SEHK:2608

Stock Analysis Report

Sunshine 100 China Holdings

Executive Summary

Sunshine 100 China Holdings Ltd operates as a real estate developer in the People’s Republic of China.

Rewards

Trading at 71.6% below its fair value

Risk Analysis

Earnings have declined by -30.13% per year over past 5 years

Debt is not well covered by operating cash flow

Shareholders have been diluted in the past year



Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

How has Sunshine 100 China Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2608 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

2608

5.1%

HK Real Estate

1.7%

HK Market


1 Year Return

-14.8%

2608

-1.9%

HK Real Estate

-2.9%

HK Market

Return vs Industry: 2608 underperformed the Hong Kong Real Estate industry which returned -1.9% over the past year.

Return vs Market: 2608 underperformed the Hong Kong Market which returned -2.9% over the past year.


Shareholder returns

2608IndustryMarket
7 Day-0.7%5.1%1.7%
30 Day-2.8%-5.1%-4.2%
90 Day-4.8%7.3%4.6%
1 Year-14.8%-14.8%2.5%-1.9%0.7%-2.9%
3 Year-58.1%-58.1%46.7%31.0%15.3%3.6%
5 Year-55.3%-56.2%66.8%36.6%15.9%-3.5%

Price Volatility Vs. Market

How volatile is Sunshine 100 China Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sunshine 100 China Holdings 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: 2608 (HK$1.38) is trading below our estimate of fair value (HK$4.86)

Significantly Below Fair Value: 2608 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2608 is unprofitable, so we can't compare its PE Ratio to the Real Estate industry average.

PE vs Market: 2608 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2608's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2608 is good value based on its PB Ratio (0.4x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Sunshine 100 China Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.3%

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 Sunshine 100 China 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 Sunshine 100 China Holdings performed over the past 5 years?

-30.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2608 is currently unprofitable.

Growing Profit Margin: 2608 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2608 is unprofitable, and losses have increased over the past 5 years at a rate of -30.1% per year.

Accelerating Growth: Unable to compare 2608's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2608 is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-9.7%).


Return on Equity

High ROE: 2608 has a negative Return on Equity (5.82%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sunshine 100 China Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2608's short term assets (CN¥43.4B) exceed its short term liabilities (CN¥26.2B).

Long Term Liabilities: 2608's short term assets (CN¥43.4B) exceed its long term liabilities (CN¥22.6B).


Debt to Equity History and Analysis

Debt Level: 2608's debt to equity ratio (260.3%) is considered high.

Reducing Debt: 2608's debt to equity ratio has reduced from 279.1% to 260.3% over the past 5 years.


Balance Sheet

Inventory Level: 2608 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2608's debt is covered by short term assets (assets are 1.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 2608 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: 2608 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Sunshine 100 China Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 2608's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2608's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2608's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2608's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2608 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2608's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Xiaodi Yi (55yo)

1.8yrs

Tenure

CN¥2,248,000

Compensation

Mr. Xiaodi Yi has been the Chairman of the Board of Sunshine 100 China Holdings Limited since September 20, 2007 and its Chief Executive Officer since May 11, 2018. Mr. Yi has been an Executive Director of ...


CEO Compensation Analysis

Compensation vs Market: Xiaodi's total compensation ($USD321.77K) is about average for companies of similar size in the Hong Kong market ($USD338.66K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Xiaodi Yi
Chairman of the Board & CEO1.8yrsCN¥2.25mno data
Xiaochong Fan
Vice Chairman3.5yrsCN¥2.18mno data
Shengjie Chen
Chief Financial Officer2.1yrsno datano data
Jie He
Chief Legal Officer0yrsno datano data
Jason Tang
Associate CFO & IR contact0yrsno datano data
Chaogang Sheng
Head of Development Department0yrsno datano data
Ho Yin Tsang
Joint Company Secretary0.3yrsno datano data

1.8yrs

Average Tenure

54yo

Average Age

Experienced Management: 2608's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Xiaodi Yi
Chairman of the Board & CEO1.8yrsCN¥2.25mno data
Xiaochong Fan
Vice Chairman3.5yrsCN¥2.18mno data
Gongquan Wang
Non-Executive Director4.5yrsCN¥238.00kno data
Fook Ai Ng
Independent Non-Executive Director6yrsCN¥238.00kno data
Yunchang Gu
Independent Non-Executive Director6yrsCN¥238.00kno data
Xiaohua Fan
Non-Executive Director12.4yrsCN¥724.00kno data
Bo Wang
Independent Non-Executive Director4.5yrsCN¥238.00kno data
Jun Xie
Chairman of Property Holding Company0yrsno datano data

6.0yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 2608's board of directors are considered experienced (6 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.8%.


Top Shareholders

Company Information

Sunshine 100 China Holdings Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sunshine 100 China Holdings Ltd
  • Ticker: 2608
  • Exchange: SEHK
  • Founded: 2007
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$3.524b
  • Shares outstanding: 2.55b
  • Website: https://www.ss100.com.cn

Number of Employees


Location

  • Sunshine 100 China Holdings Ltd
  • Sunshine 100 Office Building
  • 12th Floor, Block D
  • Beijing
  • 100026
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2608SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2014

Biography

Sunshine 100 China Holdings Ltd operates as a real estate developer in the People’s Republic of China. It operates through five segments: Mixed-Use Business Complexes, Multi-Functional Residential Communities, Investment Properties, Property Management and Hotel Operation, and Light-Asset Operation. The Mixed-Use Business Complexes segment develops and sells business complex products. The Multi-Functional Residential Communities segment engages in the development and sale of residential properties; and development of land. The Investment Properties segment leases offices and commercial premises. The Property Management and Hotel Operation segment provides property management and hotel accommodation services. The Light-Asset Operation segment provides property selling agency and brand-use services. The company was incorporated in 2007 and is headquartered in Beijing, the People’s Republic of China. Sunshine 100 China Holdings Ltd is a subsidiary of Joywise Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 13:04
End of Day Share Price2020/02/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.