SEHK:565

Stock Analysis Report

Executive Summary

Art Group Holdings Limited, an investment holding company, engages in the provision of rental, management, and operating services for properties in the People’s Republic of China.


Snowflake Analysis

Fair value with questionable track record.

Share Price & News

How has Art Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 565's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

565

-1.6%

HK Real Estate

-2.7%

HK Market


1 Year Return

-21.3%

565

-6.4%

HK Real Estate

-8.5%

HK Market

Return vs Industry: 565 underperformed the Hong Kong Real Estate industry which returned -7.5% over the past year.

Return vs Market: 565 underperformed the Hong Kong Market which returned -9.6% over the past year.


Shareholder returns

565IndustryMarket
7 Day0%-1.6%-2.7%
30 Day-15.7%-1.7%-3.1%
90 Day-5.6%1.4%2.4%
1 Year-21.3%-21.3%-2.2%-6.4%-5.2%-8.5%
3 Year-66.8%-66.8%38.2%23.4%12.0%0.7%
5 Year4.9%4.9%63.4%36.1%14.1%-4.7%

Price Volatility Vs. Market

How volatile is Art Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Art Group Holdings undervalued compared to its fair value and its price relative to the market?

30.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 565 (HK$0.24) is trading below our estimate of fair value (HK$0.34)

Significantly Below Fair Value: 565 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 565 is poor value based on its PE Ratio (11.3x) compared to the Real Estate industry average (6.6x).

PE vs Market: 565 is poor value based on its PE Ratio (11.3x) compared to the Hong Kong market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 565's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 565 is good value based on its PB Ratio (0.4x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Art Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.6%

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 Art Group Holdings 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.


Next Steps

Past Performance

How has Art Group Holdings performed over the past 5 years?

23.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 565 has high quality earnings.

Growing Profit Margin: 565's current net profit margins (26.4%) are lower than last year (33.9%).


Past Earnings Growth Analysis

Earnings Trend: 565's earnings have grown significantly by 23.5% per year over the past 5 years.

Accelerating Growth: 565's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 565 had negative earnings growth (-17.3%) over the past year, making it difficult to compare to the Real Estate industry average (-6.2%).


Return on Equity

High ROE: 565's Return on Equity (4.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Art Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 565's short term assets (HK$310.5M) do not cover its short term liabilities (HK$435.4M).

Long Term Liabilities: 565's short term assets (HK$310.5M) do not cover its long term liabilities (HK$864.5M).


Debt to Equity History and Analysis

Debt Level: 565's debt to equity ratio (41.4%) is considered high.

Reducing Debt: 565's debt to equity ratio has increased from 6.2% to 41.4% over the past 5 years.

Debt Coverage: 565's debt is not well covered by operating cash flow (15.3%).

Interest Coverage: 565's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

Inventory Level: 565 has a high level of physical assets or inventory.

Debt Coverage by Assets: 565's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Art Group Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.4%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 565's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 565's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 565's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 565's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 565 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 565's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

6.3yrs

Average board tenure


CEO

Jindong Chen (48yo)

HK$1,818,000

Compensation

Mr. Jindong Chen alias Chen Dong founded Art Textile Technology International Co. Ltd. and served as its Deputy Chairman. He serves as Chief Executive Officer at Art Group Holdings Ltd and has been it's Ex ...


CEO Compensation Analysis

Compensation vs Market: Jindong's total compensation ($USD233.26K) is about average for companies of similar size in the Hong Kong market ($USD225.00K).

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


Board Members

NamePositionTenureCompensationOwnership
Jinyan Chen
Chairman0yrsHK$1.82m22.21% HK$141.0m
Jindong Chen
CEO & Executive Director0yrsHK$1.82m13.73% HK$87.1m
Zeqiang Yang
Independent Non-Executive Director7.4yrsHK$96.00kno data
Ye Lin
Independent Non-Executive Director6.3yrsHK$36.00kno data
Chi Fai Kwan
Independent Non-Executive Director3.8yrsHK$120.00kno data
Sze Pui Chong
Independent Non-Executive Director3.2yrsHK$120.00kno data

6.3yrs

Average Tenure

50yo

Average Age

Experienced Board: 565's board of directors are considered experienced (6.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Art Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Art Group Holdings Limited
  • Ticker: 565
  • Exchange: SEHK
  • Founded:
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$634.558m
  • Shares outstanding: 2.69b
  • Website: https://artgroup.etnet.com.hk

Number of Employees


Location

  • Art Group Holdings Limited
  • China Merchants Tower
  • Unit 1407, 14th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
565SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2003

Biography

Art Group Holdings Limited, an investment holding company, engages in the provision of rental, management, and operating services for properties in the People’s Republic of China. It primarily owns and operates shopping malls. The company was formerly known as Art Textile Technology International Company Limited and changed its name to Art Group Holdings Limited in September 2016. Art Group Holdings Limited is headquartered in Central, Hong Kong. Art Group Holdings Limited is a subsidiary of Fully Chain Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 12:39
End of Day Share Price2020/02/26 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.