SEHK:6958

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Zhenro Services Group

Executive Summary

Zhenro Services Group Limited provides property management services for residential and non-residential properties in China. More Details


Snowflake Analysis

Exceptional growth potential with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6958 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: Insufficient data to determine 6958's volatility change over the past year.


Market Performance


7 Day Return

-2.8%

6958

-2.0%

HK Real Estate

-0.5%

HK Market


1 Year Return

n/a

6958

-8.1%

HK Real Estate

7.6%

HK Market

Return vs Industry: Insufficient data to determine how 6958 performed against the Hong Kong Real Estate industry.

Return vs Market: Insufficient data to determine how 6958 performed against the Hong Kong Market.


Shareholder returns

6958IndustryMarket
7 Day-2.8%-2.0%-0.5%
30 Day-2.2%4.9%5.3%
90 Day-30.6%-2.0%4.2%
1 Yearn/a-3.2%-8.1%11.9%7.6%
3 Yearn/a-1.4%-13.8%-1.2%-11.4%
5 Yearn/a42.6%14.6%29.7%7.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

34.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6958 (HK$4.47) is trading below our estimate of fair value (HK$6.85)

Significantly Below Fair Value: 6958 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6958 is poor value based on its PE Ratio (20.9x) compared to the HK Real Estate industry average (8.4x).

PE vs Market: 6958 is poor value based on its PE Ratio (20.9x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 6958 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 6958 is overvalued based on its PB Ratio (16.6x) compared to the HK Real Estate industry average (0.4x).


Next Steps

Future Growth

How is Zhenro Services Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

43.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6958's forecast earnings growth (43.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 6958's earnings (43.3% per year) are forecast to grow faster than the Hong Kong market (21.9% per year).

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

Revenue vs Market: 6958's revenue (43.8% per year) is forecast to grow faster than the Hong Kong market (13.7% per year).

High Growth Revenue: 6958's revenue (43.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6958's Return on Equity is forecast to be high in 3 years time (21.5%)


Next Steps

Past Performance

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

88.0%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 6958 has a high level of non-cash earnings.

Growing Profit Margin: 6958's current net profit margins (15.8%) are higher than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 6958's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 6958's past year earnings growth to its 5-year average.

Earnings vs Industry: 6958 earnings growth over the past year (88%) exceeded the Real Estate industry -0.6%.


Return on Equity

High ROE: 6958's Return on Equity (74.1%) is considered outstanding.


Next Steps

Financial Health

How is Zhenro Services Group's financial position?


Financial Position Analysis

Short Term Liabilities: 6958's short term assets (CN¥501.7M) exceed its short term liabilities (CN¥419.3M).

Long Term Liabilities: 6958's short term assets (CN¥501.7M) exceed its long term liabilities (CN¥31.0M).


Debt to Equity History and Analysis

Debt Level: 6958's debt to equity ratio (10.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 6958's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 6958's debt is well covered by operating cash flow (479.6%).

Interest Coverage: 6958's interest payments on its debt are well covered by EBIT (155.9x coverage).


Balance Sheet


Next Steps

Dividend

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

2.29%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 6958's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 6958's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 6958's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6958's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6958's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Liang Huang (46 yo)

0.92

Tenure

Mr. Liang Huang has been the Chief Executive Officer of Zhenro Services Group Limited since December 6, 2019 and has been its Executive Director since December 17, 2018. Mr. Huang joined the Zhenro Service...


Leadership Team

NamePositionTenureCompensationOwnership
Liang Huang
CEO & Executive Director0.92yrno datano data
Yi Wang
CFO & Joint Company Secretary0.25yrno datano data
Xiaotong Lin
Executive Directorno datano datano data
Kin Keong Lei
Joint Company Secretary0.92yrno datano data

0.9yrs

Average Tenure

44.5yo

Average Age

Experienced Management: 6958's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Liang Huang
CEO & Executive Director0.92yrno datano data
Xiaotong Lin
Executive Directorno datano datano data
Po Fung Au Yeung
Independent Non-Executive Director0.42yrno datano data
Wai Kin Chan
Non-Executive Director0.92yrno datano data
Xianzhi Huang
Non-Executive Chairman of the Board0.92yrno datano data
Haiyue Ma
Independent Non-Executive Director0.42yrno datano data
Wei Zhang
Independent Non-Executive Director0.42yrno datano data

0.7yrs

Average Tenure

46yo

Average Age

Experienced Board: 6958's board of directors are not considered experienced ( 0.7 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.


Ownership Breakdown

Dilution of Shares: 6958 only recently listed within the past 12 months.


Top Shareholders

Company Information

Zhenro Services Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zhenro Services Group Limited
  • Ticker: 6958
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$4.607b
  • Shares outstanding: 1.04b
  • Website: https://www.zhenrowy.com

Number of Employees


Location

  • Zhenro Services Group Limited
  • Building No.7
  • Hongqiao Zhenro Center
  • Shanghai
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6958SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2020

Biography

Zhenro Services Group Limited provides property management services for residential and non-residential properties in China. The company offers a range of property management services, such as cleaning, se...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 10:18
End of Day Share Price2020/11/26 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.