SEHK:212

Stock Analysis Report

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Executive Summary

Nanyang Holdings Limited, an investment holding company, engages in the property investment and trading businesses in Hong Kong, the United States, Europe, Taiwan, and internationally.


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 212 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.3%

212

0.04%

HK Real Estate

1.2%

HK Market


1 Year Return

-25.0%

212

-4.0%

HK Real Estate

5.5%

HK Market

Return vs Industry: 212 underperformed the Hong Kong Real Estate industry which returned -4% over the past year.

Return vs Market: 212 underperformed the Hong Kong Market which returned 5.5% over the past year.


Shareholder returns

212IndustryMarket
7 Day-2.3%0.04%1.2%
30 Day-3.3%-5.9%-3.8%
90 Day-9.5%1.0%7.7%
1 Year-22.5%-25.0%1.1%-4.0%9.8%5.5%
3 Year2.1%-5.7%9.7%-3.5%3.7%-7.4%
5 Year-3.2%-14.7%42.2%16.8%12.3%-6.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Nanyang Holdings undervalued compared to its fair value and its price relative to the market?

22.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 212 (HK$40) is trading above our estimate of fair value (HK$12.97)

Significantly Below Fair Value: 212 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 212 is poor value based on its PE Ratio (22.9x) compared to the HK Real Estate industry average (7.1x).

PE vs Market: 212 is poor value based on its PE Ratio (22.9x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 212's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 212 is good value based on its PB Ratio (0.3x) compared to the HK Real Estate industry average (0.4x).


Next Steps

Future Growth

How is Nanyang Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.2%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Nanyang Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Nanyang Holdings performed over the past 5 years?

0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 212 has a large one-off loss of HK$95.5M impacting its December 31 2019 financial results.

Growing Profit Margin: 212's current net profit margins (25.6%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: 212's earnings have grown by 0.2% per year over the past 5 years.

Accelerating Growth: 212's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 212 had negative earnings growth (-82%) over the past year, making it difficult to compare to the Real Estate industry average (4.5%).


Return on Equity

High ROE: 212's Return on Equity (1.1%) is considered low.


Next Steps

Financial Health

How is Nanyang Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 212's short term assets (HK$469.0M) exceed its short term liabilities (HK$71.0M).

Long Term Liabilities: 212's short term assets (HK$469.0M) exceed its long term liabilities (HK$32.1M).


Debt to Equity History and Analysis

Debt Level: 212's debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: 212's debt to equity ratio has reduced from 2.7% to 0.2% over the past 5 years.

Debt Coverage: 212's debt is well covered by operating cash flow (247.9%).

Interest Coverage: 212 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

3.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 212's dividend (3.5%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 212's dividend (3.5%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.87%).


Stability and Growth of Payments

Stable Dividend: 212's dividend payments have been volatile in the past 10 years.

Growing Dividend: 212's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40%), 212'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

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

17.0yrs

Average board tenure


CEO

Ching Yung Hung (97 yo)

73.58yrs

Tenure

HK$8,411,000

Compensation

Mr. Ching Yung Hung, JP Co-founded Nanyang Holdings Ltd. in 1947 and has been Managing Director and General Manager since 1947. Mr. Hung has been an Advisor of the Tung Wah Group of Hospitals since 1956. H ...


CEO Compensation Analysis

Compensation vs Market: Ching Yung's total compensation ($USD1.09M) is above average for companies of similar size in the Hong Kong market ($USD277.29K).

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


Board Members

NamePositionTenureCompensationOwnership
Ching Yung Hung
Co-Founder73.58yrsHK$8.41m31.37%
HK$ 429.3m
Jennie Chen
Financial Controller & Executive Director16.92yrsHK$3.13mno data
Chu-Kuen Yung
Deputy MD & Executive Director31.33yrsHK$8.20m6.63%
HK$ 90.8m
Tsai-To Sze
Independent Non-Executive Director17yrsHK$480.00kno data
Rudolf Bischof
Independent Chairman17yrsHK$480.00k0.44%
HK$ 6.0m
Con-Sing Yung
Non-Executive Director7.67yrsHK$240.00k0.20%
HK$ 2.8m
Chi Kwong Wong
Independent Non-Executive Director3.83yrsHK$420.00kno data

17.0yrs

Average Tenure

74yo

Average Age

Experienced Board: 212's board of directors are seasoned and experienced ( 17 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 212 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

Nanyang Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nanyang Holdings Limited
  • Ticker: 212
  • Exchange: SEHK
  • Founded: 1947
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$1.369b
  • Shares outstanding: 34.21m
  • Website: https://www.nanyangholdingslimited.com

Number of Employees


Location

  • Nanyang Holdings Limited
  • St. George's Building
  • Room 1808
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
212SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Nanyang Holdings Limited, an investment holding company, engages in the property investment and trading businesses in Hong Kong, the United States, Europe, Taiwan, and internationally. The company operates ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/08 12:44
End of Day Share Price2020/08/07 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.