SEHK:480

Stock Analysis Report

Executive Summary

HKR International Limited, an investment holding company, invests in, develops, and manages real estate properties in Hong Kong, Mainland China, Japan, and South East Asia.

Snowflake

Fundamentals

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has HKR International's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.7%

480

2.1%

HK Real Estate

0.8%

HK Market


1 Year Return

-14.0%

480

10.4%

HK Real Estate

0.5%

HK Market

Return vs Industry: 480 underperformed the Hong Kong Real Estate industry which returned 10.4% over the past year.

Return vs Market: 480 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

480IndustryMarket
7 Day5.7%2.1%0.8%
30 Day-0.3%2.1%-0.5%
90 Day-19.2%-9.6%-5.6%
1 Year-11.5%-14.0%14.6%10.4%4.1%0.5%
3 Year6.1%-0.2%39.4%24.9%15.5%3.9%
5 Year7.7%-2.1%63.1%35.0%19.9%-0.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is HKR International undervalued compared to its fair value and its price relative to the market?

17.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 480 (HK$3.33) is trading below our estimate of fair value (HK$4.03)

Significantly Undervalued: 480 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 480 is good value based on its PE Ratio (2.2x) compared to the Real Estate industry average (6.2x).

PE vs Market: 480 is good value based on its PE Ratio (2.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 480's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 480 is good value based on its PB Ratio (0.2x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is HKR International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 480's forecast earnings growth (6.4% per year) is above the savings rate (2%).

Earnings vs Market: 480's earnings (6.4% per year) are forecast to grow slower than the Hong Kong market (11.4% per year).

High Growth Earnings: 480's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 480's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 480's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 480's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has HKR International performed over the past 5 years?

23.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 480's earnings have grown significantly by 23.5% per year over the past 5 years.

Accelerating Growth: 480's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 480 had negative earnings growth (-4.3%) over the past year, making it difficult to compare to the Real Estate industry average (-12.4%).


Return on Equity

High ROE: 480's Return on Equity (10.1%) is considered low.


Return on Assets

ROA vs Industry: 480 has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 480 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is HKR International's financial position?


Financial Position Analysis

Short Term Liabilities: 480's short term assets (HK$11.2B) exceeds its short term liabilities (HK$4.0B)

Long Term Liabilities: 480's short term assets (11.2B) exceeds its long term liabilities (7.5B)


Debt to Equity History and Analysis

Debt Level: 480's debt to equity ratio (33.6%) is considered satisfactory

Reducing Debt: 480's debt to equity ratio has reduced from 39.6% to 33.6% over the past 5 years.

Debt Coverage: 480's debt is not well covered by operating cash flow (8.1%).

Interest Coverage: 480's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet

Inventory Level: 480 has a high level of physical assets or inventory.

Debt Coverage by Assets: 480's debt is covered by short term assets (assets are 1.396290x debt).


Next Steps

Dividend

What is HKR International's current dividend yield, its reliability and sustainability?

3.00%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%2.3%markettop25%6.3%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 480's dividend (3%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 480's dividend (3%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 480's dividend payments have been volatile in the past 10 years.

Growing Dividend: 480's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (6.7%), 480's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

20.3yrs

Average board tenure


CEO

Victor Cha (69yo)

18.8yrs

Tenure

HK$62,200,000

Compensation

Mr. Mou-Zing Cha, also known as Victor, BA, MBA, has been the Managing Director of HKR International Limited since September 2001. Mr. Cha is Co-Owner of Cha Family Trust. Mr. Cha has been Joint Managing D ...


CEO Compensation Analysis

Compensation vs. Market: Victor's total compensation ($USD7.93M) is about average for companies of similar size in the Hong Kong market ($USD421.15K).

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


Board Age and Tenure

20.3yrs

Average Tenure

71.5yo

Average Age

Experienced Board: 480's board of directors are seasoned and experienced ( 20.3 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

BuyHK$710,61108 Aug 19
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Mingly Corporation Singapore Pte Limited
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Mou Sing Cha
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Chairman of the Board
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Chairman of the Board
Chairman of the Board
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Max PriceHK$3.92
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EntityIndividual
Role
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Max PriceHK$3.92
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Mingly Corporation Singapore Pte Limited
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Ownership Breakdown


Management Team

  • Payson Cha (76yo)

    Chairman of the Board

    • Tenure: 12.4yrs
    • Compensation: HK$32.70m
  • Victor Cha (69yo)

    Deputy Chairman & MD

    • Tenure: 18.8yrs
    • Compensation: HK$62.20m
  • Moon Wah Tang (65yo)

    Executive Director

    • Tenure: 14.8yrs
    • Compensation: HK$14.70m
  • Abraham Chung (73yo)

    Executive Director

    • Tenure: 25.8yrs
    • Compensation: HK$18.80m
  • Shirley Wong (73yo)

    General Manager of Human Resource & Office Administration

    • Tenure: 0yrs
  • Michael Keegan (71yo)

    MD & Legal Representative of Imperial Bathroom Products Ltd

    • Tenure: 0yrs
  • Wai Fan Leung

    Company Secretary

    • Tenure: 2.6yrs
  • Suki Wong

    Assistant Administrator

    • Tenure: 0yrs

Board Members

  • Johnson Cha (67yo)

    Non-Executive Director

    • Tenure: 30.8yrs
    • Compensation: HK$100.00k
  • Ronald Joseph Arculli (80yo)

    Non-Executive Director

    • Tenure: 30.8yrs
    • Compensation: HK$100.00k
  • Payson Cha (76yo)

    Chairman of the Board

    • Tenure: 12.4yrs
    • Compensation: HK$32.70m
  • Victor Cha (69yo)

    Deputy Chairman & MD

    • Tenure: 18.8yrs
    • Compensation: HK$62.20m
  • Moon Wah Tang (65yo)

    Executive Director

    • Tenure: 14.8yrs
    • Compensation: HK$14.70m
  • Abraham Chung (73yo)

    Executive Director

    • Tenure: 25.8yrs
    • Compensation: HK$18.80m
  • Madeline Wong Cha (79yo)

    Non-Executive Director

    • Tenure: 30.8yrs
    • Compensation: HK$200.00k
  • Loretta Ho (72yo)

    Independent Non-Executive Director

    • Tenure: 25.8yrs
    • Compensation: HK$400.00k
  • Linus Cheung (71yo)

    Independent Non-Executive Director

    • Tenure: 13.8yrs
    • Compensation: HK$400.00k
  • Kwai Chang Tang (66yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: HK$400.00k

Company Information

HKR International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HKR International Limited
  • Ticker: 480
  • Exchange: SEHK
  • Founded: 1977
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: HK$4.991b
  • Shares outstanding: 1.49b
  • Website: https://www.hkri.com

Number of Employees


Location

  • HKR International Limited
  • China Merchants Tower
  • 23rd Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
480SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 1988
HKRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1988

Biography

HKR International Limited, an investment holding company, invests in, develops, and manages real estate properties in Hong Kong, Mainland China, Japan, and South East Asia. It operates in five segments: Pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:37
End of Day Share Price2019/10/18 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.