SEHK:3301

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Ronshine China Holdings

Executive Summary

Ronshine China Holdings Limited, an investment holding company, engages in the property development business.


Snowflake Analysis

Undervalued with high growth potential and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3301 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

10.5%

3301

5.2%

HK Real Estate

5.0%

HK Market


1 Year Return

-15.5%

3301

-13.4%

HK Real Estate

-5.3%

HK Market

Return vs Industry: 3301 underperformed the Hong Kong Real Estate industry which returned -13.4% over the past year.

Return vs Market: 3301 underperformed the Hong Kong Market which returned -5.3% over the past year.


Shareholder returns

3301IndustryMarket
7 Day10.5%5.2%5.0%
30 Day1.7%0.9%4.0%
90 Day-13.6%-9.9%-4.0%
1 Year-12.4%-15.5%-9.4%-13.4%-1.9%-5.3%
3 Year8.7%4.9%9.5%-3.0%-0.5%-10.9%
5 Yearn/a21.5%0.7%-9.0%-23.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3301 (HK$7.65) is trading below our estimate of fair value (HK$64.45)

Significantly Below Fair Value: 3301 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3301 is good value based on its PE Ratio (3.8x) compared to the Real Estate industry average (6.2x).

PE vs Market: 3301 is good value based on its PE Ratio (3.8x) compared to the Hong Kong market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: 3301 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 3301 is overvalued based on its PB Ratio (0.7x) compared to the HK Real Estate industry average (0.4x).


Next Steps

Future Growth

How is Ronshine China Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

20.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3301's forecast earnings growth (20.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 3301's earnings (20.4% per year) are forecast to grow faster than the Hong Kong market (17.1% per year).

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

Revenue vs Market: 3301's revenue (20.4% per year) is forecast to grow faster than the Hong Kong market (10.6% per year).

High Growth Revenue: 3301's revenue (20.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3301's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has Ronshine China Holdings performed over the past 5 years?

25.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3301 has high quality earnings.

Growing Profit Margin: 3301's current net profit margins (6.1%) are lower than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: 3301's earnings have grown significantly by 25.6% per year over the past 5 years.

Accelerating Growth: 3301's earnings growth over the past year (46.7%) exceeds its 5-year average (25.6% per year).

Earnings vs Industry: 3301 earnings growth over the past year (46.7%) exceeded the Real Estate industry 2.8%.


Return on Equity

High ROE: 3301's Return on Equity (14.3%) is considered low.


Next Steps

Financial Health

How is Ronshine China Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3301's short term assets (CN¥191.5B) exceed its short term liabilities (CN¥126.4B).

Long Term Liabilities: 3301's short term assets (CN¥191.5B) exceed its long term liabilities (CN¥46.5B).


Debt to Equity History and Analysis

Debt Level: 3301's debt to equity ratio (153%) is considered high.

Reducing Debt: 3301's debt to equity ratio has reduced from 1677.9% to 153% over the past 5 years.

Debt Coverage: 3301's debt is not well covered by operating cash flow (9.4%).

Interest Coverage: 3301's interest payments on its debt are well covered by EBIT (83.2x coverage).


Balance Sheet


Next Steps

Dividend

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

7.78%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 3301's dividend (7.78%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.46%).

High Dividend: 3301's dividend (7.78%) is in the top 25% of dividend payers in the Hong Kong market (7.13%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 3301's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 3301's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.7%), 3301's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3301's dividends in 3 years are forecast to be well covered by earnings (23.3% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Zonghong Ou (50yo)

5.5yrs

Tenure

CN¥3,183,000

Compensation

Mr. Zonghong Ou has been Chief Executive Officer of Ronshine China Holdings Limited since December 15, 2014. Mr. Ou is primarily responsible for the overall development strategy and daily operation of Rons ...


CEO Compensation Analysis

Compensation vs Market: Zonghong's total compensation ($USD447.69K) is about average for companies of similar size in the Hong Kong market ($USD424.20K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Zonghong Ou
Founder5.5yrsCN¥3.18mno data
Lixin Zhang
CFO & Executive Director1.58yrsCN¥5.57mno data
Feiyan Zeng
Executive Director4.92yrsCN¥5.65mno data
Youzhi Ruan
VP & Executive Director1.58yrsCN¥5.54m0.072% CN¥9.4m
Lijuan Yu
Executive Director1.25yrsCN¥6.23m0.010% CN¥1.3m
Wing Shan Ng
Joint Company Secretary5.5yrsno datano data
Zuoyi Yu
Joint Company Secretary1.33yrsno datano data

3.5yrs

Average Tenure

43yo

Average Age

Experienced Management: 3301's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zonghong Ou
Founder5.5yrsCN¥3.18mno data
Lixin Zhang
CFO & Executive Director1.58yrsCN¥5.57mno data
Feiyan Zeng
Executive Director4.92yrsCN¥5.65mno data
Youzhi Ruan
VP & Executive Director1.58yrsCN¥5.54m0.072% CN¥9.4m
Lijuan Yu
Executive Director1.25yrsCN¥6.23m0.010% CN¥1.3m
Wenzhou Qu
Independent Non-Executive Director4.42yrsCN¥251.00kno data
Yunan Ren
Independent Non-Executive Director4.42yrsCN¥251.00kno data
Shucui Chen
Non-Executive Director2yrsno datano data
Weifeng Ruan
Independent Non-Executive Director1.25yrsCN¥251.00kno data

2.0yrs

Average Tenure

44yo

Average Age

Experienced Board: 3301's board of directors are not considered experienced ( 2 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: 3301 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

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


Key Information

  • Name: Ronshine China Holdings Limited
  • Ticker: 3301
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$13.019b
  • Shares outstanding: 1.70b
  • Website: https://www.rongxingroup.com

Number of Employees


Location

  • Ronshine China Holdings Limited
  • Building L1B
  • 9Th Floor, Hongqiao World Centre
  • Shanghai
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3301SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2016
3301SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 2016
3301SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 2016

Biography

Ronshine China Holdings Limited, an investment holding company, engages in the property development business. It is involved in the development of mid-to high-end residential properties and commercial properties in cities in the Western Taiwan Straits Economic Zone, Yangtze River Delta Economic Region, and selected first-and second-tier cities in the People’s Republic of China. The company was formerly known as Ronshine China Holdings Limited. Ronshin Group was founded in 2003 and is headquartered in Shanghai, China. Ronshine China Holdings Limited is a subsidiary of Dingxin Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 13:37
End of Day Share Price2020/06/05 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.