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6158

Zhenro Properties Group SEHK:6158 Stock Report

Last Price

HK$0.41

Market Cap

HK$1.8b

7D

0%

1Y

-91.6%

Updated

17 Aug, 2022

Data

Company Financials +
6158 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance1/6
Financial Health4/6
Dividends0/6

6158 Stock Overview

Zhenro Properties Group Limited, an investment holding company, engages in the property development, property leasing, and commercial property management business in the People’s Republic of China.

Zhenro Properties Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Zhenro Properties Group
Historical stock prices
Current Share PriceHK$0.41
52 Week HighHK$4.86
52 Week LowHK$0.39
Beta0.11
1 Month Change-15.63%
3 Month Change-34.68%
1 Year Change-91.60%
3 Year Change-91.96%
5 Year Changen/a
Change since IPO-89.88%

Recent News & Updates

Apr 08
Revenue Downgrade: Here's What Analysts Forecast For Zhenro Properties Group Limited (HKG:6158)

Revenue Downgrade: Here's What Analysts Forecast For Zhenro Properties Group Limited (HKG:6158)

One thing we could say about the analysts on Zhenro Properties Group Limited ( HKG:6158 ) - they aren't optimistic...

Shareholder Returns

6158HK Real EstateHK Market
7D0%0.2%-0.5%
1Y-91.6%-35.2%-20.6%

Return vs Industry: 6158 underperformed the Hong Kong Real Estate industry which returned -35.2% over the past year.

Return vs Market: 6158 underperformed the Hong Kong Market which returned -20.6% over the past year.

Price Volatility

Is 6158's price volatile compared to industry and market?
6158 volatility
6158 Average Weekly Movement7.7%
Real Estate Industry Average Movement5.7%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.6%
10% least volatile stocks in HK Market3.2%

Stable Share Price: 6158 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 6158's weekly volatility has decreased from 14% to 8% over the past year.

About the Company

FoundedEmployeesCEOWebsite
19981,467Xianzhi Huanghttps://www.zhenrodc.com

Zhenro Properties Group Limited, an investment holding company, engages in the property development, property leasing, and commercial property management business in the People’s Republic of China. It develops residential properties; and develops, operates, and manages commercial and mixed-use properties. In addition, the company is involved in design consultation services.

Zhenro Properties Group Fundamentals Summary

How do Zhenro Properties Group's earnings and revenue compare to its market cap?
6158 fundamental statistics
Market CapHK$1.79b
Earnings (TTM)HK$934.52m
Revenue (TTM)HK$42.73b

1.9x

P/E Ratio

0.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6158 income statement (TTM)
RevenueCN¥36.99b
Cost of RevenueCN¥32.77b
Gross ProfitCN¥4.22b
Other ExpensesCN¥3.41b
EarningsCN¥809.01m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.19
Gross Margin11.41%
Net Profit Margin2.19%
Debt/Equity Ratio181.1%

How did 6158 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is 6158 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 6158?

Other financial metrics that can be useful for relative valuation.

6158 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/Revenue1.5x
Enterprise Value/EBITDA33.2x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does 6158's PE Ratio compare to its peers?

6158 PE Ratio vs Peers
The above table shows the PE ratio for 6158 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.9x
160 Hon Kwok Land Investment Company
19.9xn/aHK$1.8b
2768 Jiayuan International Group
0.5x8.1%HK$1.5b
2231 JY Grandmark Holdings
9.3xn/aHK$2.3b
3688 Top Spring International Holdings
49.9xn/aHK$1.7b
6158 Zhenro Properties Group
1.9x3.3%HK$1.8b

Price-To-Earnings vs Peers: 6158 is good value based on its Price-To-Earnings Ratio (1.9x) compared to the peer average (19.9x).


Price to Earnings Ratio vs Industry

How does 6158's PE Ratio compare vs other companies in the HK Real Estate Industry?

Price-To-Earnings vs Industry: 6158 is good value based on its Price-To-Earnings Ratio (1.9x) compared to the Hong Kong Real Estate industry average (5.7x)


Price to Earnings Ratio vs Fair Ratio

What is 6158'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.

6158 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio1.9x
Fair PE Ratio3.3x

Price-To-Earnings vs Fair Ratio: 6158 is good value based on its Price-To-Earnings Ratio (1.9x) compared to the estimated Fair Price-To-Earnings Ratio (3.3x).


Share Price vs Fair Value

What is the Fair Price of 6158 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6158 (HK$0.41) is trading above our estimate of fair value (HK$0.23)

Significantly Below Fair Value: 6158 is trading above our estimate of fair value.


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, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

How is Zhenro Properties Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


3.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6158's forecast earnings growth (3.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 6158's earnings (3.3% per year) are forecast to grow slower than the Hong Kong market (16.7% per year).

High Growth Earnings: 6158's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6158's revenue is expected to decline over the next 3 years (-16% per year).

High Growth Revenue: 6158's revenue is forecast to decline over the next 3 years (-16% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6158's Return on Equity is forecast to be low in 3 years time (3.6%).


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Past Performance

How has Zhenro Properties 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


12.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6158 has a large one-off gain of CN¥430.9M impacting its December 31 2021 financial results.

Growing Profit Margin: 6158's current net profit margins (2.2%) are lower than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: 6158's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: 6158's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6158 had negative earnings growth (-69.5%) over the past year, making it difficult to compare to the Real Estate industry average (15.4%).


Return on Equity

High ROE: 6158's Return on Equity (2.9%) is considered low.


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Financial Health

How is Zhenro Properties 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: 6158's short term assets (CN¥226.8B) exceed its short term liabilities (CN¥171.5B).

Long Term Liabilities: 6158's short term assets (CN¥226.8B) exceed its long term liabilities (CN¥41.4B).


Debt to Equity History and Analysis

Debt Level: 6158's net debt to equity ratio (75.1%) is considered high.

Reducing Debt: 6158's debt to equity ratio has reduced from 412.6% to 181.1% over the past 5 years.

Debt Coverage: 6158's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: 6158's interest payments on its debt are well covered by EBIT (14.7x coverage).


Balance Sheet


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Dividend

What is Zhenro Properties Group 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


3.94%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 6158's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 6158's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 6158's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6158's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: 6158 is not paying a notable dividend for the Hong Kong market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 6158 has not reported any payouts.


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Management

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

2.8yrs

Average management tenure


CEO

Xianzhi Huang (53 yo)

2.75yrs

Tenure

CN¥4,741,000

Compensation

Mr. Xianzhi Huang has been the Chairman of the Board and Executive Director of Zhenro Properties Group Ltd since September 20, 2017 and its Chief Executive Officer since November 20, 2019. Mr. Huang has be...


CEO Compensation Analysis

Compensation vs Market: Xianzhi's total compensation ($USD698.45K) is above average for companies of similar size in the Hong Kong market ($USD302.63K).

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


Leadership Team

Experienced Management: 6158's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: 6158's board of directors are considered experienced (4.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Zhenro Properties Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Zhenro Properties Group Limited
  • Ticker: 6158
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Implied Market Cap: HK$1.791b
  • Shares outstanding: 4.37b
  • Website: https://www.zhenrodc.com

Number of Employees


Location

  • Zhenro Properties Group Limited
  • Hongqiao Zhenro Center
  • Building 7, 3rd Floor
  • Shanghai
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/17 00:00
End of Day Share Price2022/08/17 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.