SEHK:683

Stock Analysis Report

Executive Summary

Kerry Properties Limited, an investment holding company, engages in the development, investment, management, and trading of properties in Hong Kong, the People’s Republic of China, and the Asia Pacific region.

Snowflake

Fundamentals

Undervalued with excellent balance sheet and pays a dividend.

Risks

  • Kerry Properties has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-7.9%

683

-2.9%

HK Real Estate

-2.7%

HK Market


1 Year Return

-14.2%

683

-8.5%

HK Real Estate

-9.4%

HK Market

683 underperformed the Real Estate industry which returned -8.5% over the past year.

683 underperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

683IndustryMarket
7 Day-7.9%-2.9%-2.7%
30 Day-16.0%-2.4%1.8%
90 Day-24.4%-10.9%-5.6%
1 Year-10.1%-14.2%-4.6%-8.5%-6.2%-9.4%
3 Year7.8%-5.3%29.1%15.5%14.3%2.7%
5 Year10.8%-9.8%53.8%27.6%16.7%-2.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Kerry Properties undervalued based on future cash flows and its price relative to the stock market?

45%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Kerry Properties's share price is below the future cash flow value, and at a moderate discount (> 20%).

Kerry Properties's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Kerry Properties is good value based on earnings compared to the HK Real Estate industry average.

Kerry Properties is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Kerry Properties is poor value based on expected growth next year.


Price Based on Value of Assets

Kerry Properties is good value based on assets compared to the HK Real Estate industry average.


Next Steps

Future Growth

How is Kerry Properties expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Kerry Properties's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Kerry Properties's earnings are expected to grow by 0.6% yearly, however this is not considered high growth (20% yearly).

Kerry Properties's revenues are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

Kerry Properties's earnings growth is positive but not above the Hong Kong market average.

Kerry Properties's earnings growth is positive but not above the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Kerry Properties is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Kerry Properties performed over the past 5 years?

8.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Kerry Properties's year on year earnings growth rate has been positive over the past 5 years.

Kerry Properties's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Kerry Properties's 1-year earnings growth is negative, it can't be compared to the HK Real Estate industry average.


Return on Equity

Kerry Properties has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Kerry Properties used its assets more efficiently than the HK Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

Kerry Properties has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Kerry Properties's financial position?


Financial Position Analysis

Kerry Properties is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Kerry Properties's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Kerry Properties's level of debt (33.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (41.3% vs 33.8% today).

Debt is well covered by operating cash flow (29.6%, greater than 20% of total debt).

Kerry Properties earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

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

5.84%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Kerry Properties's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Kerry Properties's dividend is below the markets top 25% of dividend payers in Hong Kong (6.16%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).


Next Steps

Management

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

6.7yrs

Average management tenure


CEO

Khoon Hua Kuok (40yo)

0.3yrs

Tenure

HK$320,000

Compensation

Mr. Khoon Hua Kuok has been Vice Chairman and CEO of Kerry Properties Limited since June 1, 2019. He has been Chairman of the Board of Kerry Logistics Network Limited since May 31, 2019. Mr. Kuok has been  ...


Management Age and Tenure

6.7yrs

Average Tenure

57.5yo

Average Age

The average tenure for the Kerry Properties management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.2yrs

Average Tenure

62yo

Average Age

The tenure for the Kerry Properties board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Shut Kan Ho (68yo)

    Consultant

    • Tenure: 0.8yrs
    • Compensation: HK$26.36m
  • Siu Kong Wong (68yo)

    Chairman

    • Tenure: 6.1yrs
    • Compensation: HK$27.08m
  • Sunny Chau (53yo)

    GM & Director of Kerry Properties Development Mgmt (Shanghai) Co Ltd

    • Tenure: 23.3yrs
  • Liz Li (53yo)

    Company Secretary

    • Tenure: 13.7yrs
  • Robert Tan (62yo)

    Managing Director of South East Asia Logistics Operation

    • Tenure: 0yrs
  • Louis Wong (58yo)

    CFO & Executive Director

    • Tenure: 0.8yrs
  • Edwardo Erni (57yo)

    Managing Director of Kerry Eas Logistics Limited

    • Tenure: 0yrs
  • Bryan Pallop Gaw (42yo)

    Executive Director

    • Tenure: 7.6yrs
    • Compensation: HK$12.24m
  • Wilkie Lee (60yo)

    General Manager of Kerry Properties (Macau) Limited and Director of Kerry Properties (Macau) Limited

    • Tenure: 0yrs
  • Khoon Hua Kuok (40yo)

    Vice Chairman & CEO

    • Tenure: 0.3yrs
    • Compensation: HK$320.00k

Board Members

  • Siu Kong Wong (68yo)

    Chairman

    • Tenure: 6.1yrs
    • Compensation: HK$27.08m
  • Sing Ki Tam (64yo)

    Executive Director of Kerry Properties

    • Tenure: 0yrs
  • Sunny Chau (53yo)

    GM & Director of Kerry Properties Development Mgmt (Shanghai) Co Ltd

    • Tenure: 23.3yrs
  • Stephen Chang (71yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: HK$560.00k
  • Moon Lun Ku (68yo)

    Independent Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: HK$560.00k
  • Louis Wong (58yo)

    CFO & Executive Director

    • Tenure: 0.8yrs
  • Marina Wong (70yo)

    Independent Non-Executive Director

    • Tenure: 11.3yrs
    • Compensation: HK$600.00k
  • Bryan Pallop Gaw (42yo)

    Executive Director

    • Tenure: 7.6yrs
    • Compensation: HK$12.24m
  • Wilkie Lee (60yo)

    General Manager of Kerry Properties (Macau) Limited and Director of Kerry Properties (Macau) Limited

    • Tenure: 0yrs
  • Khoon Hua Kuok (40yo)

    Vice Chairman & CEO

    • Tenure: 0.3yrs
    • Compensation: HK$320.00k

Company Information

Kerry Properties Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kerry Properties Limited
  • Ticker: 683
  • Exchange: SEHK
  • Founded: 1978
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: HK$34.883b
  • Shares outstanding: 1.46b
  • Website: https://www.kerryprops.com

Number of Employees


Location

  • Kerry Properties Limited
  • Kerry Centre
  • 25th Floor
  • Quarry Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KR3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1996
683SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 1996
KRYP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 1996
683SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDAug 1996
683SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDAug 1996
KRYP.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2008

Biography

Kerry Properties Limited, an investment holding company, engages in the development, investment, management, and trading of properties in Hong Kong, the People’s Republic of China, and the Asia Pacific reg ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 12:38
End of Day Share Price2019/09/20 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.