SEHK:237

Stock Analysis Report

Safety Godown Company

Executive Summary

Safety Godown Company, Limited, an investment holding company, engages in the leasing of investment properties in Hong Kong.


Snowflake Analysis

Flawless balance sheet unattractive dividend payer.


Similar Companies

Share Price & News

How has Safety Godown Company's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 237 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.5%

237

-4.9%

HK Real Estate

-3.2%

HK Market


1 Year Return

-14.5%

237

-9.7%

HK Real Estate

-10.2%

HK Market

Return vs Industry: 237 underperformed the Hong Kong Real Estate industry which returned -9% over the past year.

Return vs Market: 237 underperformed the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

237IndustryMarket
7 Day-3.5%-4.9%-3.2%
30 Day-2.1%-3.0%-3.3%
90 Day-3.8%-1.4%0.2%
1 Year-7.9%-14.5%-5.7%-9.7%-6.9%-10.2%
3 Year-20.9%-33.9%36.7%22.0%11.7%0.4%
5 Year45.4%-4.1%58.2%31.6%11.1%-7.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Safety Godown Company undervalued compared to its fair value and its price relative to the market?

18.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 237 (HK$12.22) is trading above our estimate of fair value (HK$2.89)

Significantly Below Fair Value: 237 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 237 is poor value based on its PE Ratio (18.3x) compared to the Real Estate industry average (6.6x).

PE vs Market: 237 is poor value based on its PE Ratio (18.3x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 237's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 237 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 Safety Godown Company forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.4%

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 Safety Godown Company 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 Safety Godown Company performed over the past 5 years?

-16.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 237 has a large one-off gain of HK$30.0M impacting its September 30 2019 financial results.

Growing Profit Margin: 237's current net profit margins (68.2%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: 237's earnings have declined by -16.4% per year over the past 5 years.

Accelerating Growth: 237's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 237 had negative earnings growth (-78.4%) over the past year, making it difficult to compare to the Real Estate industry average (-8%).


Return on Equity

High ROE: 237's Return on Equity (1.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Safety Godown Company's financial position?


Financial Position Analysis

Short Term Liabilities: 237's short term assets (HK$1.1B) exceed its short term liabilities (HK$54.7M).

Long Term Liabilities: 237's short term assets (HK$1.1B) exceed its long term liabilities (HK$88.0M).


Debt to Equity History and Analysis

Debt Level: 237 is debt free.

Reducing Debt: 237 had no debt 5 years ago.

Debt Coverage: 237 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 237 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 237 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 237's debt is covered by short term assets.


Next Steps

Dividend

What is Safety Godown Company's current dividend yield, its reliability and sustainability?

1.31%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%2.3%markettop25%6.4%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 237's dividend (1.31%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 237's dividend (1.31%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).


Stability and Growth of Payments

Stable Dividend: 237's dividend payments have been volatile in the past 10 years.

Growing Dividend: 237's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.9%), 237'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?

16.1yrs

Average board tenure


CEO

Safety Godown Company has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Wing Lu
Executive Director11.2yrsHK$50.00k9.2% HK$151.8m
Khai Choon Gan
Independent Non-Executive Director30.1yrsHK$280.00kno data
Ka Sze Lee
Non-Executive Director20.1yrsHK$229.00kno data
Ming Lam
Independent Non-Executive Director16.1yrsHK$249.00k0.0074% HK$122.2k
Man Chiu Leung
Independent Non-Executive Director13.7yrsHK$249.00kno data

16.1yrs

Average Tenure

67yo

Average Age

Experienced Board: 237's board of directors are seasoned and experienced ( 16.1 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Safety Godown Company, Limited
  • Ticker: 237
  • Exchange: SEHK
  • Founded: 1960
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$1.650b
  • Shares outstanding: 135.00m
  • Website: https://www.safetygodown.com

Number of Employees


Location

  • Safety Godown Company, Limited
  • Lu Plaza
  • Unit 1801
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
237SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Safety Godown Company, Limited, an investment holding company, engages in the leasing of investment properties in Hong Kong. It operates through Godown Operations, Property Investment, and Treasury Investment segments. The company is also involved in the operation of godowns; and securities trading activities. In addition, it invests in listed securities, bonds, and mutual funds in Hong Kong and overseas stock markets; local and foreign currencies bank deposits; and other financial products. Safety Godown Company, Limited was founded in 1960 and is based in Kwun Tong, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 12:54
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.