SEHK:34

Stock Analysis Report

Kowloon Development

Executive Summary

Kowloon Development Company Limited, an investment holding company, engages in the investment, development, and management of properties.

Snowflake

Fundamentals

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Kowloon Development's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.0%

34

2.1%

HK Real Estate

0.9%

HK Market


1 Year Return

22.1%

34

10.5%

HK Real Estate

0.6%

HK Market

Return vs Industry: 34 exceeded the Hong Kong Real Estate industry which returned 10.5% over the past year.

Return vs Market: 34 exceeded the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

34IndustryMarket
7 Day6.0%2.1%0.9%
30 Day7.5%2.9%0.5%
90 Day-6.2%-8.3%-4.3%
1 Year32.8%22.1%14.8%10.5%4.2%0.6%
3 Year59.3%26.3%39.9%25.3%15.6%4.0%
5 Year56.5%8.7%63.9%35.7%20.0%-0.08%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Kowloon Development 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: 34 (HK$9.89) is trading below our estimate of fair value (HK$146.66)

Significantly Below Fair Value: 34 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 34 is good value based on its PE Ratio (3.9x) compared to the Real Estate industry average (6.2x).

PE vs Market: 34 is good value based on its PE Ratio (3.9x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 34's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 34 is good value based on its PB Ratio (0.4x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

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

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 34's forecast earnings growth (3.7% per year) is above the savings rate (2%).

Earnings vs Market: 34's earnings (3.7% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 34's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 34's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 34's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 34's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Kowloon Development performed over the past 5 years?

24.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 34's earnings have grown significantly by 24.7% per year over the past 5 years.

Accelerating Growth: 34's earnings growth over the past year (30.6%) exceeds its 5-year average (24.7% per year).

Earnings vs Industry: 34 earnings growth over the past year (30.6%) exceeded the Real Estate industry -12.4%.


Return on Equity

High ROE: 34's Return on Equity (11.2%) is considered low.


Return on Assets

ROA vs Industry: 34 has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 34 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Kowloon Development's financial position?


Financial Position Analysis

Short Term Liabilities: 34's short term assets (HK$22.3B) exceeds its short term liabilities (HK$10.2B)

Long Term Liabilities: 34's short term assets (22.3B) exceeds its long term liabilities (12.4B)


Debt to Equity History and Analysis

Debt Level: 34's debt to equity ratio (49.2%) is considered high

Reducing Debt: 34's debt to equity ratio has reduced from 56.4% to 49.2% over the past 5 years.

Debt Coverage: 34's debt is well covered by operating cash flow (32.6%).

Interest Coverage: 34's interest payments on its debt are well covered by EBIT (13.9x coverage).


Balance Sheet

Inventory Level: 34 has a high level of physical assets or inventory.

Debt Coverage by Assets: 34's debt is covered by short term assets (assets are 1.454520x debt).


Next Steps

Dividend

What is Kowloon Development's current dividend yield, its reliability and sustainability?

7.48%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Kowloon Development before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company7.5%marketbottom25%2.3%markettop25%6.3%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 34's dividend (7.48%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 34's dividend (7.48%) is in the top 25% of dividend payers in the Hong Kong market (6.25%)

Stable Dividend: 34's dividends per share have been stable in the past 10 years.

Growing Dividend: 34's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.2%), 34's dividend payments are well 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

What is the CEO of Kowloon Development's salary, the management and board of directors tenure and is there insider trading?

17.8yrs

Average board tenure


CEO

Johnny Or (67yo)

0yrs

Tenure

0

Mr. Wai Sheun Or serves as the Head of corporate strategies & planning of Kowloon Development Co., Ltd. Mr. Or is responsible for the development of corporate strategies, corporate planning and general man ...


Board Age and Tenure

17.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: 34's board of directors are seasoned and experienced ( 17.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Dickson Lai (56yo)

    Executive Director

    • Tenure: 17.8yrs
    • Compensation: HK$3.26m
  • Sherman Lee (54yo)

    Company Secretary

    • Tenure: 0yrs
  • Johnny Or (67yo)

    Chairman & CEO

    • Tenure: 0yrs
  • Johnson Or (40yo)

    Executive Director

    • Tenure: 14.1yrs
    • Compensation: HK$1.23m
  • Grace Cheung (46yo)

    General Manager of Land & Business Development

    • Tenure: 0yrs
  • Wai Lee Chu (69yo)

    Director of Human Resources & Administration

    • Tenure: 9.8yrs
  • Yung Hei Lam (39yo)

    Executive Director

    • Tenure: 3.3yrs
    • Compensation: HK$1.40m

Board Members

  • Dickson Lai (56yo)

    Executive Director

    • Tenure: 17.8yrs
    • Compensation: HK$3.26m
  • Kwok Kwong Yeung (60yo)

    Non-Executive Director

    • Tenure: 17.8yrs
    • Compensation: HK$3.45m
  • John Seto (70yo)

    Independent Non-Executive Director

    • Tenure: 17.8yrs
    • Compensation: HK$270.00k
  • Aubrey Li (69yo)

    Independent Non-Executive Director

    • Tenure: 17.8yrs
    • Compensation: HK$270.00k
  • Johnny Or (67yo)

    Chairman & CEO

    • Tenure: 0yrs
  • Hardy Lok (69yo)

    Independent Non-Executive Director

    • Tenure: 17.8yrs
    • Compensation: HK$270.00k
  • Chi Ng (66yo)

    Non-Executive Director

    • Tenure: 17.8yrs
    • Compensation: HK$270.00k
  • Johnson Or (40yo)

    Executive Director

    • Tenure: 14.1yrs
    • Compensation: HK$1.23m
  • David John Shaw (73yo)

    Independent Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: HK$270.00k
  • Yung Hei Lam (39yo)

    Executive Director

    • Tenure: 3.3yrs
    • Compensation: HK$1.40m

Company Information

Kowloon Development Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kowloon Development Company Limited
  • Ticker: 34
  • Exchange: SEHK
  • Founded: 1961
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$11.213b
  • Shares outstanding: 1.18b
  • Website: https://www.kdc.com.hk

Number of Employees


Location

  • Kowloon Development Company Limited
  • Pioneer Centre
  • 23rd Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
34SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 1995
KOXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1995

Biography

Kowloon Development Company Limited, an investment holding company, engages in the investment, development, and management of properties. It operates through Property Development, Property Investment, Oil, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:34
End of Day Share Price2019/10/21 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.