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China HGS Real Estate

Nasdaq:HGSH
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HGSH
Nasdaq
$41M
Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

China HGS Real Estate Inc., through its subsidiaries, develops real estate properties in the People’s Republic of China. The last earnings update was 11 days ago. More info.


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  • China HGS Real Estate has significant price volatility in the past 3 months.
HGSH Share Price and Events
7 Day Returns
0.3%
NasdaqCM:HGSH
-2.2%
US Real Estate
-2.1%
US Market
1 Year Returns
-44.9%
NasdaqCM:HGSH
-17.2%
US Real Estate
1.3%
US Market
HGSH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China HGS Real Estate (HGSH) 0.3% -15.8% -13% -44.9% -45.8% -78.7%
US Real Estate -2.2% -9.8% -12.3% -17.2% 13.7% -0.3%
US Market -2.1% -4.2% 0% 1.3% 33.5% 38%
1 Year Return vs Industry and Market
  • HGSH underperformed the Real Estate industry which returned -17.2% over the past year.
  • HGSH underperformed the Market in United States of America which returned 1.3% over the past year.
Price Volatility
HGSH
Industry
5yr Volatility vs Market

HGSH Value

 Is China HGS Real Estate undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of China HGS Real Estate to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for China HGS Real Estate.

NasdaqCM:HGSH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 14.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:HGSH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 1.11
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.106 (1 + (1- 25%) (288.15%))
2.673
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (2 * 5.96%)
14.65%

Discounted Cash Flow Calculation for NasdaqCM:HGSH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for China HGS Real Estate is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqCM:HGSH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 14.65%)
2019 4.02 Est @ -33.86% 3.51
2020 3.10 Est @ -22.88% 2.36
2021 2.63 Est @ -15.2% 1.75
2022 2.37 Est @ -9.82% 1.37
2023 2.23 Est @ -6.06% 1.12
2024 2.15 Est @ -3.42% 0.95
2025 2.12 Est @ -1.57% 0.81
2026 2.11 Est @ -0.28% 0.71
2027 2.13 Est @ 0.62% 0.62
2028 2.15 Est @ 1.25% 0.55
Present value of next 10 years cash flows $13.75
NasdaqCM:HGSH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $2.15 × (1 + 2.73%) ÷ (14.65% – 2.73%)
$18.55
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $18.55 ÷ (1 + 14.65%)10
$4.73
NasdaqCM:HGSH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $13.75 + $4.73
$18.47
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $18.47 / 45.05
$0.41
NasdaqCM:HGSH Discount to Share Price
Calculation Result
Value per share (USD) From above. $0.41
Current discount Discount to share price of $0.91
= -1 x ($0.91 - $0.41) / $0.41
-121.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of China HGS Real Estate is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for China HGS Real Estate's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China HGS Real Estate's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:HGSH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.06
NasdaqCM:HGSH Share Price ** NasdaqCM (2019-05-24) in USD $0.91
United States of America Real Estate Industry PE Ratio Median Figure of 26 Publicly-Listed Real Estate Companies 14.91x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of China HGS Real Estate.

NasdaqCM:HGSH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:HGSH Share Price ÷ EPS (both in USD)

= 0.91 ÷ 0.06

14.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China HGS Real Estate is good value based on earnings compared to the US Real Estate industry average.
  • China HGS Real Estate is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does China HGS Real Estate's expected growth come at a high price?
Raw Data
NasdaqCM:HGSH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
33.4%per year
United States of America Real Estate Industry PEG Ratio Median Figure of 12 Publicly-Listed Real Estate Companies 0.43x
United States of America Market PEG Ratio Median Figure of 2,120 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for China HGS Real Estate, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on China HGS Real Estate's assets?
Raw Data
NasdaqCM:HGSH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $3.69
NasdaqCM:HGSH Share Price * NasdaqCM (2019-05-24) in USD $0.91
United States of America Real Estate Industry PB Ratio Median Figure of 51 Publicly-Listed Real Estate Companies 1.5x
United States of America Market PB Ratio Median Figure of 5,207 Publicly-Listed Companies 1.8x
NasdaqCM:HGSH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:HGSH Share Price ÷ Book Value per Share (both in USD)

= 0.91 ÷ 3.69

0.25x

* Primary Listing of China HGS Real Estate.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China HGS Real Estate is good value based on assets compared to the US Real Estate industry average.
X
Value checks
We assess China HGS Real Estate's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. China HGS Real Estate has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HGSH Future Performance

 How is China HGS Real Estate expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover China HGS Real Estate, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
33.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China HGS Real Estate expected to grow at an attractive rate?
  • China HGS Real Estate's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • China HGS Real Estate's earnings growth is expected to exceed the United States of America market average.
  • Unable to compare China HGS Real Estate's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:HGSH Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:HGSH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 33.4%
United States of America Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 4%
United States of America Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:HGSH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:HGSH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 45 6 3
2018-12-31 57 3 5
2018-09-30 64 2 5
2018-06-30 73 2 10
2018-03-31 74 10 8
2017-12-31 63 -5 7
2017-09-30 57 -25 6
2017-06-30 50 -49 3
2017-03-31 46 -84 4
2016-12-31 42 -88 4
2016-09-30 38 -77 5
2016-06-30 43 -53 12

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • China HGS Real Estate's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if China HGS Real Estate is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:HGSH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from China HGS Real Estate Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:HGSH Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.06
2018-12-31 0.10
2018-09-30 0.12
2018-06-30 0.22
2018-03-31 0.18
2017-12-31 0.15
2017-09-30 0.14
2017-06-30 0.07
2017-03-31 0.09
2016-12-31 0.10
2016-09-30 0.11
2016-06-30 0.27

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if China HGS Real Estate will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess China HGS Real Estate's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
China HGS Real Estate has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HGSH Past Performance

  How has China HGS Real Estate performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare China HGS Real Estate's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • China HGS Real Estate's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • China HGS Real Estate's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • China HGS Real Estate's 1-year earnings growth is negative, it can't be compared to the US Real Estate industry average.
Earnings and Revenue History
China HGS Real Estate's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from China HGS Real Estate Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:HGSH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 44.57 2.82 3.39
2018-12-31 57.41 4.52 3.34
2018-09-30 64.24 5.24 3.37
2018-06-30 73.16 9.79 3.84
2018-03-31 74.17 7.99 3.96
2017-12-31 63.09 6.77 3.80
2017-09-30 57.46 6.33 3.75
2017-06-30 50.06 3.01 3.73
2017-03-31 46.20 3.88 3.61
2016-12-31 41.81 4.35 3.64
2016-09-30 38.47 5.02 3.58
2016-06-30 43.14 11.99 2.74
2016-03-31 55.85 23.26 2.69
2015-12-31 71.47 31.23 2.80
2015-09-30 75.92 31.43 3.22
2015-06-30 85.79 32.27 3.73
2015-03-31 88.54 26.84 3.81
2014-12-31 113.45 31.01 3.83
2014-09-30 116.75 32.44 3.50
2014-06-30 115.55 32.03 3.34
2014-03-31 95.13 26.02 3.36
2013-12-31 66.47 18.34 3.94
2013-09-30 63.56 20.79 4.00
2013-06-30 43.29 15.41 4.08
2013-03-31 41.19 14.48 3.81
2012-12-31 25.64 9.65 2.93
2012-09-30 17.68 5.18 2.57
2012-06-30 26.10 6.77 2.29

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • China HGS Real Estate has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China HGS Real Estate used its assets less efficiently than the US Real Estate industry average last year based on Return on Assets.
  • China HGS Real Estate's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess China HGS Real Estate's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
China HGS Real Estate has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HGSH Health

 How is China HGS Real Estate's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up China HGS Real Estate's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • China HGS Real Estate's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • China HGS Real Estate's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of China HGS Real Estate's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from China HGS Real Estate Company Filings, last reported 1 month ago.

NasdaqCM:HGSH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 166.41 118.12 1.13
2018-12-31 161.98 119.70 1.02
2018-09-30 161.68 124.64 3.27
2018-06-30 169.28 127.47 2.72
2018-03-31 175.24 136.15 4.32
2017-12-31 166.84 131.53 2.69
2017-09-30 161.89 129.65 1.97
2017-06-30 155.66 126.79 3.29
2017-03-31 151.70 132.24 2.29
2016-12-31 149.50 125.60 10.25
2016-09-30 154.95 108.68 6.40
2016-06-30 155.66 78.17 2.09
2016-03-31 157.95 53.18 1.65
2015-12-31 155.58 35.34 1.18
2015-09-30 157.48 29.51 1.33
2015-06-30 156.92 30.09 3.78
2015-03-31 142.90 35.81 1.02
2014-12-31 133.04 47.26 1.43
2014-09-30 131.23 40.25 1.13
2014-06-30 123.41 45.49 2.67
2014-03-31 115.12 33.70 2.84
2013-12-31 102.61 30.69 3.23
2013-09-30 99.15 18.11 5.88
2013-06-30 91.28 1.81 2.89
2013-03-31 87.67 1.81 0.71
2012-12-31 81.44 1.81 0.52
2012-09-30 75.71 1.81 1.10
2012-06-30 73.85 1.81 1.80
  • China HGS Real Estate's level of debt (71%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (29.4% vs 71% today).
  • Debt is not well covered by operating cash flow (5.2%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 23.8x coverage).
X
Financial health checks
We assess China HGS Real Estate's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. China HGS Real Estate has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HGSH Dividends

 What is China HGS Real Estate's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from China HGS Real Estate dividends.
If you bought $2,000 of China HGS Real Estate shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate China HGS Real Estate's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate China HGS Real Estate's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:HGSH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as China HGS Real Estate has not reported any payouts.
  • Unable to verify if China HGS Real Estate's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of China HGS Real Estate's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as China HGS Real Estate has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess China HGS Real Estate's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can China HGS Real Estate afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China HGS Real Estate has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HGSH Management

 What is the CEO of China HGS Real Estate's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Xiaojun Zhu
COMPENSATION $30,596
AGE 51
CEO Bio

Mr. Xiaojun Zhu, the President, Chief Executive Officer, and Chairman of the Board of Directors of China HGS, began his entrepreneurial career in 1995 by creating a privately-run real estate company in Hanzhong, Shaanxi Province. With more than 20 years’ experience, Mr. Zhu is considered to be one of China’s most influential business leaders in the real estate industry. In October 2005, Mr. Zhu received the “Top 100 Management Elites in China’s Building Industry 2005” award by the Chinese Academy of Management Science. Mr. Zhu also received the “Innovative Shaanxi - Person of the Year 2007” award and the “Outstanding Socialism Builder of Shaanxi Province in 2008” award. In August 2009, Mr. Zhu joined China Agro as Chairman and Chief Executive Officer. In 2007, before joining China Agro, Mr. Zhu served as the Chairman and General Manager of Shaanxi Guangsha Investment and Development Group Co., Ltd. From 1995 to 2007, Mr. Zhu was the Chairman and General Manager of Hanzhong Guangsha Real Estate Development Co, Ltd., a real estate development company. From 1992 to 1995, prior to starting his own business, Mr. Zhu served as a Vice General Manager in the real estate-based subsidiary of Hanjiang Building Material Group Corporation. From 1985 to 1988, Mr. Zhu studied at Shaanxi Metallurgy College. As the founder of the Company, Mr. Zhu is acknowledged to be one of China’s leading business executives in the real estate industry.

CEO Compensation
  • Xiaojun's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Xiaojun's remuneration is lower than average for companies of similar size in United States of America.
Management Team

Xiaojun Zhu

TITLE
President
COMPENSATION
$31K
AGE
51

Samuel Shen

TITLE
Chief Financial Officer
COMPENSATION
$110K
AGE
40
TENURE
7 yrs

Ran Xiong

TITLE
President of Finance

Shenghui Luo

TITLE
Manager of Finance & Director
AGE
49
TENURE
10.3 yrs
Board of Directors Tenure

Average tenure and age of the China HGS Real Estate board of directors in years:

8
Average Tenure
51
Average Age
  • The tenure for the China HGS Real Estate board of directors is about average.
Board of Directors

Xiaojun Zhu

TITLE
President
COMPENSATION
$31K
AGE
51

Shenghui Luo

TITLE
Manager of Finance & Director
AGE
49
TENURE
9.3 yrs

Yuankai Wen

TITLE
Independent Director
COMPENSATION
$15K
AGE
71
TENURE
9.3 yrs

John Chen

TITLE
Independent Director
COMPENSATION
$54K
AGE
47
TENURE
6.8 yrs

Christy Shue

TITLE
Independent Director
COMPENSATION
$42K
AGE
55
TENURE
6.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess China HGS Real Estate's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. China HGS Real Estate has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HGSH News

Simply Wall St News

Do You Like China HGS Real Estate Inc. (NASDAQ:HGSH) At This P/E Ratio?

We'll look at China HGS Real Estate Inc.'s (NASDAQ:HGSH) P/E ratio and reflect on what it tells us about the company's share price. … Looking at earnings over the last twelve months, China HGS Real Estate has a P/E ratio of 10.46. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

China HGS Real Estate Inc. (NASDAQ:HGSH): Time For A Financial Health Check

(NASDAQ:HGSH) with its market cap of US$46m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Understanding the company's financial health becomes. … Let's work through some financial health checks you may wish to consider if you're interested in this stock.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand China HGS Real Estate Inc (NASDAQ:HGSH)

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll look at China HGS Real Estate Inc's (NASDAQ:HGSH) P/E ratio and reflect on what it tells us about the company's share price. … China HGS Real Estate has a price to earnings ratio of 5.66, based on the last twelve months.

Simply Wall St -

How Financially Strong Is China HGS Real Estate Inc (NASDAQ:HGSH)?

While small-cap stocks, such as China HGS Real Estate Inc (NASDAQ:HGSH) with its market cap of US$59m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Assessing first and foremost the financial health is. … Here are few basic financial health checks you should consider before taking the plunge.

Simply Wall St -

Interested In China HGS Real Estate Inc (NASDAQ:HGSH)? Here's How It Performed Recently

For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. … Below, I will examine China HGS Real Estate Inc's (NASDAQ:HGSH) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers. … Check out our latest analysis for China HGS Real Estate.

Simply Wall St -

Should You Be Tempted To Sell China HGS Real Estate Inc (NASDAQ:HGSH) At Its Current PE Ratio?

China HGS Real Estate Inc (NASDAQ:HGSH) is currently trading at a trailing P/E of 8.7x, which is higher than the industry average of 8.6x. … While this makes HGSH appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio. … See our latest analysis for China HGS Real Estate

Simply Wall St -

Are China HGS Real Estate Inc's (NASDAQ:HGSH) Interest Costs Too High?

Investors are always looking for growth in small-cap stocks like China HGS Real Estate Inc (NASDAQ:HGSH), with a market cap of US$72.98m. … However, an important fact which most ignore is: how financially healthy is the business? … Evaluating financial health as part of your investment thesis is

Simply Wall St -

How Financially Strong Is China HGS Real Estate Inc (NASDAQ:HGSH)?

Does HGSH generate enough cash through operations? … Over the past year, HGSH has ramped up its debt from US$108.68M to US$129.65M , which is made up of current and long term debt. … With this growth in debt, HGSH currently has US$3.43M remaining in cash and short-term investments , ready to deploy into the business.

Simply Wall St -

Who Owns China HGS Real Estate Inc (NASDAQ:HGSH)?

HGSH hardly has any institutional ownership, leaving investors little to think about sharp price volatility in the stock that could take place due to institutional trading. … This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. … Next Steps: Institutional ownership in HGSH is not at a level that would concern investors.

Simply Wall St -

Does China HGS Real Estate Inc's (NASDAQ:HGSH) PE Ratio Signal A Buying Opportunity?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for HGSH Price per share = $1.35 Earnings per share = $0.15 ∴ Price-Earnings Ratio = $1.35 ÷ $0.15 = 9x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you inadvertently compared lower risk firms with HGSH, then investors would naturally value HGSH at a lower price since it is a riskier investment. … Similarly, if you accidentally compared higher growth firms with HGSH, investors would also value HGSH at a lower price since it is a lower growth investment.

Simply Wall St -

HGSH Company Info

Description

China HGS Real Estate Inc., through its subsidiaries, develops real estate properties in the People’s Republic of China. The company engages in the construction and sale of residential apartments, parking lots, and commercial properties. It also develops multi-layer, sub-high-rise, and high-rise apartment buildings, as well as office buildings. In addition, the company offers various services, such as land acquisition, project planning, design management, construction management, sales and marketing, and property management. China HGS Real Estate Inc. was founded in 1995 and is headquartered in Hanzhong, the People’s Republic of China.

Details
Name: China HGS Real Estate Inc.
HGSH
Exchange: NasdaqCM
Founded: 1995
$40,990,995
45,050,000
Website: http://www.chinahgs.com
Address: China HGS Real Estate Inc.
6 Xinghan Road,
19th Floor,
Hanzhong,
Shaanxi Province, 723000,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM HGSH Common Shares Nasdaq Capital Market US USD 01. Sep 2009
DB 29R Common Shares Deutsche Boerse AG DE EUR 01. Sep 2009
Number of employees
Current staff
Staff numbers
142
China HGS Real Estate employees.
Industry
Real Estate Development
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/25 00:03
End of day share price update: 2019/05/24 00:00
Last earnings filing: 2019/05/14
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.