SEHK:6158

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Undervalued with adequate balance sheet.

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

Stable Share Price: 6158 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

6158

-2.4%

HK Real Estate

0.04%

HK Market


1 Year Return

-15.8%

6158

-13.9%

HK Real Estate

0.3%

HK Market

Return vs Industry: 6158 underperformed the Hong Kong Real Estate industry which returned -12.2% over the past year.

Return vs Market: 6158 underperformed the Hong Kong Market which returned 1.4% over the past year.


Shareholder returns

6158IndustryMarket
7 Day-2.0%-2.4%0.04%
30 Day-4.7%-0.8%6.1%
90 Day-8.2%-5.6%1.0%
1 Year-14.1%-15.8%-9.3%-13.9%4.5%0.3%
3 Yearn/a-9.6%-23.4%-5.8%-16.1%
5 Yearn/a34.1%7.6%18.1%-1.9%

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$4.47) is trading below our estimate of fair value (HK$22.68)

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


Price To Earnings Ratio

PE vs Industry: 6158 is good value based on its PE Ratio (6.9x) compared to the HK Real Estate industry average (8.8x).

PE vs Market: 6158 is good value based on its PE Ratio (6.9x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 6158 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 6158 is overvalued based on its PB Ratio (1x) compared to the HK Real Estate industry average (0.4x).


Next Steps

Future Growth

How is Zhenro Properties Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6158's forecast earnings growth (11.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 6158's earnings (11.9% per year) are forecast to grow slower than the Hong Kong market (22.2% per year).

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

Revenue vs Market: 6158's revenue (10.8% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 6158's revenue (10.8% per year) is forecast to grow slower than 20% 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 (15%).


Next Steps

Past Performance

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

28.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6158 has high quality earnings.

Growing Profit Margin: 6158's current net profit margins (7.3%) are lower than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: 6158's earnings have grown significantly by 28.1% per year over the past 5 years.

Accelerating Growth: 6158's earnings growth over the past year (10.5%) is below its 5-year average (28.1% per year).

Earnings vs Industry: 6158 earnings growth over the past year (10.5%) exceeded the Real Estate industry -6.4%.


Return on Equity

High ROE: 6158's Return on Equity (9.6%) is considered low.


Next Steps

Financial Health

How is Zhenro Properties Group's financial position?


Financial Position Analysis

Short Term Liabilities: 6158's short term assets (CN¥172.8B) exceed its short term liabilities (CN¥112.0B).

Long Term Liabilities: 6158's short term assets (CN¥172.8B) exceed its long term liabilities (CN¥47.1B).


Debt to Equity History and Analysis

Debt Level: 6158's debt to equity ratio (191.2%) is considered high.

Reducing Debt: 6158's debt to equity ratio has reduced from 696.8% to 191.2% 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 (163x coverage).


Balance Sheet


Next Steps

Dividend

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

2.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6158's dividend (2.22%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 6158's dividend (2.22%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.78%).


Stability and Growth of Payments

Stable Dividend: 6158 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6158's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16%), 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 (16.6% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Xianzhi Huang (51 yo)

0.92

Tenure

CN¥4,361,000

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 ($USD649.74K) is about average for companies of similar size in the Hong Kong market ($USD591.46K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Xianzhi Huang
Executive Chairman & CEO0.92yrCN¥4.36m0.10%
CN¥ 20.7m
Wai Kin Chan
CFO, VP & Executive Director2.08yrsCN¥7.39mno data
Weiliang Liu
Executive Directorno datano datano data
Yin Ping Kwong
Joint Company Secretaryno datano datano data
Jian Chen
Joint Company Secretary1.83yrsno datano data

1.8yrs

Average Tenure

Experienced Management: 6158's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Xianzhi Huang
Executive Chairman & CEO0.92yrCN¥4.36m0.10%
CN¥ 20.7m
Wai Kin Chan
CFO, VP & Executive Director2.08yrsCN¥7.39mno data
Weiliang Liu
Executive Directorno datano datano data
Hua Lin
Independent Non-Executive Director1.33yrsCN¥145.00kno data
Guowei Ou
Non-Executive Director3.08yrsCN¥3.33m4.97%
CN¥ 985.8m
Chuanxu Wang
Independent Non-Executive Director2.83yrsCN¥300.00kno data
Yu Loke
Independent Non-Executive Director2.83yrsCN¥300.00kno data

2.8yrs

Average Tenure

46.5yo

Average Age

Experienced Board: 6158's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 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$19.830b
  • 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
  • Shanghai Province
  • 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 Analysis2020/10/27 12:59
End of Day Share Price2020/10/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.