SEHK:410

Stock Analysis Report

Executive Summary

SOHO China Limited, together with its subsidiaries, engages in the real estate development, and property leasing and management activities in China.

Snowflake

Fundamentals

Slightly overvalued with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.0%

410

1.9%

HK Real Estate

2.2%

HK Market


1 Year Return

-10.1%

410

6.9%

HK Real Estate

-1.3%

HK Market

Return vs Industry: 410 underperformed the Hong Kong Real Estate industry which returned 6.9% over the past year.

Return vs Market: 410 underperformed the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

410IndustryMarket
7 Day5.0%1.9%2.2%
30 Day-4.1%-1.9%-2.9%
90 Day-15.6%-11.3%-5.8%
1 Year-8.8%-10.1%11.0%6.9%2.3%-1.3%
3 Year-21.7%-43.8%37.6%23.3%15.6%3.9%
5 Year-22.9%-59.4%59.6%34.0%20.1%0.06%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SOHO China undervalued based on future cash flows and its price relative to the stock market?

7.8x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: 410 (HK$2.32) is trading above our estimate of fair value (HK$0.69)

Significantly Undervalued: 410 is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: 410 is poor value based on its PE Ratio (7.8x) compared to the Real Estate industry average (6.1x).

PE vs Market: 410 is good value based on its PE Ratio (7.8x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

Low PEG Ratio: 410's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price Based on Value of Assets

PB vs Industry: 410 is good value based on its PB Ratio (0.3x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is SOHO China expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

-12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 410's earnings are forecast to decline over the next 3 years (-12.5% per year).

Earnings vs Market: 410's earnings are forecast to decline over the next 3 years (-12.5% per year).

High Growth Earnings: 410's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 410's revenue (20.4% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 410's revenue (20.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: 410's Return on Equity is forecast to be low in 3 years time (1.8%).


Next Steps

Past Performance

How has SOHO China performed over the past 5 years?

-15.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 410's earnings have declined by -15.5% per year over the past 5 years.

Accelerating Growth: 410's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 410 had negative earnings growth (-24.3%) over the past year, making it difficult to compare to the Real Estate industry average (-12.4%).


Return on Equity

High ROE: 410's Return on Equity (3.9%) is considered low.


Return on Assets

ROA vs Industry: 410's Return on Assets is below or equal to the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 410 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is SOHO China's financial position?


Financial Position Analysis

Short Term Liabilities: 410's short term assets (CN¥5.2B) do not cover its short term liabilities (CN¥7.4B)

Long Term Liabilities: 410's short term assets (5.2B) do not cover its long term liabilities (25.3B)


Debt to Equity History and Analysis

Debt Level: 410's debt to equity ratio (50.2%) is considered high

Reducing Debt: 410's debt to equity ratio has reduced from 53.9% to 50.2% over the past 5 years.

Debt Coverage: 410's debt is not well covered by operating cash flow (2.9%).

Interest Coverage: 410's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: 410 has a high level of physical assets or inventory.

Debt Coverage by Assets: 410's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

2.32%

Expected Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%2.3%markettop25%6.3%industryaverage4.4%forecastin3Years2.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 410's dividend (1.43%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 410's dividend (1.43%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

Stable Dividend: 410's dividend payments have been volatile in the past 10 years.

Growing Dividend: 410's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.2%), 410's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 410's dividends in 3 years are forecast to be well covered by earnings (44.7% payout ratio).


Next Steps

Management

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

11.3yrs

Average management tenure


CEO

Shynn Zhang (54yo)

12.6yrs

Tenure

CN¥2,647,000

Compensation

Mrs. Pan Xin Zhang, also known as Marita, serves as the Chief Executive Officer of Soho China Ltd. Ms. Zhang Co-founded Soho China Ltd. in 1995. She serves as an Executive Director of Soho China Ltd. Mrs.  ...


CEO Compensation Analysis

Compensation vs. Market: Shynn's total compensation ($USD373.44K) is about average for companies of similar size in the Hong Kong market ($USD492.11K).

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


Management Age and Tenure

11.3yrs

Average Tenure

49yo

Average Age

Experienced Management: 410's management team is seasoned and experienced (11.3 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

56yo

Average Age

Experienced Board: 410's board of directors are considered experienced (4.4 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.


Ownership Breakdown


Management Team

  • Shiyi Pan (56yo)

    Chairman of the Board & Co-Founder

    • Tenure: 12.6yrs
    • Compensation: CN¥3.50m
  • Shynn Zhang (54yo)

    CEO, Executive Director & Co-Founder

    • Tenure: 12.6yrs
    • Compensation: CN¥2.65m
  • Ni Kuiyang (42yo)

    CFO & VP

    • Tenure: 11.3yrs
  • Sau Ping Wong (44yo)

    Company Secretary

    • Tenure: 1yrs
  • Ling Xu

    Investor Relations Officer

    • Tenure: 0yrs

Board Members

  • Qiang Chang Sun (62yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥283.00k
  • Jingsheng Huang (61yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥118.00k
  • Shiyi Pan (56yo)

    Chairman of the Board & Co-Founder

    • Tenure: 12.6yrs
    • Compensation: CN¥3.50m
  • Shynn Zhang (54yo)

    CEO, Executive Director & Co-Founder

    • Tenure: 12.6yrs
    • Compensation: CN¥2.65m
  • Jeff Xiong (54yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥283.00k

Company Information

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


Key Information

  • Name: SOHO China Limited
  • Ticker: 410
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$11.942b
  • Shares outstanding: 5.19b
  • Website: https://www.sohochina.com

Number of Employees


Location

  • SOHO China Limited
  • Tower A, Chaowai SOHO
  • 11th Floor
  • Beijing
  • 100020
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
410SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2007
45SDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2007
SOHO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2007
410SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2007
410SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2007

Biography

SOHO China Limited, together with its subsidiaries, engages in the real estate development, and property leasing and management activities in China. The company operates in two segments, Properties Develop ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:43
End of Day Share Price2019/10/14 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.

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