SGX:ADN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

First Sponsor Group

Executive Summary

First Sponsor Group Limited, an investment holding company, invests in, develops, and sells residential and commercial properties primarily in the People’s Republic of China and Europe. More Details


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

How has First Sponsor Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ADN is less volatile than 75% of SG stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ADN's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

3.0%

ADN

0.6%

SG Real Estate

1.1%

SG Market


1 Year Return

0.7%

ADN

-11.0%

SG Real Estate

-4.0%

SG Market

Return vs Industry: ADN exceeded the SG Real Estate industry which returned -11% over the past year.

Return vs Market: ADN exceeded the SG Market which returned -4% over the past year.


Shareholder returns

ADNIndustryMarket
7 Day3.0%0.6%1.1%
30 Day3.8%1.6%1.9%
90 Day5.4%2.5%6.1%
1 Year4.7%0.7%-7.7%-11.0%1.0%-4.0%
3 Year11.2%3.2%-19.4%-26.5%-7.1%-18.5%
5 Year36.3%22.6%3.1%-10.9%17.0%-4.4%

Long-Term Price Volatility Vs. Market

How volatile is First Sponsor Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is First Sponsor Group undervalued compared to its fair value and its price relative to the market?

47.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADN (SGD1.36) is trading below our estimate of fair value (SGD2.59)

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


Price To Earnings Ratio

PE vs Industry: ADN is good value based on its PE Ratio (11.4x) compared to the SG Real Estate industry average (13.7x).

PE vs Market: ADN is good value based on its PE Ratio (11.4x) compared to the SG market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: ADN is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: ADN is overvalued based on its PB Ratio (0.7x) compared to the SG Real Estate industry average (0.5x).


Next Steps

Future Growth

How is First Sponsor Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADN's forecast earnings growth (19.8% per year) is above the savings rate (2%).

Earnings vs Market: ADN's earnings (19.8% per year) are forecast to grow slower than the SG market (25.7% per year).

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

Revenue vs Market: ADN's revenue (31.6% per year) is forecast to grow faster than the SG market (9.1% per year).

High Growth Revenue: ADN's revenue (31.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ADN's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has First Sponsor Group performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADN has high quality earnings.

Growing Profit Margin: ADN's current net profit margins (49.1%) are lower than last year (51.3%).


Past Earnings Growth Analysis

Earnings Trend: ADN's earnings have grown by 15.3% per year over the past 5 years.

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

Earnings vs Industry: ADN had negative earnings growth (-38.8%) over the past year, making it difficult to compare to the Real Estate industry average (-45.7%).


Return on Equity

High ROE: ADN's Return on Equity (5.8%) is considered low.


Next Steps

Financial Health

How is First Sponsor Group's financial position?


Financial Position Analysis

Short Term Liabilities: ADN's short term assets (SGD1.5B) exceed its short term liabilities (SGD894.8M).

Long Term Liabilities: ADN's short term assets (SGD1.5B) exceed its long term liabilities (SGD782.4M).


Debt to Equity History and Analysis

Debt Level: ADN's debt to equity ratio (44.9%) is considered high.

Reducing Debt: ADN's debt to equity ratio has reduced from 48.6% to 44.9% over the past 5 years.

Debt Coverage: ADN's debt is well covered by operating cash flow (21.6%).

Interest Coverage: ADN's interest payments on its debt are well covered by EBIT (18.5x coverage).


Balance Sheet


Next Steps

Dividend

What is First Sponsor Group current dividend yield, its reliability and sustainability?

2.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADN's dividend (2.28%) is higher than the bottom 25% of dividend payers in the SG market (1.98%).

High Dividend: ADN's dividend (2.28%) is low compared to the top 25% of dividend payers in the SG market (4.79%).


Stability and Growth of Payments

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

Growing Dividend: ADN's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.9%), ADN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ADN's dividends in 3 years are forecast to be well covered by earnings (24.7% payout ratio).


Next Steps

Management

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

9.3yrs

Average management tenure


CEO

Teck Neo (49 yo)

13.42yrs

Tenure

Mr. Teck Pheng Neo has been Group Chief Executive Officer and Executive Director of First Sponsor Group Limited since October 1, 2007. Mr. Neo is an Investment Manager of City Developments Limited. Mr. Neo...


Leadership Team

NamePositionTenureCompensationOwnership
Teck Neo
Group CEO & Executive Director13.42yrsno data2.76%
SGD 34.6m
Sau Hun Lee
Group Chief Financial Officer9.83yrsno data0.14%
SGD 1.8m
Gongyi Wang
Chief Executive Officer of Chengdu Operations9.42yrsno datano data
Zhen Shu
Chief Executive Officer of Guangdong Operations8.58yrsno datano data
Jing Zhang
Chief Executive Officer of Shanghai Operations9.33yrsno datano data
Siew Geok Goh
Company Secretary3.42yrsno datano data
Alexander Barentsen
Chief Executive Officer of European Operations1.67yrsno datano data

9.3yrs

Average Tenure

49yo

Average Age

Experienced Management: ADN's management team is seasoned and experienced (9.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Teck Neo
Group CEO & Executive Director13.42yrsno data2.76%
SGD 34.6m
Han Ho
Non-Executive Chairman5.92yrsno data0.58%
SGD 7.3m
Guan Wee
Non-Executive Independent Director4.08yrsno datano data
Chia Hsing Yee
Non-Executive Lead Independent Director6.83yrsno data0.060%
SGD 753.5k
Han Ho
Alternate Director6.83yrsno data0.31%
SGD 3.9m
Ping Ting
Non-Executive Independent Director6.83yrsno data0.020%
SGD 256.3k
Eik Kwek
Non-Executive Director2yrsno datano data

6.8yrs

Average Tenure

49yo

Average Age

Experienced Board: ADN's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ADN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14%.


Top Shareholders

Company Information

First Sponsor Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Sponsor Group Limited
  • Ticker: ADN
  • Exchange: SGX
  • Founded: 2007
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: S$1.251b
  • Shares outstanding: 913.02m
  • Website: https://www.1st-sponsor.com.sg

Number of Employees


Location

  • First Sponsor Group Limited
  • No. 06-03 Bank of Singapore Centre
  • 63 Market Street
  • Singapore
  • 48942
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADNSGX (Singapore Exchange)YesOrdinary SharesSGSGDJul 2014

Biography

First Sponsor Group Limited, an investment holding company, invests in, develops, and sells residential and commercial properties primarily in the People’s Republic of China and Europe. The company operate...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 11:03
End of Day Share Price2021/03/04 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.