SEHK:3699

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Everbright Grand China Assets

Executive Summary

Everbright Grand China Assets Limited, an investment holding company, provides property leasing and management services primarily in Chengdu and Kunming, the People’s Republic of China. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Everbright Grand China Assets's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3699's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

3699

1.4%

HK Real Estate

1.5%

HK Market


1 Year Return

0%

3699

-5.7%

HK Real Estate

1.4%

HK Market

Return vs Industry: 3699 exceeded the Hong Kong Real Estate industry which returned -5.7% over the past year.

Return vs Market: 3699 matched the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

3699IndustryMarket
7 Day0%1.4%1.5%
30 Day-9.1%-2.8%-1.7%
90 Day-24.2%-2.4%3.6%
1 Year3.7%0%-0.8%-5.7%5.4%1.4%
3 Yearn/a-7.5%-21.7%-4.3%-14.6%
5 Yearn/a50.0%19.0%24.7%3.7%

Price Volatility Vs. Market

How volatile is Everbright Grand China Assets's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Everbright Grand China Assets 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: 3699 (HK$0.5) is trading below our estimate of fair value (HK$1.2)

Significantly Below Fair Value: 3699 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3699 is good value based on its PE Ratio (5.9x) compared to the HK Real Estate industry average (9.1x).

PE vs Market: 3699 is good value based on its PE Ratio (5.9x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3699's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3699 is good value based on its PB Ratio (0.2x) compared to the HK Real Estate industry average (0.4x).


Next Steps

Future Growth

How is Everbright Grand China Assets forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.7%

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 Everbright Grand China Assets 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 Everbright Grand China Assets performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3699 has a large one-off gain of CN¥29.7M impacting its June 30 2020 financial results.

Growing Profit Margin: 3699's current net profit margins (54.9%) are higher than last year (38.7%).


Past Earnings Growth Analysis

Earnings Trend: 3699's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: 3699's earnings growth over the past year (22.4%) exceeds its 5-year average (4.2% per year).

Earnings vs Industry: 3699 earnings growth over the past year (22.4%) exceeded the Real Estate industry -6.8%.


Return on Equity

High ROE: 3699's Return on Equity (3.5%) is considered low.


Next Steps

Financial Health

How is Everbright Grand China Assets's financial position?


Financial Position Analysis

Short Term Liabilities: 3699's short term assets (CN¥216.1M) exceed its short term liabilities (CN¥37.9M).

Long Term Liabilities: 3699's short term assets (CN¥216.1M) exceed its long term liabilities (CN¥196.6M).


Debt to Equity History and Analysis

Debt Level: 3699's debt to equity ratio (1.8%) is considered satisfactory.

Reducing Debt: 3699's debt to equity ratio has reduced from 18.7% to 1.8% over the past 5 years.

Debt Coverage: 3699's debt is well covered by operating cash flow (157.9%).

Interest Coverage: 3699 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Everbright Grand China Assets's current dividend yield, its reliability and sustainability?

4.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3699's dividend (4.65%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 3699's dividend (4.65%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.92%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 3699's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 3699's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.6%), 3699'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?

3.0yrs

Average board tenure


CEO

Jia Liu (55 yo)

no data

Tenure

CN¥2,056,000

Compensation

Mr. Jia Liu serves as Chief Executive Officer of Everbright Grand China Assets Limited and serves as its Chairman since June 07, 2017. Mr. Liu serves as a director and the chairman Growing China Limited (“ ...


CEO Compensation Analysis

Compensation vs Market: Jia's total compensation ($USD303.74K) is above average for companies of similar size in the Hong Kong market ($USD230.03K).

Compensation vs Earnings: Jia's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Jia Liu
Chairman & CEOno dataCN¥2.06mno data
Zimin Lin
GM & Executive Director9.83yrsCN¥1.40mno data
Jor Hung Lee
Independent Non-Executive Director2.67yrsCN¥197.00kno data
Lai Him Shek
Independent Non-Executive Director2.67yrsCN¥199.00kno data
Hang Mui Tse
Non-Executive Director3.25yrsno datano data
Yinzhong Li
Non-Executive Director3.25yrsno datano data
Tsoi David
Independent Non-Executive Director2.67yrsCN¥198.00kno data
Wah Ling Yu
Independent Non-Executive Director2.67yrsCN¥195.00kno data

3.0yrs

Average Tenure

63yo

Average Age

Experienced Board: 3699's board of directors are not considered experienced ( 3 years average tenure), which suggests a new board.


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

Everbright Grand China Assets Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Everbright Grand China Assets Limited
  • Ticker: 3699
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$220.700m
  • Shares outstanding: 441.40m
  • Website: https://www.ebgca.com.hk

Number of Employees


Location

  • Everbright Grand China Assets Limited
  • Bank of East Asia Harbour View Centre
  • Room 1302
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3699SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2018

Biography

Everbright Grand China Assets Limited, an investment holding company, provides property leasing and management services primarily in Chengdu and Kunming, the People’s Republic of China. Its property portfo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 19:25
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
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.