SEHK:225

Stock Analysis Report

Pokfulam Development

Executive Summary

Pokfulam Development Company Limited, an investment holding company, invests in, develops, and manages real estate properties in Hong Kong.

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.3%

225

1.2%

HK Real Estate

0.3%

HK Market


1 Year Return

-14.7%

225

10.8%

HK Real Estate

1.3%

HK Market

Return vs Industry: 225 underperformed the Hong Kong Real Estate industry which returned 10.8% over the past year.

Return vs Market: 225 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

225IndustryMarket
7 Day-0.3%1.2%0.3%
30 Day-2.2%2.3%0.5%
90 Day-13.2%-8.0%-4.6%
1 Year-12.8%-14.7%15.1%10.8%4.9%1.3%
3 Year9.8%3.4%37.2%22.9%15.3%3.7%
5 Year34.2%20.8%60.7%34.8%20.0%-0.006%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Pokfulam Development undervalued compared to its fair value and its price relative to the market?

10.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 225 (HK$14.5) is trading above our estimate of fair value (HK$5.23)

Significantly Below Fair Value: 225 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 225 is poor value based on its PE Ratio (10.1x) compared to the Real Estate industry average (6.2x).

PE vs Market: 225 is good value based on its PE Ratio (10.1x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 225's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 225 is good value based on its PB Ratio (0.3x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

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

18.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 225's forecast earnings growth (18.7% per year) is above the savings rate (2%).

Earnings vs Market: 225's earnings (18.7% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Earnings: 225's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 225's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 225's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 225's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Pokfulam Development performed over the past 5 years?

19.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 225's earnings have grown by 19.3% per year over the past 5 years.

Accelerating Growth: 225's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 225 had negative earnings growth (-78.5%) over the past year, making it difficult to compare to the Real Estate industry average (-12.8%).


Return on Equity

High ROE: 225's Return on Equity (2.9%) is considered low.


Return on Assets

ROA vs Industry: 225's Return on Assets is below or equal to the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 225's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Pokfulam Development's financial position?


Financial Position Analysis

Short Term Liabilities: 225's short term assets (HK$263.2M) exceeds its short term liabilities (HK$115.9M)

Long Term Liabilities: 225's short term assets (263.2M) exceeds its long term liabilities (42.7M)


Debt to Equity History and Analysis

Debt Level: 225's debt to equity ratio (1%) is considered satisfactory

Reducing Debt: 225's debt to equity ratio has reduced from 2.1% to 1% over the past 5 years.

Debt Coverage: 225's debt is well covered by operating cash flow (105.6%).

Interest Coverage: 225 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 225 has a high level of physical assets or inventory.

Debt Coverage by Assets: 225's debt is covered by short term assets (assets are 4.8x debt).


Next Steps

Dividend

What is Pokfulam Development's current dividend yield, its reliability and sustainability?

2.62%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%2.3%markettop25%6.2%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 225's dividend (2.62%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 225's dividend (2.62%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: 225's dividends per share have been stable in the past 10 years.

Growing Dividend: 225's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.4%), 225'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

What is the CEO of Pokfulam Development's salary, the management and board of directors tenure and is there insider trading?

14.5yrs

Average board tenure


CEO

Abraham Wong (68yo)

0yrs

Tenure

HK$2,238,000

Compensation

Mr. Tat Chang Wong, also known as Abraham, B.Sc. (Cornell), Ph. D. (Calif. Berkeley), serves as a Managing Director of Pokfulam Development Company Ltd. Mr. Wong has been with Pokfulam Development Co. Ltd. ...


CEO Compensation Analysis

Compensation vs. Market: Abraham's total compensation ($USD285.37K) is about average for companies of similar size in the Hong Kong market ($USD287.57K).

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


Board Age and Tenure

14.5yrs

Average Tenure

68.5yo

Average Age

Experienced Board: 225's board of directors are seasoned and experienced ( 14.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Samuel Wong (64yo)

    Executive Director

    • Tenure: 38.8yrs
    • Compensation: HK$100.00k
  • David Wong (67yo)

    Executive Director

    • Tenure: 38.8yrs
    • Compensation: HK$100.00k
  • Abraham Wong (68yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: HK$2.24m
  • Sui Hui (40yo)

    Company Secretary & Financial Controller

    • Tenure: 4.1yrs

Board Members

  • Aubrey Li (69yo)

    Independent Non-Executive Director

    • Tenure: 15.1yrs
    • Compensation: HK$220.00k
  • Samuel Wong (64yo)

    Executive Director

    • Tenure: 38.8yrs
    • Compensation: HK$100.00k
  • David Wong (67yo)

    Executive Director

    • Tenure: 38.8yrs
    • Compensation: HK$100.00k
  • Abraham Wong (68yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: HK$2.24m
  • Linda Lam Hsieh (92yo)

    Independent Non-Executive Director

    • Tenure: 46.8yrs
    • Compensation: HK$135.00k
  • Bing Lai Wong (102yo)

    Honorary Chairman

    • Tenure: 8.8yrs
    • Compensation: HK$217.00k
  • Kenneth Sit (61yo)

    Independent Non-Executive Director

    • Tenure: 14yrs
    • Compensation: HK$195.00k
  • John Seto (70yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: Pokfulam Development Company Limited
  • Ticker: 225
  • Exchange: SEHK
  • Founded: 1970
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$1.602b
  • Shares outstanding: 110.18m
  • Website: https://www.pokfulam.com.hk

Number of Employees


Location

  • Pokfulam Development Company Limited
  • Beverly House
  • 23rd Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
225SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Pokfulam Development Company Limited, an investment holding company, invests in, develops, and manages real estate properties in Hong Kong. It operates through Property Investment and Management, Trading o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:37
End of Day Share Price2019/10/23 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.