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2778

Champion Real Estate Investment Trust SEHK:2778 Stock Report

Last Price

HK$3.50

Market Cap

HK$20.8b

7D

1.7%

1Y

-21.3%

Updated

16 May, 2022

Data

Company Financials +
2778 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health2/6
Dividends5/6

2778 Stock Overview

Champion Real Estate Investment Trust is a trust formed to own and invest in income- producing office and retail properties.

Rewards

Trading at 41.3% below our estimate of its fair value

Earnings are forecast to grow 63% per year

Pays a reliable dividend of 6.51%

Risk Analysis

No risks detected for 2778 from our risk checks.

Champion Real Estate Investment Trust Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Champion Real Estate Investment Trust
Historical stock prices
Current Share PriceHK$3.50
52 Week HighHK$4.70
52 Week LowHK$3.29
Beta0.59
1 Month Change-0.85%
3 Month Change-12.06%
1 Year Change-21.35%
3 Year Change-48.53%
5 Year Change-30.56%
Change since IPO-18.61%

Recent News & Updates

Shareholder Returns

2778HK REITsHK Market
7D1.7%0.9%0.05%
1Y-21.3%-11.6%-25.2%

Return vs Industry: 2778 underperformed the Hong Kong REITs industry which returned -12% over the past year.

Return vs Market: 2778 exceeded the Hong Kong Market which returned -24.4% over the past year.

Price Volatility

Is 2778's price volatile compared to industry and market?
2778 volatility
2778 Average Weekly Movement4.0%
REITs Industry Average Movement3.3%
Market Average Movement8.0%
10% most volatile stocks in HK Market14.9%
10% least volatile stocks in HK Market3.9%

Stable Share Price: 2778 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 2778's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2006n/aChristina Hauhttps://www.championreit.com

Champion Real Estate Investment Trust is a trust formed to own and invest in income- producing office and retail properties. The Trust focuses on Grade-A commercial properties in prime locations. It currently offers investors direct exposure to 2.93 million sq.

Champion Real Estate Investment Trust Fundamentals Summary

How do Champion Real Estate Investment Trust's earnings and revenue compare to its market cap?
2778 fundamental statistics
Market CapHK$20.84b
Earnings (TTM)-HK$831.36m
Revenue (TTM)HK$2.79b

7.5x

P/S Ratio

-25.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2778 income statement (TTM)
RevenueHK$2.79b
Cost of RevenueHK$820.30m
Gross ProfitHK$1.97b
Other ExpensesHK$2.80b
Earnings-HK$831.36m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.14
Gross Margin70.61%
Net Profit Margin-29.78%
Debt/Equity Ratio31.3%

How did 2778 perform over the long term?

See historical performance and comparison

Dividends

6.5%

Current Dividend Yield

98%

Payout Ratio

Valuation

Is Champion Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


41.3%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 2778 (HK$3.5) is trading below our estimate of fair value (HK$5.96)

Significantly Below Fair Value: 2778 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2778 is unprofitable, so we can't compare its PE Ratio to the Hong Kong REITs industry average.

PE vs Market: 2778 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 2778's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2778's PB Ratio (0.4x) is in line with the HK REITs industry average.


Future Growth

How is Champion Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


63.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2778 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: 2778 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 2778's is expected to become profitable in the next 3 years.

Revenue vs Market: 2778's revenue is expected to decline over the next 3 years (-1.3% per year).

High Growth Revenue: 2778's revenue is forecast to decline over the next 3 years (-1.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2778's Return on Equity is forecast to be low in 3 years time (2.6%).


Past Performance

How has Champion Real Estate Investment Trust performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-53.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2778 is currently unprofitable.

Growing Profit Margin: 2778 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2778 is unprofitable, and losses have increased over the past 5 years at a rate of 53.4% per year.

Accelerating Growth: Unable to compare 2778's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2778 is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (11.5%).


Return on Equity

High ROE: 2778 has a negative Return on Equity (-1.7%), as it is currently unprofitable.


Financial Health

How is Champion Real Estate Investment Trust's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2778's short term assets (HK$1.9B) do not cover its short term liabilities (HK$4.9B).

Long Term Liabilities: 2778's short term assets (HK$1.9B) do not cover its long term liabilities (HK$14.0B).


Debt to Equity History and Analysis

Debt Level: 2778's net debt to equity ratio (28%) is considered satisfactory.

Reducing Debt: 2778's debt to equity ratio has increased from 29.1% to 31.3% over the past 5 years.

Debt Coverage: 2778's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: 2778's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Dividend

What is Champion Real Estate Investment Trust current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


6.51%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2778's dividend (6.51%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.93%).

High Dividend: 2778's dividend (6.51%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.81%).


Stability and Growth of Payments

Stable Dividend: 2778's dividends per share have been stable in the past 10 years.

Growing Dividend: 2778's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (97.9%), 2778's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (90.8%), 2778's dividend payments are covered by cash flows.


Next Steps

Management

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

13.0yrs

Average board tenure


CEO

Christina Hau (46 yo)

0.25

Tenure

Ms. Shun Hau, also known as Christina, is Chief Executive Officer, Chief Investment Officer and Executive Director of Eagle Asset Management (CP) Limited Manager of Champion Real Estate Investment Trust si...


Board Members

Experienced Board: 2778's board of directors are seasoned and experienced ( 13 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

Champion Real Estate Investment Trust's employee growth, exchange listings and data sources


Key Information

  • Name: Champion Real Estate Investment Trust
  • Ticker: 2778
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: HK$20.843b
  • Shares outstanding: 5.96b
  • Website: https://www.championreit.com

Location

  • Champion Real Estate Investment Trust
  • Great Eagle Centre
  • Suite 3008
  • Wan Chai
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/16 00:00
End of Day Share Price2022/05/16 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.