Central China New Life (SEHK:9983) - Share price, News & Analysis

9983 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	6/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

9983 Stock Overview

Central China New Life Limited, an investment holding company, provides property management services and value-added services in the People’s Republic of China.

Rewards

Trading at 79.9% below our estimate of its fair value

Earnings are forecast to grow 25.57% per year

Earnings grew by 45.2% over the past year

Risk Analysis

High level of non-cash earnings

Dividend of 11.59% is not well covered by earnings

Central China New Life Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Central China New Life
Historical stock prices
Current Share Price	HK$3.95
52 Week High	HK$8.19
52 Week Low	HK$3.03
Beta	0.57
1 Month Change	23.44%
3 Month Change	-3.66%
1 Year Change	-51.11%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-52.81%

Recent News & Updates

Apr 04

Central China New Life's (HKG:9983) Shareholders Will Receive A Bigger Dividend Than Last Year

The board of Central China New Life Limited ( HKG:9983 ) has announced that it will be increasing its dividend on the...

Mar 21

Central China New Life (HKG:9983) Has Announced That It Will Be Increasing Its Dividend To HK$0.34

Central China New Life Limited ( HKG:9983 ) will increase its dividend on the 25th of May to HK$0.34. This takes the...

Shareholder Returns

	9983	HK Real Estate	HK Market
7D	10.6%	4.3%	2.1%
1Y	-51.1%	-34.5%	-23.3%

Return vs Industry: 9983 underperformed the Hong Kong Real Estate industry which returned -34.5% over the past year.

Return vs Market: 9983 underperformed the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 9983's price volatile compared to industry and market?
9983 volatility
9983 Average Weekly Movement	8.8%
Real Estate Industry Average Movement	6.3%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 9983 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 9983's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1994	6,007	Jun Wang	https://www.ccnewlife.com.cn

Central China New Life Limited, an investment holding company, provides property management services and value-added services in the People’s Republic of China. It operates through three segments: Property Management and Value-Added Services, Lifestyle Services, and Commercial Property Management and Consultation Services. The company manages a portfolio of properties, including residential properties, shopping malls, cultural tourism complexes, commercial apartments, office buildings, schools, hospitals, city services, factories, and parks and properties of governmental agencies.

Central China New Life Fundamentals Summary

How do Central China New Life's earnings and revenue compare to its market cap?
9983 fundamental statistics
Market Cap	CN¥4.27b
Earnings (TTM)	CN¥619.56m
Revenue (TTM)	CN¥3.60b

6.9x

P/E Ratio

1.2x

P/S Ratio

Is 9983 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
9983 income statement (TTM)
Revenue	CN¥3.60b
Cost of Revenue	CN¥2.42b
Gross Profit	CN¥1.18b
Other Expenses	CN¥563.66m
Earnings	CN¥619.56m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.49
Gross Margin	32.88%
Net Profit Margin	17.22%
Debt/Equity Ratio	0%

How did 9983 perform over the long term?

See historical performance and comparison

Dividends

11.6%

Current Dividend Yield

80%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 9983 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 9983?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 9983. This is calculated by dividing 9983's market cap by their current preferred multiple.
What is 9983's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥4.27b

9983 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	2.1x
PEG Ratio	0.3x

Price to Earnings Ratio vs Peers

How does 9983's PE Ratio compare to its peers?

9983 PE Ratio vs Peers

The above table shows the PE ratio for 9983 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14x

Forward PE

Price-To-Earnings vs Peers: 9983 is good value based on its Price-To-Earnings Ratio (6.9x) compared to the peer average (14x).

Price to Earnings Ratio vs Industry

How does 9983's PE Ratio compare vs other companies in the Hong Kong Real Estate Industry?

Price-To-Earnings vs Industry: 9983 is expensive based on its Price-To-Earnings Ratio (6.9x) compared to the Hong Kong Real Estate industry average (6.5x)

Price to Earnings Ratio vs Fair Ratio

What is 9983's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

9983 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.9x
Fair PE Ratio	6.4x

Price-To-Earnings vs Fair Ratio: 9983 is expensive based on its Price-To-Earnings Ratio (6.9x) compared to the estimated Fair Price-To-Earnings Ratio (6.4x).

Share Price vs Fair Value

What is the Fair Price of 9983 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 9983 (HK$3.95) is trading below our estimate of fair value (HK$19.63)

Significantly Below Fair Value: 9983 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 9983 is good value based on its PEG Ratio (0.3x)

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Future Growth

How is Central China New Life forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

25.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 9983's forecast earnings growth (25.6% per year) is above the savings rate (1.5%).

Earnings vs Market: 9983's earnings (25.6% per year) are forecast to grow faster than the Hong Kong market (17% per year).

High Growth Earnings: 9983's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 9983's revenue (24.8% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 9983's revenue (24.8% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 9983's Return on Equity is forecast to be high in 3 years time (29.7%)

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Past Performance

How has Central China New Life 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

41.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 9983 has a high level of non-cash earnings.

Growing Profit Margin: 9983's current net profit margins (17.2%) are higher than last year (16.1%).

Past Earnings Growth Analysis

Earnings Trend: 9983's earnings have grown significantly by 41.1% per year over the past 5 years.

Accelerating Growth: 9983's earnings growth over the past year (45.2%) exceeds its 5-year average (41.1% per year).

Earnings vs Industry: 9983 earnings growth over the past year (45.2%) exceeded the Real Estate industry 13.4%.

Return on Equity

High ROE: 9983's Return on Equity (21.4%) is considered high.

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Financial Health

How is Central China New Life's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: 9983's short term assets (CN¥4.6B) exceed its short term liabilities (CN¥1.8B).

Long Term Liabilities: 9983's short term assets (CN¥4.6B) exceed its long term liabilities (CN¥155.5M).

Debt to Equity History and Analysis

Debt Level: 9983 is debt free.

Reducing Debt: 9983 had no debt 5 years ago.

Debt Coverage: 9983 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 9983 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Central China New Life current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

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

11.59%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 9983's dividend (11.59%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 9983's dividend (11.59%) is in the top 25% of dividend payers in the Hong Kong market (7.89%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 9983 has been paying a dividend for less than 10 years.

Growing Dividend: 9983's dividend payments have increased, but the company has only paid a dividend for 2 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (80%), 9983's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (338.5%), 9983's dividend payments are not well covered by cash flows.

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Management

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

2.0yrs

Average management tenure

CEO

Jun Wang (40 yo)

no data

Tenure

Mr. Jun Wang serves as Non-Executive Director at Central China Real Estate Limited since 2022 and also served as Chief Executive Officer since March 31, 2021 until February 14, 2022. He has been Non-Execut...

Leadership Team

Experienced Management: 9983's management team is considered experienced (2 years average tenure).

Board Members

Experienced Board: 9983's board of directors are not considered experienced ( 2.2 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.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31