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3616

Ever Reach Group (Holdings)SEHK:3616 Stock Report

Market Cap

HK$1.2b

7D

-3.7%

1Y

4.0%

Updated

27 Nov, 2021

Data

Company Financials
3616 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends2/6

3616 Stock Overview

Ever Reach Group (Holdings) Company Limited, an investment holding company, engages in the property development and investment activities in the People’s Republic of China.

Price History & Performance

Summary of all time highs, changes and price drops for Ever Reach Group (Holdings)
Historical stock prices
Current Share PriceHK$1.04
52 Week HighHK$1.73
52 Week LowHK$0.98
Beta0.25
1 Month Change-9.57%
3 Month Change-36.97%
1 Year Change4.00%
3 Year Change22.35%
5 Year Changen/a
Change since IPO-7.97%

Recent News & Updates

Shareholder Returns

3616HK Real EstateHK Market
7D-3.7%-3.1%-2.7%
1Y4.0%-20.3%-6.3%

Return vs Industry: 3616 exceeded the Hong Kong Real Estate industry which returned -20.3% over the past year.

Return vs Market: 3616 exceeded the Hong Kong Market which returned -6.3% over the past year.

Price Volatility

Is 3616's price volatile compared to industry and market?
3616 volatility
3616 Average Weekly Movement5.0%
Real Estate Industry Average Movement5.7%
Market Average Movement6.9%
10% most volatile stocks in HK Market13.4%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 3616 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 3616's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1992764Zhenfeng Wanghttps://www.everreachgroup.com

Ever Reach Group (Holdings) Company Limited, an investment holding company, engages in the property development and investment activities in the People’s Republic of China. The company develops and sells residential and commercial properties, car parking spaces, and storage facilities. It also provides trading and house rental services; and real estate brokerage, rental agency, and information consultation services.

Ever Reach Group (Holdings) Fundamentals Summary

How do Ever Reach Group (Holdings)'s earnings and revenue compare to its market cap?
3616 fundamental statistics
Market CapCN¥1.02b
Earnings (TTM)CN¥299.85m
Revenue (TTM)CN¥2.65b

3.4x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3616 income statement (TTM)
RevenueCN¥2.65b
Cost of RevenueCN¥1.78b
Gross ProfitCN¥875.09m
ExpensesCN¥575.24m
EarningsCN¥299.85m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.25
Gross Margin32.98%
Net Profit Margin11.30%
Debt/Equity Ratio50.6%

How did 3616 perform over the long term?

See historical performance and comparison

Dividends

5.8%

Current Dividend Yield

20%

Payout Ratio

Valuation

Is Ever Reach Group (Holdings) 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: 3616 (HK$1.04) is trading below our estimate of fair value (HK$76.14)

Significantly Below Fair Value: 3616 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3616 is good value based on its PE Ratio (3.4x) compared to the Hong Kong Real Estate industry average (7x).

PE vs Market: 3616 is good value based on its PE Ratio (3.4x) compared to the Hong Kong market (9.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3616's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3616 is overvalued based on its PB Ratio (0.7x) compared to the HK Real Estate industry average (0.4x).


Future Growth

How is Ever Reach Group (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.6%

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 Ever Reach Group (Holdings) 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.


Past Performance

How has Ever Reach Group (Holdings) performed over the past 5 years?

20.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3616 has high quality earnings.

Growing Profit Margin: 3616's current net profit margins (11.3%) are lower than last year (14.2%).


Past Earnings Growth Analysis

Earnings Trend: 3616's earnings have grown significantly by 20.4% per year over the past 5 years.

Accelerating Growth: 3616's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3616 had negative earnings growth (-0.6%) over the past year, making it difficult to compare to the Real Estate industry average (23.6%).


Return on Equity

High ROE: 3616's Return on Equity (19.5%) is considered low.


Financial Health

How is Ever Reach Group (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: 3616's short term assets (CN¥9.5B) exceed its short term liabilities (CN¥7.9B).

Long Term Liabilities: 3616's short term assets (CN¥9.5B) exceed its long term liabilities (CN¥435.4M).


Debt to Equity History and Analysis

Debt Level: 3616's net debt to equity ratio (34.8%) is considered satisfactory.

Reducing Debt: 3616's debt to equity ratio has reduced from 721.8% to 50.6% over the past 5 years.

Debt Coverage: 3616's debt is well covered by operating cash flow (173.2%).

Interest Coverage: 3616's interest payments on its debt are well covered by EBIT (61.3x coverage).


Balance Sheet


Dividend

What is Ever Reach Group (Holdings) current dividend yield, its reliability and sustainability?

5.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3616's dividend (5.77%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.32%).

High Dividend: 3616's dividend (5.77%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.06%).


Stability and Growth of Payments

Stable Dividend: 3616 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 3616 has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20%), 3616'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?

4.5yrs

Average management tenure


CEO

Zhenfeng Wang (52 yo)

4.5yrs

Tenure

CN¥1,127,000

Compensation

Mr. Wang Zhenfeng serves as the Chief Executive Officer of Ever Reach Group (Holdings) Company Limited and has been its Executive Director since May 19, 2017. Mr. Wang joined Ever Reach Group in May 2002 s...


CEO Compensation Analysis

Compensation vs Market: Zhenfeng's total compensation ($USD176.47K) is below average for companies of similar size in the Hong Kong market ($USD286.39K).

Compensation vs Earnings: Zhenfeng's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: 3616's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: 3616's board of directors are considered experienced (3.8 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

Ever Reach Group (Holdings) Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Ever Reach Group (Holdings) Company Limited
  • Ticker: 3616
  • Exchange: SEHK
  • Founded: 1992
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$1.248b
  • Shares outstanding: 1.20b
  • Website: https://www.everreachgroup.com

Number of Employees


Location

  • Ever Reach Group (Holdings) Company Limited
  • 266 Bayi Road
  • Weidu District
  • Xuchang
  • Henan Province
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/27 10:06
End of Day Share Price2021/11/26 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.