Xinming China Holdings Limited, an investment holding company, operates as an integrated residential and commercial property developer in the People’s Republic of China.
The last earnings update was 57 days ago.
Discounted Cash Flow Calculation for SEHK:2699 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Xinming China Holdings
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
SEHK:2699 DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
Xinming China Holdings
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Xinming China Holdings's
is considered below, and whether this is a fair price.
Price based on past earnings
Xinming China Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
Xinming China Holdings's earnings are expected to grow by 16.8% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Xinming China Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Xinming China Holdings's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Xinming China Holdings
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Xinming China Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
Xinming China Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Xinming China Holdings's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Xinming China Holdings's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 1.6x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Chengshou Chen has been Chairman and Chief Executive Officer and Executive Director of Xinming China Holdings Limited since January 16, 2014. Mr. Chen is the founder of Xinming China Holdings and is primarily responsible for corporate strategic planning and overall business development of Xinming China Group. He has 29 years of experience in the real estate industry. He is a Director at Bank of Wenzhou Co., Ltd. since November 2012. He has been the chairman of the board of Taizhou Xinming since February 2007 and the director of its certain subsidiaries.
Chengshou's compensation has been consistent with company performance over the past year, both up more than 20%.
Chengshou's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure
Average tenure and age of the
Xinming China Holdings
management team in years:
The tenure for the Xinming China Holdings management team is about average.
Chairman & CEO
CFO & Executive Director
Chief Executive Officer
Chief Investment Officer & Company Secretary
Human Resources Director
Chief Inspector of Cost Control Department
Board of Directors Tenure
Average tenure and age of the
Xinming China Holdings
board of directors in years:
The tenure for the Xinming China Holdings board of directors is about average.
Does Xinming China Holdings Limited (HKG:2699) Have A Particularly Volatile Share Price?
See our latest analysis for Xinming China Holdings What we can learn from 2699's beta value Zooming in on Xinming China Holdings, we see it has a five year beta of 0.86. … Very small companies often have a low beta value because their share prices are not well correlated with market volatility. … What this means for you: One potential advantage of owning low beta stocks like Xinming China Holdings is that your overall portfolio won't be too sensitive to overall market movements.
What You Should Know About Xinming China Holdings Limited's (HKG:2699) Financial Strength
2699’s Debt (And Cash Flows) 2699 has built up its total debt levels in the last twelve months, from CN¥2.1b to CN¥2.3b – this includes long-term debt. … On top of this, 2699 has produced CN¥53m in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 2.4%, signalling that 2699’s operating cash is less than its debt. … Next Steps: Although 2699’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.
Could Xinming China Holdings Limited's (HKG:2699) Investor Composition Influence The Stock Price?
If you want to know who really controls Xinming China Holdings Limited (HKG:2699), then you'll have to look at the makeup of its share registry. … Xinming China Holdings is not a large company by global standards. … View our latest analysis for Xinming China Holdings
Imagine Owning Xinming China Holdings (HKG:2699) And Wondering If The 13% Share Price Slide Is Justified
We regret to report that long term Xinming China Holdings Limited (HKG:2699) shareholders have had that experience, with the share price dropping 13% in three years, versus a market return of about 43%. … During five years of share price growth, Xinming China Holdings moved from a loss to profitability. … The company has kept revenue pretty healthy over the last three years, so we doubt that explains the falling share price.
What Kind Of Share Price Volatility Should You Expect For Xinming China Holdings Limited (HKG:2699)?
If you're interested in Xinming China Holdings Limited (HKG:2699), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.
What Percentage Of Xinming China Holdings Limited (HKG:2699) Shares Do Insiders Own?
Every investor in Xinming China Holdings Limited (HKG:2699) should be aware of the most powerful shareholder groups. … With a market capitalization of HK$2.4b, Xinming China Holdings is a small cap stock, so it might not be well known by many institutional investors. … See our latest analysis for Xinming China Holdings
A Closer Look At Xinming China Holdings Limited's (HKG:2699) Impressive ROE
By way of learning-by-doing, we'll look at ROE to gain a better understanding of Xinming China Holdings Limited (HKG:2699). … Our data shows Xinming China Holdings has a return on equity of 16% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
How Financially Strong Is Xinming China Holdings Limited (HKG:2699)?
Investors are always looking for growth in small-cap stocks like Xinming China Holdings Limited (HKG:2699), with a market cap of HK$2.1b. … However, an important fact which most ignore is: how financially healthy is the business? … I believe these basic checks tell most of the story you need to know.
One Thing To Remember About The Xinming China Holdings Limited (HKG:2699) Share Price
Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
Is Xinming China Holdings Limited (HKG:2699) Attractive At Its Current PE Ratio?
Xinming China Holdings Limited (HKG:2699) is currently trading at a trailing P/E of 7.1x, which is higher than the industry average of 6.4x. … While 2699 might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … View our latest analysis for Xinming China Holdings
Xinming China Holdings Limited, an investment holding company, operates as an integrated residential and commercial property developer in the People’s Republic of China. The company operates through three segments: Property Development, Property Leasing, and Others. It invests in, develops, sells, and leases real estate properties; and offers business management, and industrial investment and management services. The company was founded in 2014 and is headquartered in Hangzhou, the People’s Republic of China. Xinming China Holdings Limited is a subsidiary of Xinxing Company Limited.
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