SEHK:726

Stock Analysis Report

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Executive Summary

DIT Group Limited, an investment holding company, engages in the prefabricated construction and property investment activities in the People’s Republic of China. More Details


Snowflake Analysis

High growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 726 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: 726's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.


Market Performance


7 Day Return

1.0%

726

-1.9%

HK Real Estate

1.1%

HK Market


1 Year Return

73.6%

726

-8.3%

HK Real Estate

8.2%

HK Market

Return vs Industry: 726 exceeded the Hong Kong Real Estate industry which returned -8.1% over the past year.

Return vs Market: 726 exceeded the Hong Kong Market which returned 7.6% over the past year.


Shareholder returns

726IndustryMarket
7 Day1.0%-1.9%1.1%
30 Day0%6.9%7.2%
90 Day-41.2%-3.0%5.2%
1 Year73.6%73.6%-3.4%-8.3%12.6%8.2%
3 Year5.5%5.5%-0.3%-12.9%0.4%-10.0%
5 Year-46.2%-46.2%45.0%14.7%30.6%8.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

21.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 726's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 726's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 726 is poor value based on its PE Ratio (21.5x) compared to the HK Real Estate industry average (8.4x).

PE vs Market: 726 is poor value based on its PE Ratio (21.5x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 726 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 726 is overvalued based on its PB Ratio (1.6x) compared to the HK Real Estate industry average (0.4x).


Next Steps

Future Growth

How is DIT Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

43.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 726's forecast earnings growth (43.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 726'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: 726's revenue (43.7% per year) is forecast to grow faster than the Hong Kong market (13.7% per year).

High Growth Revenue: 726's revenue (43.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 726's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has DIT Group performed over the past 5 years?

56.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 726 has a high level of non-cash earnings.

Growing Profit Margin: 726 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 726 has become profitable over the past 5 years, growing earnings by 56.1% per year.

Accelerating Growth: 726 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 726 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Real Estate industry (-0.6%).


Return on Equity

High ROE: 726's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

How is DIT Group's financial position?


Financial Position Analysis

Short Term Liabilities: 726's short term assets (HK$1.2B) exceed its short term liabilities (HK$1.2B).

Long Term Liabilities: 726's short term assets (HK$1.2B) exceed its long term liabilities (HK$181.9M).


Debt to Equity History and Analysis

Debt Level: 726's debt to equity ratio (24.4%) is considered satisfactory.

Reducing Debt: 726's debt to equity ratio has increased from 10.2% to 24.4% over the past 5 years.

Debt Coverage: 726's debt is not well covered by operating cash flow (6.1%).

Interest Coverage: 726's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 726's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 726'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 726's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 726'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 726'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?

1.2yrs

Average management tenure


CEO

Weiqiang Guo (42 yo)

1.17yrs

Tenure

HK$1,233,252

Compensation

Mr. Weiqiang Guo has been Chief Executive Officer and Executive Director at DIT Group Limited since September 17, 2019. Mr. Guo serves as Vice President of CCRE. Mr. Guo joined the CCRE Group in 2001 and h...


CEO Compensation Analysis

Compensation vs Market: Weiqiang's total compensation ($USD159.11K) is below average for companies of similar size in the Hong Kong market ($USD342.51K).

Compensation vs Earnings: Insufficient data to compare Weiqiang's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Weiqiang Guo
CEO & Executive Director1.17yrsHK$1.23mno data
Weixing Liu
Executive Chairman of Board0.25yrno data0.092%
HK$ 2.5m
Dayou Yu
Chief Technology Officer4.5yrsno datano data
Jing Wang
Executive Director0.25yrno datano data
Ho Pong Tsang
Financial Controller & Company Secretary3.42yrsno datano data

1.2yrs

Average Tenure

50yo

Average Age

Experienced Management: 726's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Weiqiang Guo
CEO & Executive Director1.17yrsHK$1.23mno data
Weixing Liu
Executive Chairman of Board0.25yrno data0.092%
HK$ 2.5m
Jing Wang
Executive Director0.25yrno datano data
Lishan Ma
Independent Non-Executive Director4.42yrsHK$240.00kno data
Wallis Wu
Non-Executive Director1.17yrsHK$17.00kno data
Hongqing Jiang
Independent Non-Executive Director5.75yrsHK$240.00kno data
Chi Ming Lee
Independent Non-Executive Director5.92yrsHK$240.00kno data
Jun Wang
Non-Executive Director1.17yrsHK$17.00kno data

1.2yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 726's board of directors are not considered experienced ( 1.2 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

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


Key Information

  • Name: DIT Group Limited
  • Ticker: 726
  • Exchange: SEHK
  • Founded: 1991
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$2.746b
  • Shares outstanding: 2.80b

Number of Employees


Location

  • DIT Group Limited
  • International Commerce Centre
  • Room 7707 and 7708
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESK1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
726SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
ESK1BST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 1992

Biography

DIT Group Limited, an investment holding company, engages in the prefabricated construction and property investment activities in the People’s Republic of China. The company engages in the research and dev...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 10:23
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.