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.

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

7.1%

832

1.2%

HK Real Estate

0.3%

HK Market


1 Year Return

26.2%

832

10.8%

HK Real Estate

1.3%

HK Market

Return vs Industry: 832 exceeded the Hong Kong Real Estate industry which returned 10.8% over the past year.

Return vs Market: 832 exceeded the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

832IndustryMarket
7 Day7.1%1.2%0.3%
30 Day11.9%2.3%0.5%
90 Day0%-8.0%-4.6%
1 Year37.4%26.2%15.1%10.8%4.9%1.3%
3 Year146.8%113.6%37.2%22.9%15.3%3.7%
5 Year175.9%108.9%60.7%34.8%20.0%-0.006%

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?

30.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 832 (HK$3.76) is trading below our estimate of fair value (HK$5.41)

Significantly Below Fair Value: 832 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 832 is poor value based on its PE Ratio (7.4x) compared to the Real Estate industry average (6.2x).

PE vs Market: 832 is good value based on its PE Ratio (7.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 832 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 832 is overvalued based on its PB Ratio (1x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Central China Real Estate forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 832's forecast earnings growth (35.5% per year) is above the savings rate (2%).

Earnings vs Market: 832's earnings (35.5% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

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

Revenue vs Market: 832's revenue (37.6% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 832's revenue (37.6% per year) is forecast to grow faster 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 (20.1%)


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

Earnings Trend: 832's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: 832's earnings growth over the past year (32%) exceeds its 5-year average (5.1% per year).

Earnings vs Industry: 832 earnings growth over the past year (32%) exceeded the Real Estate industry -12.8%.


Return on Equity

High ROE: 832's Return on Equity (14.8%) is considered low.


Return on Assets

ROA vs Industry: 832's Return on Assets is below or equal to the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 832's Return on Capital Employed has declined over the past 3 years.


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¥98.3B) exceeds its short term liabilities (CN¥89.1B)

Long Term Liabilities: 832's short term assets (98.3B) exceeds its long term liabilities (21.0B)


Debt to Equity History and Analysis

Debt Level: 832's debt to equity ratio (245.4%) is considered high

Reducing Debt: 832's debt to equity ratio has increased from 153.1% to 245.4% over the past 5 years.

Debt Coverage: 832's debt is well covered by operating cash flow (23.3%).

Interest Coverage: 832's interest payments on its debt are well covered by EBIT (12.6x coverage).


Balance Sheet

Inventory Level: 832 has a high level of physical assets or inventory.

Debt Coverage by Assets: 832's debt is covered by short term assets (assets are 3.694830x debt).


Next Steps

Dividend

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

8.25%

Current Dividend Yield


Dividend Yield vs Market

company8.3%marketbottom25%2.3%markettop25%6.2%industryaverage4.5%forecastin3Years8.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 832's dividend (8.25%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 832's dividend (8.25%) is in the top 25% of dividend payers in the Hong Kong market (6.18%)

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 (56.6%), 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 (32.6% payout ratio).


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?

2.6yrs

Average management tenure


CEO

Xujun Yuan (51yo)

2.6yrs

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

Compensation vs. Market: Xujun's total compensation ($USD1.91M) is about average for companies of similar size in the Hong Kong market ($USD557.11K).

Compensation vs Earnings: Xujun's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.6yrs

Average Tenure

45yo

Average Age

Experienced Management: 832's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

2.2yrs

Average Tenure

59yo

Average Age

Experienced Board: 832's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCN¥2,830,953,11418 Jul 19
CLA Real Estate Holdings Pte. Ltd
EntityCompany
Shares658,116,228
Max PriceCN¥4.30
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

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: 8.2yrs
  • Wai Leung Yeung (38yo)

    Company Secretary

    • Tenure: 2yrs
  • Weixing Liu (59yo)

    Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥8.46m
  • Xujun Yuan (51yo)

    CEO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥13.51m
  • Ping Hu (37yo)

    CFO & Interim Company Secretary

    • Tenure: 2.6yrs
  • Jun Wang (39yo)

    Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥15.52m

Board Members

  • Shek Lun Cheung (59yo)

    Independent Non Executive Director

    • Tenure: 11.8yrs
    • Compensation: CN¥202.00k
  • Ming Yan Lim (56yo)

    Vice Chairman

    • Tenure: 0.8yrs
    • Compensation: CN¥59.00k
  • Lawrence Xin (70yo)

    Independent Non-Executive Director

    • Tenure: 9.6yrs
    • Compensation: CN¥202.00k
  • Po Sum Wu (68yo)

    Founder & Chairman

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

    Non-Executive Director

    • Tenure: 11.9yrs
    • Compensation: CN¥230.00k
  • Weixing Liu (59yo)

    Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥8.46m
  • Xujun Yuan (51yo)

    CEO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥13.51m
  • Yuyang Sun (62yo)

    Independent non-executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥198.00k
  • Jun Wang (39yo)

    Executive Director

    • Tenure: 1.2yrs
    • 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$10.683b
  • 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 Analysis2019/10/23 12:41
End of Day Share Price2019/10/23 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.