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.
Good value 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.
7 Day Return
HK Real Estate
1 Year Return
HK Real Estate
Return vs Industry: 95 exceeded the Hong Kong Real Estate industry which returned -28.7% over the past year.
Return vs Market: 95 exceeded the Hong Kong Market which returned -22.7% over the past year.
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
3 weeks ago | Simply Wall StI Ran A Stock Scan For Earnings Growth And LVGEM (China) Real Estate Investment (HKG:95) Passed With Ease
1 month ago | Simply Wall StWhy LVGEM (China) Real Estate Investment Company Limited (HKG:95) Looks Like A Quality Company
2 months ago | Simply Wall StLVGEM (China) Real Estate Investment (HKG:95) Has A Somewhat Strained Balance Sheet
Is LVGEM (China) Real Estate Investment undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 95 (HK$2.37) is trading below our estimate of fair value (HK$30.09)
Significantly Below Fair Value: 95 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 95 is good value based on its PE Ratio (5.3x) compared to the Real Estate industry average (6.1x).
PE vs Market: 95 is good value based on its PE Ratio (5.3x) compared to the Hong Kong market (8.9x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 95's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 95 is overvalued based on its PB Ratio (1.8x) compared to the HK Real Estate industry average (0.4x).
How is LVGEM (China) Real Estate Investment forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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 LVGEM (China) Real Estate Investment 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.
- Examine whether LVGEM (China) Real Estate Investment is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- LVGEM (China) Real Estate Investment competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Real Estate industry.
How has LVGEM (China) Real Estate Investment performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 95 has a large one-off gain of CN¥708.0M impacting its June 30 2019 financial results.
Growing Profit Margin: 95's current net profit margins (28.4%) are lower than last year (37.7%).
Past Earnings Growth Analysis
Earnings Trend: 95's earnings have grown by 15.2% per year over the past 5 years.
Accelerating Growth: 95's earnings growth over the past year (72%) exceeds its 5-year average (15.2% per year).
Earnings vs Industry: 95 earnings growth over the past year (72%) exceeded the Real Estate industry 1.3%.
Return on Equity
High ROE: 95's Return on Equity (16.6%) is considered low.
How is LVGEM (China) Real Estate Investment's financial position?
Financial Position Analysis
Short Term Liabilities: 95's short term assets (CN¥21.1B) exceed its short term liabilities (CN¥14.6B).
Long Term Liabilities: 95's short term assets (CN¥21.1B) exceed its long term liabilities (CN¥20.0B).
Debt to Equity History and Analysis
Debt Level: 95's debt to equity ratio (195.3%) is considered high.
Reducing Debt: 95's debt to equity ratio has increased from 101.9% to 195.3% over the past 5 years.
Debt Coverage: 95's debt is not well covered by operating cash flow (19.1%).
Interest Coverage: 95's interest payments on its debt are well covered by EBIT (5.6x coverage).
Inventory Level: 95 has a high level of physical assets or inventory.
Debt Coverage by Assets: 95's debt is not covered by short term assets (assets are 0.9x debt).
What is LVGEM (China) Real Estate Investment's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 95's dividend (2.08%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.63%).
High Dividend: 95's dividend (2.08%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.28%).
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 (11.3%), 95's dividend payments are thoroughly 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.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Shouchun Tang (57yo)
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 ($USD445.29K) is about average for companies of similar size in the Hong Kong market ($USD469.46K).
Compensation vs Earnings: Shouchun's compensation has been consistent with company performance over the past year.
|CEO & Executive Director||4yrs||CN¥3.16m||no data|
|Executive Director||5.83yrs||CN¥2.81m||no data|
|Executive Director||3yrs||CN¥1.25m||no data|
|Executive Director||0.42yr||no data||no data|
|Independent Non Executive Director||5.83yrs||CN¥500.00k||no data|
|Independent Non-Executive Director||0.83yr||no data||no data|
|Independent Non Executive Director||5.83yrs||CN¥475.00k||no data|
|Non-Executive Director||2yrs||no data||no data|
Experienced Board: 95's board of directors are considered experienced (4 years average tenure).
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.
LVGEM (China) Real Estate Investment Company Limited's company bio, employee growth, exchange listings and data sources
- Name: LVGEM (China) Real Estate Investment Company Limited
- Ticker: 95
- Exchange: SEHK
- Industry: Real Estate Development
- Sector: Real Estate
- Market Cap: HK$11.750b
- Shares outstanding: 5.06b
- Website: https://www.lvgem-china.com
Number of Employees
- LVGEM (China) Real Estate Investment Company Limited
- Level 5, NEO
- 123 Hoi Bun Road
- Kwun Tong
- Hong Kong
|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|
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 three segments: Real Estate Development and Sales, Commercial Property Investment and Operations, and Comprehensive Services. It develops and sells properties; invests in, operates, and leases commercial properties, office premises, and car parks; operates hotels; and provides property management, consultancy, and other services to customers and tenants of its residential and commercial properties. The company is based in Kwun Tong, Hong Kong. LVGEM (China) Real Estate Investment Company Limited is a subsidiary of China LVGEM Property Holdings Limited.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/31 12:50|
|End of Day Share Price||2020/03/31 00:00|
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.