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4

Wharf (Holdings)SEHK:4 Stock Report

Market Cap

HK$82.2b

7D

-1.3%

1Y

66.1%

Updated

26 Oct, 2021

Data

Company Financials +
4 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance2/6
Financial Health4/6
Dividends2/6

4 Overview

Founded in 1886 with Hong Kong as its base, The Wharf (Holdings) Limited (Stock code: 0004) is the 17th company incorporated in Hong Kong and a premier company with a long history.

Rewards

Earnings are forecast to grow 14% per year

Became profitable this year

Risk Analysis

No risks detected for 4 from our risk checks.

Wharf (Holdings) Competitors

Hong Kong Ferry (Holdings)

SEHK:50

HK$2.0b

Henderson Land Development

SEHK:12

HK$157.6b

Greentown China Holdings

SEHK:3900

HK$30.4b

Harbour Centre Development

SEHK:51

HK$5.0b

Price History & Performance

Summary of all time highs, changes and price drops for Wharf (Holdings)
Historical stock prices
Current Share PriceHK$26.65
52 Week HighHK$15.76
52 Week LowHK$30.70
Beta1.33
1 Month Change10.81%
3 Month Change-0.19%
1 Year Change66.15%
3 Year Change37.23%
5 Year Change-55.55%
Change since IPO140.09%

Recent News & Updates

Aug 11
Wharf (Holdings) (HKG:4) Seems To Use Debt Quite Sensibly

Wharf (Holdings) (HKG:4) Seems To Use Debt Quite Sensibly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Jul 16
Is Wharf (Holdings) Limited (HKG:4) Potentially Undervalued?

Is Wharf (Holdings) Limited (HKG:4) Potentially Undervalued?

Let's talk about the popular Wharf (Holdings) Limited ( HKG:4 ). The company's shares led the SEHK gainers with a...

Shareholder Returns

4HK Real EstateHK Market
7D-1.3%2.8%0.4%
1Y66.1%-6.8%6.7%

Return vs Industry: 4 exceeded the Hong Kong Real Estate industry which returned -7.3% over the past year.

Return vs Market: 4 exceeded the Hong Kong Market which returned 5.9% over the past year.

Price Volatility

Is 4's price volatile compared to industry and market?
4 volatility
4 Beta1.33
Industry Beta0.85
Market Beta1

Stable Share Price: 4 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 4's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18866,700Stephen Nghttps://www.wharfholdings.com

Founded in 1886 with Hong Kong as its base, The Wharf (Holdings) Limited (Stock code: 0004) is the 17th company incorporated in Hong Kong and a premier company with a long history. As one of the 30 constituent stocks in the original Hang Seng Index since more than 50 years ago, Wharf is among the top local blue chips that is most actively traded and widely held. Backed by a long standing mission of “Building for Tomorrow” and a proven track record in management and execution, the Group has produced consistent and productive performance over the years.

Wharf (Holdings) Fundamentals Summary

How do Wharf (Holdings)'s earnings and revenue compare to its market cap?
4 fundamental statistics
Market CapHK$82.21b
Earnings (TTM)HK$6.64b
Revenue (TTM)HK$27.78b

12.3x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
4 income statement (TTM)
RevenueHK$27.78b
Cost of RevenueHK$12.20b
Gross ProfitHK$15.58b
ExpensesHK$8.94b
EarningsHK$6.64b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.17
Gross Margin56.09%
Net Profit Margin23.91%
Debt/Equity Ratio36.3%

How did 4 perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

18%

Payout Ratio

Valuation

Is Wharf (Holdings) undervalued compared to its fair value and its price relative to the market?

12.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 4 (HK$26.9) is trading above our estimate of fair value (HK$7.45)

Significantly Below Fair Value: 4 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 4 is poor value based on its PE Ratio (12.4x) compared to the Hong Kong Real Estate industry average (7.7x).

PE vs Market: 4 is poor value based on its PE Ratio (12.4x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: 4 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 4's PB Ratio (0.5x) is in line with the HK Real Estate industry average.


Future Growth

How is Wharf (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4's forecast earnings growth (14% per year) is above the savings rate (1.5%).

Earnings vs Market: 4's earnings (14% per year) are forecast to grow slower than the Hong Kong market (17.7% per year).

High Growth Earnings: 4's earnings are forecast to grow, but not significantly.

Revenue vs Market: 4's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: 4's revenue is forecast to decline over the next 3 years (-0.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4's Return on Equity is forecast to be low in 3 years time (3.7%).


Past Performance

How has Wharf (Holdings) performed over the past 5 years?

-40.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4 has high quality earnings.

Growing Profit Margin: 4 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 4's earnings have declined by 40.5% per year over the past 5 years.

Accelerating Growth: 4 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 4 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Real Estate industry (23.4%).


Return on Equity

High ROE: 4's Return on Equity (4.5%) is considered low.


Financial Health

How is Wharf (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: 4's short term assets (HK$71.8B) exceed its short term liabilities (HK$51.2B).

Long Term Liabilities: 4's short term assets (HK$71.8B) exceed its long term liabilities (HK$57.3B).


Debt to Equity History and Analysis

Debt Level: 4's debt to equity ratio (36.3%) is considered satisfactory.

Reducing Debt: 4's debt to equity ratio has increased from 21.7% to 36.3% over the past 5 years.

Debt Coverage: 4's debt is not well covered by operating cash flow (1.2%).

Interest Coverage: 4's interest payments on its debt are well covered by EBIT (35.8x coverage).


Balance Sheet


Dividend

What is Wharf (Holdings) current dividend yield, its reliability and sustainability?

1.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 4's dividend (1.49%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.22%).

High Dividend: 4's dividend (1.49%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


Stability and Growth of Payments

Stable Dividend: 4's dividend payments have been volatile in the past 10 years.

Growing Dividend: 4's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.4%), 4's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 4's dividends in 3 years are forecast to be well covered by earnings (28.3% payout ratio).


Next Steps

Management

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

10.8yrs

Average management tenure


CEO

Stephen Ng (69 yo)

32.42yrs

Tenure

HK$18,253,000

Compensation

Mr. Tin Hoi Ng, also known as Stephen, serves as Non-Executive Director of Greentown China Holdings Limited since June 15, 2012. Mr. Ng serves as the Chief Executive Officer of Harbour Centre Development L...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD2.35M) is above average for companies of similar size in the Hong Kong market ($USD1.05M).

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


Leadership Team

Experienced Management: 4's management team is seasoned and experienced (10.8 years average tenure).


Board Members

Experienced Board: 4's board of directors are considered experienced (6.4 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.


Top Shareholders

Company Information

Wharf (Holdings) Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Wharf (Holdings) Limited
  • Ticker: 4
  • Exchange: SEHK
  • Founded: 1886
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: HK$82.207b
  • Shares outstanding: 3.06b
  • Website: https://www.wharfholdings.com

Number of Employees


Location

  • Wharf (Holdings) Limited
  • Ocean Centre
  • 16th Floor
  • Kowloon
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 10:08
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.