SEHK:3699

Stock Analysis Report

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.

Rewards

PE ratio (8x) is below the Hong Kong market (10.2x)

Risk Analysis

Large one-off items impacting financial results

Profit margins (38.6%) are lower than last year (67.6%)

Shareholders have been diluted in the past year

Does not have a meaningful market cap (HK$238M)



Snowflake Analysis

Excellent balance sheet and slightly overvalued.


Similar Companies

Sun Hung Kai Properties

SEHK:16

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

12.8%

3699

3.1%

HK Real Estate

2.2%

HK Market


1 Year Return

-23.2%

3699

3.6%

HK Real Estate

-0.8%

HK Market

Return vs Industry: 3699 underperformed the Hong Kong Real Estate industry which returned 3.6% over the past year.

Return vs Market: 3699 underperformed the Hong Kong Market which returned -0.8% over the past year.


Shareholder returns

3699IndustryMarket
7 Day12.8%3.1%2.2%
30 Day3.9%2.5%-0.6%
90 Day7.1%4.5%-0.9%
1 Year-23.2%-23.2%7.5%3.6%2.8%-0.8%
3 Yearn/a52.9%37.0%19.5%7.4%
5 Yearn/a71.8%43.6%20.7%0.5%

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?

7.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3699 (HK$0.53) is trading above our estimate of fair value (HK$0.51)

Significantly Below Fair Value: 3699 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3699 is poor value based on its PE Ratio (8x) compared to the Real Estate industry average (6.6x).

PE vs Market: 3699 is good value based on its PE Ratio (8x) compared to the Hong Kong market (10.2x).


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 (0.5x).


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?

7.5%

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 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?

2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3699 has a large one-off gain of CN¥16.3M impacting its June 30 2019 financial results.

Growing Profit Margin: 3699's current net profit margins (38.6%) are lower than last year (67.6%).


Past Earnings Growth Analysis

Earnings Trend: 3699's earnings have grown by 2.4% per year over the past 5 years.

Accelerating Growth: 3699's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3699 had negative earnings growth (-39.9%) over the past year, making it difficult to compare to the Real Estate industry average (-11.5%).


Return on Equity

High ROE: 3699's Return on Equity (2.9%) is considered low.


Return on Assets


Return on Capital Employed


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¥207.2M) exceed its short term liabilities (CN¥29.7M).

Long Term Liabilities: 3699's short term assets (CN¥207.2M) exceed its long term liabilities (CN¥195.1M).


Debt to Equity History and Analysis

Debt Level: 3699's debt to equity ratio (2.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 3699's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 3699's debt is well covered by operating cash flow (89.4%).

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


Balance Sheet

Inventory Level: 3699 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3699's debt is covered by short term assets (assets are 8.8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.2%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 3699's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 3699's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 3699's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3699's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3699's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Everbright Grand China Assets's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average board tenure


CEO

Jia Liu (54yo)

0yrs

Tenure

0

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 (“ ...


Board Age and Tenure

2.2yrs

Average Tenure

62yo

Average Age

Experienced Board: 3699's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 15.7%.


Management Team

  • Wendy Ho (49yo)

    Joint Company Secretary

    • Tenure: 0yrs
  • Jia Liu (54yo)

    Chairman & CEO

    • Tenure: 0yrs
  • Zimin Lin (60yo)

    Executive Director & GM

    • Tenure: 9.1yrs
  • Wai Lee (43yo)

    Assistant GM & Joint Company Secretary

    • Tenure: 2.5yrs

Board Members

  • Dannis Lee (64yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
  • Jia Liu (54yo)

    Chairman & CEO

    • Tenure: 0yrs
  • Zimin Lin (60yo)

    Executive Director & GM

    • Tenure: 9.1yrs
  • Hang Tse (60yo)

    Non-Executive Director

    • Tenure: 2.5yrs
  • Yinzhong Li (54yo)

    Non-Executive Director

    • Tenure: 2.5yrs
  • Tsoi David (71yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
  • Abraham Shek (73yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
  • Pauline Yu (71yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs

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$238.356m
  • 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
  • Hong Kong
  • 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 Analysis2019/12/12 13:03
End of Day Share Price2019/12/12 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.