SEHK:277

Stock Analysis Report

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Market Cap

HK$950.9m

Last Updated

2021/06/19 10:09 UTC

Data Sources

Company Financials

Executive Summary

Tern Properties Company Limited, an investment holding company, engages in property investment and treasury investment activities primarily in Hong Kong. More Details


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Tern Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 277 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 277's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0%

277

-2.3%

HK Real Estate

-1.5%

HK Market


1 Year Return

-19.3%

277

-0.06%

HK Real Estate

21.7%

HK Market

Return vs Industry: 277 underperformed the Hong Kong Real Estate industry which returned -0.1% over the past year.

Return vs Market: 277 underperformed the Hong Kong Market which returned 21.7% over the past year.


Shareholder returns

277IndustryMarket
7 Day0%-2.3%-1.5%
30 Day10.3%-2.7%-0.9%
90 Day-6.3%-4.1%-2.5%
1 Year-18.5%-19.3%4.4%-0.06%26.2%21.7%
3 Year-28.9%-31.3%-5.6%-17.5%9.7%-1.9%
5 Year-15.5%-20.2%61.9%28.0%56.3%29.7%

Long-Term Price Volatility Vs. Market

How volatile is Tern Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tern Properties undervalued compared to its fair value and its price relative to the market?

0.32x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 277 (HK$3.43) is trading above our estimate of fair value (HK$0.97)

Significantly Below Fair Value: 277 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 277 is unprofitable, so we can't compare its PE Ratio to the Hong Kong Real Estate industry average.

PE vs Market: 277 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 277's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 277 is good value based on its PB Ratio (0.3x) compared to the HK Real Estate industry average (0.5x).


Future Growth

How is Tern Properties forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.1%

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 Tern Properties 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.


Past Performance

How has Tern Properties performed over the past 5 years?

-64.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 277 is currently unprofitable.

Growing Profit Margin: 277 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 277 is unprofitable, and losses have increased over the past 5 years at a rate of 64% per year.

Accelerating Growth: Unable to compare 277's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 277 is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (6.1%).


Return on Equity

High ROE: 277 has a negative Return on Equity (-11.1%), as it is currently unprofitable.


Financial Health

How is Tern Properties's financial position?


Financial Position Analysis

Short Term Liabilities: 277's short term assets (HK$188.1M) exceed its short term liabilities (HK$37.7M).

Long Term Liabilities: 277's short term assets (HK$188.1M) do not cover its long term liabilities (HK$276.5M).


Debt to Equity History and Analysis

Debt Level: 277's debt to equity ratio (8.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 277's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


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: Whilst unprofitable 277 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 277 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 15.4% per year.


Dividend

What is Tern Properties's current dividend yield, its reliability and sustainability?

1.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 277's dividend (1.31%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (1.87%).

High Dividend: 277's dividend (1.31%) is low compared to the top 25% of dividend payers in the Hong Kong market (6%).


Stability and Growth of Payments

Stable Dividend: 277's dividend payments have been volatile in the past 10 years.

Growing Dividend: 277's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: 277 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

17.4yrs

Average management tenure


CEO

Hoi Sow Chan (86 yo)

34.42yrs

Tenure

HK$9,008,000

Compensation

Mr. Hoi Sow Chan has been the Chairman and Managing Director of Tern Properties Company Limited since 1987. He has many years of experience in property investment and development in Hong Kong, the Mainlan...


CEO Compensation Analysis

Compensation vs Market: Hoi Sow's total compensation ($USD1.16M) is above average for companies of similar size in the Hong Kong market ($USD228.52K).

Compensation vs Earnings: Hoi Sow's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: 277's management team is seasoned and experienced (17.4 years average tenure).


Board Members

Experienced Board: 277's board of directors are seasoned and experienced ( 16.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Tern Properties Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tern Properties Company Limited
  • Ticker: 277
  • Exchange: SEHK
  • Founded: NaN
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$950.909m
  • Shares outstanding: 277.23m
  • Website: https://www.tern.hk

Number of Employees


Location

  • Tern Properties Company Limited
  • Tern Centre
  • 26th Floor
  • Central
  • Hong Kong

Listings


Biography

Tern Properties Company Limited, an investment holding company, engages in property investment and treasury investment activities primarily in Hong Kong. The company operates commercial shops and office pr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/19 10:09
End of Day Share Price2021/06/18 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.