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.


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

1.4%

683

1.9%

HK Real Estate

2.2%

HK Market


1 Year Return

-3.1%

683

6.9%

HK Real Estate

-1.3%

HK Market

Return vs Industry: 683 underperformed the Hong Kong Real Estate industry which returned 6.9% over the past year.

Return vs Market: 683 underperformed the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

683IndustryMarket
7 Day1.4%1.9%2.2%
30 Day-5.2%-1.9%-2.9%
90 Day-27.8%-11.3%-5.8%
1 Year1.4%-3.1%11.0%6.9%2.3%-1.3%
3 Year15.8%1.6%37.6%23.3%15.6%3.9%
5 Year16.7%-5.0%59.6%34.0%20.1%0.06%

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?

44%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: 683 (HK$24.65) is trading below our estimate of fair value (HK$44.38)

Significantly Undervalued: 683 is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: 683 is good value based on its PE Ratio (5x) compared to the Real Estate industry average (6.1x).

PE vs Market: 683 is good value based on its PE Ratio (5x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

Low PEG Ratio: 683 is poor value based on its PEG Ratio (9.2x)


Price Based on Value of Assets

PB vs Industry: 683 is good value based on its PB Ratio (0.4x) compared to the HK Real Estate industry average (0.5x).


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

Earnings vs Savings Rate: 683's forecast earnings growth (0.6% per year) is below the savings rate (2%).

Earnings vs Market: 683's earnings (0.6% per year) are forecast to grow slower than the Hong Kong market (11.2% per year).

High Growth Earnings: 683's earnings are forecast to grow, but not significantly.

Revenue vs Market: 683's revenue is expected to decline over the next 3 years (-3.6% per year).

High Growth Revenue: 683's revenue is forecast to decline over the next 3 years (-3.6%).


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: 683's Return on Equity is forecast to be low in 3 years time (5.7%).


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

Earnings Trend: 683's earnings have grown by 8.2% per year over the past 5 years.

Accelerating Growth: 683's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 683 had negative earnings growth (-28.4%) over the past year, making it difficult to compare to the Real Estate industry average (-12.4%).


Return on Equity

High ROE: 683's Return on Equity (6.9%) is considered low.


Return on Assets

ROA vs Industry: 683 has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 683 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Kerry Properties's financial position?


Financial Position Analysis

Short Term Liabilities: 683's short term assets (HK$34.2B) exceeds its short term liabilities (HK$24.8B)

Long Term Liabilities: 683's short term assets (34.2B) do not cover its long term liabilities (36.0B)


Debt to Equity History and Analysis

Debt Level: 683's debt to equity ratio (33.8%) is considered satisfactory

Reducing Debt: 683's debt to equity ratio has reduced from 41.3% to 33.8% over the past 5 years.

Debt Coverage: 683's debt is well covered by operating cash flow (29.6%).

Interest Coverage: 683 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 683 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 683's 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?

5.67%

Expected Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%2.3%markettop25%6.3%industryaverage4.4%forecastin3Years5.7%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 683's dividend (5.48%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 683's dividend (5.48%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

Stable Dividend: 683's dividends per share have been stable in the past 10 years.

Growing Dividend: 683's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.7%), 683's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 683's dividends in 3 years are forecast to be well covered by earnings (34.9% payout ratio).


Next Steps

Management

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

6.8yrs

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

6.8yrs

Average Tenure

57.5yo

Average Age

Experienced Management: 683's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

62yo

Average Age

Experienced Board: 683's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$38,014,08202 Oct 19
Schroder Investment Management Limited
EntityCompany
Shares1,596,318
Max PriceHK$23.81

Ownership Breakdown


Management Team

  • Shut Kan Ho (68yo)

    Consultant

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

    Chairman

    • Tenure: 6.2yrs
    • 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: 13.8yrs
  • 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: 7.7yrs
    • 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: 6.2yrs
    • 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: 12.4yrs
    • Compensation: HK$560.00k
  • Louis Wong (58yo)

    CFO & Executive Director

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

    Independent Non-Executive Director

    • Tenure: 11.4yrs
    • Compensation: HK$600.00k
  • Bryan Pallop Gaw (42yo)

    Executive Director

    • Tenure: 7.7yrs
    • 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$35.611b
  • 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 Analysis2019/10/14 12:37
End of Day Share Price2019/10/14 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.

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