SEHK:688

Stock Analysis Report

China Overseas Land & Investment

Executive Summary

China Overseas Land & Investment Limited, an investment holding company, engages in the property development and investment, and treasury operations.

Snowflake

Fundamentals

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has China Overseas Land & Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 688 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

688

1.5%

HK Real Estate

-4.2%

HK Market


1 Year Return

-0.4%

688

2.1%

HK Real Estate

-1.9%

HK Market

Return vs Industry: 688 underperformed the Hong Kong Real Estate industry which returned 2.1% over the past year.

Return vs Market: 688 matched the Hong Kong Market which returned -1.9% over the past year.


Shareholder returns

688IndustryMarket
7 Day1.9%1.5%-4.2%
30 Day-0.4%0.07%-2.9%
90 Day4.4%2.2%-0.08%
1 Year3.2%-0.4%6.1%2.1%1.6%-1.9%
3 Year29.2%17.0%45.2%30.2%17.9%6.1%
5 Year34.3%13.9%56.4%30.9%15.0%-4.0%

Price Volatility Vs. Market

How volatile is China Overseas Land & Investment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Overseas Land & Investment 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: 688 (HK$26.2) is trading below our estimate of fair value (HK$99.16)

Significantly Below Fair Value: 688 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 688 is good value based on its PE Ratio (6.2x) compared to the Real Estate industry average (6.3x).

PE vs Market: 688 is good value based on its PE Ratio (6.2x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 688 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 688 is overvalued based on its PB Ratio (0.9x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is China Overseas Land & Investment forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 688's forecast earnings growth (15.1% per year) is above the savings rate (2%).

Earnings vs Market: 688's earnings (15.1% per year) are forecast to grow faster than the Hong Kong market (11.5% per year).

High Growth Earnings: 688's earnings are forecast to grow, but not significantly.

Revenue vs Market: 688's revenue (17.4% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 688's revenue (17.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 688's Return on Equity is forecast to be low in 3 years time (15.7%).


Next Steps

Past Performance

How has China Overseas Land & Investment performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 688 has high quality earnings.

Growing Profit Margin: 688's current net profit margins (26.7%) are higher than last year (25.4%).


Past Earnings Growth Analysis

Earnings Trend: 688's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: 688's earnings growth over the past year (10.1%) is below its 5-year average (11.4% per year).

Earnings vs Industry: 688 earnings growth over the past year (10.1%) exceeded the Real Estate industry -13%.


Return on Equity

High ROE: 688's Return on Equity (15.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Overseas Land & Investment's financial position?


Financial Position Analysis

Short Term Liabilities: 688's short term assets (HK$612.5B) exceeds its short term liabilities (HK$264.2B)

Long Term Liabilities: 688's short term assets (HK$612.5B) exceeds its long term liabilities (206.7B)


Debt to Equity History and Analysis

Debt Level: 688's debt to equity ratio (70%) is considered high.

Reducing Debt: 688's debt to equity ratio has reduced from 77.8% to 70% over the past 5 years.

Debt Coverage: 688's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 688 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 688 has a high level of physical assets or inventory.

Debt Coverage by Assets: 688's debt is covered by short term assets (assets are 2.8x debt).


Next Steps

Dividend

What is China Overseas Land & Investment's current dividend yield, its reliability and sustainability?

3.44%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%2.3%markettop25%6.3%industryaverage4.5%forecastin3Years4.9%

Current dividend yield vs market & industry

Notable Dividend: 688's dividend (3.44%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 688's dividend (3.44%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.32%).


Stability and Growth of Payments

Stable Dividend: 688's dividends per share have been stable in the past 10 years.

Growing Dividend: 688's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.3%), 688's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 688's dividends in 3 years are forecast to be well covered by earnings (27.3% payout ratio).


Next Steps

Management

What is the CEO of China Overseas Land & Investment's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Jianguo Yan (52yo)

2.8yrs

Tenure

HK$6,506,000

Compensation

Mr. Jianguo Yan has been the Chief Executive Officer and Executive Director of China Overseas Land & Investment Limited since January 1, 2017. Mr. Yan rejoined China Overseas Land & Investment on December  ...


CEO Compensation Analysis

Compensation vs Market: Jianguo's total compensation ($USD831.31K) is about average for companies of similar size in the Hong Kong market ($USD850.65K).

Compensation vs Earnings: Jianguo's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.7yrs

Average Tenure

52yo

Average Age

Experienced Management: 688's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

8.7yrs

Average Tenure

52yo

Average Age

Experienced Board: 688's board of directors are considered experienced (8.7 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

SellHK$691,20015 Jul 19
Lai-Tai Fan Hsu
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares24,000
Max PriceHK$28.80
BuyHK$574,00015 Jul 19
Lai-Tai Fan Hsu
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares20,000
Max PriceHK$28.70
BuyHK$285,50015 Jul 19
Lai-Tai Fan Hsu
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceHK$28.55

Ownership Breakdown

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


Management Team

  • Liang Luo (54yo)

    Executive VP

    • Tenure: 12.7yrs
    • Compensation: HK$12.13m
  • Eddie Lui (55yo)

    Chief Financial officer

    • Tenure: 1.8yrs
  • Dapeng Qi (48yo)

    Vice President

    • Tenure: 0yrs
  • Yong Guo (55yo)

    Vice President

    • Tenure: 7.3yrs
    • Compensation: HK$4.28m
  • Jianguo Yan (52yo)

    Chairman & CEO

    • Tenure: 2.8yrs
    • Compensation: HK$6.51m
  • Michael Jiang

    Head, Investor Relations

    • Tenure: 0yrs
  • Yi Zhang (52yo)

    Vice President

    • Tenure: 0yrs
  • Hongbo Kan (56yo)

    Vice President

    • Tenure: 7.3yrs
    • Compensation: HK$5.74m
  • Guoxin Ouyang (51yo)

    Vice President

    • Tenure: 0yrs
  • Guanghui Guo (46yo)

    VP & Executive Director

    • Tenure: 1.4yrs
    • Compensation: HK$6.30m

Board Members

  • Yong Zhou (49yo)

    President of China Overseas (Hong Kong) Ltd & Executive Director of China Overseas (Hong Kong) Ltd

    • Tenure: 0yrs
  • Wenjie Sun (73yo)

    Honourable Chairman

    • Tenure: 14.7yrs
    • Compensation: HK$320.00k
  • Liang Luo (54yo)

    Executive VP

    • Tenure: 12.7yrs
    • Compensation: HK$12.13m
  • Kwong Siu Lam (84yo)

    Independent Non-Executive Director

    • Tenure: 16.2yrs
    • Compensation: HK$500.00k
  • Brian David Li (44yo)

    Independent Non Executive Director

    • Tenure: 6.7yrs
    • Compensation: HK$500.00k
  • Jianguo Yan (52yo)

    Chairman & CEO

    • Tenure: 2.8yrs
    • Compensation: HK$6.51m
  • Rita Fan Hsu (73yo)

    Independent Non-Executive Director

    • Tenure: 10.8yrs
    • Compensation: HK$500.00k
  • Guanghui Guo (46yo)

    VP & Executive Director

    • Tenure: 1.4yrs
    • Compensation: HK$6.30m
  • Ying Chang (47yo)

    Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: HK$300.00k

Company Information

China Overseas Land & Investment Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Overseas Land & Investment Limited
  • Ticker: 688
  • Exchange: SEHK
  • Founded: 1979
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$291.435b
  • Shares outstanding: 10.96b
  • Website: https://www.coli.com.hk

Number of Employees


Location

  • China Overseas Land & Investment Limited
  • Three Pacific Place
  • 10th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAOV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1992
CPPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1992
688SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 1992
688SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 1992
688SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 1992
CAOV.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

China Overseas Land & Investment Limited, an investment holding company, engages in the property development and investment, and treasury operations. It operates through Property Development, Property Inve ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 12:33
End of Day Share Price2019/11/21 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.