SGX:ADN

Stock Analysis Report

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.

Rewards

PE ratio (7.8x) is below the SG market (13.5x)

Earnings are forecast to grow 28.5% per year

Earnings grew by 34.2% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record with high growth potential.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

ADN

1.4%

SG Real Estate

0.8%

SG Market


1 Year Return

8.7%

ADN

1.4%

SG Real Estate

2.2%

SG Market

Return vs Industry: ADN exceeded the SG Real Estate industry which returned 1.1% over the past year.

Return vs Market: ADN exceeded the SG Market which returned 2.1% over the past year.


Shareholder returns

ADNIndustryMarket
7 Day1.5%1.4%0.8%
30 Day2.2%4.4%2.5%
90 Dayn/a6.8%5.3%
1 Year10.7%8.7%4.5%1.4%6.4%2.2%
3 Year20.6%14.6%8.4%-0.3%17.4%4.8%
5 Year33.6%23.4%-1.0%-13.7%12.9%-6.1%

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?

7.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ADN (SGD1.38) is trading above our estimate of fair value (SGD0.19)

Significantly Below Fair Value: ADN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ADN is good value based on its PE Ratio (7.8x) compared to the Real Estate industry average (10.3x).

PE vs Market: ADN is good value based on its PE Ratio (7.8x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

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


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?

28.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADN's forecast earnings growth (28.5% per year) is above the savings rate (1.8%).

Earnings vs Market: ADN's earnings (28.5% per year) are forecast to grow faster than the SG market (6.6% per year).

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

Revenue vs Market: ADN's revenue (76.8% per year) is forecast to grow faster than the SG market (5.6% per year).

High Growth Revenue: ADN's revenue (76.8% per year) 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 ADN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

22.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADN has high quality earnings.

Growing Profit Margin: ADN's current net profit margins (42.1%) are higher than last year (29%).


Past Earnings Growth Analysis

Earnings Trend: ADN's earnings have grown significantly by 22.4% per year over the past 5 years.

Accelerating Growth: ADN's earnings growth over the past year (34.2%) exceeds its 5-year average (22.4% per year).

Earnings vs Industry: ADN earnings growth over the past year (34.2%) exceeded the Real Estate industry -7.2%.


Return on Equity

High ROE: ADN's Return on Equity (8.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is First Sponsor Group's financial position?


Financial Position Analysis

Short Term Liabilities: ADN's short term assets (SGD1.3B) exceed its short term liabilities (SGD684.7M).

Long Term Liabilities: ADN's short term assets (SGD1.3B) exceed its long term liabilities (SGD651.7M).


Debt to Equity History and Analysis

Debt Level: ADN's debt to equity ratio (52.3%) is considered high.

Reducing Debt: ADN's debt to equity ratio has increased from 9.1% to 52.3% over the past 5 years.

Debt Coverage: ADN's debt is not well covered by operating cash flow (2.4%).

Interest Coverage: ADN earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ADN has a high level of physical assets or inventory.

Debt Coverage by Assets: ADN's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

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

1.74%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%2.4%markettop25%5.4%industryaverage3.1%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: ADN's dividend (1.74%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: ADN's dividend (1.74%) is low compared to the top 25% of dividend payers in the SG market (5.41%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.6%), ADN'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.


Next Steps

Management

What is the CEO of First Sponsor Group's salary, the management and board of directors tenure and is there insider trading?

8.2yrs

Average management tenure


CEO

Teck Neo (48yo)

12.3yrs

Tenure

0

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 ...


Management Age and Tenure

8.2yrs

Average Tenure

48yo

Average Age

Experienced Management: ADN's management team is seasoned and experienced (8.2 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

49yo

Average Age

Experienced Board: ADN's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyS$209,83803 Dec 19
Tai Tak Estates Sendirian Berhad
EntityCompany
Shares154,100
Max PriceS$1.36
BuyS$139,80229 Nov 19
Han Ho
EntityIndividual
Role
Alternate Director
Alternate Director
Shares105,000
Max PriceS$1.35
BuyS$167,65729 Nov 19
Han Ho
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares125,000
Max PriceS$1.34
BuyS$469,42110 Jul 19
Tai Tak Estates Sendirian Berhad
EntityCompany
Shares353,400
Max PriceS$1.33
BuyS$66,41025 Jun 19
Han Ho
EntityIndividual
Role
Alternate Director
Alternate Director
Shares50,000
Max PriceS$1.33
BuyS$133,00025 Jun 19
Han Ho
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares100,000
Max PriceS$1.33
BuyS$349,73025 Jun 19
Tai Tak Estates Sendirian Berhad
EntityCompany
Shares260,200
Max PriceS$1.36
BuyS$1,003,25219 Jun 19
Tai Tak Estates Sendirian Berhad
EntityCompany
Shares773,900
Max PriceS$1.30
BuyS$128,04518 Jun 19
Han Ho
EntityIndividual
Role
Alternate Director
Alternate Director
Shares100,000
Max PriceS$1.28
BuyS$256,29618 Jun 19
Han Ho
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares200,000
Max PriceS$1.28
BuyS$348,06701 Apr 19
Tai Tak Estates Sendirian Berhad
EntityCompany
Shares265,700
Max PriceS$1.31
BuyS$1,582,42027 Mar 19
Tai Tak Estates Sendirian Berhad
EntityCompany
Shares1,224,100
Max PriceS$1.30
BuyS$129,00009 Mar 19
Han Ho
EntityIndividual
Role
Alternate Director
Alternate Director
Shares100,000
Max PriceS$1.29
BuyS$258,00009 Mar 19
Han Ho
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares200,000
Max PriceS$1.29
BuyS$258,00005 Mar 19
Han Ho
EntityIndividual
Role
Alternate Director
Alternate Director
Shares200,000
Max PriceS$1.29
BuyS$451,50005 Mar 19
Han Ho
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares350,000
Max PriceS$1.29

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.9%.


Management Team

  • Teck Neo (48yo)

    Group CEO & Executive Director

    • Tenure: 12.3yrs
  • Sau Hun Lee (48yo)

    Group Chief Financial Officer

    • Tenure: 8.7yrs
  • Gongyi Wang (63yo)

    Chief Executive Officer of Chengdu Operations

    • Tenure: 8.3yrs
  • Zhen Shu (53yo)

    Chief Executive Officer of Guangdong Operations

    • Tenure: 7.4yrs
  • Jing Zhang (46yo)

    Chief Executive Officer of Shanghai Operations

    • Tenure: 8.2yrs
  • Siew Geok Goh

    Company Secretary

    • Tenure: 2.3yrs

Board Members

  • Calvin Ho (67yo)

    Non-Executive Chairman

    • Tenure: 4.8yrs
  • Teck Neo (48yo)

    Group CEO & Executive Director

    • Tenure: 12.3yrs
  • Desmond Wee (49yo)

    Non-Executive Independent Director

    • Tenure: 2.9yrs
  • Chia Yee (47yo)

    Lead Independent Director

    • Tenure: 5.7yrs
  • Alvin Ho (57yo)

    Alternate Director

    • Tenure: 5.7yrs
  • Joan Maria Ting (63yo)

    Non-Executive Independent Director

    • Tenure: 5.7yrs
  • Kingston Kwek (37yo)

    Non-Executive Director

    • Tenure: 0.8yrs

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$1.097b
  • Shares outstanding: 795.08m
  • 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 operates through Property Development, Property Investment, Property Financing, and Hotel Operations segments. It also provides interest bearing loans to vendor financing arrangements and subscription of debt securities. In addition, the company offers consultancy and management services, as well as owns and operates hotels. First Sponsor Group Limited was incorporated in 2007 and is based in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 12:46
End of Day Share Price2020/01/17 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.