SEHK:813

Stock Analysis Report

Shimao Property Holdings

Executive Summary

Shimao Property Holdings Limited, an investment holding company, engages in the property development and investment activities in the People’s Republic of China.


Snowflake Analysis

High growth potential, good value and pays a dividend.

Share Price & News

How has Shimao Property Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 813 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

813

-4.9%

HK Real Estate

-3.2%

HK Market


1 Year Return

40.0%

813

-9.7%

HK Real Estate

-10.2%

HK Market

Return vs Industry: 813 exceeded the Hong Kong Real Estate industry which returned -9% over the past year.

Return vs Market: 813 exceeded the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

813IndustryMarket
7 Day-1.1%-4.9%-3.2%
30 Day-0.9%-3.0%-3.3%
90 Day-5.6%-1.4%0.2%
1 Year48.0%40.0%-5.7%-9.7%-6.9%-10.2%
3 Year185.6%143.3%36.7%22.0%11.7%0.4%
5 Year122.2%66.3%58.2%31.6%11.1%-7.3%

Price Volatility Vs. Market

How volatile is Shimao Property Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shimao Property Holdings 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: 813 (HK$26.85) is trading below our estimate of fair value (HK$144.65)

Significantly Below Fair Value: 813 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 813 is poor value based on its PE Ratio (8.3x) compared to the Real Estate industry average (6.6x).

PE vs Market: 813 is good value based on its PE Ratio (8.3x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 813 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 813 is overvalued based on its PB Ratio (1.3x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Shimao Property Holdings forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

20.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 813's forecast earnings growth (20.5% per year) is above the savings rate (1.6%).

Earnings vs Market: 813's earnings (20.5% per year) are forecast to grow faster than the Hong Kong market (11.8% per year).

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

Revenue vs Market: 813's revenue (21.3% per year) is forecast to grow faster than the Hong Kong market (9.6% per year).

High Growth Revenue: 813's revenue (21.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 813's Return on Equity is forecast to be low in 3 years time (18%).


Next Steps

Past Performance

How has Shimao Property Holdings performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 813 has high quality earnings.

Growing Profit Margin: 813's current net profit margins (9.7%) are lower than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: 813's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: 813's earnings growth over the past year (17.5%) exceeds its 5-year average (4.2% per year).

Earnings vs Industry: 813 earnings growth over the past year (17.5%) exceeded the Real Estate industry -8%.


Return on Equity

High ROE: 813's Return on Equity (12.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Shimao Property Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 813's short term assets (CN¥320.7B) exceed its short term liabilities (CN¥214.3B).

Long Term Liabilities: 813's short term assets (CN¥320.7B) exceed its long term liabilities (CN¥90.4B).


Debt to Equity History and Analysis

Debt Level: 813's debt to equity ratio (117.4%) is considered high.

Reducing Debt: 813's debt to equity ratio has increased from 105.9% to 117.4% over the past 5 years.

Debt Coverage: 813's debt is not well covered by operating cash flow (10.1%).

Interest Coverage: 813 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 813 has a high level of physical assets or inventory.

Debt Coverage by Assets: 813's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

What is Shimao Property Holdings's current dividend yield, its reliability and sustainability?

4.20%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%2.3%markettop25%6.4%industryaverage4.4%forecastin3Years7.0%

Current dividend yield vs market & industry

Notable Dividend: 813's dividend (4.23%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 813's dividend (4.23%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).


Stability and Growth of Payments

Stable Dividend: 813's dividend payments have been volatile in the past 10 years.

Growing Dividend: 813's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.5%), 813's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 813's dividends in 3 years are forecast to be well covered by earnings (39.6% payout ratio).


Next Steps

Management

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

13.7yrs

Average board tenure


CEO

Wing Mau Hui (68yo)

CN¥6,158,000

Compensation

Mr. Wing Mau Hui founded Shimao Property Holdings Ltd. and serves as its Chief Executive Officer. Mr. Hui serves as an Honorary Professor of the Tong Ji University in Shanghai. Mr. Hui serves as Honorary C ...


CEO Compensation Analysis

Compensation vs Market: Wing Mau's total compensation ($USD876.12K) is about average for companies of similar size in the Hong Kong market ($USD1.05M).

Compensation vs Earnings: Wing Mau's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Wing Mau Hui
Chairman & Chief Executive0yrsCN¥6.16m66.64% CN¥61.7b
Sai Tan Hui
Vice Chairman & President11.8yrsCN¥8.93m0.085% CN¥79.1m
Fei Tang
VP & Executive Director7yrsCN¥5.24m0.021% CN¥19.3m
Yi Lu
Executive Director0.08yrsno data0.0058% CN¥5.4m
Hong Bing Lyu
Independent Non-Executive Director15.3yrsCN¥317.00kno data
Lai Kuen Kan
Independent Non-Executive Director13.9yrsCN¥317.00kno data
Ching Kam Lam
Independent Non-Executive Director13.7yrsCN¥317.00kno data

13.7yrs

Average Tenure

53yo

Average Age

Experienced Board: 813's board of directors are seasoned and experienced ( 13.7 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Shimao Property Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shimao Property Holdings Limited
  • Ticker: 813
  • Exchange: SEHK
  • Founded: 2004
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$92.640b
  • Shares outstanding: 3.45b
  • Website: https://www.shimaoproperty.com

Number of Employees


Location

  • Shimao Property Holdings Limited
  • Lippo Centre
  • Tower One, 38th Floor
  • Hong Kong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
813SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2006
QHIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2006
SIOP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2006
813SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2006
813SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2006
SHMA.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDAug 2012

Biography

Shimao Property Holdings Limited, an investment holding company, engages in the property development and investment activities in the People’s Republic of China. The company develops residential, commercial, and office properties; and operates hotels and shopping malls. It is also involved in the trading of construction materials; provision of marketing, architect, design, management, research, and consultancy services. In addition, the company holds trademarks and properties. The company was incorporated in 2004 and is based in Hong Kong, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 12:54
End of Day Share Price2020/02/25 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.