SEHK:832

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Central China Real Estate

Executive Summary

Central China Real Estate Limited, an investment holding company, primarily engages in the property development activities in the People’s Republic of China. More Details


Snowflake Analysis

Established dividend payer and fair value.

Share Price & News

How has Central China Real Estate's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 832 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

832

-2.2%

HK Real Estate

-2.8%

HK Market


1 Year Return

17.8%

832

-15.1%

HK Real Estate

-1.7%

HK Market

Return vs Industry: 832 exceeded the Hong Kong Real Estate industry which returned -14.5% over the past year.

Return vs Market: 832 exceeded the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

832IndustryMarket
7 Day-1.0%-2.2%-2.8%
30 Day17.2%-4.3%2.7%
90 Day8.9%-6.4%-0.4%
1 Year31.1%17.8%-10.6%-15.1%2.3%-1.7%
3 Year50.6%17.2%-9.1%-23.4%-8.7%-18.6%
5 Year268.6%165.0%31.3%5.3%13.7%-5.4%

Price Volatility Vs. Market

How volatile is Central China Real Estate's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Central China Real Estate undervalued compared to its fair value and its price relative to the market?

4.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 832 (HK$4.16) is trading above our estimate of fair value (HK$3.32)

Significantly Below Fair Value: 832 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 832 is good value based on its PE Ratio (4.7x) compared to the HK Real Estate industry average (8.7x).

PE vs Market: 832 is good value based on its PE Ratio (4.7x) compared to the Hong Kong market (10.9x).


Price to Earnings Growth Ratio

PEG Ratio: 832 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 832 is overvalued based on its PB Ratio (1x) compared to the HK Real Estate industry average (0.4x).


Next Steps

Future Growth

How is Central China Real Estate forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 832's forecast earnings growth (12.5% per year) is above the savings rate (1.6%).

Earnings vs Market: 832's earnings (12.5% per year) are forecast to grow slower than the Hong Kong market (22.2% per year).

High Growth Earnings: 832's earnings are forecast to grow, but not significantly.

Revenue vs Market: 832's revenue (15.1% per year) is forecast to grow faster than the Hong Kong market (13.3% per year).

High Growth Revenue: 832's revenue (15.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 832's Return on Equity is forecast to be high in 3 years time (20.6%)


Next Steps

Past Performance

How has Central China Real Estate performed over the past 5 years?

26.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 832 has a large one-off gain of CN¥1.2B impacting its June 30 2020 financial results.

Growing Profit Margin: 832's current net profit margins (6%) are lower than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: 832's earnings have grown significantly by 26% per year over the past 5 years.

Accelerating Growth: 832's earnings growth over the past year (64.6%) exceeds its 5-year average (26% per year).

Earnings vs Industry: 832 earnings growth over the past year (64.6%) exceeded the Real Estate industry -6.4%.


Return on Equity

High ROE: 832's Return on Equity (18.6%) is considered low.


Next Steps

Financial Health

How is Central China Real Estate's financial position?


Financial Position Analysis

Short Term Liabilities: 832's short term assets (CN¥146.3B) exceed its short term liabilities (CN¥131.7B).

Long Term Liabilities: 832's short term assets (CN¥146.3B) exceed its long term liabilities (CN¥19.4B).


Debt to Equity History and Analysis

Debt Level: 832's debt to equity ratio (281.5%) is considered high.

Reducing Debt: 832's debt to equity ratio has increased from 175.5% to 281.5% over the past 5 years.

Debt Coverage: 832's debt is not well covered by operating cash flow (11.5%).

Interest Coverage: 832's interest payments on its debt are well covered by EBIT (14x coverage).


Balance Sheet


Next Steps

Dividend

What is Central China Real Estate current dividend yield, its reliability and sustainability?

11.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 832's dividend (11.1%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 832's dividend (11.1%) is in the top 25% of dividend payers in the Hong Kong market (6.97%)


Stability and Growth of Payments

Stable Dividend: 832's dividend payments have been volatile in the past 10 years.

Growing Dividend: 832's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.7%), 832's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 832's dividends in 3 years are forecast to be well covered by earnings (31% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Xujun Yuan (52 yo)

3.58yrs

Tenure

CN¥14,320,000

Compensation

Mr. Xujun Yuan has been Chief Executive Officer of Central China Real Estate Limited since March 24, 2017 and has been its Executive Director since August 21, 2019. Mr. Yuan joined Central China Real Estat ...


CEO Compensation Analysis

Compensation vs Market: Xujun's total compensation ($USD2.13M) is above average for companies of similar size in the Hong Kong market ($USD559.17K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Po Sum Wu
Founder & Chairmanno dataCN¥4.46m72.31%
CN¥ 8.5b
Xujun Yuan
CEO & Executive Director3.58yrsCN¥14.32m0.71%
CN¥ 83.2m
Jun Wang
Executive Director2.17yrsCN¥23.79m0.57%
CN¥ 67.4m
Ping Hu
Chief Financial Officer3.58yrsno datano data
Vinh Mai
Head of Investor Relations & Chief Investment Officer9.17yrsno datano data
Wai Leung Yeung
Company Secretary3yrsno datano data

3.6yrs

Average Tenure

42.5yo

Average Age

Experienced Management: 832's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Po Sum Wu
Founder & Chairmanno dataCN¥4.46m72.31%
CN¥ 8.5b
Xujun Yuan
CEO & Executive Director3.58yrsCN¥14.32m0.71%
CN¥ 83.2m
Jun Wang
Executive Director2.17yrsCN¥23.79m0.57%
CN¥ 67.4m
Shek Lun Cheung
Independent Non Executive Director12.75yrsCN¥211.00kno data
Ming Yan Lim
Vice Chairman1.75yrsCN¥783.00kno data
Luo Lin Xin
Independent Non-Executive Director10.58yrsCN¥211.00kno data
Wallis Wu
Non-Executive Director12.83yrsCN¥240.00kno data
Yuyang Sun
Independent Non-Executive Director2.75yrsCN¥211.00kno data
Ying Chen
Non Executive Director0.17yrno datano data

2.5yrs

Average Tenure

57yo

Average Age

Experienced Board: 832's board of directors are not considered experienced ( 2.5 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: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.


Top Shareholders

Company Information

Central China Real Estate Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Central China Real Estate Limited
  • Ticker: 832
  • Exchange: SEHK
  • Founded: 1992
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$11.762b
  • Shares outstanding: 2.83b
  • Website: https://www.jianye.com.cn

Number of Employees


Location

  • Central China Real Estate Limited
  • Jianye Office Building
  • Block E
  • Zhengzhou
  • Henan Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
832SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2008
AJ5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2008
CNLL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2008
832SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2008
832SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2008

Biography

Central China Real Estate Limited, an investment holding company, primarily engages in the property development activities in the People’s Republic of China. The company develops residential and commercial ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 13:01
End of Day Share Price2020/10/30 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.