SEHK:95

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LVGEM (China) Real Estate Investment

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

Questionable track record with imperfect balance sheet.

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

-2.8%

95

1.3%

HK Real Estate

1.5%

HK Market


1 Year Return

-0.7%

95

-5.7%

HK Real Estate

1.4%

HK Market

Return vs Industry: 95 exceeded the Hong Kong Real Estate industry which returned -5.7% over the past year.

Return vs Market: 95 underperformed the Hong Kong Market which returned 1.4% over the past year.


Shareholder returns

95IndustryMarket
7 Day-2.8%1.3%1.5%
30 Day-3.2%-3.2%-1.5%
90 Day14.5%-0.9%4.4%
1 Year1.9%-0.7%-0.8%-5.7%5.4%1.4%
3 Year25.5%17.4%-7.5%-21.7%-4.3%-14.6%
5 Yearn/a49.9%19.0%24.7%3.7%

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?

15.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 95 (HK$2.76) is trading above our estimate of fair value (HK$0.34)

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 (15.3x) compared to the HK Real Estate industry average (9.1x).

PE vs Market: 95 is poor value based on its PE Ratio (15.3x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 95 is poor value based on its PEG Ratio (10.5x)


Price to Book Ratio

PB vs Industry: 95 is overvalued based on its PB Ratio (1.9x) 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?

1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 95's forecast earnings growth (1.5% per year) is below the savings rate (1.6%).

Earnings vs Market: 95's earnings (1.5% per year) are forecast to grow slower than the Hong Kong market (22.5% per year).

High Growth Earnings: 95's earnings are forecast to grow, but not significantly.

Revenue vs Market: 95's revenue (4.2% per year) is forecast to grow slower than the Hong Kong market (13.2% per year).

High Growth Revenue: 95's revenue (4.2% 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 (5.5%).


Next Steps

Past Performance

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

23.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 95 has high quality earnings.

Growing Profit Margin: 95's current net profit margins (13.4%) are lower than last year (28.4%).


Past Earnings Growth Analysis

Earnings Trend: 95's earnings have grown significantly by 23% per year over the past 5 years.

Accelerating Growth: 95's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 95 had negative earnings growth (-60.9%) over the past year, making it difficult to compare to the Real Estate industry average (-6.8%).


Return on Equity

High ROE: 95's Return on Equity (6.3%) 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¥24.9B) exceed its short term liabilities (CN¥17.4B).

Long Term Liabilities: 95's short term assets (CN¥24.9B) exceed its long term liabilities (CN¥21.3B).


Debt to Equity History and Analysis

Debt Level: 95's debt to equity ratio (232%) is considered high.

Reducing Debt: 95's debt to equity ratio has increased from 101.7% to 232% 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 (2.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 95's dividend (2.26%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 95's dividend (2.26%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.91%).


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 reasonably low payout ratio (34.6%), 95's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.5yrs

Average board tenure


CEO

Shouchun Tang (58 yo)

4.5yrs

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 ($USD354.71K) is below average for companies of similar size in the Hong Kong market ($USD573.72K).

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


Board Members

NamePositionTenureCompensationOwnership
Jingshu Huang
Executive Chairman6.25yrsCN¥2.88mno data
Shouchun Tang
CEO & Executive Director4.5yrsCN¥2.40mno data
Xingan Ye
Executive Director6.33yrsCN¥2.10mno data
Hao Yuan Huang
Executive Director3.58yrsCN¥1.25mno data
Chi Hung Siu
Executive Director1yrCN¥477.00kno data
Gin Ing Hu
Independent Non Executive Director6.33yrsCN¥255.00kno data
Fan Mo
Independent Non-Executive Director1.42yrsCN¥155.00kno data
Jing Wang
Independent Non Executive Director6.33yrsCN¥229.00kno data
Lihong Li
Non-Executive Director2.5yrsno datano data

4.5yrs

Average Tenure

49yo

Average Age

Experienced Board: 95's board of directors are considered experienced (4.5 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$14.059b
  • Shares outstanding: 5.09b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
95SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2015
95SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/20 19:22
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.