Poly Property Services (SEHK:6049) - Share price, News & Analysis

Q: What is the Fair Price of 6049 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6049 (HK$40.4) is trading below our estimate of [[fair value]] (HK$93.05)

6049 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

6049 Stock Overview

Poly Property Services Co., Ltd., together with its subsidiaries, provides property management services in the People’s Republic of China.

Rewards

Trading at 56.6% below our estimate of its fair value

Earnings are forecast to grow 19.33% per year

Earnings grew by 25.6% over the past year

Risk Analysis

No risks detected for 6049 from our risk checks.

Poly Property Services Competitors

Greentown Service Group

SEHK:2869

HK$20.9b

Red Star Macalline Group

SEHK:1528

HK$23.2b

Hang Lung Group

SEHK:10

HK$18.5b

Hysan Development

SEHK:14

HK$24.7b

Price History & Performance

Summary of all time highs, changes and price drops for Poly Property Services
Historical stock prices
Current Share Price	HK$40.40
52 Week High	HK$65.90
52 Week Low	HK$38.10
Beta	0.017
1 Month Change	-18.14%
3 Month Change	-17.80%
1 Year Change	-13.68%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-10.92%

Recent News & Updates

Apr 29

An Intrinsic Calculation For Poly Property Services Co., Ltd. (HKG:6049) Suggests It's 42% Undervalued

Does the April share price for Poly Property Services Co., Ltd. ( HKG:6049 ) reflect what it's really worth? Today, we...

Shareholder Returns

	6049	HK Real Estate	HK Market
7D	-4.9%	2.0%	1.5%
1Y	-13.7%	-36.2%	-22.7%

Return vs Industry: 6049 exceeded the Hong Kong Real Estate industry which returned -36.2% over the past year.

Return vs Market: 6049 exceeded the Hong Kong Market which returned -22.7% over the past year.

Price Volatility

Is 6049's price volatile compared to industry and market?
6049 volatility
6049 Average Weekly Movement	4.8%
Real Estate Industry Average Movement	5.8%
Market Average Movement	6.6%
10% most volatile stocks in HK Market	12.8%
10% least volatile stocks in HK Market	3.2%

Stable Share Price: 6049 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6049's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1996	44,415	Lanyu Wu	https://www.polywuye.com

Poly Property Services Co., Ltd., together with its subsidiaries, provides property management services in the People’s Republic of China. The company offers services for residential communities, commercial and office buildings, and public and other properties under the Harmony Courtyard, Oriental Courtesy, Nebula Ecology, and Towns Revitalisation brands. It also provides community and value-added services to non-property owners, such as pre-delivery services to property developers for assisting in property sales and marketing activities at property sales venues and display units, which primarily include visitor reception, cleaning, and security inspection and maintenance, as well as other value-added services to nonproperty owners, such as consultancy, inspection, delivery, and asset operation services.

Poly Property Services Fundamentals Summary

How do Poly Property Services's earnings and revenue compare to its market cap?
6049 fundamental statistics
Market Cap	CN¥19.23b
Earnings (TTM)	CN¥845.69m
Revenue (TTM)	CN¥10.78b

22.7x

P/E Ratio

1.8x

P/S Ratio

Is 6049 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6049 income statement (TTM)
Revenue	CN¥10.78b
Cost of Revenue	CN¥8.77b
Gross Profit	CN¥2.01b
Other Expenses	CN¥1.17b
Earnings	CN¥845.69m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 29, 2022

Earnings per share (EPS)	1.53
Gross Margin	18.68%
Net Profit Margin	7.84%
Debt/Equity Ratio	0%

How did 6049 perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

20%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 6049 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
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6049?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6049. This is calculated by dividing 6049's market cap by their current preferred multiple.
What is 6049's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥19.23b

6049 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	1.1x
Enterprise Value/EBITDA	10.7x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does 6049's PE Ratio compare to its peers?

6049 PE Ratio vs Peers

The above table shows the PE ratio for 6049 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	12.9x
2869 Greentown Service Group	21.2x	19.1%	HK$20.9b
1528 Red Star Macalline Group	5.3x	20.5%	HK$23.2b
10 Hang Lung Group	7.3x	n/a	HK$18.5b
14 Hysan Development	17.9x	16.1%	HK$24.7b
6049 Poly Property Services	22.7x	19.3%	HK$22.4b

Price-To-Earnings vs Peers: 6049 is expensive based on its Price-To-Earnings Ratio (22.7x) compared to the peer average (12.9x).

Price to Earnings Ratio vs Industry

How does 6049's PE Ratio compare vs other companies in the HK Real Estate Industry?

Price-To-Earnings vs Industry: 6049 is expensive based on its Price-To-Earnings Ratio (22.7x) compared to the Hong Kong Real Estate industry average (5.6x)

Price to Earnings Ratio vs Fair Ratio

What is 6049'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.

6049 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	22.7x
Fair PE Ratio	6.8x

Price-To-Earnings vs Fair Ratio: 6049 is expensive based on its Price-To-Earnings Ratio (22.7x) compared to the estimated Fair Price-To-Earnings Ratio (6.8x).

Share Price vs Fair Value

What is the Fair Price of 6049 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6049 (HK$40.4) is trading below our estimate of fair value (HK$93.05)

Significantly Below Fair Value: 6049 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

Future Growth

How is Poly Property Services forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

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

19.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6049's forecast earnings growth (19.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 6049's earnings (19.3% per year) are forecast to grow faster than the Hong Kong market (16.7% per year).

High Growth Earnings: 6049's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6049's revenue (19.3% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 6049's revenue (19.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 6049's Return on Equity is forecast to be low in 3 years time (17.2%).

Discover growth companies

Past Performance

How has Poly Property Services performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

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

31.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6049 has high quality earnings.

Growing Profit Margin: 6049's current net profit margins (7.8%) are lower than last year (8.4%).

Past Earnings Growth Analysis

Earnings Trend: 6049's earnings have grown significantly by 31.7% per year over the past 5 years.

Accelerating Growth: 6049's earnings growth over the past year (25.6%) is below its 5-year average (31.7% per year).

Earnings vs Industry: 6049 earnings growth over the past year (25.6%) exceeded the Real Estate industry 17%.

Return on Equity

High ROE: 6049's Return on Equity (12.6%) is considered low.

Discover strong past performing companies

Financial Health

How is Poly Property Services's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: 6049's short term assets (CN¥10.0B) exceed its short term liabilities (CN¥4.1B).

Long Term Liabilities: 6049's short term assets (CN¥10.0B) exceed its long term liabilities (CN¥113.0M).

Debt to Equity History and Analysis

Debt Level: 6049 is debt free.

Reducing Debt: 6049 has not had any debt for past 5 years.

Debt Coverage: 6049 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6049 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Discover healthy companies

Dividend

What is Poly Property Services's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.88%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6049's dividend (0.88%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.82%).

High Dividend: 6049's dividend (0.88%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.35%).

Stability and Growth of Payments

Stable Dividend: 6049 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 6049 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 6049 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: 6049 is not paying a notable dividend for the Hong Kong market.

Discover strong dividend paying companies

Management

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

4.1yrs

Average management tenure

CEO

Lanyu Wu (42 yo)

no data

Tenure

Ms. Lanyu Wu has been Executive Director of Poly Property Services Co., Ltd. (formerly known as Poly Property Development Co., Ltd.). since May 7, 2019 and serves as its General Manager.Ms. Wu joined Poly...

Leadership Team

Experienced Management: 6049's management team is considered experienced (4.1 years average tenure).

Board Members

Experienced Board: 6049's board of directors are considered experienced (3.9 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	2022/08/10 00:00
End of Day Share Price	2022/08/10 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31