Mingfa Group (International) (SEHK:846) - Share price, News & Analysis

846 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	5/6
Financial Health	4/6
Dividends	0/6

846 Stock Overview

Mingfa Group (International) Company Limited, an investment holding company, engages in the property development and leasing, and hotel management businesses in the People’s Republic of China.

Rewards

Trading at 70.5% below our estimate of its fair value

Earnings grew by 75.1% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over the past 3 months

Mingfa Group (International) Competitors

Greentown China Holdings

SEHK:3900

HK$32.8b

Sunac China Holdings

SEHK:1918

HK$25.0b

Yuexiu Property

SEHK:123

HK$24.9b

Powerlong Real Estate Holdings

SEHK:1238

HK$9.1b

Price History & Performance

Summary of all time highs, changes and price drops for Mingfa Group (International)
Historical stock prices
Current Share Price	HK$0.30
52 Week High	HK$0.75
52 Week Low	HK$0.24
Beta	-0.18
1 Month Change	1.67%
3 Month Change	-39.00%
1 Year Change	-56.43%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-85.81%

Recent News & Updates

May 06

Mingfa Group (International)'s (HKG:846) Solid Profits Have Weak Fundamentals

Mingfa Group (International) Co., Ltd. ( HKG:846 ) announced strong profits, but the stock was stagnant. We did some...

Shareholder Returns

	846	HK Real Estate	HK Market
7D	-12.9%	-0.1%	0.05%
1Y	-56.4%	-33.3%	-25.2%

Return vs Industry: 846 underperformed the Hong Kong Real Estate industry which returned -33.3% over the past year.

Return vs Market: 846 underperformed the Hong Kong Market which returned -25.2% over the past year.

Price Volatility

Is 846's price volatile compared to industry and market?
846 volatility
846 Average Weekly Movement	18.6%
Real Estate Industry Average Movement	7.3%
Market Average Movement	8.0%
10% most volatile stocks in HK Market	14.9%
10% least volatile stocks in HK Market	3.9%

Stable Share Price: 846 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 19% a week.

Volatility Over Time: 846's weekly volatility has increased from 12% to 19% over the past year.

About the Company

Founded	Employees	CEO	Website
1994	4,066	Xiaoming Zhong	https://www.ming-fa.com

Mingfa Group (International) Company Limited, an investment holding company, engages in the property development and leasing, and hotel management businesses in the People’s Republic of China. The company operates through three segments: Property Development, Hotel, and Property Investment and Management. The Property Development segment develops commercial and residential real estate properties.

Mingfa Group (International) Fundamentals Summary

How do Mingfa Group (International)'s earnings and revenue compare to its market cap?
846 fundamental statistics
Market Cap	CN¥9.95b
Earnings (TTM)	CN¥1.88b
Revenue (TTM)	CN¥16.42b

0.9x

P/E Ratio

0.1x

P/S Ratio

Is 846 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
846 income statement (TTM)
Revenue	CN¥16.42b
Cost of Revenue	CN¥11.40b
Gross Profit	CN¥5.01b
Other Expenses	CN¥3.13b
Earnings	CN¥1.88b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.31
Gross Margin	30.53%
Net Profit Margin	11.47%
Debt/Equity Ratio	64.8%

How did 846 perform over the long term?

See historical performance and comparison

Valuation

Is Mingfa Group (International) undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 846 (HK$0.31) is trading below our estimate of fair value (HK$1.04)

Significantly Below Fair Value: 846 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 846 is good value based on its PE Ratio (0.9x) compared to the Hong Kong Real Estate industry average (6.5x).

PE vs Market: 846 is good value based on its PE Ratio (0.9x) compared to the Hong Kong market (8.7x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 846's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 846 is good value based on its PB Ratio (0.1x) compared to the HK Real Estate industry average (0.4x).

Future Growth

How is Mingfa Group (International) forecast to perform in the next 1 to 3 years based on estimates from 0 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

11.0%

Forecasted Real Estate industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Mingfa Group (International) has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Mingfa Group (International) performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

10.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 846 has high quality earnings.

Growing Profit Margin: 846's current net profit margins (11.5%) are higher than last year (8.4%).

Past Earnings Growth Analysis

Earnings Trend: 846's earnings have grown by 10.5% per year over the past 5 years.

Accelerating Growth: 846's earnings growth over the past year (75.1%) exceeds its 5-year average (10.5% per year).

Earnings vs Industry: 846 earnings growth over the past year (75.1%) exceeded the Real Estate industry 14.7%.

Return on Equity

High ROE: 846's Return on Equity (10.3%) is considered low.

Financial Health

How is Mingfa Group (International)'s financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 846's short term assets (CN¥53.7B) exceed its short term liabilities (CN¥47.8B).

Long Term Liabilities: 846's short term assets (CN¥53.7B) exceed its long term liabilities (CN¥6.5B).

Debt to Equity History and Analysis

Debt Level: 846's net debt to equity ratio (46%) is considered high.

Reducing Debt: 846's debt to equity ratio has reduced from 100.9% to 64.8% over the past 5 years.

Debt Coverage: 846's debt is not well covered by operating cash flow (8%).

Interest Coverage: 846 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Mingfa Group (International) current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 846's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 846's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 846's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 846's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 846 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 846 has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Real Estate industry.

Management

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

2.5yrs

Average management tenure

CEO

Xiaoming Zhong (53 yo)

1.83yrs

Tenure

CN¥1,494,000

Compensation

Mr. Xiaoming Zhong serves as Executive Director and Chief Executive Officer at Mingfa Group (International) Company Limited since July 17, 2020. From 2015 to 2019, Mr. Zhong was the general manager of Zhon...

CEO Compensation Analysis

Compensation vs Market: Xiaoming's total compensation ($USD220.21K) is below average for companies of similar size in the Hong Kong market ($USD608.79K).

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

Leadership Team

Experienced Management: 846's management team is considered experienced (2.5 years average tenure).

Board Members

Experienced Board: 846's board of directors are not considered experienced ( 2.8 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31