SEHK:3900

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Greentown China Holdings

Executive Summary

Greentown China Holdings Limited, an investment holding company, engages in the property development and related business in China. More Details


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Greentown China Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3900 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 3900's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-3.7%

3900

0.4%

HK Real Estate

2.2%

HK Market


1 Year Return

-0.5%

3900

-18.2%

HK Real Estate

7.5%

HK Market

Return vs Industry: 3900 exceeded the Hong Kong Real Estate industry which returned -18.2% over the past year.

Return vs Market: 3900 underperformed the Hong Kong Market which returned 7.5% over the past year.


Shareholder returns

3900IndustryMarket
7 Day-3.7%0.4%2.2%
30 Day-8.3%2.7%9.4%
90 Day-20.4%0.3%15.8%
1 Year3.5%-0.5%-14.1%-18.2%11.8%7.5%
3 Year-3.2%-13.4%-15.2%-26.1%-3.5%-13.6%
5 Year115.9%90.0%65.9%31.2%65.0%37.0%

Long-Term Price Volatility Vs. Market

How volatile is Greentown China Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Greentown China 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: 3900 (HK$10.98) is trading below our estimate of fair value (HK$449.07)

Significantly Below Fair Value: 3900 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3900 is poor value based on its PE Ratio (17.1x) compared to the HK Real Estate industry average (8.2x).

PE vs Market: 3900 is poor value based on its PE Ratio (17.1x) compared to the Hong Kong market (11.5x).


Price to Earnings Growth Ratio

PEG Ratio: 3900 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 3900's PB Ratio (0.4x) is in line with the HK Real Estate industry average.


Next Steps

Future Growth

How is Greentown China Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

20.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3900's forecast earnings growth (20.9% per year) is above the savings rate (1.5%).

Earnings vs Market: 3900's earnings (20.9% per year) are forecast to grow slower than the Hong Kong market (21% per year).

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

Revenue vs Market: 3900's revenue (16.8% per year) is forecast to grow faster than the Hong Kong market (14.1% per year).

High Growth Revenue: 3900's revenue (16.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3900's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has Greentown China Holdings performed over the past 5 years?

-5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3900 has high quality earnings.

Growing Profit Margin: 3900 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 3900's earnings have declined by 5.4% per year over the past 5 years.

Accelerating Growth: 3900 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 3900 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Real Estate industry (5.9%).


Return on Equity

High ROE: 3900's Return on Equity (5.4%) is considered low.


Next Steps

  • Explore strong past performing companies in the Real Estate industry.

Financial Health

How is Greentown China Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3900's short term assets (CN¥337.2B) exceed its short term liabilities (CN¥219.6B).

Long Term Liabilities: 3900's short term assets (CN¥337.2B) exceed its long term liabilities (CN¥81.9B).


Debt to Equity History and Analysis

Debt Level: 3900's debt to equity ratio (150.9%) is considered high.

Reducing Debt: 3900's debt to equity ratio has increased from 110.8% to 150.9% over the past 5 years.

Debt Coverage: 3900's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 3900 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Greentown China Holdings's current dividend yield, its reliability and sustainability?

3.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3900's dividend (3.27%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.13%).

High Dividend: 3900's dividend (3.27%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.66%).


Stability and Growth of Payments

Stable Dividend: 3900's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3900's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.9%), 3900's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3900's dividends in 3 years are forecast to be well covered by earnings (24.1% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Jiafeng Guo (55 yo)

0.083

Tenure

CN¥2,660,000

Compensation

Mr. Jiafeng Guo serves as Executive Director of Greentown China Holdings Limited since July 11, 2019 and serves as Chief Executive Officer since December 17, 2020 and served as Executive President since Ju...


CEO Compensation Analysis

Compensation vs Market: Jiafeng's total compensation ($USD410.51K) is below average for companies of similar size in the Hong Kong market ($USD697.58K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yadong Zhang
Executive Chairman1.5yrsCN¥19.30mno data
Jiafeng Guo
CEO & Director0.083yrCN¥2.66mno data
Wensheng Liu
Executive Director5.58yrsCN¥16.52mno data
Jun Li
Executive Director2.75yrsCN¥7.83mno data
Lianying Zhou
Executive Director1.5yrsCN¥1.96mno data
Zhongqiang Geng
Executive Director1.5yrsCN¥1.96mno data
Sen Li
Executive President1yrno datano data
Sherry Xu
Head, Investor Relationsno datano datano data
Ping Du
VP & Chairman of the Board of Greentown Ideal Life5.83yrsno datano data
Jiliang Zhang
Vice Presidentno datano datano data
Ying Xu
Joint Company Secretary0.83yrno datano data
Sau Mei Ng
Joint Company Secretary0.83yrno datano data

0.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: 3900's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yadong Zhang
Executive Chairman1.5yrsCN¥19.30mno data
Jiafeng Guo
CEO & Director0.083yrCN¥2.66mno data
Wensheng Liu
Executive Director5.58yrsCN¥16.52mno data
Jun Li
Executive Director2.75yrsCN¥7.83mno data
Lianying Zhou
Executive Director1.5yrsCN¥1.96mno data
Zhongqiang Geng
Executive Director1.5yrsCN¥1.96mno data
Tin Hoi Ng
Non-Executive Director8.58yrsCN¥152.00kno data
On Kiu Chow
Alternate Director1.5yrsno data0.020%
CN¥ 5.5m
Shenghua Jia
Independent Non-Executive Director14.58yrsCN¥320.00kno data
Dong Qiu
Independent Non-Executive Director0.75yrno datano data
Wan Fai Hui
Independent Non-Executive Director8.75yrsCN¥320.00kno data
Yiwen Wu
Non-Executive Director0.58yrno datano data

1.5yrs

Average Tenure

55yo

Average Age

Experienced Board: 3900's board of directors are not considered experienced ( 1.5 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.9%.


Top Shareholders

Company Information

Greentown China Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Greentown China Holdings Limited
  • Ticker: 3900
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$27.305b
  • Shares outstanding: 2.49b
  • Website: https://www.chinagreentown.com

Number of Employees


Location

  • Greentown China Holdings Limited
  • Century Plaza
  • 10th Floor
  • Hangzhou
  • Zhejiang Province
  • 310007
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3900SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2006
G7CDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2006
GTWC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2006
3900SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2006
3900SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2006

Biography

Greentown China Holdings Limited, an investment holding company, engages in the property development and related business in China. It operates through Property Development, Hotel Operations, Property Inve...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 10:20
End of Day Share Price2021/01/15 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.