3333

China Evergrande GroupSEHK:3333 Stock Report

Market Cap

HK$33.5b

7D

-29.8%

1Y

-84.6%

Updated

18 Sep, 2021

Data

Company Financials +
3333 fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance3/6
Financial Health4/6
Dividends5/6

3333 Overview

China Evergrande Group, an investment holding company, primarily engages in the property development business in the People’s Republic of China.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3333 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: 3333's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.


Market Performance


7 Day Return

-29.8%

3333

-8.5%

HK Real Estate

-4.6%

HK Market


1 Year Return

-84.6%

3333

-18.5%

HK Real Estate

5.2%

HK Market

Return vs Industry: 3333 underperformed the Hong Kong Real Estate industry which returned -18.5% over the past year.

Return vs Market: 3333 underperformed the Hong Kong Market which returned 5.2% over the past year.


Shareholder returns

3333IndustryMarket
7 Day-29.8%-8.5%-4.6%
30 Day-49.2%-9.6%1.0%
90 Day-74.4%-21.1%-10.9%
1 Year-84.3%-84.6%-14.5%-18.5%9.0%5.2%
3 Year-88.7%-90.5%-14.4%-25.6%10.5%-2.1%
5 Year-44.5%-53.2%10.8%-13.2%29.9%6.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

China Evergrande Group Fundamentals Summary

How do China Evergrande Group's earnings and revenue compare to its market cap?
3333 fundamental statistics
Market CapCN¥27.86b
Earnings (TTM)CN¥15.92b
Revenue (TTM)CN¥463.31b

1.8x

P/E Ratio

0.06x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3333 income statement (TTM)
RevenueCN¥463.31b
Cost of RevenueCN¥378.55b
Gross ProfitCN¥84.76b
ExpensesCN¥68.84b
EarningsCN¥15.92b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.21
Gross Margin18.29%
Net Profit Margin3.44%
Debt/Equity Ratio139.1%

How did 3333 perform over the long term?

See historical performance and comparison

Dividends

7.1%

Current Dividend Yield

13%

Payout Ratio

Valuation

Is China Evergrande Group 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: 3333 (HK$2.54) is trading below our estimate of fair value (HK$105.78)

Significantly Below Fair Value: 3333 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3333 is good value based on its PE Ratio (1.8x) compared to the Hong Kong Real Estate industry average (7.4x).

PE vs Market: 3333 is good value based on its PE Ratio (1.8x) compared to the Hong Kong market (10x).


Price to Earnings Growth Ratio

PEG Ratio: 3333 is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: 3333 is good value based on its PB Ratio (0.1x) compared to the HK Real Estate industry average (0.5x).


Future Growth

How is China Evergrande Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

30.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3333's forecast earnings growth (30.2% per year) is above the savings rate (1.5%).

Earnings vs Market: 3333's earnings (30.2% per year) are forecast to grow faster than the Hong Kong market (17.2% per year).

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

Revenue vs Market: 3333's revenue (5.2% per year) is forecast to grow slower than the Hong Kong market (12.3% per year).

High Growth Revenue: 3333's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3333's Return on Equity is forecast to be low in 3 years time (11.4%).


Past Performance

How has China Evergrande Group performed over the past 5 years?

-1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3333 has a large one-off gain of CN¥20.3B impacting its June 30 2021 financial results.

Growing Profit Margin: 3333's current net profit margins (3.4%) are higher than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: 3333's earnings have declined by 1.1% per year over the past 5 years.

Accelerating Growth: 3333's earnings growth over the past year (78.8%) exceeds its 5-year average (-1.1% per year).

Earnings vs Industry: 3333 earnings growth over the past year (78.8%) exceeded the Real Estate industry 23.8%.


Return on Equity

High ROE: 3333's Return on Equity (6.6%) is considered low.


Financial Health

How is China Evergrande Group's financial position?


Financial Position Analysis

Short Term Liabilities: 3333's short term assets (CN¥1,952.6B) exceed its short term liabilities (CN¥1,572.8B).

Long Term Liabilities: 3333's short term assets (CN¥1,952.6B) exceed its long term liabilities (CN¥393.8B).


Debt to Equity History and Analysis

Debt Level: 3333's debt to equity ratio (139.1%) is considered high.

Reducing Debt: 3333's debt to equity ratio has reduced from 210.2% to 139.1% over the past 5 years.

Debt Coverage: 3333's debt is not well covered by operating cash flow (19.2%).

Interest Coverage: 3333's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Dividend

What is China Evergrande Group current dividend yield, its reliability and sustainability?

7.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3333's dividend (7.08%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 3333's dividend (7.08%) is in the top 25% of dividend payers in the Hong Kong market (6.76%)


Stability and Growth of Payments

Stable Dividend: 3333's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3333's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.6%), 3333's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3333's dividends in 3 years are forecast to be thoroughly covered by earnings (13.9% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

James Xia (57 yo)

14.25yrs

Tenure

CN¥154,083,000

Compensation

Dr. Haijun Xia, also known as James, has been the Chief Executive Officer at China Evergrande Group since June 2007 and also serves as its President and Vice Chairman. Dr. Xia has been an Executive Directo...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether James's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

Compensation vs Earnings: James's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 3333's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: 3333's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 3333 insiders have sold more shares than they have bought 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

China Evergrande Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Evergrande Group
  • Ticker: 3333
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$33.531b
  • Shares outstanding: 13.20b
  • Website: https://www.evergrande.com

Number of Employees


Location

  • China Evergrande Group
  • No.1126 Haide 3rd Road
  • Nanshan District
  • Shenzhen
  • Guangdong Province
  • 518054
  • China

Listings


Biography

China Evergrande Group, an investment holding company, primarily engages in the property development business in the People’s Republic of China. It operates through four segments: Property Development, Pro...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 10:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.