Aoyuan Healthy Life Group (SEHK:3662) - Share price, News & Analysis

3662 fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	6/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

3662 Stock Overview

Aoyuan Healthy Life Group Company Limited, through its subsidiaries, provides property management and commercial operational services in the People's Republic of China.

Rewards

Trading at 92.4% below our estimate of its fair value

Earnings are forecast to grow 33.36% per year

Earnings grew by 72.8% over the past year

Risk Analysis

Shares are highly illiquid

Unstable dividend track record

Latest financial reports are more than 6 months old

Aoyuan Healthy Life Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Aoyuan Healthy Life Group
Historical stock prices
Current Share Price	HK$1.86
52 Week High	HK$6.13
52 Week Low	HK$1.54
Beta	0.26
1 Month Change	0%
3 Month Change	5.09%
1 Year Change	-69.05%
3 Year Change	-58.67%
5 Year Change	n/a
Change since IPO	-58.20%

Shareholder Returns

	3662	HK Real Estate	HK Market
7D	0%	4.3%	2.1%
1Y	-69.1%	-34.5%	-23.3%

Return vs Industry: 3662 underperformed the Hong Kong Real Estate industry which returned -34.5% over the past year.

Return vs Market: 3662 underperformed the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 3662's price volatile compared to industry and market?
3662 volatility
3662 Average Weekly Movement	n/a
Real Estate Industry Average Movement	6.3%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: Insufficient data to determine 3662's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine 3662's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
2000	4,267	Wei Zheng	https://www.aoyuanjksh.com

Aoyuan Healthy Life Group Company Limited, through its subsidiaries, provides property management and commercial operational services in the People's Republic of China. The company offers property management services for high-end residence communities, commercial complexes, apartments, office buildings, villas, tourist towns, etc.; sales assistance services to property developers comprising cleaning, greening, security, and repair and maintenance services; and other value added services to property owners or tenants. As of December 31, 2020, the company provided property management services to 346 properties in 63 cities covering 19 provinces, municipalities, and autonomous regions in China involving a total gross floor area of approximately 41.4 million square meters.

Aoyuan Healthy Life Group Fundamentals Summary

How do Aoyuan Healthy Life Group's earnings and revenue compare to its market cap?
3662 fundamental statistics
Market Cap	CN¥1.15b
Earnings (TTM)	CN¥317.18m
Revenue (TTM)	CN¥1.86b

3.6x

P/E Ratio

0.6x

P/S Ratio

Is 3662 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
3662 income statement (TTM)
Revenue	CN¥1.86b
Cost of Revenue	CN¥1.26b
Gross Profit	CN¥607.78m
Other Expenses	CN¥290.60m
Earnings	CN¥317.18m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.44
Gross Margin	32.62%
Net Profit Margin	17.02%
Debt/Equity Ratio	43.3%

How did 3662 perform over the long term?

See historical performance and comparison

Dividends

8.8%

Current Dividend Yield

32%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 3662 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3662?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 3662. This is calculated by dividing 3662's market cap by their current preferred multiple.
What is 3662's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥1.15b

3662 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.08x
Enterprise Value/EBITDA	0.4x
PEG Ratio	0.1x

Price to Earnings Ratio vs Peers

How does 3662's PE Ratio compare to its peers?

3662 PE Ratio vs Peers

The above table shows the PE ratio for 3662 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	7.5x

Forward PE

Price-To-Earnings vs Peers: 3662 is good value based on its Price-To-Earnings Ratio (3.6x) compared to the peer average (7.5x).

Price to Earnings Ratio vs Industry

How does 3662's PE Ratio compare vs other companies in the Hong Kong Real Estate Industry?

Price-To-Earnings vs Industry: 3662 is good value based on its Price-To-Earnings Ratio (3.6x) compared to the Hong Kong Real Estate industry average (6.5x)

Price to Earnings Ratio vs Fair Ratio

What is 3662's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3662 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3.6x
Fair PE Ratio	6.1x

Price-To-Earnings vs Fair Ratio: 3662 is good value based on its Price-To-Earnings Ratio (3.6x) compared to the estimated Fair Price-To-Earnings Ratio (6.1x).

Share Price vs Fair Value

What is the Fair Price of 3662 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3662 (HK$1.86) is trading below our estimate of fair value (HK$24.43)

Significantly Below Fair Value: 3662 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 3662 is good value based on its PEG Ratio (0.1x)

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Future Growth

How is Aoyuan Healthy Life Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

6/6

Future Growth Score 6/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

33.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3662's forecast earnings growth (33.4% per year) is above the savings rate (1.5%).

Earnings vs Market: 3662's earnings (33.4% per year) are forecast to grow faster than the Hong Kong market (17% per year).

High Growth Earnings: 3662's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 3662's revenue (30.1% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 3662's revenue (30.1% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 3662's Return on Equity is forecast to be high in 3 years time (35.9%)

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Past Performance

How has Aoyuan Healthy Life Group performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

39.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3662 has high quality earnings.

Growing Profit Margin: 3662's current net profit margins (17%) are lower than last year (17.4%).

Past Earnings Growth Analysis

Earnings Trend: 3662's earnings have grown significantly by 39.3% per year over the past 5 years.

Accelerating Growth: 3662's earnings growth over the past year (72.8%) exceeds its 5-year average (39.3% per year).

Earnings vs Industry: 3662 earnings growth over the past year (72.8%) exceeded the Real Estate industry 13.4%.

Return on Equity

High ROE: 3662's Return on Equity (28.5%) is considered high.

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Financial Health

How is Aoyuan Healthy Life Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 3662's short term assets (CN¥2.0B) exceed its short term liabilities (CN¥1.3B).

Long Term Liabilities: 3662's short term assets (CN¥2.0B) exceed its long term liabilities (CN¥209.8M).

Debt to Equity History and Analysis

Debt Level: 3662 has more cash than its total debt.

Reducing Debt: 3662's debt to equity ratio has reduced from 81.4% to 43.3% over the past 5 years.

Debt Coverage: 3662's debt is well covered by operating cash flow (115.7%).

Interest Coverage: 3662's interest payments on its debt are well covered by EBIT (19.1x coverage).

Balance Sheet

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Dividend

What is Aoyuan Healthy Life Group current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

8.83%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 3662's dividend (8.83%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 3662's dividend (8.83%) is in the top 25% of dividend payers in the Hong Kong market (7.89%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 3662 has been paying a dividend for less than 10 years.

Growing Dividend: 3662's dividend payments have increased, but the company has only paid a dividend for 3 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (32.1%), 3662's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Insufficient data to calculate cash payout ratio to determine if its dividend payments are covered by cash flows.

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Management

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

1.8yrs

Average management tenure

CEO

Wei Zheng (43 yo)

1.42yrs

Tenure

Mr. Wei Zheng serves as Non-Executive Vice Chairman of the Board at Wanka Online Inc. He also served as Executive Vice Chairman of the Board at Wanka Online Inc. since July 2021. He serves as President at...

Leadership Team

Experienced Management: 3662's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: 3662's board of directors are considered experienced (3.3 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.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/03/31 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31