered over 20% year on year earnings growth in the past 5 years.
Country Garden Holdings's 1-year earnings growth exceeds its 5-year average (32.8% vs 31.9%)
Country Garden Holdings's earnings growth has exceeded the HK Real Estate industry average in the past year (32.8% vs 6.3%).

Earnings and Revenue History

Country Garden 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 Country Garden Holdings Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2007 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	379,079.00	34,618.00	29,134.00	1,224.00
2018-09-30	330,067.50	33,060.00	24,580.50	1,085.00
2018-06-30	281,055.79	31,501.52	21,059.41	253.00
2018-03-31	253,977.79	28,782.52	19,681.41	126.50
2017-12-31	226,900.00	26,064.00	17,271.00	693.00
2017-09-30	200,181.24	19,846.12	16,547.70	385.50
2017-06-30	173,462.49	13,628.23	15,824.41	78.00
2017-03-31	163,274.73	12,572.52	14,089.20	39.00
2016-12-31	153,086.98	11,516.82	12,353.98
2016-09-30	138,172.27	10,626.52	10,575.38
2016-06-30	123,257.56	9,736.23	8,796.79
2016-03-31	118,240.10	9,506.36	8,357.75
2015-12-31	113,222.64	9,276.49	7,918.72
2015-09-30	103,387.90	9,506.14	7,535.95
2015-06-30	93,553.16	9,735.79	7,153.18
2015-03-31	89,050.98	9,982.48	7,334.69
2014-12-31	84,548.80	10,229.16	7,516.20
2014-09-30	79,319.88	9,925.14	7,378.76
2014-06-30	74,090.96	9,621.12	7,241.33
2014-03-31	68,407.84	9,067.61	6,789.21
2013-12-31	62,724.73	8,514.10	6,337.10
2013-09-30	63,209.41	9,418.47	5,653.83
2013-06-30	52,081.20	8,192.71	4,593.41
2013-03-31	46,986.09	7,522.68	4,173.87
2012-12-31	41,890.98	6,852.65	3,754.34
2012-09-30	39,030.69	6,797.45	3,298.66
2012-06-30	35,873.29	5,918.74	3,089.87

*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 Country Garden 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.
Country Garden Holdings used its assets less efficiently than the HK Real Estate industry average last year based on Return on Assets.
Country Garden Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Show me more strong past performing companies in the Real Estate industry

Past performance checks

We assess Country Garden Holdings's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
Country Garden 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.

2007 Health

How is Country Garden 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 Country Garden Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Country Garden Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Country Garden Holdings's cash and other short term assets cover its long term commitments.

Balance sheet

This treemap shows a more detailed breakdown of Country Garden 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 4.3x 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 Country Garden Holdings Company Filings, last reported 5 months ago.

SEHK:2007 Past Debt and Equity Data
Date (Data in CNY Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2018-12-31	173,408.00	329,269.00	240,362.00
2018-09-30	173,408.00	329,269.00	240,362.00
2018-06-30	142,447.00	294,715.00	200,720.00
2018-03-31	142,447.00	294,715.00	200,720.00
2017-12-31	116,612.00	216,569.00	161,914.00
2017-09-30	116,612.00	216,569.00	161,914.00
2017-06-30	94,303.69	162,432.13	118,630.37
2017-03-31	94,303.69	162,432.13	118,630.37
2016-12-31	81,615.17	143,240.32	91,968.14
2016-09-30	81,615.17	143,240.32	91,968.14
2016-06-30	92,475.03	103,111.99	32,010.35
2016-03-31	92,475.03	103,111.99	32,010.35
2015-12-31	89,340.41	89,743.80	37,428.85
2015-09-30	89,340.41	89,743.80	37,428.85
2015-06-30	69,024.84	64,567.92	17,164.17
2015-03-31	69,024.84	64,567.92	17,164.17
2014-12-31	62,442.43	61,068.70	18,760.59
2014-09-30	62,442.43	61,068.70	18,760.59
2014-06-30	54,798.84	57,510.70	15,887.05
2014-03-31	54,798.84	57,510.70	15,887.05
2013-12-31	46,011.17	56,248.78	18,909.72
2013-09-30	46,011.17	56,248.78	18,909.72
2013-06-30	41,657.42	45,637.14	15,216.31
2013-03-31	41,657.42	45,637.14	15,216.31
2012-12-31	38,884.41	36,912.66	11,809.03
2012-09-30	35,853.24	33,891.42	8,853.28
2012-06-30	34,738.88	32,541.88	9,459.89

Country Garden Holdings's level of debt (189.9%) compared to net worth is high (greater than 40%).
The level of debt compared to net worth has increased over the past 5 years (122% vs 189.9% today).
Debt is not well covered by operating cash flow (8.9%, less than 20% of total debt).
Country Garden Holdings earns more interest than it pays, coverage of interest payments is not a concern.

Financial health checks

We assess Country Garden Holdings's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
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.

2007 Dividends

What is Country Garden 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

4.64%

Current annual income from Country Garden Holdings dividends. Estimated to be 6.57% next year.

If you bought HK$2,000 of Country Garden Holdings shares you are expected to receive HK$93 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?

Country Garden Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
Country Garden Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.88%).

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:2007 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 23 Analyst Estimates (S&P Global)	See Below
Hong Kong Real Estate Industry Average Dividend Yield	Market Cap Weighted Average of 143 Stocks	4%
Hong Kong Market Average Dividend Yield	Market Cap Weighted Average of 966 Stocks	3.6%
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	5.9%

Industry and Market average data is calculated daily.

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

SEHK:2007 Future Dividends Estimate Data
Date (Data in CN¥)	Dividend per Share (annual)	Avg. No. Analysts
2021-12-31	0.79	18.00
2020-12-31	0.69	22.00
2019-12-31	0.60	22.00

SEHK:2007 Past Annualized Dividends Data
Date (Data in CN¥)	Dividend per share (annual)	Avg. Yield (%)
2019-03-18	0.488	4.774
2018-04-13	0.499	5.203
2017-08-22	0.300	2.645
2017-05-18	0.171	2.124
2016-04-13	0.129	3.618
2015-09-04	0.130	5.239
2015-08-19	0.130	5.809
2015-04-13	0.148	5.338
2014-05-28	0.168	6.640
2013-05-09	0.139	4.131
2012-02-28	0.130	4.809
2011-04-28	0.096	3.789
2010-04-07	0.045	1.952
2010-03-30	0.045	1.817

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

Country Garden Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
Dividend payments have increased, but Country Garden Holdings only paid a dividend in the past 9 years.

Current Payout to shareholders

What portion of Country Garden Holdings's earnings are paid to the shareholders as a dividend.

Dividends paid are well covered by earnings (3.3x coverage).

Future Payout to shareholders

Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).

Income/ dividend checks

We assess Country Garden Holdings's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can Country Garden Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

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

2007 Management

What is the CEO of Country Garden 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

Bin Mo

COMPENSATION	CN¥68,845,000
AGE	51

CEO Bio

Mr. Bin Mo has been the President and Executive Director of Country Garden Holdings Company Limited since July 22, 2010 and serves as its Chief Executive Officer. Mr. Mo has been Non Executive Director of E-House (China) Enterprise Holdings Limited since March 16, 2018. He joined Country Garden Holdings Company Limited in July 22, 2010. Mr. Mo is primarily responsible for the management of daily operation and general administration of Country Garden Holdings together with its subsidiaries (the “Group”). Prior to joining the Group, he was employed by an internationally competitive construction and property group in the mainland, China Construction Fifth Engineering Division Corp., Ltd., in a number of senior positions since 1989, most recently as Director and General Manager. Mr. MO has over 28 years of extensive experience in property development, construction business, construction management, marketing, cost control and corporate management. Mr. Mo received his bachelor’s degree in industrial and civil architecture from Hengyang Institute of Technology (currently known as University of South China) in June 1989, and obtained a postgraduate degree in administrative management from Zhongnan University of Economics and Law in June 2001 and is a professor-grade senior engineer.

CEO Compensation

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

2.2 yrs

Ziling Ma

TITLE

Investor Relations Director

Board of Directors Tenure

Average tenure and age of the Country Garden Holdings board of directors in years:

8.5

Average Tenure

51.5

Average Age

The tenure for the Country Garden Holdings board of directors is about average.

12.5 yrs

Who owns this company?

Recent Insider Trading

More shares have been bought than sold by Country Garden Holdings individual insiders in the past 3 months.

Show me more companies with insider buying in the Real Estate industry

Recent Insider Transactions

Announced	Type	Name	Entity	Start	End	Shares	Max Price (HK$)	Value (HK$)
20. May 19	Buy	Guokun Liang	Individual	17. May 19	17. May 19	500,000	HK$11.41	HK$5,704,001
16. May 19	Buy	Guokun Liang	Individual	14. May 19	14. May 19	500,000	HK$11.55	HK$5,776,001
16. May 19	Buy	Bin Mo	Individual	10. May 19	10. May 19	364,000	HK$11.80	HK$4,293,707
16. May 19	Buy	Guokun Liang	Individual	15. May 19	15. May 19	500,000	HK$11.66	HK$5,832,000
14. May 19	Buy	Bin Mo	Individual	09. May 19	09. May 19	655,000	HK$11.84	HK$7,755,004
10. May 19	Buy	Bin Mo	Individual	08. May 19	08. May 19	1,460,000	HK$12.09	HK$17,648,333
08. May 19	Buy	Bin Mo	Individual	06. May 19	06. May 19	715,000	HK$12.11	HK$8,657,364
08. May 19	Buy	Bin Mo	Individual	07. May 19	07. May 19	1,000,000	HK$12.23	HK$12,225,201
18. Oct 18	Buy	Huiyan Yang	Individual	12. Oct 18	12. Oct 18	3,000,000	HK$8.41	HK$25,239,295
10. Sep 18	Buy	Huiyan Yang	Individual	05. Sep 18	05. Sep 18	1,500,000	HK$11.08	HK$16,615,346
06. Sep 18	Buy	Huiyan Yang	Individual	03. Sep 18	03. Sep 18	3,000,000	HK$11.38	HK$34,146,596
03. Sep 18	Buy	Huiyan Yang	Individual	29. Aug 18	29. Aug 18	3,000,000	HK$11.84	HK$35,528,389
23. Jul 18	Buy	Guokun Liang	Individual	18. Jul 18	18. Jul 18	185,000	HK$12.44	HK$2,301,196
24. Jul 18	Buy	Guokun Liang	Individual	20. Jul 18	20. Jul 18	150,000	HK$11.96	HK$1,794,000
24. Jul 18	Buy	Huiyan Yang	Individual	20. Jul 18	20. Jul 18	15,000,000	HK$12.51	HK$187,710,050
18. Jul 18	Buy	Bin Mo	Individual	13. Jul 18	13. Jul 18	330,000	HK$13.24	HK$4,369,200
17. Jul 18	Buy	Huiyan Yang	Individual	12. Jul 18	12. Jul 18	10,000,000	HK$13.17	HK$131,661,033
16. Jul 18	Buy	Bin Mo	Individual	11. Jul 18	11. Jul 18	1,303,000	HK$12.79	HK$16,669,804
16. Jul 18	Buy	Huiyan Yang	Individual	11. Jul 18	11. Jul 18	10,000,000	HK$12.79	HK$127,918,014
13. Jul 18	Buy	Bin Mo	Individual	10. Jul 18	10. Jul 18	850,000	HK$13.01	HK$11,055,100
13. Jul 18	Buy	Huiyan Yang	Individual	10. Jul 18	10. Jul 18	15,000,000	HK$13.18	HK$197,753,954

Management checks

We assess Country Garden Holdings's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

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.

2007 News

Simply Wall St News

What Does Country Garden Holdings Company Limited's (HKG:2007) P/E Ratio Tell You?

Country Garden Holdings has a price to earnings ratio of 6.42, based on the last twelve months. … See our latest analysis for Country Garden Holdings How Do I Calculate Country Garden Holdings's Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) Or for Country Garden Holdings: P/E of 6.42 = CN¥10.35 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥1.61 (Based on the year to December 2018.) Is A High P/E Ratio Good?

Simply Wall St - 2 days ago – Full article

What Percentage Of Country Garden Holdings Company Limited (HKG:2007) Shares Do Insiders Own?

Every investor in Country Garden Holdings Company Limited (HKG:2007) should be aware of the most powerful shareholder groups. … View our latest analysis for Country Garden Holdings SEHK:2007 Ownership Summary, June 21st 2019 What Does The Institutional Ownership Tell Us About Country Garden Holdings? … Insider Ownership Of Country Garden Holdings While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St - 2 days ago – Full article

What Is Country Garden Holdings Company Limited's (HKG:2007) Share Price Doing?

The stock’s ratio of 5.98x is currently trading slightly below its industry peers’ ratio of 6.26x, which means if you buy Country Garden Holdings today, you’d be paying a reasonable price for it. … And if you believe Country Garden Holdings should be trading in this range, then there isn’t much room for the share price grow beyond where it’s currently trading. … Since Country Garden Holdings’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy.

Simply Wall St - 1 week ago – Full article

Introducing Country Garden Holdings (HKG:2007), The Stock That Zoomed 243% In The Last Three Years

Country Garden Holdings Company Limited (HKG:2007) shareholders have seen the share price descend 14% over the month. … During three years of share price growth, Country Garden Holdings achieved compound earnings per share growth of 56% per year. … In the case of Country Garden Holdings, it has a TSR of 313% for the last 3 years.

Simply Wall St - 2 weeks ago – Full article

Why Country Garden Holdings Company Limited (HKG:2007) Looks Like A Quality Company

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Country Garden Holdings: 28% = CN¥35b ÷ CN¥173b (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Country Garden Holdings Have A Good Return On Equity? … Country Garden Holdings's Debt And Its 28% ROE It's worth noting the significant use of debt by Country Garden Holdings, leading to its debt to equity ratio of 1.90.

Simply Wall St - 3 weeks ago – Full article

What Do Analysts Think About The Future Of Country Garden Holdings Company Limited's (HKG:2007)?

Since Country Garden Holdings Company Limited (HKG:2007) released its earnings in December 2018, analysts seem cautiously optimistic, with profits predicted to increase by 22% next year, though this is relatively lower than the previous 5-year average earnings growth of 32%. … Check out our latest analysis for Country Garden Holdings How will Country Garden Holdings perform in the near future? … SEHK:2007 Past and Future Earnings, May 11th 2019 From the current net income level of CN¥35b and the final forecast of CN¥57b by 2022, the annual rate of growth for 2007’s earnings is 16%.

Simply Wall St - 1 month ago – Full article

Does Country Garden Holdings (HKG:2007) Deserve A Spot On Your Watchlist?

In contrast to all that, I prefer to spend time on companies like Country Garden Holdings (HKG:2007), which has not only revenues, but also profits. … I, for one, am blown away by the fact that Country Garden Holdings has grown EPS by 56% per year, over the last three years. … While we note Country Garden Holdings's EBIT margins were flat over the last year, revenue grew by a solid 67% to CN¥379b.

Simply Wall St - 1 month ago – Full article

Why Country Garden Holdings Company Limited (HKG:2007) Should Be In Your Portfolio

Today we'll take a closer look at Country Garden Holdings Company Limited (HKG:2007) from a dividend investor's perspective. … Unfortunately, one common occurrence with dividend companies is for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. … In this case, Country Garden Holdings likely looks attractive to investors, given its 4.5% dividend yield and a payment history of over ten years.

Simply Wall St - 2 months ago – Full article

Is Country Garden Holdings Company Limited (HKG:2007) Undervalued After Accounting For Its Future Growth?

Country Garden Holdings Company Limited (HKG:2007) is considered a high growth stock. … View our latest analysis for Country Garden Holdings? … If you are bullish about Country Garden Holdings's growth potential then you are certainly not alone

Simply Wall St - 2 months ago – Full article

How Do Analysts See Country Garden Holdings Company Limited (HKG:2007) Performing In The Next Couple Of Years?

In December 2018, Country Garden Holdings Company Limited (HKG:2007) announced its latest earnings update, whicha

Simply Wall St - 2 months ago – Full article

2007 Company Info

Description

Country Garden Holdings Company Limited, an investment holding company, operates as a real estate enterprise in the People’s Republic of China and internationally. The company operates in five segments: Property Development, Construction, Property Investment, Property Management, and Hotel Operation. It develops residential projects, such as townhouses and condos; and car-parks and retail shops. The company also develops, operates, and manages hotels. In addition, it is researches and develops robot intelligence; develops electronic hardware and biomass energy; sells food; and provides agriculture and animal husbandry, construction, investment consulting, cultural activity planning, real estate consulting, and landscape design services. Country Garden Holdings Company Limited was founded in 1992 and is headquartered in Foshan, the People’s Republic of China.

Details

Name:	Country Garden Holdings Company Limited
Ticker:	2007
Exchange:	SEHK
Founded:	1992
Market Cap:	HK$252,131,006,344
Shares outstanding:	21,367,034,436
Website:	http://www.countrygarden.com.cn
Address:	Country Garden Holdings Company Limited Country Garden Centre, No. 1 Country Garden Road, Foshan, Guangdong Province, 528312, China

Listings

Exchange Symbol	Ticker Symbol	Security	Exchange	Country	Currency	Listed on
SEHK	2007	Ordinary Shares	The Stock Exchange of Hong Kong Ltd.	HK	HKD	20. Apr 2007
OTCPK	CTRY.F	Ordinary Shares	Pink Sheets LLC	US	USD	20. Apr 2007
DB	DZJ	Ordinary Shares	Deutsche Boerse AG	DE	EUR	20. Apr 2007
SHSC	2007	Ordinary Shares	Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect	HK	HKD	20. Apr 2007
SZSC	2007	Ordinary Shares	The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect	HK	HKD	20. Apr 2007
OTCPK	CTRY.Y	UNSPONSORD ADR	Pink Sheets LLC	US	USD	01. May 2009

Number of employees

Current staff

131,387

Country Garden Holdings employees.

Industry

Industry:	Real Estate Development
Sector:	Real Estate

Company Analysis and Financial Data Status

Area	Date (UTC time)
Company Analysis updated:	2019/06/24 12:49
End of day share price update:	2019/06/24 00:00
Last estimates confirmation:	2019/06/21
Last earnings filing:	2019/04/09
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.

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