SEHK:593

Stock Analysis Report

Executive Summary

DreamEast Group Limited, an investment holding company, engages in the property development and leasing, tourism park operation, and financial instruments investment activities in the People’s Republic of China and Hong Kong.

Risk Analysis

Earnings have declined by -10.38% per year over past 5 years

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Overvalued with weak fundamentals.


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Share Price & News

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


Latest Share Price and Events

Stable Share Price: 593's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

593

1.5%

HK Real Estate

0.9%

HK Market


1 Year Return

-44.4%

593

1.9%

HK Real Estate

-1.5%

HK Market

Return vs Industry: 593 underperformed the Hong Kong Real Estate industry which returned 1.9% over the past year.

Return vs Market: 593 underperformed the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

593IndustryMarket
7 Day0%1.5%0.9%
30 Day-10.9%-2.5%-3.7%
90 Day-32.8%4.5%-0.1%
1 Year-44.4%-44.4%5.7%1.9%2.0%-1.5%
3 Year-55.0%-55.0%47.8%32.3%17.3%5.4%
5 Year-44.8%-44.8%57.3%37.5%17.1%-2.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.49x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 593's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 593's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 593 is unprofitable, so we can't compare its PE Ratio to the Real Estate industry average.

PE vs Market: 593 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 593's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 593 is good value based on its PB Ratio (0.5x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

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

7.2%

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 DreamEast 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.


Next Steps

Past Performance

How has DreamEast Group performed over the past 5 years?

-10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 593 is currently unprofitable.

Growing Profit Margin: 593 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 593 is unprofitable, and losses have increased over the past 5 years at a rate of -10.4% per year.

Accelerating Growth: Unable to compare 593's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 593 is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-11.5%).


Return on Equity

High ROE: 593 has a negative Return on Equity (-0.96%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is DreamEast Group's financial position?


Financial Position Analysis

Short Term Liabilities: 593's short term assets (HK$3.4B) do not cover its short term liabilities (HK$4.6B).

Long Term Liabilities: 593's short term assets (HK$3.4B) do not cover its long term liabilities (HK$3.4B).


Debt to Equity History and Analysis

Debt Level: 593's debt to equity ratio (178.5%) is considered high.

Reducing Debt: 593's debt to equity ratio has increased from 71.3% to 178.5% over the past 5 years.

Debt Coverage: 593's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 593's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 593 has a high level of physical assets or inventory.

Debt Coverage by Assets: 593's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.3%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 593's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 593'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 593's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 593's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 593 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 593's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Zheng Zhou (48yo)

5.9yrs

Tenure

HK$120,000

Compensation

Mr. Zheng Zhou has been the Chairman and Chief Executive Officer of DreamEast Group Ltd. since January 27, 2014 and has been its Director since January 6, 2014. He has been a Director of WildSky Resources  ...


Management Age and Tenure

2.5yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 593's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

56yo

Average Age

Experienced Board: 593's board of directors are considered experienced (5.6 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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.6%.


Management Team

  • Leo Lam (53yo)

    General Manager of Operations and Executive Director of Quality HealthCare Elderly Services

    • Tenure: 0yrs
  • Rebecca Childs Fowler (67yo)

    Chief Operating Officer of Quality HealthCare Medical Services

    • Tenure: 0yrs
  • Jessica Yan (45yo)

    Legal Officer

    • Tenure: 0yrs
  • Benjamin Lam (58yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: HK$5.02m
  • Zheng Zhou (48yo)

    Chairman & CEO

    • Tenure: 5.9yrs
    • Compensation: HK$120.00k
  • Tak Kwong Chan (48yo)

    Company Secretary

    • Tenure: 0.9yrs
    • Compensation: HK$48.00k
  • Lei Yang (51yo)

    Executive Director

    • Tenure: 2.5yrs
    • Compensation: HK$141.00k
  • Bencai Zhao (46yo)

    Chief Financial Officer

    • Tenure: 0.2yrs

Board Members

  • Buting Yang Leong (73yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: HK$126.00k
  • Leo Lam (53yo)

    General Manager of Operations and Executive Director of Quality HealthCare Elderly Services

    • Tenure: 0yrs
  • Chak Hung Li (54yo)

    Independent Non-Executive Director

    • Tenure: 15.2yrs
    • Compensation: HK$151.00k
  • Xiaosu Meng (70yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$126.00k
  • Benjamin Lam (58yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: HK$5.02m
  • Zheng Zhou (48yo)

    Chairman & CEO

    • Tenure: 5.9yrs
    • Compensation: HK$120.00k
  • Daxin Zhao (64yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: HK$126.00k
  • Lei Yang (51yo)

    Executive Director

    • Tenure: 2.5yrs
    • Compensation: HK$141.00k

Company Information

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


Key Information

  • Name: DreamEast Group Limited
  • Ticker: 593
  • Exchange: SEHK
  • Founded:
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: HK$1.285b
  • Shares outstanding: 285.49m
  • Website: https://www.dreameast.com

Number of Employees


Location

  • DreamEast Group Limited
  • COFCO Tower
  • 10th Floor
  • Causeway Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
593SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 1993

Biography

DreamEast Group Limited, an investment holding company, engages in the property development and leasing, tourism park operation, and financial instruments investment activities in the People’s Republic of  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 12:35
End of Day Share Price2019/12/09 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.