China Overseas Property Holdings (SEHK:2669) - Share price, News & Analysis

2669 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	6/6
Past Performance	5/6
Financial Health	6/6
Dividends	0/6

2669 Stock Overview

China Overseas Property Holdings Limited, an investment holding company, provides property management services in Hong Kong, Macau, and the People's Republic of China.

Rewards

Trading at 52.7% below our estimate of its fair value

Earnings are forecast to grow 25.89% per year

Earnings grew by 40.6% over the past year

Risk Analysis

No risks detected for 2669 from our risk checks.

China Overseas Property Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for China Overseas Property Holdings
Historical stock prices
Current Share Price	HK$8.26
52 Week High	HK$10.26
52 Week Low	HK$5.56
Beta	0.066
1 Month Change	-5.06%
3 Month Change	-13.33%
1 Year Change	1.60%
3 Year Change	102.95%
5 Year Change	443.42%
Change since IPO	679.25%

Recent News & Updates

May 01

China Overseas Property Holdings Limited (HKG:2669) Shares Could Be 44% Below Their Intrinsic Value Estimate

In this article we are going to estimate the intrinsic value of China Overseas Property Holdings Limited ( HKG:2669...

Shareholder Returns

	2669	HK Real Estate	HK Market
7D	1.4%	4.3%	2.1%
1Y	1.6%	-34.5%	-23.3%

Return vs Industry: 2669 exceeded the Hong Kong Real Estate industry which returned -34.5% over the past year.

Return vs Market: 2669 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 2669's price volatile compared to industry and market?
2669 volatility
2669 Average Weekly Movement	5.9%
Real Estate Industry Average Movement	6.2%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 2669 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 2669's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1986	52,220	Ou Yang	https://www.copl.com.hk

China Overseas Property Holdings Limited, an investment holding company, provides property management services in Hong Kong, Macau, and the People's Republic of China. It operates through Property Management Services, Value-Added Services, and Car Parking Spaces Trading Business segments. The Property Management Services segment offers security, repair and maintenance, cleaning, and garden landscape maintenance services to mid-to high-end residential communities, commercial properties, government properties, and construction sites.

China Overseas Property Holdings Fundamentals Summary

How do China Overseas Property Holdings's earnings and revenue compare to its market cap?
2669 fundamental statistics
Market Cap	HK$27.15b
Earnings (TTM)	HK$983.87m
Revenue (TTM)	HK$9.44b

27.6x

P/E Ratio

2.9x

P/S Ratio

Is 2669 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2669 income statement (TTM)
Revenue	HK$9.44b
Cost of Revenue	HK$7.76b
Gross Profit	HK$1.68b
Other Expenses	HK$699.93m
Earnings	HK$983.87m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.30
Gross Margin	17.83%
Net Profit Margin	10.42%
Debt/Equity Ratio	0%

How did 2669 perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

30%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 2669 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2669?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2669. This is calculated by dividing 2669's market cap by their current preferred multiple.
What is 2669's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$27.15b

2669 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.4x
Enterprise Value/EBITDA	18.1x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does 2669's PE Ratio compare to its peers?

2669 PE Ratio vs Peers

The above table shows the PE ratio for 2669 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.4x

Forward PE

Price-To-Earnings vs Peers: 2669 is expensive based on its Price-To-Earnings Ratio (27.6x) compared to the peer average (15.4x).

Price to Earnings Ratio vs Industry

How does 2669's PE Ratio compare vs other companies in the Hong Kong Real Estate Industry?

Price-To-Earnings vs Industry: 2669 is expensive based on its Price-To-Earnings Ratio (27.6x) compared to the Hong Kong Real Estate industry average (6.5x)

Price to Earnings Ratio vs Fair Ratio

What is 2669's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2669 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	27.6x
Fair PE Ratio	7.6x

Price-To-Earnings vs Fair Ratio: 2669 is expensive based on its Price-To-Earnings Ratio (27.6x) compared to the estimated Fair Price-To-Earnings Ratio (7.6x).

Share Price vs Fair Value

What is the Fair Price of 2669 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2669 (HK$8.26) is trading below our estimate of fair value (HK$17.45)

Significantly Below Fair Value: 2669 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 2669 is poor value based on its PEG Ratio (1.1x)

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Future Growth

How is China Overseas Property Holdings forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

25.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2669's forecast earnings growth (25.9% per year) is above the savings rate (1.5%).

Earnings vs Market: 2669's earnings (25.9% per year) are forecast to grow faster than the Hong Kong market (17% per year).

High Growth Earnings: 2669's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2669's revenue (26.1% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 2669's revenue (26.1% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 2669's Return on Equity is forecast to be high in 3 years time (35.1%)

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Past Performance

How has China Overseas Property Holdings performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

26.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2669 has high quality earnings.

Growing Profit Margin: 2669's current net profit margins (10.4%) are lower than last year (10.7%).

Past Earnings Growth Analysis

Earnings Trend: 2669's earnings have grown significantly by 26.8% per year over the past 5 years.

Accelerating Growth: 2669's earnings growth over the past year (40.6%) exceeds its 5-year average (26.8% per year).

Earnings vs Industry: 2669 earnings growth over the past year (40.6%) exceeded the Real Estate industry 14.7%.

Return on Equity

High ROE: 2669's Return on Equity (32.3%) is considered high.

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Financial Health

How is China Overseas Property Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2669's short term assets (HK$7.7B) exceed its short term liabilities (HK$5.2B).

Long Term Liabilities: 2669's short term assets (HK$7.7B) exceed its long term liabilities (HK$50.8M).

Debt to Equity History and Analysis

Debt Level: 2669 is debt free.

Reducing Debt: 2669 has no debt compared to 5 years ago when its debt to equity ratio was 37.9%.

Debt Coverage: 2669 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 2669 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is China Overseas Property Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.09%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2669's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 2669's dividend (1.09%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).

Stability and Growth of Payments

Stable Dividend: 2669 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 2669 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 2669 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: 2669 is not paying a notable dividend for the Hong Kong market.

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Management

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

4.3yrs

Average management tenure

CEO

Ou Yang (44 yo)

4.25yrs

Tenure

HK$7,477,000

Compensation

Mr. Ou Yang has been Chief Executive Officer and Executive Director of China Overseas Property Holdings Limited since March 22, 2018. Mr. Yang served as Vice President at China Overseas Property Holdings...

CEO Compensation Analysis

Compensation vs Market: Ou's total compensation ($USD952.58K) is above average for companies of similar size in the Hong Kong market ($USD471.40K).

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

Leadership Team

Experienced Management: 2669's management team is considered experienced (4.3 years average tenure).

Board Members

Experienced Board: 2669's board of directors are considered experienced (3.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31