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LVGEM (China) Real Estate Investment

Market Cap

HK$11.7b

Last Updated

2021/04/15 10:22 UTC

Data Sources

Company Financials +

Executive Summary

LVGEM (China) Real Estate Investment Company Limited, an investment holding company, engages in property development and investment business in the People’s Republic of China. More Details


Snowflake Analysis

Proven track record and slightly overvalued.

Share Price & News

How has LVGEM (China) Real Estate Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 95 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 95's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

3.6%

95

1.0%

HK Real Estate

0.7%

HK Market


1 Year Return

2.7%

95

2.1%

HK Real Estate

28.0%

HK Market

Return vs Industry: 95 underperformed the Hong Kong Real Estate industry which returned 8% over the past year.

Return vs Market: 95 underperformed the Hong Kong Market which returned 28.8% over the past year.


Shareholder returns

95IndustryMarket
7 Day3.6%1.0%0.7%
30 Day-3.0%-1.9%-1.2%
90 Day0%6.6%1.8%
1 Year5.4%2.7%7.9%2.1%33.4%28.0%
3 Year-27.3%-32.0%-9.8%-23.6%8.1%-3.9%
5 Year7.6%-2.1%51.4%16.2%56.5%28.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is LVGEM (China) Real Estate Investment undervalued compared to its fair value and its price relative to the market?

2.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 95 (HK$2.3) is trading above our estimate of fair value (HK$0.75)

Significantly Below Fair Value: 95 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 95 is good value based on its PE Ratio (2.8x) compared to the HK Real Estate industry average (7.9x).

PE vs Market: 95 is good value based on its PE Ratio (2.8x) compared to the Hong Kong market (11.7x).


Price to Earnings Growth Ratio

PEG Ratio: 95's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 95's PB Ratio (0.4x) is in line with the HK Real Estate industry average.


Future Growth

How is LVGEM (China) Real Estate Investment forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-60.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 95's earnings are forecast to decline over the next 3 years (-60.9% per year).

Earnings vs Market: 95's earnings are forecast to decline over the next 3 years (-60.9% per year).

High Growth Earnings: 95's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 95's revenue (20% per year) is forecast to grow faster than the Hong Kong market (13% per year).

High Growth Revenue: 95's revenue (20% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 95's Return on Equity is forecast to be low in 3 years time (7.7%).


Past Performance

How has LVGEM (China) Real Estate Investment performed over the past 5 years?

28.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 95 has a large one-off gain of CN¥3.5B impacting its December 31 2020 financial results.

Growing Profit Margin: 95's current net profit margins (63.7%) are higher than last year (25.3%).


Past Earnings Growth Analysis

Earnings Trend: 95's earnings have grown significantly by 28.8% per year over the past 5 years.

Accelerating Growth: 95's earnings growth over the past year (97.9%) exceeds its 5-year average (28.8% per year).

Earnings vs Industry: 95 earnings growth over the past year (97.9%) exceeded the Real Estate industry 5.9%.


Return on Equity

High ROE: 95's Return on Equity (12.4%) is considered low.


Financial Health

How is LVGEM (China) Real Estate Investment's financial position?


Financial Position Analysis

Short Term Liabilities: 95's short term assets (CN¥48.4B) exceed its short term liabilities (CN¥15.9B).

Long Term Liabilities: 95's short term assets (CN¥48.4B) exceed its long term liabilities (CN¥30.5B).


Debt to Equity History and Analysis

Debt Level: 95's debt to equity ratio (109.9%) is considered high.

Reducing Debt: 95's debt to equity ratio has increased from 103.6% to 109.9% over the past 5 years.

Debt Coverage: 95's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 95's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet


Dividend

What is LVGEM (China) Real Estate Investment current dividend yield, its reliability and sustainability?

2.97%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 95's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 95'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 95's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 95's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 95 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 95's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

5.1yrs

Average board tenure


CEO

Shouchun Tang (58 yo)

5.08yrs

Tenure

CN¥2,401,000

Compensation

Mr. Shouchun Tang has been Chief Executive Officer and Executive Director of LVGEM (China) Real Estate Investment Company Limited since March 31, 2016. Mr. Tang serves as a Deputy General Manager at Yue Xi...


CEO Compensation Analysis

Compensation vs Market: Shouchun's total compensation ($USD367.70K) is below average for companies of similar size in the Hong Kong market ($USD647.42K).

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


Board Members

Experienced Board: 95's board of directors are considered experienced (5.1 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

LVGEM (China) Real Estate Investment Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LVGEM (China) Real Estate Investment Company Limited
  • Ticker: 95
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$11.675b
  • Shares outstanding: 5.10b
  • Website: https://www.lvgem-china.com

Number of Employees


Location

  • LVGEM (China) Real Estate Investment Company Limited
  • Level 5, NEO
  • 123 Hoi Bun Road
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings


Biography

LVGEM (China) Real Estate Investment Company Limited, an investment holding company, engages in property development and investment business in the People’s Republic of China. The company operates through ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/15 10:22
End of Day Share Price2021/04/15 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.