SGX:Z25

Stock Analysis Report

Executive Summary

Yanlord Land Group Limited, an investment holding company, engages in the property development activities in the People's Republic of China.

Rewards

Trading at 29.3% below its fair value

Earnings are forecast to grow 39.5% per year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Very undervalued with high growth potential and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: Z25 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

Z25

0.6%

SG Real Estate

1.0%

SG Market


1 Year Return

-14.3%

Z25

-5.1%

SG Real Estate

-1.8%

SG Market

Return vs Industry: Z25 underperformed the SG Real Estate industry which returned -5.1% over the past year.

Return vs Market: Z25 underperformed the SG Market which returned -1.8% over the past year.


Shareholder returns

Z25IndustryMarket
7 Day2.6%0.6%1.0%
30 Day-4.8%-4.9%-2.9%
90 Day-1.6%-1.0%-1.5%
1 Year-9.9%-14.3%-2.2%-5.1%2.2%-1.8%
3 Year-8.6%-18.4%-2.3%-9.9%9.3%-2.2%
5 Year40.5%22.4%-7.8%-19.5%9.1%-9.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Yanlord Land Group undervalued compared to its fair value and its price relative to the market?

29.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: Z25 (SGD1.2) is trading below our estimate of fair value (SGD1.7)

Significantly Below Fair Value: Z25 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: Z25 is good value based on its PE Ratio (7.7x) compared to the Real Estate industry average (11.4x).

PE vs Market: Z25 is good value based on its PE Ratio (7.7x) compared to the SG market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Z25 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: Z25 is good value based on its PB Ratio (0.5x) compared to the SG Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Yanlord Land Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

39.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Z25's forecast earnings growth (39.5% per year) is above the savings rate (1.8%).

Earnings vs Market: Z25's earnings (39.5% per year) are forecast to grow faster than the SG market (5.8% per year).

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

Revenue vs Market: Z25's revenue (35.6% per year) is forecast to grow faster than the SG market (5.2% per year).

High Growth Revenue: Z25's revenue (35.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Z25's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Yanlord Land Group performed over the past 5 years?

18.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: Z25 has a large one-off gain of CN¥1.2B impacting its September 30 2019 financial results.

Growing Profit Margin: Z25's current net profit margins (11.6%) are lower than last year (13.2%).


Past Earnings Growth Analysis

Earnings Trend: Z25's earnings have grown by 18.1% per year over the past 5 years.

Accelerating Growth: Z25's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: Z25 had negative earnings growth (-66.4%) over the past year, making it difficult to compare to the Real Estate industry average (-37.7%).


Return on Equity

High ROE: Z25's Return on Equity (8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Yanlord Land Group's financial position?


Financial Position Analysis

Short Term Liabilities: Z25's short term assets (CN¥68.3B) exceed its short term liabilities (CN¥46.6B).

Long Term Liabilities: Z25's short term assets (CN¥68.3B) exceed its long term liabilities (CN¥33.0B).


Debt to Equity History and Analysis

Debt Level: Z25's debt to equity ratio (118.9%) is considered high.

Reducing Debt: Z25's debt to equity ratio has increased from 68.8% to 118.9% over the past 5 years.

Debt Coverage: Z25's debt is not well covered by operating cash flow (5.9%).

Interest Coverage: Z25's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet

Inventory Level: Z25 has a high level of physical assets or inventory.

Debt Coverage by Assets: Z25's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Yanlord Land Group's current dividend yield, its reliability and sustainability?

5.53%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%2.5%markettop25%5.7%industryaverage3.2%forecastin3Years6.6%

Current dividend yield vs market & industry

Notable Dividend: Z25's dividend (5.53%) is higher than the bottom 25% of dividend payers in the SG market (2.53%).

High Dividend: Z25's dividend (5.53%) is low compared to the top 25% of dividend payers in the SG market (5.71%).


Stability and Growth of Payments

Stable Dividend: Z25's dividend payments have been volatile in the past 10 years.

Growing Dividend: Z25's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.8%), Z25's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Z25's dividends in 3 years are forecast to be well covered by earnings (21.4% payout ratio).


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

Sheng Jian Zhong (61yo)

40.1yrs

Tenure

0

Mr. Zhong Sheng Jian is the Founder of Yanlord Land Group Limited and Yanlord Land (HK) Co., Ltd. Mr. Zhong has been Chief Executive Officer of Yanlord Land Group Limited since 1993 and serves as its Chair ...


Leadership Team

NamePositionTenureCompensationOwnership
Siliang Zhong
Executive Director13.8yrsno data1.57% CN¥36.2m
Yiu Ling Chan
Executive Director13.8yrsno data0.021% CN¥476.0k
Sheng Jian Zhong
Chairman & CEO40.1yrsno data70.32% CN¥1.6b
Chi Wai Chan
Group Financial Controller17.1yrsno datano data
Jeng Yuh Yim
Corporate & Investor Relations Manager0yrsno datano data
Hao Ning Zhang
Executive Vice President of Project Development7.8yrsno datano data
Chen Ping
Executive Vice President of Property Management7.1yrsno datano data
Ming Zhong
Executive Director3.3yrsno datano data
Ean Sau
Company Secretary1.1yrsno datano data

7.8yrs

Average Tenure

51yo

Average Age

Experienced Management: Z25's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Siliang Zhong
Executive Director13.8yrsno data1.57% CN¥36.2m
Yiu Ling Chan
Executive Director13.8yrsno data0.021% CN¥476.0k
Sheng Jian Zhong
Chairman & CEO40.1yrsno data70.32% CN¥1.6b
Ming Zhong
Executive Director3.3yrsno datano data
Theng-Fong Hee
Independent Director2.3yrsno datano data
Pian Tee Hong
Independent Director1.4yrsno data0.017% CN¥380.4k
Lim Siang Seah
Lead Independent Director13.8yrsno data0.0010% CN¥23.9k
Shin Ein Ng
Independent Director13.8yrsno data0.0061% CN¥140.4k

13.8yrs

Average Tenure

58yo

Average Age

Experienced Board: Z25's board of directors are seasoned and experienced ( 13.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Z25 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.


Top Shareholders

Company Information

Yanlord Land Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yanlord Land Group Limited
  • Ticker: Z25
  • Exchange: SGX
  • Founded: 1993
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: S$2.299b
  • Shares outstanding: 1.93b
  • Website: https://www.yanlordland.com

Location

  • Yanlord Land Group Limited
  • No. 36-02 Suntec Tower Two
  • 9 Temasek Boulevard
  • Singapore
  • 38989
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
Z25SGX (Singapore Exchange)YesOrdinary SharesSGSGDJun 2006
YLGBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJun 2006
YLDG.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNov 2008

Biography

Yanlord Land Group Limited, an investment holding company, engages in the property development activities in the People's Republic of China. The company operates through Property Development, Property Investment, and Others segments. It develops residential properties, including apartments and villas; and commercial and integrated properties, such as offices, serviced apartments, and shopping malls for sale and lease. The company also offers property management services for residential properties comprising security, building, equipment maintenance and repair, facilities management, child-care, and other ancillary services, as well as organizes social and residential community functions. In addition, it is involved in leasing properties and operating hotels; serviced apartment management; trading of building materials and hardware; operation of restaurants and Kindergarten; and installation, maintenance, sale, and repair of elevators. Further, the company engages in the provision of landscaping and gardening, investment management, city redevelopment, food and beverage, tourism investment, asset management, leisure and fitness, business consultancy, information technology, education and training, cultural and art performance, and construction engineering services, as well as tourism and travel services. Yanlord Land Group Limited was founded in 1993 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 Analysis2020/02/17 12:50
End of Day Share Price2020/02/17 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.