SEHK:216

Stock Analysis Report

Executive Summary

Chinney Investments, Limited, an investment holding company, primarily engages in the property development and investment activities in Hong Kong and Mainland China.


Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 216 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.7%

216

-3.1%

HK Real Estate

-0.6%

HK Market


1 Year Return

-25.0%

216

-9.1%

HK Real Estate

-7.6%

HK Market

Return vs Industry: 216 underperformed the Hong Kong Real Estate industry which returned -8.1% over the past year.

Return vs Market: 216 underperformed the Hong Kong Market which returned -7.4% over the past year.


Shareholder returns

216IndustryMarket
7 Day-3.7%-3.1%-0.6%
30 Day-8.7%-1.4%-1.2%
90 Day-13.6%1.2%3.0%
1 Year-23.5%-25.0%-4.9%-9.1%-4.2%-7.6%
3 Year-12.3%-16.7%33.7%19.3%12.9%1.5%
5 Year82.7%64.1%55.1%28.9%13.1%-5.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Chinney Investments undervalued compared to its fair value and its price relative to the market?

2.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 216 (HK$2.1) is trading above our estimate of fair value (HK$0.6)

Significantly Below Fair Value: 216 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 216 is good value based on its PE Ratio (2.1x) compared to the Real Estate industry average (6.6x).

PE vs Market: 216 is good value based on its PE Ratio (2.1x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 216's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 216 is good value based on its PB Ratio (0.1x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

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

6.6%

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 Chinney Investments 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 Chinney Investments performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 216 has a large one-off gain of HK$681.7M impacting its September 30 2019 financial results.

Growing Profit Margin: 216's current net profit margins (80.7%) are higher than last year (37.6%).


Past Earnings Growth Analysis

Earnings Trend: 216's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: 216's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 216 had negative earnings growth (-26.8%) over the past year, making it difficult to compare to the Real Estate industry average (-9.7%).


Return on Equity

High ROE: 216's Return on Equity (7.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Chinney Investments's financial position?


Financial Position Analysis

Short Term Liabilities: 216's short term assets (HK$3.9B) exceed its short term liabilities (HK$2.0B).

Long Term Liabilities: 216's short term assets (HK$3.9B) do not cover its long term liabilities (HK$6.0B).


Debt to Equity History and Analysis

Debt Level: 216's debt to equity ratio (48%) is considered high.

Reducing Debt: 216's debt to equity ratio has reduced from 83.1% to 48% over the past 5 years.

Debt Coverage: 216's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 216's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet

Inventory Level: 216 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 216's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Chinney Investments's current dividend yield, its reliability and sustainability?

2.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 216's dividend (2.38%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 216's dividend (2.38%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).


Stability and Growth of Payments

Stable Dividend: 216's dividends per share have been stable in the past 10 years.

Growing Dividend: 216's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.1%), 216's dividend payments are thoroughly 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?

2.4yrs

Average board tenure


CEO

Zuric Chan (64yo)

1.8yrs

Tenure

HK$11,156,000

Compensation

Mr. Yuen-Keung Chan, also known as Zuric, has been an Managing Director & Executive Director of Chinney Investments Ltd. since April 01, 2018 and has been its Vice Chairman since 13 July 2018. Mr. Chan has ...


CEO Compensation Analysis

Compensation vs Market: Zuric's total compensation ($USD1.43M) is above average for companies of similar size in the Hong Kong market ($USD225.23K).

Compensation vs Earnings: Insufficient data to compare Zuric's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Sai-Wing Wong
Chairman33.1yrsHK$12.00m0.087% HK$1.0m
Yuen-Keung Chan
Vice Chairman & MD1.8yrsHK$11.16mno data
Sing-Wai Wong
Executive Director1.5yrsHK$128.00kno data
Chi-Ho Lo
Independent Non-Executive Director2.3yrsHK$75.00kno data
Hon-To Tong
Non-Executive Director9.5yrsHK$75.00kno data
James C. Chen
Independent Non-Executive Director12.3yrsHK$75.00kno data
Yen Wong
Non Executive Director2.5yrsHK$75.00kno data
Wai-Lap Fan
Independent Non-Executive Director0.5yrsno datano data

2.4yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 216's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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

Chinney Investments, Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chinney Investments, Limited
  • Ticker: 216
  • Exchange: SEHK
  • Founded:
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$1.158b
  • Shares outstanding: 551.37m
  • Website: https://www.chinneygroup.com/

Number of Employees


Location

  • Chinney Investments, Limited
  • Wing On Centre
  • 23rd Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
216SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Chinney Investments, Limited, an investment holding company, primarily engages in the property development and investment activities in Hong Kong and Mainland China. It operates through three segments: Property Development; Property Investment; and Property, Carpark Management and Others. The company is also involved in sub-leasing business, as well as offers management services to residential and commercial properties. In addition, it provides property holding and letting, project management, carpark management, nominee, financing, and money lending services. The company is based in Central, Hong Kong. Chinney Investments, Limited is a subsidiary of Chinney Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 12:35
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.