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

Solid track record established dividend payer.

Risks

  • Kowloon Development is not covered by any analysts.

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

-1.7%

34

-1.5%

HK Real Estate

-1.5%

HK Market


1 Year Return

8.7%

34

-6.5%

HK Real Estate

-7.5%

HK Market

34 outperformed the Real Estate industry which returned -6.5% over the past year.

34 outperformed the Market in Hong Kong which returned -7.5% over the past year.


Share holder returns

34IndustryMarket
7 Day-1.7%-1.5%-1.5%
30 Day-6.9%-1.4%2.1%
90 Day-10.9%-11.0%-5.5%
1 Year18.3%8.7%-2.5%-6.5%-4.1%-7.5%
3 Year49.3%18.4%29.9%16.2%14.2%2.6%
5 Year42.7%-0.9%53.9%27.9%16.5%-2.9%

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 based on future cash flows and its price relative to the stock market?

36%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Kowloon Development's share price is below the future cash flow value, and at a moderate discount (> 20%).

Kowloon Development's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Kowloon Development is good value based on earnings compared to the HK Real Estate industry average.

Kowloon Development is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Kowloon Development, we can't assess if its growth is good value.


Price Based on Value of Assets

Kowloon Development is good value based on assets compared to the HK Real Estate industry average.


Next Steps

Future Growth

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

3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Kowloon Development is high growth as no revenue estimate data is available.

Kowloon Development's earnings are expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).

Unable to compare Kowloon Development's revenue growth to the Hong Kong market average as no estimate data is available.

Kowloon Development's earnings growth is positive but not above the Hong Kong market average.

Kowloon Development's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Kowloon Development will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Kowloon Development has delivered over 20% year on year earnings growth in the past 5 years.

Kowloon Development's 1-year earnings growth exceeds its 5-year average (30.6% vs 24.7%)

Kowloon Development's earnings growth has exceeded the HK Real Estate industry average in the past year (30.6% vs -12.4%).


Return on Equity

Kowloon Development has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Kowloon Development used its assets more efficiently than the HK Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

Kowloon Development has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Kowloon Development's financial position?


Financial Position Analysis

Kowloon Development is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Kowloon Development's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Kowloon Development's level of debt (49.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (56.4% vs 49.2% today).

Debt is not well covered by operating cash flow (10%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 13.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.5x debt.


Next Steps

Dividend

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

8.04%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

Kowloon Development's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Kowloon Development's dividend is above the markets top 25% of dividend payers in Hong Kong (6.19%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

17.7yrs

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

17.7yrs

Average Tenure

66.5yo

Average Age

The average tenure for the Kowloon Development board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Dickson Lai (56yo)

    Executive Director

    • Tenure: 17.7yrs
    • Compensation: HK$9.39m
  • Sherman Lee (54yo)

    Company Secretary

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

    Chairman & CEO

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

    Executive Director

    • Tenure: 14yrs
    • 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: 9.7yrs
  • Yung Hei Lam (39yo)

    Executive Director

    • Tenure: 3.2yrs
    • Compensation: HK$1.40m

Board Members

  • Dickson Lai (56yo)

    Executive Director

    • Tenure: 17.7yrs
    • Compensation: HK$9.39m
  • Kwok Kwong Yeung (60yo)

    Non-Executive Director

    • Tenure: 17.7yrs
    • Compensation: HK$3.45m
  • John Seto (70yo)

    Independent Non-Executive Director

    • Tenure: 17.7yrs
    • Compensation: HK$270.00k
  • Aubrey Li (69yo)

    Independent Non-Executive Director

    • Tenure: 17.7yrs
    • Compensation: HK$270.00k
  • Johnny Or (67yo)

    Chairman & CEO

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

    Independent Non-Executive Director

    • Tenure: 17.7yrs
    • Compensation: HK$270.00k
  • Chi Ng (66yo)

    Non-Executive Director

    • Tenure: 17.7yrs
    • Compensation: HK$270.00k
  • Johnson Or (40yo)

    Executive Director

    • Tenure: 14yrs
    • 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: 3.2yrs
    • 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$10.860b
  • 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 Analysis2019/09/20 12:37
End of Day Share Price2019/09/20 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.