SEHK:287

Stock Analysis Report

Executive Summary

Winfair Investment Company Limited, together with its subsidiaries, engages in the property and share investment, property development, and securities dealing activities in Hong Kong.

Rewards

PE ratio (5.7x) is below the Hong Kong market (10.2x)

Risk Analysis

Large one-off items impacting financial results

Profit margins are lower than last year

Does not have meaningful revenue (HK$26M)

Does not have a meaningful market cap (HK$388M)



Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

How has Winfair Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 287 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

287

1.5%

HK Real Estate

0.3%

HK Market


1 Year Return

-30.7%

287

-4.6%

HK Real Estate

-5.1%

HK Market

Return vs Industry: 287 underperformed the Hong Kong Real Estate industry which returned -4.6% over the past year.

Return vs Market: 287 underperformed the Hong Kong Market which returned -5.1% over the past year.


Shareholder returns

287IndustryMarket
7 Day-0.6%1.5%0.3%
30 Day-7.6%-3.7%-3.9%
90 Day-7.4%4.4%4.4%
1 Year-29.8%-30.7%-0.3%-4.6%-1.6%-5.1%
3 Year-6.5%-11.7%41.8%26.6%13.4%1.9%
5 Year27.7%17.3%64.8%36.9%15.6%-3.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Winfair Investment undervalued compared to its fair value and its price relative to the market?

5.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 287 (HK$9.7) is trading above our estimate of fair value (HK$1.67)

Significantly Below Fair Value: 287 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 287 is good value based on its PE Ratio (5.7x) compared to the Real Estate industry average (6.8x).

PE vs Market: 287 is good value based on its PE Ratio (5.7x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 287's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 287 is good value based on its PB Ratio (0.3x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

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

7.4%

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 Winfair Investment 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.


Next Steps

Past Performance

How has Winfair Investment performed over the past 5 years?

35.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 287 has a large one-off gain of HK$45.0M impacting its September 30 2019 financial results.

Growing Profit Margin: 287's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: 287's earnings have grown significantly by 35.1% per year over the past 5 years.

Accelerating Growth: 287's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 287 had negative earnings growth (-76.9%) over the past year, making it difficult to compare to the Real Estate industry average (-9.7%).


Return on Equity

High ROE: 287's Return on Equity (5.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Winfair Investment's financial position?


Financial Position Analysis

Short Term Liabilities: 287's short term assets (HK$210.7M) exceed its short term liabilities (HK$34.9M).

Long Term Liabilities: 287's short term assets (HK$210.7M) exceed its long term liabilities (HK$1.0M).


Debt to Equity History and Analysis

Debt Level: 287's debt to equity ratio (1.6%) is considered satisfactory.

Reducing Debt: 287's debt to equity ratio has reduced from 4% to 1.6% over the past 5 years.

Debt Coverage: 287's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 287 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 287 has a high level of physical assets or inventory.

Debt Coverage by Assets: 287's debt is covered by short term assets (assets are 10.6x debt).


Next Steps

Dividend

What is Winfair Investment's current dividend yield, its reliability and sustainability?

1.44%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%2.3%markettop25%6.3%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 287's dividend (1.44%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 287's dividend (1.44%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.28%).


Stability and Growth of Payments

Stable Dividend: 287's dividend payments have been volatile in the past 10 years.

Growing Dividend: 287's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.3%), 287's dividend payments are thoroughly covered by earnings.


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?

10.9yrs

Average board tenure


CEO

Winfair Investment has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Tai Ng
Chairman2.9yrsHK$880.20k9.75% HK$37.8m
Tai Ng
Executive Director 11.9yrsHK$722.76k4.72% HK$18.3m
Chi Yeung Ng
Independent Non-Executive Director24.3yrsHK$100.00kno data
Kwok So
Non-Executive Director9.9yrsHK$100.00k12.56% HK$48.8m
Kwok So
Non-Executive Director34.3yrsHK$100.00k14.9% HK$57.8m
Suit Chan
Independent Non-Executive Director15.4yrsHK$100.00kno data
Kwok Ng
Non-Executive Director2.7yrsHK$100.00k0.26% HK$1.0m
Pei Heng
Independent Non-Executive Director1.8yrsHK$99.45kno data

10.9yrs

Average Tenure

59yo

Average Age

Experienced Board: 287's board of directors are seasoned and experienced ( 10.9 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.


Top Shareholders

Company Information

Winfair Investment Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Winfair Investment Company Limited
  • Ticker: 287
  • Exchange: SEHK
  • Founded: 1971
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$388.000m
  • Shares outstanding: 40.00m
  • Website: https://www.winfairinvestment.com

Number of Employees


Location

  • Winfair Investment Company Limited
  • 501-2, Lee Kiu Building
  • 5th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
287SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Winfair Investment Company Limited, together with its subsidiaries, engages in the property and share investment, property development, and securities dealing activities in Hong Kong. The company operates through Securities Investment, Property Leasing, and Property Development segments. It invests in short-term and long-term securities, as well as leases residential, commercial, and industrial properties. The company was founded in 1971 and is based in Kowloon, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 12:36
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.