SEHK:34

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Kowloon Development

Executive Summary

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


Snowflake Analysis

Excellent balance sheet established dividend payer.


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

Stable Share Price: 34 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.1%

34

1.3%

HK Real Estate

2.5%

HK Market


1 Year Return

-13.3%

34

-4.7%

HK Real Estate

6.1%

HK Market

Return vs Industry: 34 underperformed the Hong Kong Real Estate industry which returned -4.7% over the past year.

Return vs Market: 34 underperformed the Hong Kong Market which returned 6.1% over the past year.


Shareholder returns

34IndustryMarket
7 Day-0.1%1.3%2.5%
30 Day-4.1%-5.9%-0.6%
90 Day-8.9%1.6%9.1%
1 Year-5.5%-13.3%0.4%-4.7%10.5%6.1%
3 Year25.4%-1.9%8.2%-4.9%2.8%-8.2%
5 Year23.2%-16.8%43.7%18.0%14.1%-5.0%

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$8.24) is trading below our estimate of fair value (HK$172.51)

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 (4x) compared to the HK Real Estate industry average (6.9x).

PE vs Market: 34 is good value based on its PE Ratio (4x) compared to the Hong Kong market (10.4x).


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's PB Ratio (0.4x) is in line with the HK Real Estate industry average.


Next Steps

Future Growth

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

12.5%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Kowloon Development has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Kowloon Development performed over the past 5 years?

23.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 34 has high quality earnings.

Growing Profit Margin: 34's current net profit margins (21.1%) are lower than last year (77.2%).


Past Earnings Growth Analysis

Earnings Trend: 34's earnings have grown significantly by 23.3% per year over the past 5 years.

Accelerating Growth: 34's earnings growth over the past year (11.7%) is below its 5-year average (23.3% per year).

Earnings vs Industry: 34 earnings growth over the past year (11.7%) exceeded the Real Estate industry 4.5%.


Return on Equity

High ROE: 34's Return on Equity (8.5%) is considered low.


Next Steps

Financial Health

How is Kowloon Development's financial position?


Financial Position Analysis

Short Term Liabilities: 34's short term assets (HK$21.6B) exceed its short term liabilities (HK$6.8B).

Long Term Liabilities: 34's short term assets (HK$21.6B) exceed its long term liabilities (HK$14.0B).


Debt to Equity History and Analysis

Debt Level: 34's debt to equity ratio (47.8%) is considered high.

Reducing Debt: 34's debt to equity ratio has reduced from 56.4% to 47.8% over the past 5 years.

Debt Coverage: 34's debt is well covered by operating cash flow (36.2%).

Interest Coverage: 34's interest payments on its debt are well covered by EBIT (12.1x coverage).


Balance Sheet


Next Steps

Dividend

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

9.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 34's dividend (9.47%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 34's dividend (9.47%) is in the top 25% of dividend payers in the Hong Kong market (6.86%)


Stability and Growth of Payments

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 (37.5%), 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

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

18.6yrs

Average board tenure


CEO

Johnny Or (68 yo)

no data

Tenure

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 Members

NamePositionTenureCompensationOwnership
Wai Sheun Or
Chairman & CEOno datano data70.63%
HK$ 6.9b
Ka Fai Lai
Executive Director18.58yrsHK$3.40m0.064%
HK$ 6.2m
Pui Kwan Or
Executive Director14.92yrsHK$1.43m0.0037%
HK$ 359.6k
Yung Hei Lam
Executive Director4.08yrsHK$1.59mno data
Kwok Kwong Yeung
Non-Executive Director18.58yrsHK$3.58m0.015%
HK$ 1.5m
Gin Chung Seto
Independent Non-Executive Director18.58yrsHK$280.00kno data
Kwok-Sing Li
Independent Non-Executive Director18.58yrsHK$280.00kno data
Kung Chin Lok
Independent Non-Executive Director18.58yrsHK$280.00k0.12%
HK$ 11.8m
Chi Man Ng
Non-Executive Director18.58yrsHK$280.00kno data
David John Shaw
Independent Non-Executive Director13.17yrsHK$280.00k0.017%
HK$ 1.7m

18.6yrs

Average Tenure

67.5yo

Average Age

Experienced Board: 34's board of directors are seasoned and experienced ( 18.6 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$9.719b
  • Shares outstanding: 1.18b
  • Website: https://www.kdc.com.hk

Number of Employees


Location

  • Kowloon Development Company Limited
  • Pioneer Centre
  • 23rd Floor
  • Mong Kok
  • 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 Analysis2020/08/07 12:50
End of Day Share Price2020/08/07 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.