SEHK:3333

Stock Analysis Report

China Evergrande Group

Executive Summary

China Evergrande Group, an investment holding company, engages in the property development, property investment, property management, hotel operations, finance, Internet, and health businesses in the People’s Republic of China.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.5%

3333

1.3%

HK Real Estate

0.6%

HK Market


1 Year Return

-22.5%

3333

-4.2%

HK Real Estate

-4.5%

HK Market

Return vs Industry: 3333 underperformed the Hong Kong Real Estate industry which returned -4.2% over the past year.

Return vs Market: 3333 underperformed the Hong Kong Market which returned -4.5% over the past year.


Shareholder returns

3333IndustryMarket
7 Day3.5%1.3%0.6%
30 Day-3.3%-6.3%-5.2%
90 Day-0.7%2.1%2.3%
1 Year-16.6%-22.5%0.1%-4.2%-1.0%-4.5%
3 Year262.6%219.7%44.3%28.9%14.4%2.9%
5 Year679.5%461.1%65.4%35.4%15.5%-3.8%

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

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$19.02) is trading below our estimate of fair value (HK$51.91)

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


Price To Earnings Ratio

PE vs Industry: 3333 is poor value based on its PE Ratio (10.4x) compared to the Real Estate industry average (6.7x).

PE vs Market: 3333 is poor value based on its PE Ratio (10.4x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 3333 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 3333 is overvalued based on its PB Ratio (1.5x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is China Evergrande Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

17.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3333's forecast earnings growth (17% per year) is above the savings rate (1.6%).

Earnings vs Market: 3333's earnings (17% per year) are forecast to grow faster than the Hong Kong market (11.8% per year).

High Growth Earnings: 3333's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3333's revenue (12.3% per year) is forecast to grow faster than the Hong Kong market (10.5% per year).

High Growth Revenue: 3333's revenue (12.3% 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 high in 3 years time (27%)


Next Steps

Past Performance

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

27.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3333 has high quality earnings.

Growing Profit Margin: 3333's current net profit margins (5.5%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: 3333's earnings have grown significantly by 27% per year over the past 5 years.

Accelerating Growth: 3333's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3333 had negative earnings growth (-40.8%) over the past year, making it difficult to compare to the Real Estate industry average (-9.7%).


Return on Equity

High ROE: 3333's Return on Equity (11.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Evergrande Group's financial position?


Financial Position Analysis

Short Term Liabilities: 3333's short term assets (CN¥1,763.8B) exceed its short term liabilities (CN¥1,256.7B).

Long Term Liabilities: 3333's short term assets (CN¥1,763.8B) exceed its long term liabilities (CN¥496.6B).


Debt to Equity History and Analysis

Debt Level: 3333's debt to equity ratio (235.5%) is considered high.

Reducing Debt: 3333's debt to equity ratio has increased from 154.9% to 235.5% over the past 5 years.

Debt Coverage: 3333's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 3333's interest payments on its debt are well covered by EBIT (13.3x coverage).


Balance Sheet

Inventory Level: 3333 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3333's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

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

9.49%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.4%industryaverage4.3%forecastin3Years9.5%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 3333's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 3333's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 3333's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3333's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 3333 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3333's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

James Xia (55yo)

12.7yrs

Tenure

CN¥242,477,000

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: James's total compensation ($USD34.65M) is above average for companies of similar size in the Hong Kong market ($USD987.80K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Haijun Xia
Vice Chairman12.7yrsCN¥242.48mno data
Darong Pan
CFO, GM of Financial Planning Center & Executive Director3.5yrsCN¥16.97mno data
Xiangui Huang
Executive Director6yrsCN¥7.65mno data
Miaoling He
VP & Executive Director5.8yrsCN¥17.38mno data
Junping Shi
VP of the Real Estate Group & Executive Director2.8yrsCN¥11.81mno data
Ka Yan Hui
Chairman of the Board24.1yrsCN¥224.00k76.76% CN¥190.8b
Dongfeng Chen
Head of Information3.3yrsno datano data
Chen Fen
Investor relations Officer0yrsno datano data
En Xiao
President of Evergrande Automotive Group0.8yrsno datano data
Yujun Guo
Chief Planner Officer0yrsno datano data

3.4yrs

Average Tenure

48yo

Average Age

Experienced Management: 3333's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Haijun Xia
Vice Chairman12.7yrsCN¥242.48mno data
Darong Pan
CFO, GM of Financial Planning Center & Executive Director3.5yrsCN¥16.97mno data
Xiangui Huang
Executive Director6yrsCN¥7.65mno data
Miaoling He
VP & Executive Director5.8yrsCN¥17.38mno data
Junping Shi
VP of the Real Estate Group & Executive Director2.8yrsCN¥11.81mno data
Ka Yan Hui
Chairman of the Board24.1yrsCN¥224.00k76.76% CN¥190.8b
Shouming Shi
Chairman of Evergrande Health Industry Group2.1yrsno datano data
Jianjun Peng
Chairman of Powertrain Technology Group0yrsno datano data
Liyong Qin
Chairman of Grain and Oil Group0yrsno datano data
Yongzhuo Liu
Chairman of New Energy Technology Group0yrsno datano data

4.6yrs

Average Tenure

47yo

Average Age

Experienced Board: 3333's board of directors are considered experienced (4.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 3333 insiders have only sold shares 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$248.624b
  • Shares outstanding: 13.24b
  • Website: https://www.evergrande.com

Number of Employees


Location

  • China Evergrande Group
  • Excellent Houhai Financial Center
  • 35th Floor
  • Shenzhen
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3333SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2009
EGRN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2009
EV1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2009
3333SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2009
3333SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2009
EGRN.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDFeb 2014

Biography

China Evergrande Group, an investment holding company, engages in the property development, property investment, property management, hotel operations, finance, Internet, and health businesses in the People’s Republic of China. The company operates through four segments: Property Development, Property Investment, Property Management, and Other Businesses. It develops residential property projects, as well as office buildings, commercial properties, retail shop units, and carpark spaces; and offers property management, construction and decoration, and insurance services. The company also engages in the tourism; hospital and medical cosmetology; and hotel businesses. The company was formerly known as Evergrande Real Estate Group Limited and changed its name to China Evergrande Group in July 2016. China Evergrande Group was incorporated in 2006 and is based in Shenzhen, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 12:52
End of Day Share Price2020/02/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.