LVGEM (China) Real Estate Investment
Market Cap
HK$12.5b
Last Updated
2020/06/05 13:03 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.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -25.7% per year for the next 3 years
Snowflake Analysis
Mediocre balance sheet with acceptable track record.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
5.9%
95
7.0%
HK Real Estate
5.8%
HK Market
1 Year Return
8.7%
95
-12.0%
HK Real Estate
-4.0%
HK Market
Return vs Industry: 95 exceeded the Hong Kong Real Estate industry which returned -13.4% over the past year.
Return vs Market: 95 exceeded the Hong Kong Market which returned -5.3% over the past year.
Shareholder returns
| 95 | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.9% | 7.0% | 5.8% |
| 30 Day | 13.6% | 2.2% | 4.0% |
| 90 Day | 3.3% | -8.2% | -2.6% |
| 1 Year | 8.7%8.7% | -7.9%-12.0% | -0.6%-4.0% |
| 3 Year | 33.8%25.6% | 12.4%-0.3% | 1.3%-9.2% |
| 5 Year | n/a | 22.0%1.0% | -9.2%-23.5% |
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
2 weeks ago | Simply Wall St
LVGEM (China) Real Estate Investment (HKG:95) Shareholders Have Enjoyed A 22% Share Price Gain4 weeks ago | Simply Wall St
We Think LVGEM (China) Real Estate Investment (HKG:95) Is Taking Some Risk With Its Debt1 month ago | Simply Wall St
Is LVGEM (China) Real Estate Investment Company Limited (HKG:95) Overpaying Its CEO?Valuation
Is LVGEM (China) Real Estate Investment undervalued compared to its fair value and its price relative to the market?
6.53x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 95 (HK$2.5) is trading above our estimate of fair value (HK$1.5)
Significantly Below Fair Value: 95 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 95 is poor value based on its PE Ratio (6.5x) compared to the Real Estate industry average (6.2x).
PE vs Market: 95 is good value based on its PE Ratio (6.5x) compared to the Hong Kong market (9.4x).
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 is overvalued based on its PB Ratio (0.9x) compared to the HK Real Estate industry average (0.4x).
Next Steps
Future Growth
How is LVGEM (China) Real Estate Investment forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
-25.7%
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 (-25.7% per year).
Earnings vs Market: 95's earnings are forecast to decline over the next 3 years (-25.7% per year).
High Growth Earnings: 95's earnings are forecast to decline over the next 3 years.
Revenue vs Market: 95's revenue (2.1% per year) is forecast to grow slower than the Hong Kong market (10.6% per year).
High Growth Revenue: 95's revenue (2.1% 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 (6.1%).
Next Steps
Past Performance
How has LVGEM (China) Real Estate Investment performed over the past 5 years?
18.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 95 has a large one-off gain of CN¥670.4M impacting its December 31 2019 financial results.
Growing Profit Margin: 95's current net profit margins (25.4%) are lower than last year (27.4%).
Past Earnings Growth Analysis
Earnings Trend: 95's earnings have grown by 18.7% per year over the past 5 years.
Accelerating Growth: 95's earnings growth over the past year (41.4%) exceeds its 5-year average (18.7% per year).
Earnings vs Industry: 95 earnings growth over the past year (41.4%) exceeded the Real Estate industry 2.8%.
Return on Equity
High ROE: 95's Return on Equity (13.4%) is considered low.
Next Steps
Financial Health
How is LVGEM (China) Real Estate Investment's financial position?
Financial Position Analysis
Short Term Liabilities: 95's short term assets (CN¥22.3B) exceed its short term liabilities (CN¥17.8B).
Long Term Liabilities: 95's short term assets (CN¥22.3B) exceed its long term liabilities (CN¥17.9B).
Debt to Equity History and Analysis
Debt Level: 95's debt to equity ratio (199.3%) is considered high.
Reducing Debt: 95's debt to equity ratio has increased from 100.2% to 199.3% over the past 5 years.
Debt Coverage: 95's debt is not well covered by operating cash flow (4.4%).
Interest Coverage: 95's interest payments on its debt are well covered by EBIT (3.4x coverage).
Balance Sheet
Next Steps
Dividend
What is LVGEM (China) Real Estate Investment's current dividend yield, its reliability and sustainability?
2.38%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 95's dividend (2.38%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.46%).
High Dividend: 95's dividend (2.38%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.13%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, 95 has been paying a dividend for less than 10 years.
Growing Dividend: 95's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (15.5%), 95's dividend payments are well covered by earnings.
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?
4.3yrs
Average board tenure
CEO
Shouchun Tang (57yo)
4.25yrs
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 ($USD337.70K) is about average for companies of similar size in the Hong Kong market ($USD424.20K).
Compensation vs Earnings: Shouchun's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 6yrs | CN¥2.88m | no data | |
| CEO & Executive Director | 4.25yrs | CN¥2.40m | no data | |
| Executive Director | 6.08yrs | CN¥2.10m | no data | |
| Executive Director | 3.33yrs | CN¥1.25m | no data | |
| Executive Director | 0.75yr | CN¥477.00k | no data | |
| Independent Non Executive Director | 6.08yrs | CN¥255.00k | no data | |
| Independent Non-Executive Director | 1.17yrs | CN¥155.00k | no data | |
| Independent Non Executive Director | 6.08yrs | CN¥229.00k | no data | |
| Non-Executive Director | 2.25yrs | no data | no data |
4.3yrs
Average Tenure
48yo
Average Age
Experienced Board: 95's board of directors are considered experienced (4.3 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.
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$12.509b
- Shares outstanding: 5.06b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 95 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Dec 2015 |
| 95 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Dec 2015 |
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 Real Estate Development and Sales, Commercial Property Investment and Operations, and Comprehensive Services segments. It develops and sells properties; invests in, operates, and leases commercial properties, office premises, and car parks; operates hotels; and offers property management, consultancy, and other services to customers and tenants of its residential and commercial properties. The company was founded in 1995 and is headquartered in Kwun Tong, Hong Kong.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/05 13:03 |
| End of Day Share Price | 2020/06/05 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.