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778

Fortune Real Estate Investment Trust SEHK:778 Stock Report

Last Price

HK$6.43

Market Cap

HK$12.7b

7D

0.2%

1Y

-23.0%

Updated

24 Jun, 2022

Data

Company Financials +
778 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance1/6
Financial Health3/6
Dividends5/6

778 Stock Overview

Established in 2003, Fortune REIT is a real estate investment trust constituted by a trust deed (as amended, supplemented or otherwise modified from time to time).

Fortune Real Estate Investment Trust Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Fortune Real Estate Investment Trust
Historical stock prices
Current Share PriceHK$6.43
52 Week HighHK$8.88
52 Week LowHK$6.33
Beta0.66
1 Month Change-6.68%
3 Month Change-9.18%
1 Year Change-22.99%
3 Year Change-40.13%
5 Year Change-33.64%
Change since IPO67.45%

Recent News & Updates

Shareholder Returns

778HK REITsHK Market
7D0.2%1.0%2.1%
1Y-23.0%-20.4%-23.3%

Return vs Industry: 778 underperformed the Hong Kong REITs industry which returned -21.2% over the past year.

Return vs Market: 778 matched the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 778's price volatile compared to industry and market?
778 volatility
778 Average Weekly Movement1.8%
REITs Industry Average Movement2.6%
Market Average Movement7.0%
10% most volatile stocks in HK Market13.8%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 778 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 778's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2003n/aJustina Chiuhttps://www.fortunereit.com/html/index.php

Established in 2003, Fortune REIT is a real estate investment trust constituted by a trust deed (as amended, supplemented or otherwise modified from time to time). It is the first REIT to hold assets in Hong Kong and is currently listed on the Main Board of The Stock Exchange of Hong Kong Limited. Fortune REIT currently holds a portfolio of 16 private housing estate retail properties in Hong Kong, comprising of 3 million sq.

Fortune Real Estate Investment Trust Fundamentals Summary

How do Fortune Real Estate Investment Trust's earnings and revenue compare to its market cap?
778 fundamental statistics
Market CapHK$12.72b
Earnings (TTM)HK$1.32b
Revenue (TTM)HK$1.81b

9.7x

P/E Ratio

7.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
778 income statement (TTM)
RevenueHK$1.81b
Cost of RevenueHK$560.93m
Gross ProfitHK$1.25b
Other Expenses-HK$72.04m
EarningsHK$1.32b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.67
Gross Margin68.95%
Net Profit Margin72.94%
Debt/Equity Ratio30.5%

How did 778 perform over the long term?

See historical performance and comparison

Dividends

7.0%

Current Dividend Yield

89%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 778 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 778?

Other financial metrics that can be useful for relative valuation.

778 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue11.9x
Enterprise Value/EBITDAn/a
PEG Ratio-0.4x

Price to Earnings Ratio vs Peers

How does 778's PE Ratio compare to its peers?

778 PE Ratio vs Peers
The above table shows the PE ratio for 778 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.2x

Price-To-Earnings vs Peers: 778 is good value based on its Price-To-Earnings Ratio (9.7x) compared to the peer average (19.2x).


Price to Earnings Ratio vs Industry

How does 778's PE Ratio compare vs other companies in the REITs Industry?

Price-To-Earnings vs Industry: 778 is good value based on its Price-To-Earnings Ratio (9.7x) compared to the Hong Kong REITs industry average (9.7x)


Price to Earnings Ratio vs Fair Ratio

What is 778's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

778 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.7x
Fair PE Ratio4.1x

Price-To-Earnings vs Fair Ratio: 778 is expensive based on its Price-To-Earnings Ratio (9.7x) compared to the estimated Fair Price-To-Earnings Ratio (4.1x).


Share Price vs Fair Value

What is the Fair Price of 778 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 778 (HK$6.43) is trading below our estimate of fair value (HK$12.27)

Significantly Below Fair Value: 778 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 778's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

How is Fortune Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-21.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 778's earnings are forecast to decline over the next 3 years (-21.8% per year).

Earnings vs Market: 778's earnings are forecast to decline over the next 3 years (-21.8% per year).

High Growth Earnings: 778's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 778's revenue (0.6% per year) is forecast to grow slower than the Hong Kong market (10.1% per year).

High Growth Revenue: 778's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 778's Return on Equity is forecast to be low in 3 years time (3%).


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Past Performance

How has Fortune Real Estate Investment Trust performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-39.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 778 has a large one-off gain of HK$358.0M impacting its December 31 2021 financial results.

Growing Profit Margin: 778 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 778's earnings have declined by 39.6% per year over the past 5 years.

Accelerating Growth: 778 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 778 has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (12.6%).


Return on Equity

High ROE: 778's Return on Equity (4.5%) is considered low.


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Financial Health

How is Fortune Real Estate Investment Trust's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 778's short term assets (HK$203.7M) do not cover its short term liabilities (HK$2.7B).

Long Term Liabilities: 778's short term assets (HK$203.7M) do not cover its long term liabilities (HK$7.9B).


Debt to Equity History and Analysis

Debt Level: 778's net debt to equity ratio (30.1%) is considered satisfactory.

Reducing Debt: 778's debt to equity ratio has reduced from 44.2% to 30.5% over the past 5 years.

Debt Coverage: 778's debt is not well covered by operating cash flow (12.3%).

Interest Coverage: 778's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


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Dividend

What is Fortune Real Estate Investment Trust current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


6.97%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 778's dividend (6.97%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.76%).

High Dividend: 778's dividend (6.97%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).


Stability and Growth of Payments

Stable Dividend: 778's dividends per share have been stable in the past 10 years.

Growing Dividend: 778's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (89.1%), 778's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (81.3%), 778's dividend payments are covered by cash flows.


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Management

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

7.0yrs

Average board tenure


CEO

Justina Chiu (40 yo)

7.33yrs

Tenure

Ms. Yu Chiu, also known as Justina, CFA, has been the Chief Executive Officer at ARA Asset Management Limited, a manager of Fortune Real Estate Investment Trust since February 3, 2015. Ms. Chiu serves as a...


Board Members

Experienced Board: 778's board of directors are considered experienced (7 years average tenure).


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

Fortune Real Estate Investment Trust's employee growth, exchange listings and data sources


Key Information

  • Name: Fortune Real Estate Investment Trust
  • Ticker: 778
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: HK$12.718b
  • Shares outstanding: 1.98b
  • Website: https://www.fortunereit.com/html/index.php

Location

  • Fortune Real Estate Investment Trust
  • 5 Temasek Boulevard
  • No. 12-01 Suntec Tower Five
  • Singapore
  • 38985
  • Singapore

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.