SEHK:832

Stock Analysis Report

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.

Snowflake

Fundamentals

Exceptional growth potential established dividend payer.

Risks

  • Central China Real Estate is covered by less than 3 analysts.

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


Market Performance


7 Day Return

2.4%

832

-2.9%

HK Real Estate

-2.7%

HK Market


1 Year Return

14.5%

832

-8.5%

HK Real Estate

-9.4%

HK Market

832 outperformed the Real Estate industry which returned -8.5% over the past year.

832 outperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

832IndustryMarket
7 Day2.4%-2.9%-2.7%
30 Day-4.1%-0.7%2.4%
90 Day3.0%-10.9%-5.6%
1 Year24.7%14.5%-4.5%-8.5%-6.2%-9.4%
3 Year115.5%86.6%29.3%15.7%14.3%2.7%
5 Year146.4%86.6%54.1%27.9%16.7%-2.8%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Central China Real Estate's share price is below the future cash flow value, and at a moderate discount (> 20%).

Central China Real Estate's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Central China Real Estate is overvalued based on earnings compared to the HK Real Estate industry average.

Central China Real Estate is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Central China Real Estate is good value based on expected growth next year.


Price Based on Value of Assets

Central China Real Estate is overvalued based on assets compared to the HK Real Estate industry average.


Next Steps

Future Growth

How is Central China Real Estate expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

35.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Central China Real Estate's revenue is expected to grow significantly at over 20% yearly.

Central China Real Estate's earnings are expected to grow significantly at over 20% yearly.

Central China Real Estate's revenue growth is expected to exceed the Hong Kong market average.

Central China Real Estate's earnings growth is expected to exceed the Hong Kong market average.

Central China Real Estate's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Central China Real Estate is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

5.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Central China Real Estate's year on year earnings growth rate has been positive over the past 5 years.

Central China Real Estate's 1-year earnings growth exceeds its 5-year average (32% vs 5.1%)

Central China Real Estate's earnings growth has exceeded the HK Real Estate industry average in the past year (32% vs -12.4%).


Return on Equity

Central China Real Estate has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Central China Real Estate used its assets less efficiently than the HK Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

Central China Real Estate's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Central China Real Estate's financial position?


Financial Position Analysis

Central China Real Estate is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Central China Real Estate's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Central China Real Estate's level of debt (245.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (153.1% vs 245.4% today).

Debt is not well covered by operating cash flow (15.4%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 12.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.7x debt.


Next Steps

Dividend

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

9.43%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Central China Real Estate's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Central China Real Estate's dividend is above the markets top 25% of dividend payers in Hong Kong (6.17%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).


Next Steps

Management

What is the CEO of Central China Real Estate's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Xujun Yuan (51yo)

2.5yrs

Tenure

CN¥13,511,000

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

Xujun's remuneration is higher than average for companies of similar size in Hong Kong.

Xujun's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

2.5yrs

Average Tenure

45yo

Average Age

The tenure for the Central China Real Estate management team is about average.


Board Age and Tenure

2.5yrs

Average Tenure

59yo

Average Age

The average tenure for the Central China Real Estate board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Central China Real Estate individual insiders in the past 3 months.


Recent Insider Transactions

BuyCN¥2,830,953,11418 Jul 19
Po Sum Wu
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares658,116,228
Max PriceCN¥4.30
SellCN¥2,830,953,11418 Jul 19
CLA Real Estate Holdings Pte. Ltd
EntityCompany
Shares658,116,228
Max PriceCN¥4.30

Ownership Breakdown


Management Team

  • Po Sum Wu (68yo)

    Founder & Chairman

    • Tenure: 0yrs
    • Compensation: CN¥4.27m
  • Vinh Mai (45yo)

    Head of Investor Relations & Chief Investment Officer

    • Tenure: 8.1yrs
  • Wai Leung Yeung (38yo)

    Company Secretary

    • Tenure: 1.9yrs
  • Weixing Liu (59yo)

    Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥8.46m
  • Xujun Yuan (51yo)

    CEO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥13.51m
  • Ping Hu (37yo)

    CFO & Interim Company Secretary

    • Tenure: 2.5yrs
  • Jun Wang (38yo)

    Executive Director

    • Tenure: 1.1yrs
    • Compensation: CN¥15.52m

Board Members

  • Shek Lun Cheung (59yo)

    Independent Non Executive Director

    • Tenure: 11.7yrs
    • Compensation: CN¥202.00k
  • Lawrence Xin (70yo)

    Independent Non-Executive Director

    • Tenure: 9.5yrs
    • Compensation: CN¥202.00k
  • Po Sum Wu (68yo)

    Founder & Chairman

    • Tenure: 0yrs
    • Compensation: CN¥4.27m
  • Wallis Wu (37yo)

    Non-Executive Director

    • Tenure: 11.8yrs
    • Compensation: CN¥230.00k
  • Weixing Liu (59yo)

    Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥8.46m
  • Xujun Yuan (51yo)

    CEO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥13.51m
  • Yuyang Sun (62yo)

    Independent non-executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥198.00k
  • Jun Wang (38yo)

    Executive Director

    • Tenure: 1.1yrs
    • Compensation: CN¥15.52m

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$9.481b
  • Shares outstanding: 2.73b
  • 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. It operates through Property Development, Prope ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/22 12:44
End of Day Share Price2019/09/20 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.