SEHK:2669

Stock Analysis Report

China Overseas Property Holdings

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with outstanding track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2669's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.7%

2669

1.2%

HK Real Estate

0.2%

HK Market


1 Year Return

98.7%

2669

-26.3%

HK Real Estate

-22.0%

HK Market

Return vs Industry: 2669 exceeded the Hong Kong Real Estate industry which returned -26.4% over the past year.

Return vs Market: 2669 exceeded the Hong Kong Market which returned -21.6% over the past year.


Shareholder returns

2669IndustryMarket
7 Day7.7%1.2%0.2%
30 Day12.7%-13.5%-10.8%
90 Day53.0%-19.0%-16.5%
1 Year100.8%98.7%-22.8%-26.3%-19.1%-22.0%
3 Year448.9%426.6%14.3%1.8%-3.7%-13.4%
5 Yearn/a26.7%5.1%-15.2%-28.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Overseas Property Holdings undervalued compared to its fair value and its price relative to the market?

46.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2669 (HK$7.53) is trading above our estimate of fair value (HK$7.29)

Significantly Below Fair Value: 2669 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2669 is poor value based on its PE Ratio (46x) compared to the Real Estate industry average (6.4x).

PE vs Market: 2669 is poor value based on its PE Ratio (46x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 2669 is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: 2669 is overvalued based on its PB Ratio (16.3x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is China Overseas Property Holdings forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

23.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2669's forecast earnings growth (23.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 2669's earnings (23.3% per year) are forecast to grow faster than the Hong Kong market (11.5% per year).

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

Revenue vs Market: 2669's revenue (17.4% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 2669's revenue (17.4% per year) is forecast to grow slower 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 (33.9%)


Next Steps

Past Performance

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

29.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2669 has high quality earnings.

Growing Profit Margin: 2669's current net profit margins (9.8%) are higher than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: 2669's earnings have grown significantly by 29% per year over the past 5 years.

Accelerating Growth: 2669's earnings growth over the past year (33.8%) exceeds its 5-year average (29% per year).

Earnings vs Industry: 2669 earnings growth over the past year (33.8%) exceeded the Real Estate industry 2%.


Return on Equity

High ROE: 2669's Return on Equity (35.5%) is considered high.


Next Steps

Financial Health

How is China Overseas Property Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2669's short term assets (HK$4.0B) exceed its short term liabilities (HK$2.7B).

Long Term Liabilities: 2669's short term assets (HK$4.0B) exceed its long term liabilities (HK$64.3M).


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 45.1%.

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

Inventory Level: 2669 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2669's debt is covered by short term assets (assets are 5.595466394779E+17x debt).


Next Steps

Dividend

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

0.74%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 2669's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.57%).

High Dividend: 2669's dividend (0.74%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.33%).


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.


Current Payout to Shareholders

Dividend Coverage: 2669 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 2669'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?

2.3yrs

Average management tenure


CEO

Ou Yang (42yo)

2.08s

Tenure

HK$4,612,000

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 ($USD594.96K) is about average for companies of similar size in the Hong Kong market ($USD501.84K).

Compensation vs Earnings: Ou's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ou Yang
CEO & Executive Director2.08yrsHK$4.61mno data
Yuk Kam
CFO & Executive Director4.83yrsHK$2.52mno data
Jinying Pang
VP & Executive Director1.67yrsHK$2.42mno data
Guiqing Zhang
Chairman of the Board0.17yrno datano data
Kai Wong
Senior Vice President4.83yrsno datano data
Zhigang Wang
Vice President1.08yrsno datano data
Xiaohua Li
Assistant President4.83yrsno datano data
Zhen Li
Assistant President4.67yrsno datano data
Fang Han
Assistant President3.92yrsno datano data
Xiang Ye
Vice President2.33yrsno datano data

2.3yrs

Average Tenure

46yo

Average Age

Experienced Management: 2669's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ou Yang
CEO & Executive Director2.08yrsHK$4.61mno data
Yuk Kam
CFO & Executive Director4.83yrsHK$2.52mno data
Jinying Pang
VP & Executive Director1.67yrsHK$2.42mno data
Guiqing Zhang
Chairman of the Board0.17yrno datano data
Wing Ki Yung
Independent Non-Executive Director4.5yrsHK$360.00kno data
Wan Lim
Independent Non-Executive Director4.5yrsHK$250.00kno data
Kam So
Independent Non-Executive Director1.5yrsHK$83.00kno data

2.1yrs

Average Tenure

55yo

Average Age

Experienced Board: 2669's board of directors are not considered experienced ( 2.1 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.


Ownership Breakdown

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


Top Shareholders

Company Information

China Overseas Property Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Overseas Property Holdings Limited
  • Ticker: 2669
  • Exchange: SEHK
  • Founded: 1986
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Market Cap: HK$24.750b
  • Shares outstanding: 3.29b
  • Website: https://www.copl.com.hk

Number of Employees


Location

  • China Overseas Property Holdings Limited
  • Three Pacific Place
  • Suite 703
  • Admiralty
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2669SEHK (The Stock Exchange of Hong Kong Ltd.)YesNew Ordinary SharesHKHKDOct 2015
CNPP.FOTCPK (Pink Sheets LLC)YesNew Ordinary SharesUSUSDOct 2015
2669SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesNew Ordinary SharesHKHKDOct 2015

Biography

China Overseas Property Holdings Limited, an investment holding company, provides property management services in Hong Kong, Macau, and the People's Republic of China. The company's 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. This segment also provides pre-delivery, move-in assistance, delivery inspection, and engineering services for property developers. Its Value-Added Services segment offers engineering services, such as automation consulting and engineering product sales for property developers; inspection, repair and maintenance, and equipment upgrade services to property management companies; community leasing, sales, and other services comprising common area rental assistance, purchase assistance, and rental assistance for properties through its online to offline platform; and consulting services for other property management companies. The company was formerly known as China Overseas Management Services International Limited and changed its name to China Overseas Property Holdings Limited in May 2015. China Overseas Property Holdings Limited was founded in 1986 and is headquartered in Admiralty, Hong Kong. China Overseas Property Holdings Limited operates as a subsidiary of China State Construction Engineering Corporation Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 14:32
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.