SEHK:2606

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Sichuan Languang Justbon Services Group

Executive Summary

Sichuan Languang Justbon Services Group Co., Ltd. More Details


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.

Share Price & News

How has Sichuan Languang Justbon Services Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2606 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 2606's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-3.8%

2606

-1.9%

HK Real Estate

1.1%

HK Market


1 Year Return

-40.5%

2606

-8.3%

HK Real Estate

8.2%

HK Market

Return vs Industry: 2606 underperformed the Hong Kong Real Estate industry which returned -8.1% over the past year.

Return vs Market: 2606 underperformed the Hong Kong Market which returned 7.6% over the past year.


Shareholder returns

2606IndustryMarket
7 Day-3.8%-1.9%1.1%
30 Day-15.4%6.9%7.2%
90 Day-39.9%-3.0%5.2%
1 Year-39.3%-40.5%-3.4%-8.3%12.6%8.2%
3 Yearn/a-0.3%-12.9%0.4%-10.0%
5 Yearn/a45.0%14.7%30.6%8.5%

Long-Term Price Volatility Vs. Market

How volatile is Sichuan Languang Justbon Services Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sichuan Languang Justbon Services Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2606 (HK$30.25) is trading below our estimate of fair value (HK$140.35)

Significantly Below Fair Value: 2606 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2606 is poor value based on its PE Ratio (8.6x) compared to the HK Real Estate industry average (8.4x).

PE vs Market: 2606 is good value based on its PE Ratio (8.6x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 2606 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 2606 is overvalued based on its PB Ratio (2x) compared to the HK Real Estate industry average (0.4x).


Next Steps

Future Growth

How is Sichuan Languang Justbon Services Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

28.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2606's forecast earnings growth (28.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 2606's earnings (28.6% per year) are forecast to grow faster than the Hong Kong market (21.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2606's revenue (27.3% per year) is forecast to grow faster than the Hong Kong market (13.7% per year).

High Growth Revenue: 2606's revenue (27.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2606's Return on Equity is forecast to be high in 3 years time (26.9%)


Next Steps

Past Performance

How has Sichuan Languang Justbon Services Group performed over the past 5 years?

33.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2606 has high quality earnings.

Growing Profit Margin: 2606's current net profit margins (20.8%) are lower than last year (21.1%).


Past Earnings Growth Analysis

Earnings Trend: 2606's earnings have grown significantly by 33.4% per year over the past 5 years.

Accelerating Growth: 2606's earnings growth over the past year (27%) is below its 5-year average (33.4% per year).

Earnings vs Industry: 2606 earnings growth over the past year (27%) exceeded the Real Estate industry -0.6%.


Return on Equity

High ROE: 2606's Return on Equity (21.6%) is considered high.


Next Steps

Financial Health

How is Sichuan Languang Justbon Services Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2606's short term assets (CN¥3.0B) exceed its short term liabilities (CN¥1.3B).

Long Term Liabilities: 2606's short term assets (CN¥3.0B) exceed its long term liabilities (CN¥40.4M).


Debt to Equity History and Analysis

Debt Level: 2606 is debt free.

Reducing Debt: 2606 has not had any debt for past 5 years.

Debt Coverage: 2606 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 2606 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Sichuan Languang Justbon Services Group current dividend yield, its reliability and sustainability?

3.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2606's dividend (3.78%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.23%).

High Dividend: 2606's dividend (3.78%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.58%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 2606's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 2606's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.6%), 2606's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2606's dividends in 3 years are forecast to be well covered by earnings (37.1% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Xia Liu (41 yo)

0.92

Tenure

Mr. Xia Liu serves as an Executive Director at Sichuan Languang Justbon Services Group Co., Ltd. since March 12, 2020. He serves as Co-President at Sichuan Languang Justbon Services Group Co., Ltd since Ju...


Leadership Team

NamePositionTenureCompensationOwnership
Min Yao
Executive Chairman of the Board11.67yrsCN¥8.85mno data
Xia Liu
Co-President & Executive Director0.92yrno datano data
Hao Zou
Co-President0.92yrno datano data
Jinwei Zhang
Co-President0.25yrno datano data
Zhefeng Sun
Vice Chairman of Board0.67yrno datano data
Lijuan Li
VP & Chief Risk Officer3.83yrsno datano data
Sum Yi Tsui
Joint Company Secretary2yrsno datano data

1.5yrs

Average Tenure

41yo

Average Age

Experienced Management: 2606's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Min Yao
Executive Chairman of the Board11.67yrsCN¥8.85mno data
Xia Liu
Co-President & Executive Director0.92yrno datano data
Zhefeng Sun
Vice Chairman of Board0.67yrno datano data
Shing Chan
Independent Non-Executive Director2yrsCN¥300.00kno data
Shujian Li
Independent Non-Executive Director2yrsCN¥300.00kno data
Feng Chi
Non-Executive Director0.42yrno datano data
Shouwen Zhang
Independent Non-Executive Director2yrsCN¥300.00kno data
Qingshan Xu
External Supervisor2yrsno datano data
Deming Liu
External Supervisor1.25yrsno datano data
Jiang Liu
Employee Representative Supervisor2yrsno datano data
Chi Yu
Non-Executive Director0.42yrno datano data
Lu Wang
Chairman of Supervisory Committee0.83yrno datano data

1.6yrs

Average Tenure

45.5yo

Average Age

Experienced Board: 2606's board of directors are not considered experienced ( 1.6 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Sichuan Languang Justbon Services Group Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sichuan Languang Justbon Services Group Co., Ltd.
  • Ticker: 2606
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$5.120b
  • Shares outstanding: 178.10m
  • Website: https://www.justbon.com.cn

Number of Employees


Location

  • Sichuan Languang Justbon Services Group Co., Ltd.
  • No.22, South 3rd Section
  • Yihuan Road
  • Chengdu
  • Sichuan Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2606SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDOct 2019

Biography

Sichuan Languang Justbon Services Group Co., Ltd. provides property management services in China. It offers property management services, including security, cleaning, greening and gardening, repairs and m...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 10:18
End of Day Share Price2020/11/26 00:00
Earnings2020/06/30
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.