SGX:G07

Stock Analysis Report

Great Eastern Holdings

Executive Summary

Great Eastern Holdings Limited, an investment holding company, provides insurance products in Singapore, Malaysia, and other Asian countries.


Snowflake Analysis

Good value second-rate dividend payer.


Similar Companies

Share Price & News

How has Great Eastern Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: G07 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

G07

0.3%

SG Insurance

-0.2%

SG Market


1 Year Return

-14.9%

G07

11.7%

SG Insurance

3.3%

SG Market

Return vs Industry: G07 underperformed the SG Insurance industry which returned 11.7% over the past year.

Return vs Market: G07 underperformed the SG Market which returned 3.3% over the past year.


Shareholder returns

G07IndustryMarket
7 Day0.8%0.3%-0.2%
30 Day-1.6%-2.9%-1.9%
90 Day-7.6%0.9%-0.2%
1 Year-13.0%-14.9%14.5%11.7%7.5%3.3%
3 Year12.7%5.3%28.1%18.9%15.6%3.2%
5 Year2.1%-9.1%44.2%29.0%14.6%-4.7%

Price Volatility Vs. Market

How volatile is Great Eastern Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Great Eastern Holdings undervalued compared to its fair value and its price relative to the market?

44.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: G07 (SGD21.62) is trading below our estimate of fair value (SGD38.94)

Significantly Below Fair Value: G07 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: G07 is good value based on its PE Ratio (12x) compared to the Insurance industry average (12.6x).

PE vs Market: G07 is good value based on its PE Ratio (12x) compared to the SG market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate G07's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: G07 is overvalued based on its PB Ratio (1.2x) compared to the XA Insurance industry average (1x).


Next Steps

Future Growth

How is Great Eastern Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.9%

Forecasted Insurance industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if G07's forecast earnings growth is above the savings rate (1.8%).

Earnings vs Market: Insufficient data to determine if G07's earnings are forecast to grow faster than the SG market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if G07's revenue is forecast to grow faster than the SG market.

High Growth Revenue: Insufficient data to determine if G07's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if G07's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Great Eastern Holdings performed over the past 5 years?

2.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: G07 has high quality earnings.

Growing Profit Margin: G07's current net profit margins (5.4%) are lower than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: G07's earnings have grown by 2.9% per year over the past 5 years.

Accelerating Growth: G07's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: G07 had negative earnings growth (-17.2%) over the past year, making it difficult to compare to the Insurance industry average (-0.2%).


Return on Equity

High ROE: G07's Return on Equity (10.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Great Eastern Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: G07 has a low level of unsold assets or inventory.

Debt Coverage by Assets: G07's debt is covered by short term assets (assets are 225.6x debt).


Financial Institutions Analysis

Asset Level: G07's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if G07 has a sufficient allowance for bad loans.

Low Risk Liabilities: G07 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if G07 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: G07 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if G07 has an appropriate level of bad loans.


Next Steps

Dividend

What is Great Eastern Holdings's current dividend yield, its reliability and sustainability?

2.78%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%2.5%markettop25%5.5%industryaverage2.3%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: G07's dividend (2.78%) is higher than the bottom 25% of dividend payers in the SG market (2.53%).

High Dividend: G07's dividend (2.78%) is low compared to the top 25% of dividend payers in the SG market (5.46%).


Stability and Growth of Payments

Stable Dividend: G07's dividend payments have been volatile in the past 10 years.

Growing Dividend: G07's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.4%), G07'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

What is the CEO of Great Eastern Holdings's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average management tenure


CEO

Hock Seng Khor (60yo)

4.1yrs

Tenure

S$5,680,000

Compensation

Mr. Hock Seng Khor has been the Group Chief Executive Officer at Great Eastern Holdings Limited since November 2, 2015. Mr. Khor served as Chief Executive Officer of Friends Provident International Limited ...


CEO Compensation Analysis

Compensation vs Market: Hock Seng's total compensation ($USD4.18M) is about average for companies of similar size in the SG market ($USD4.05M).

Compensation vs Earnings: Hock Seng's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.1yrs

Average Tenure

Experienced Management: G07's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

67yo

Average Age

Experienced Board: G07's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

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.


Management Team

  • Hock Seng Khor (60yo)

    Group Chief Executive Officer

    • Tenure: 4.1yrs
    • Compensation: S$5.68m
  • Ronnie Tan (46yo)

    Group Chief Financial Officer

    • Tenure: 3.4yrs
  • Francis Seo

    Head of Distribution Risk & Compliance

    • Tenure: 5.8yrs
  • Claudia Soh

    Head of Group Management Reporting & Investor Relations and Chief Internal Auditor

    • Tenure: 0yrs
  • Jennifer Wong Pakshong

    General Counsel & Group Company Secretary

    • Tenure: 0yrs
  • James Lee

    Managing Director of Group Human Capital

    • Tenure: 0yrs
  • Seck Geok Tan

    Head of Corporate Communications

    • Tenure: 0yrs
  • Patrick Kok

    Managing Director of Group Operations

    • Tenure: 0yrs
  • Ai Ning Wee

    Group Chief Investment Officer

    • Tenure: 0yrs
  • Colin Chan

    Managing Director of Group Marketing

    • Tenure: 0yrs

Board Members

  • Joo Yeow Wee (71yo)

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: S$150.00k
  • Samuel Tsien (64yo)

    Non-Independent Director

    • Tenure: 7.7yrs
    • Compensation: S$222.00k
  • Beng Seng Koh (68yo)

    Independent Chairman of the Board

    • Tenure: 5.3yrs
    • Compensation: S$537.00k
  • Tit Koon Soon (68yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: S$162.00k
  • Norman Ip (67yo)

    Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: S$423.00k
  • Fook Sun Lee (63yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: S$170.00k
  • Song Keng Law (74yo)

    Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: S$243.00k
  • Kyle Lee (67yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: S$262.00k
  • Nam Yew Thean (51yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: S$188.00k
  • Lian Ee Teoh (66yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: S$162.00k

Company Information

Great Eastern Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Great Eastern Holdings Limited
  • Ticker: G07
  • Exchange: SGX
  • Founded: 1908
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: S$10.176b
  • Shares outstanding: 473.32m
  • Website: https://www.greateasternlife.com

Number of Employees


Location

  • Great Eastern Holdings Limited
  • Great Eastern Centre
  • No. 01-01, 1 Pickering Street
  • Singapore
  • 48659
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
G07SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1981
GEHD.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDFeb 2009

Biography

Great Eastern Holdings Limited, an investment holding company, provides insurance products in Singapore, Malaysia, and other Asian countries. It operates through Life Insurance, Non-Life Insurance, and Sha ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 12:35
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.