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3990

Midea Real Estate Holding SEHK:3990 Stock Report

Last Price

HK$12.32

Market Cap

HK$15.3b

7D

4.9%

1Y

-25.6%

Updated

26 Jun, 2022

Data

Company Financials +
3990 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance2/6
Financial Health4/6
Dividends4/6

3990 Stock Overview

Midea Real Estate Holding Limited, an investment holding company, operates as a property developer in the People’s Republic of China.

Midea Real Estate Holding Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Midea Real Estate Holding
Historical stock prices
Current Share PriceHK$12.32
52 Week HighHK$17.10
52 Week LowHK$10.00
Beta0.54
1 Month Change-15.38%
3 Month Change-21.93%
1 Year Change-25.60%
3 Year Change-38.40%
5 Year Changen/a
Change since IPO-22.42%

Recent News & Updates

Shareholder Returns

3990HK Real EstateHK Market
7D4.9%4.3%2.1%
1Y-25.6%-34.5%-23.3%

Return vs Industry: 3990 exceeded the Hong Kong Real Estate industry which returned -34.5% over the past year.

Return vs Market: 3990 underperformed the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 3990's price volatile compared to industry and market?
3990 volatility
3990 Average Weekly Movement7.8%
Real Estate Industry Average Movement6.3%
Market Average Movement7.0%
10% most volatile stocks in HK Market13.8%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 3990 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 3990's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200414,908Hengle Haohttps://www.mideadc.com

Midea Real Estate Holding Limited, an investment holding company, operates as a property developer in the People’s Republic of China. The company operates through four segments: Property Development and Sales; Property Management Services; Investment and Operation of Commercial Properties; and Real Estate Technologies. It develops and sells residential and industrial properties, as well as provides property management services; and invests in and operates commercial properties, such as urban complexes, community centers, long-term rental apartments, hotel, and cultural-tourism projects.

Midea Real Estate Holding Fundamentals Summary

How do Midea Real Estate Holding's earnings and revenue compare to its market cap?
3990 fundamental statistics
Market CapCN¥13.01b
Earnings (TTM)CN¥3.74b
Revenue (TTM)CN¥73.70b

3.5x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3990 income statement (TTM)
RevenueCN¥73.70b
Cost of RevenueCN¥60.21b
Gross ProfitCN¥13.50b
Other ExpensesCN¥9.75b
EarningsCN¥3.74b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.02
Gross Margin18.31%
Net Profit Margin5.08%
Debt/Equity Ratio117.8%

How did 3990 perform over the long term?

See historical performance and comparison

Dividends

12.3%

Current Dividend Yield

43%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 3990 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 3990?

Other financial metrics that can be useful for relative valuation.

3990 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/Revenue0.8x
Enterprise Value/EBITDA7.4x
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

How does 3990's PE Ratio compare to its peers?

3990 PE Ratio vs Peers
The above table shows the PE ratio for 3990 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average2.3x

Price-To-Earnings vs Peers: 3990 is expensive based on its Price-To-Earnings Ratio (3.5x) compared to the peer average (2.3x).


Price to Earnings Ratio vs Industry

How does 3990's PE Ratio compare vs other companies in the Hong Kong Real Estate Industry?

Price-To-Earnings vs Industry: 3990 is good value based on its Price-To-Earnings Ratio (3.5x) compared to the Hong Kong Real Estate industry average (6.5x)


Price to Earnings Ratio vs Fair Ratio

What is 3990'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.

3990 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.5x
Fair PE Ratio5.7x

Price-To-Earnings vs Fair Ratio: 3990 is good value based on its Price-To-Earnings Ratio (3.5x) compared to the estimated Fair Price-To-Earnings Ratio (5.7x).


Share Price vs Fair Value

What is the Fair Price of 3990 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3990 (HK$12.32) is trading below our estimate of fair value (HK$50.47)

Significantly Below Fair Value: 3990 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 3990 is good value based on its PEG Ratio (0.3x)


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Future Growth

How is Midea Real Estate Holding forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3990's forecast earnings growth (10.9% per year) is above the savings rate (1.5%).

Earnings vs Market: 3990's earnings (10.9% per year) are forecast to grow slower than the Hong Kong market (17% per year).

High Growth Earnings: 3990's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3990's revenue (10% per year) is forecast to grow slower than the Hong Kong market (10.3% per year).

High Growth Revenue: 3990's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3990's Return on Equity is forecast to be low in 3 years time (16.5%).


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Past Performance

How has Midea Real Estate Holding performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


17.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3990 has high quality earnings.

Growing Profit Margin: 3990's current net profit margins (5.1%) are lower than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: 3990's earnings have grown by 17.6% per year over the past 5 years.

Accelerating Growth: 3990's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3990 had negative earnings growth (-13.5%) over the past year, making it difficult to compare to the Real Estate industry average (13.4%).


Return on Equity

High ROE: 3990's Return on Equity (11.1%) is considered low.


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Financial Health

How is Midea Real Estate Holding's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 3990's short term assets (CN¥250.5B) exceed its short term liabilities (CN¥198.8B).

Long Term Liabilities: 3990's short term assets (CN¥250.5B) exceed its long term liabilities (CN¥41.9B).


Debt to Equity History and Analysis

Debt Level: 3990's net debt to equity ratio (40.8%) is considered high.

Reducing Debt: 3990's debt to equity ratio has reduced from 782.1% to 117.8% over the past 5 years.

Debt Coverage: 3990's debt is not well covered by operating cash flow (5.7%).

Interest Coverage: 3990 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Midea Real Estate Holding 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


12.34%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 3990's dividend (12.34%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 3990's dividend (12.34%) 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, 3990 has been paying a dividend for less than 10 years.

Growing Dividend: 3990'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 (42.8%), 3990's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (52.7%), 3990's 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?

4.1yrs

Average management tenure


CEO

Hengle Hao (51 yo)

4.08yrs

Tenure

CN¥32,433,000

Compensation

Mr. Hengle Hao is Chairman and President of Midea Real Estate Holding Limited since May 15, 2018 and serves as its Director since November 29, 2017. Mr. Hao is primarily responsible for the overall busines...


CEO Compensation Analysis

Compensation vs Market: Hengle's total compensation ($USD4.85M) is above average for companies of similar size in the Hong Kong market ($USD580.03K).

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


Leadership Team

Experienced Management: 3990's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: 3990's board of directors are considered experienced (3.7 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

Midea Real Estate Holding Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Midea Real Estate Holding Limited
  • Ticker: 3990
  • Exchange: SEHK
  • Founded: 2004
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Implied Market Cap: HK$15.268b
  • Shares outstanding: 1.24b
  • Website: https://www.mideadc.com

Number of Employees


Location

  • Midea Real Estate Holding Limited
  • Midea Real Estate Plaza
  • 34th Floor, Tower 4
  • Foshan
  • Guangdong Province
  • 528311
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.