Yuexiu Real Estate Investment Trust
Market Cap
HK$16.9b
Last Updated
2020/01/25 12:53 UTC
Data Sources
Company Financials +
Executive Summary
Yuexiu Real Estate Investment Trust (“Yuexiu REIT”) was listed on the Hong Kong Stock Exchange of Hong Kong Limited on 21 December 2005 and is the first listed real estate investment trust only investing in properties in the People’s Republic of China (the “PRC”) in the world.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -43.1% per year for the next 3 years
Snowflake Analysis
Average dividend payer with acceptable track record.
Share Price & News
How has Yuexiu Real Estate Investment Trust's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 405 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.9%
405
-3.6%
HK REITs
-4.3%
HK Market
1 Year Return
-1.1%
405
-3.9%
HK REITs
-0.7%
HK Market
Return vs Industry: 405 exceeded the Hong Kong REITs industry which returned -2.7% over the past year.
Return vs Market: 405 matched the Hong Kong Market which returned -0.7% over the past year.
Shareholder returns
| 405 | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.9% | -3.6% | -4.3% |
| 30 Day | -0.2% | 0.3% | -0.2% |
| 90 Day | 1.3% | -2.6% | 4.1% |
| 1 Year | 4.8%-1.1% | 0.3%-3.9% | 3.0%-0.7% |
| 3 Year | 49.1%23.4% | 51.7%31.9% | 20.2%8.0% |
| 5 Year | 78.9%28.9% | 70.3%33.5% | 18.7%-1.1% |
Price Volatility Vs. Market
How volatile is Yuexiu Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
If You Had Bought Yuexiu Real Estate Investment Trust (HKG:405) Shares Five Years Ago You'd Have Made 33%2 months ago | Simply Wall St
Here's What You Should Know About Yuexiu Real Estate Investment Trust's (HKG:405) 5.9% Dividend Yield2 months ago | Simply Wall St
Does Yuexiu Real Estate Investment Trust (HKG:405) Create Value For Shareholders?Valuation
Is Yuexiu Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?
13.53x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 405 (HK$5.29) is trading above our estimate of fair value (HK$2.84)
Significantly Below Fair Value: 405 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 405 is poor value based on its PE Ratio (13.5x) compared to the REITs industry average (9.9x).
PE vs Market: 405 is poor value based on its PE Ratio (13.5x) compared to the Hong Kong market (10.5x).
Price to Earnings Growth Ratio
PEG Ratio: 405's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: 405 is overvalued based on its PB Ratio (1x) compared to the HK REITs industry average (0.5x).
Next Steps
Future Growth
How is Yuexiu Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
-43.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 405's earnings are forecast to decline over the next 3 years (-43.1% per year).
Earnings vs Market: 405's earnings are forecast to decline over the next 3 years (-43.1% per year).
High Growth Earnings: 405's earnings are forecast to decline over the next 3 years.
Revenue vs Market: 405's revenue (4.9% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).
High Growth Revenue: 405's revenue (4.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 405's Return on Equity is forecast to be low in 3 years time (4.2%).
Next Steps
Past Performance
How has Yuexiu Real Estate Investment Trust performed over the past 5 years?
7.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 405 has a large one-off gain of CN¥1.4B impacting its June 30 2019 financial results.
Growing Profit Margin: 405's current net profit margins (52.7%) are higher than last year (52.7%).
Past Earnings Growth Analysis
Earnings Trend: 405's earnings have grown by 7.7% per year over the past 5 years.
Accelerating Growth: 405's earnings growth over the past year (4.3%) is below its 5-year average (7.7% per year).
Earnings vs Industry: 405 earnings growth over the past year (4.3%) exceeded the REITs industry -44.3%.
Return on Equity
High ROE: 405's Return on Equity (6.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Yuexiu Real Estate Investment Trust's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: 405 has a high level of physical assets or inventory.
Debt Coverage by Assets: 405's debt is not covered by short term assets (assets are 0.1x debt).
Financial Institutions Analysis
Asset Level: 405's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if 405 has a sufficient allowance for bad loans.
Low Risk Liabilities: 405 reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if 405 has an acceptable proportion of non-loan assets held.
Low Risk Deposits: 405 has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if 405 has an appropriate level of bad loans.
Next Steps
Dividend
What is Yuexiu Real Estate Investment Trust's current dividend yield, its reliability and sustainability?
5.88%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 405's dividend (5.9%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).
High Dividend: 405's dividend (5.9%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).
Stability and Growth of Payments
Stable Dividend: 405's dividends per share have been stable in the past 10 years.
Growing Dividend: 405's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (101.2%), 405's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 405's dividends in 3 years are forecast to be thoroughly covered by earnings (0.07% payout ratio).
Next Steps
Management
What is the CEO of Yuexiu Real Estate Investment Trust's salary, the management and board of directors tenure and is there insider trading?
6.0yrs
Average management tenure
CEO
Deliang Lin (49yo)
6yrs
Tenure
Mr. Deliang Lin serves as Chief Executive Officer of Yuexiu Reit Asset Management Limited - Manager of Yuexiu Real Estate Investment Trust and served as its Deputy Chief Executive Officer. Mr. Lin has been ...
Management Age and Tenure
6.0yrs
Average Tenure
49yo
Average Age
Experienced Management: 405's management team is seasoned and experienced (6 years average tenure).
Board Age and Tenure
3.3yrs
Average Tenure
49.5yo
Average Age
Experienced Board: 405's board of directors are considered experienced (3.3 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 12,238,329 |
| Max Price | HK$5.24 |
| Entity | Company |
| Shares | 13,167,795 |
| Max Price | HK$5.46 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.1%.
Management Team
Terry Kwan (57yo)
Chief Financial Officer
- Tenure: 13yrs
Tat Fung Yu
Secretary & Compliance Manager of Yuexiu REIT Asset Mgmt Ltd
Jiuzhou Cheng (47yo)
Deputy CEO & Executive Director
- Tenure: 3.3yrs
Ou Haijing
General Manager of Asset Management Department - Yuexiu REIT Asset Management Limited
Jing Li
General Manager of Project Development Department - Yuexiu REIT Asset Management Limited
Deliang Lin (49yo)
CEO & Chairman
- Tenure: 6yrs
Bihong Liu
GM of Internal Audit Dept & Dy GM of Compliance Dept - Yuexiu REIT Asset Mgmt Ltd
Patrick Cheng
Deputy GM of Investment & Investor Relations
Board Members
Derek Chan (56yo)
Independent Non-Executive Director
Yuk Tong Cheung (61yo)
Independent Non-Executive Director
- Tenure: 5.3yrs
Danqing Liang (46yo)
Non-Executive Director
- Tenure: 1.4yrs
Jiuzhou Cheng (47yo)
Deputy CEO & Executive Director
- Tenure: 3.3yrs
Deliang Lin (49yo)
CEO & Chairman
- Tenure: 6yrs
Feng Li (50yo)
Non-Executive Director
- Tenure: 7.6yrs
Xiaoou Chen (49yo)
Independent Non-Executive Director
- Tenure: 3.3yrs
Brian Chan (64yo)
Independent Non-Executive Director
Company Information
Yuexiu Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Yuexiu Real Estate Investment Trust
- Ticker: 405
- Exchange: SEHK
- Founded: 2005
- Industry: Diversified REITs
- Sector: Real Estate
- Market Cap: HK$16.895b
- Shares outstanding: 3.21b
- Website: https://www.yuexiureit.com
Number of Employees
Location
- Yuexiu Real Estate Investment Trust
- Yue Xiu Building
- 17th Floor, Flat B
- Wanchai
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| D3N | DB (Deutsche Boerse AG) | Yes | Trust Units | DE | EUR | Dec 2005 |
| 405 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Trust Units | HK | HKD | Dec 2005 |
| YUXX.F | OTCPK (Pink Sheets LLC) | Yes | Trust Units | US | USD | Dec 2005 |
Biography
Yuexiu Real Estate Investment Trust (“Yuexiu REIT”) was listed on the Hong Kong Stock Exchange of Hong Kong Limited on 21 December 2005 and is the first listed real estate investment trust only investing in properties in the People’s Republic of China (the “PRC”) in the world. Yuexiu REIT focuses on office, retail and other commercial purposes, strives for properties which can bring considerable cash flows and returns and identifies business opportunities for achieving higher revenue growth through the optimization of its operations. The current property portfolio comprises eight high quality properties, namely White Horse Building, Fortune Plaza, City Development Plaza, Victory Plaza, Guangzhou International Finance Center in Guangzhou, Yuexiu Tower in Shanghai, Wuhan Properties in Wuhan and Victory Business Centre in Hangzhou, with a total area of ownership of approximately 969,488 square metres. All properties are located in the central business district (“CBD”) of Guangzhou, Shanghai, Wuhan and Hangzhou respectively. The categories of the properties include professional clothing market, Grade-A offices, multiple functional commercial offices, retail business, hotel and serviced apartments etc. The Manager of Yuexiu REIT is Yuexiu REIT Asset Management Limited (“Manager”). Yuexiu REIT is managed by an experienced professional team with extensive experience in real estate management, asset management and the securities market and brings long-term and steady investment incomes to the Unitholders (“Unitholders”) of Yuexiu REIT through actively managing its assets and expanding its operations. While the real estate investment trust market is flourishing, the Manager is committed to becoming a professional asset management institution with a focus on the PRC commercial property market, continuing asset appreciation capability, commercial operation capability, capital operation capability and a leading position in the industry.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/25 12:53 |
| End of Day Share Price | 2020/01/24 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.