SEHK:480

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet and fair 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

Stable Share Price: 480 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

480

-1.1%

HK Real Estate

1.2%

HK Market


1 Year Return

-7.9%

480

-11.6%

HK Real Estate

2.7%

HK Market

Return vs Industry: 480 exceeded the Hong Kong Real Estate industry which returned -11.6% over the past year.

Return vs Market: 480 underperformed the Hong Kong Market which returned 2.7% over the past year.


Shareholder returns

480IndustryMarket
7 Day0.7%-1.1%1.2%
30 Day0.7%-2.0%4.0%
90 Day-0.7%-3.2%3.2%
1 Year-4.4%-7.9%-6.8%-11.6%7.0%2.7%
3 Year-27.3%-33.3%-8.2%-22.3%-4.4%-14.8%
5 Year6.1%-4.0%36.4%9.6%19.5%-0.7%

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?

2.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 480 (HK$3.02) is trading above our estimate of fair value (HK$1.17)

Significantly Below Fair Value: 480 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 480 is good value based on its PE Ratio (2.8x) compared to the HK Real Estate industry average (8.7x).

PE vs Market: 480 is good value based on its PE Ratio (2.8x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 480's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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 (0.4x).


Next Steps

Future Growth

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

-40.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 480's earnings are forecast to decline over the next 3 years (-40.5% per year).

Earnings vs Market: 480's earnings are forecast to decline over the next 3 years (-40.5% per year).

High Growth Earnings: 480's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 480's revenue is expected to decline over the next 3 years (-9.6% per year).

High Growth Revenue: 480's revenue is forecast to decline over the next 3 years (-9.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 480's Return on Equity is forecast to be low in 3 years time (3.4%).


Next Steps

Past Performance

How has HKR International performed over the past 5 years?

27.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 480 has a large one-off gain of HK$688.6M impacting its March 31 2020 financial results.

Growing Profit Margin: 480's current net profit margins (34.6%) are lower than last year (57.4%).


Past Earnings Growth Analysis

Earnings Trend: 480's earnings have grown significantly by 27% 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 (-26.4%) over the past year, making it difficult to compare to the Real Estate industry average (-6.8%).


Return on Equity

High ROE: 480's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is HKR International's financial position?


Financial Position Analysis

Short Term Liabilities: 480's short term assets (HK$9.8B) exceed its short term liabilities (HK$7.4B).

Long Term Liabilities: 480's short term assets (HK$9.8B) exceed its long term liabilities (HK$5.1B).


Debt to Equity History and Analysis

Debt Level: 480's debt to equity ratio (36.1%) is considered satisfactory.

Reducing Debt: 480's debt to equity ratio has increased from 34.5% to 36.1% over the past 5 years.

Debt Coverage: 480's debt is not well covered by operating cash flow (7.9%).

Interest Coverage: 480's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet


Next Steps

Dividend

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

3.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 480's dividend (3.97%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 480's dividend (3.97%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11%), 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

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

15.8yrs

Average board tenure


CEO

Victor Cha (70 yo)

19.75yrs

Tenure

HK$43,800,000

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 ($USD5.65M) is above average for companies of similar size in the Hong Kong market ($USD339.35K).

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


Board Members

NamePositionTenureCompensationOwnership
Mou-Sing Cha
Chairman of the Board13.42yrsHK$15.40m47.4%
HK$ 2.1b
Mou-Zing Cha
Deputy Chairman & MD19.75yrsHK$43.80mno data
Sam Tin Chung
Executive Director26.75yrsHK$4.90m0.023%
HK$ 1.0m
Moon Wah Tang
Executive Director15.83yrsHK$16.20m0.010%
HK$ 449.0k
Mou-Daid Cha
Non-Executive Director31.75yrsHK$100.00kno data
Ronald Joseph Arculli
Non-Executive Director31.75yrsHK$100.00k0.018%
HK$ 802.0k
Hung Ling Fan
Independent Non-Executive Director2.92yrsHK$300.00kno data
May-Lung Wong Cha
Non-Executive Director31.75yrsHK$200.00kno data
Pak Ching Ho
Independent Non-Executive Director26.75yrsHK$400.00k0.0063%
HK$ 284.4k
Wing Lam Cheung
Independent Non-Executive Director14.75yrsHK$400.00kno data
Kwai Chang Tang
Independent Non-Executive Director6.08yrsHK$400.00kno data

15.8yrs

Average Tenure

72yo

Average Age

Experienced Board: 480's board of directors are seasoned and experienced ( 15.8 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

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$4.486b
  • 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, Macau, Mainland China, Japan, and South East Asia. It operates in five segme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 12:40
End of Day Share Price2020/10/23 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.