SEHK:6158

Stock Analysis Report

Zhenro Properties Group

Executive Summary

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.

Snowflake

Fundamentals

Exceptional growth potential and good value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.6%

6158

1.2%

HK Real Estate

0.3%

HK Market


1 Year Return

17.5%

6158

10.8%

HK Real Estate

1.3%

HK Market

Return vs Industry: 6158 exceeded the Hong Kong Real Estate industry which returned 10.8% over the past year.

Return vs Market: 6158 exceeded the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

6158IndustryMarket
7 Day-0.6%1.2%0.3%
30 Day3.7%2.3%0.5%
90 Day12.1%-8.0%-4.6%
1 Year21.3%17.5%15.1%10.8%4.9%1.3%
3 Yearn/a37.2%22.9%15.3%3.7%
5 Yearn/a60.7%34.8%20.0%-0.006%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6158 (HK$5.37) is trading below our estimate of fair value (HK$47.48)

Significantly Below Fair Value: 6158 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6158 is poor value based on its PE Ratio (9x) compared to the Real Estate industry average (6.2x).

PE vs Market: 6158 is good value based on its PE Ratio (9x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 6158 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 6158 is overvalued based on its PB Ratio (1.4x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Zhenro Properties Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

33.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6158's forecast earnings growth (33% per year) is above the savings rate (2%).

Earnings vs Market: 6158's earnings (33% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 6158's revenue (26% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 6158's revenue (26% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6158's Return on Equity is forecast to be high in 3 years time (25.6%)


Next Steps

Past Performance

How has Zhenro Properties Group performed over the past 5 years?

37.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 6158's earnings have grown significantly by 37% per year over the past 5 years.

Accelerating Growth: 6158's earnings growth over the past year (14.1%) is below its 5-year average (37% per year).

Earnings vs Industry: 6158 earnings growth over the past year (14.1%) exceeded the Real Estate industry -12.8%.


Return on Equity

High ROE: 6158's Return on Equity (8.4%) is considered low.


Return on Assets

ROA vs Industry: 6158's Return on Assets is below or equal to the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 6158 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Zhenro Properties Group's financial position?


Financial Position Analysis

Short Term Liabilities: 6158's short term assets (CN¥138.7B) exceeds its short term liabilities (CN¥94.4B)

Long Term Liabilities: 6158's short term assets (138.7B) exceeds its long term liabilities (31.8B)


Debt to Equity History and Analysis

Debt Level: 6158's debt to equity ratio (180.8%) is considered high

Reducing Debt: Insufficient data to determine if 6158's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 6158's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 6158's interest payments on its debt are well covered by EBIT (38.9x coverage).


Balance Sheet

Inventory Level: 6158 has a high level of physical assets or inventory.

Debt Coverage by Assets: 6158's debt is covered by short term assets (assets are 2.639710x debt).


Next Steps

Dividend

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

2.71%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.3%markettop25%6.2%industryaverage4.5%forecastin3Years5.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 6158's dividend (2.71%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 6158's dividend (2.71%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: Whilst dividend payments have been stable, 6158 has been paying a dividend for less than 10 years.

Growing Dividend: 6158's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.2%), 6158's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 6158's dividends in 3 years are forecast to be well covered by earnings (28.2% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Benlong Wang (43yo)

1.2yrs

Tenure

CN¥3,207,200

Compensation

Mr. Wang Benlong has been Chief Executive Officer of Zhenro Properties Group Limited since August 27, 2018. Mr. Wang is primarily responsible for the overall business management of Zhenro Properties Group  ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Benlong's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

Compensation vs Earnings: Insufficient data to compare Benlong's compensation with company performance.


Management Age and Tenure

1.0yrs

Average Tenure

43yo

Average Age

Experienced Management: 6158's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

43.5yo

Average Age

Experienced Board: 6158's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 6158 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥1,211,542,05502 Aug 19
Guoqiang Ou
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares244,756,000
Max PriceCN¥4.95
SellCN¥1,211,542,86124 Jul 19
Guoqiang Ou
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares244,756,000
Max PriceCN¥4.95
SellCN¥67,200,01203 Jan 19
Dongxing Securities Co., Ltd., Asset Management Arm
EntityCompany
Shares14,000,000
Max PriceCN¥4.80
BuyCN¥28,466,75215 Nov 18
Guoqiang Ou
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares5,965,000
Max PriceCN¥4.77

Ownership Breakdown


Management Team

  • Wai Kin Chan (38yo)

    CFO, VP & Executive Director

    • Tenure: 1.1yrs
    • Compensation: CN¥8.88m
  • Benlong Wang (43yo)

    CEO & Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥3.21m
  • Xianzhi Huang (50yo)

    Executive Chairman of the Board

    • Tenure: 2.1yrs
    • Compensation: CN¥4.06m
  • Yvonne Kwong

    Joint Company Secretary

    • Tenure: 0yrs
  • Jian Chen

    Joint Company Secretary

    • Tenure: 0.8yrs

Board Members

  • Wai Kin Chan (38yo)

    CFO, VP & Executive Director

    • Tenure: 1.1yrs
    • Compensation: CN¥8.88m
  • Hua Lin (44yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Guoqiang Ou (34yo)

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: CN¥2.46m
  • Guowei Ou (30yo)

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: CN¥2.46m
  • Benlong Wang (43yo)

    CEO & Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥3.21m
  • Chuanxu Wang (48yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥300.00k
  • Xianzhi Huang (50yo)

    Executive Chairman of the Board

    • Tenure: 2.1yrs
    • Compensation: CN¥4.06m
  • Yu Loke (69yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥300.00k

Company Information

Zhenro Properties Group Limited's company bio, 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
  • Market Cap: HK$23.455b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6158SEHK (The Stock Exchange of Hong Kong Ltd.)YesDomestic SharesHKHKDJan 2018
6158SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesDomestic SharesHKHKDJan 2018
6158SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesDomestic SharesHKHKDJan 2018

Biography

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 deve ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 13:02
End of Day Share Price2019/10/22 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.