Shanghai Industrial Urban Development Group (SEHK:563) - Share price, News & Analysis

Q: What is the Fair Price of 563 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

563 (HK$0.68) is trading below our estimate of [[fair value]] (HK$0.69)

563 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	1/6
Financial Health	4/6
Dividends	2/6

563 Stock Overview

Rewards

Trading at 0.8% below our estimate of its fair value

Risk Analysis

Earnings have declined by 1.2% per year over past 5 years

Dividend of 6.62% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (5.2%) are lower than last year (8.2%)

Shanghai Industrial Urban Development Group Competitors

Sunkwan Properties Group

SEHK:6900

HK$2.6b

Tomson Group

SEHK:258

HK$3.8b

Ronshine China Holdings

SEHK:3301

HK$3.3b

JY Grandmark Holdings

SEHK:2231

HK$2.9b

Price History & Performance

Summary of all time highs, changes and price drops for Shanghai Industrial Urban Development Group
Historical stock prices
Current Share Price	HK$0.68
52 Week High	HK$0.83
52 Week Low	HK$0.56
Beta	0.96
1 Month Change	0%
3 Month Change	-4.23%
1 Year Change	-6.85%
3 Year Change	-56.13%
5 Year Change	-62.64%
Change since IPO	-97.88%

Recent News & Updates

Apr 15

Shanghai Industrial Urban Development Group's (HKG:563) Dividend Will Be Increased To HK$0.045

Shanghai Industrial Urban Development Group Limited's ( HKG:563 ) dividend will be increasing to HK$0.045 on 24th of...

Mar 30

Shanghai Industrial Urban Development Group's (HKG:563) Upcoming Dividend Will Be Larger Than Last Year's

Shanghai Industrial Urban Development Group Limited ( HKG:563 ) has announced that it will be increasing its dividend...

Shareholder Returns

	563	HK Real Estate	HK Market
7D	-1.4%	4.3%	2.1%
1Y	-6.8%	-34.5%	-23.3%

Return vs Industry: 563 exceeded the Hong Kong Real Estate industry which returned -34.5% over the past year.

Return vs Market: 563 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 563's price volatile compared to industry and market?
563 volatility
563 Average Weekly Movement	4.4%
Real Estate Industry Average Movement	6.3%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 563 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 563's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1992	834	n/a	https://www.siud.com

Shanghai Industrial Urban Development Group Limited, an investment holding company, primarily engages in the development and sale of residential and commercial properties in the People’s Republic of China. The company is also involved in property investment and management activities. Its property portfolio includes residential communities, office buildings, shopping arcades, star-grade hotels, and apartments.

Shanghai Industrial Urban Development Group Fundamentals Summary

How do Shanghai Industrial Urban Development Group's earnings and revenue compare to its market cap?
563 fundamental statistics
Market Cap	HK$3.27b
Earnings (TTM)	HK$572.33m
Revenue (TTM)	HK$11.02b

5.7x

P/E Ratio

0.3x

P/S Ratio

Is 563 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
563 income statement (TTM)
Revenue	HK$11.02b
Cost of Revenue	HK$7.46b
Gross Profit	HK$3.55b
Other Expenses	HK$2.98b
Earnings	HK$572.33m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.12
Gross Margin	32.27%
Net Profit Margin	5.20%
Debt/Equity Ratio	87.9%

How did 563 perform over the long term?

See historical performance and comparison

Dividends

6.6%

Current Dividend Yield

18%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 563 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 563?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 563. This is calculated by dividing 563's market cap by their current preferred multiple.
What is 563's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$3.27b

563 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.5x
Enterprise Value/EBITDA	5.4x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 563's PE Ratio compare to its peers?

563 PE Ratio vs Peers

The above table shows the PE ratio for 563 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	9x
6900 Sunkwan Properties Group	8.9x	n/a	HK$2.6b
258 Tomson Group	13.4x	n/a	HK$3.8b
3301 Ronshine China Holdings	2.1x	27.2%	HK$3.3b
2231 JY Grandmark Holdings	11.4x	n/a	HK$2.9b
563 Shanghai Industrial Urban Development Group	5.7x	n/a	HK$3.3b

Forward PE

Price-To-Earnings vs Peers: 563 is good value based on its Price-To-Earnings Ratio (5.7x) compared to the peer average (9x).

Price to Earnings Ratio vs Industry

How does 563's PE Ratio compare vs other companies in the HK Real Estate Industry?

Price-To-Earnings vs Industry: 563 is good value based on its Price-To-Earnings Ratio (5.7x) compared to the Hong Kong Real Estate industry average (6.5x)

Price to Earnings Ratio vs Fair Ratio

What is 563's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

563 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 563's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 563 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 563 (HK$0.68) is trading below our estimate of fair value (HK$0.69)

Significantly Below Fair Value: 563 is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 563's PEG Ratio to determine if it is good value.

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Future Growth

How is Shanghai Industrial Urban Development Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.0%

Forecasted Real Estate industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Shanghai Industrial Urban Development Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine whether Shanghai Industrial Urban Development Group is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
Shanghai Industrial Urban Development Group competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Shanghai Industrial Urban Development Group performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-1.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 563 has a large one-off gain of HK$1.2B impacting its December 31 2021 financial results.

Growing Profit Margin: 563's current net profit margins (5.2%) are lower than last year (8.2%).

Past Earnings Growth Analysis

Earnings Trend: 563's earnings have declined by 1.2% per year over the past 5 years.

Accelerating Growth: 563's earnings growth over the past year (9.7%) exceeds its 5-year average (-1.2% per year).

Earnings vs Industry: 563 earnings growth over the past year (9.7%) underperformed the Real Estate industry 13.4%.

Return on Equity

High ROE: 563's Return on Equity (4%) is considered low.

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Financial Health

How is Shanghai Industrial Urban Development Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 563's short term assets (HK$43.6B) exceed its short term liabilities (HK$36.4B).

Long Term Liabilities: 563's short term assets (HK$43.6B) exceed its long term liabilities (HK$12.8B).

Debt to Equity History and Analysis

Debt Level: 563's net debt to equity ratio (25.7%) is considered satisfactory.

Reducing Debt: 563's debt to equity ratio has increased from 68.8% to 87.9% over the past 5 years.

Debt Coverage: 563's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 563's interest payments on its debt are well covered by EBIT (5x coverage).

Balance Sheet

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Dividend

What is Shanghai Industrial Urban Development Group current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.62%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 563's dividend (6.62%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.75%).

High Dividend: 563's dividend (6.62%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.9%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 563 has been paying a dividend for less than 10 years.

Growing Dividend: 563's dividend payments have increased, but the company has only paid a dividend for 7 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (17.6%), 563's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 563 is paying a dividend but the company has no free cash flows.

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Management

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

5.0yrs

Average management tenure

CEO

Shanghai Industrial Urban Development Group has no CEO, or we have no data on them.

Leadership Team

Experienced Management: 563's management team is seasoned and experienced (5 years average tenure).

Board Members

Experienced Board: 563's board of directors are considered experienced (7.1 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31