NasdaqCM:HGSH

Stock Analysis Report

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Executive Summary

China HGS Real Estate Inc., through its subsidiaries, develops real estate properties in the People’s Republic of China.


Snowflake Analysis

Slightly overvalued with questionable track record.


Similar Companies

Share Price & News

How has China HGS Real Estate's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HGSH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.3%

HGSH

8.2%

US Real Estate

0.7%

US Market


1 Year Return

23.3%

HGSH

-10.5%

US Real Estate

20.1%

US Market

Return vs Industry: HGSH exceeded the US Real Estate industry which returned -12.7% over the past year.

Return vs Market: HGSH exceeded the US Market which returned 17.1% over the past year.


Shareholder returns

HGSHIndustryMarket
7 Day12.3%8.2%0.7%
30 Day35.9%12.7%6.4%
90 Day147.7%36.2%20.1%
1 Year23.3%23.3%-9.9%-10.5%22.6%20.1%
3 Year-35.7%-35.7%-6.3%-8.3%45.1%35.7%
5 Year-46.6%-46.6%-15.1%-17.8%79.7%60.3%

Price Volatility Vs. Market

How volatile is China HGS Real Estate's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China HGS Real Estate undervalued compared to its fair value and its price relative to the market?

22.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HGSH ($1.01) is trading above our estimate of fair value ($0.22)

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


Price To Earnings Ratio

PE vs Industry: HGSH is good value based on its PE Ratio (22.8x) compared to the US Real Estate industry average (35.2x).

PE vs Market: HGSH is poor value based on its PE Ratio (22.8x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HGSH is good value based on its PB Ratio (0.3x) compared to the US Real Estate industry average (1.1x).


Next Steps

Future Growth

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

32.4%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as China HGS Real Estate has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

-52.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HGSH has high quality earnings.

Growing Profit Margin: HGSH's current net profit margins (7.4%) are higher than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: HGSH's earnings have declined by 52.5% per year over the past 5 years.

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

Earnings vs Industry: HGSH had negative earnings growth (-28.5%) over the past year, making it difficult to compare to the Real Estate industry average (-28.5%).


Return on Equity

High ROE: HGSH's Return on Equity (1.3%) is considered low.


Next Steps

Financial Health

How is China HGS Real Estate's financial position?


Financial Position Analysis

Short Term Liabilities: HGSH's short term assets ($21.6M) do not cover its short term liabilities ($161.6M).

Long Term Liabilities: HGSH's short term assets ($21.6M) do not cover its long term liabilities ($27.7M).


Debt to Equity History and Analysis

Debt Level: HGSH's debt to equity ratio (67.7%) is considered high.

Reducing Debt: HGSH's debt to equity ratio has increased from 24.9% to 67.7% over the past 5 years.

Debt Coverage: HGSH's debt is not well covered by operating cash flow (3.6%).

Interest Coverage: HGSH's interest payments on its debt are well covered by EBIT (160x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HGSH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HGSH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HGSH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HGSH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HGSH's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

9.3yrs

Average board tenure


CEO

Xiaojun Zhu (53 yo)

no data

Tenure

US$29,089

Compensation

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 Han ...


CEO Compensation Analysis

Compensation vs Market: Xiaojun's total compensation ($USD29.09K) is below average for companies of similar size in the US market ($USD589.03K).

Compensation vs Earnings: Xiaojun's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Xiaojun Zhu
Chairmanno dataUS$29.09k66.15%
$ 30.1m
Shenghui Luo
Manager of Finance & Director10.58yrsno data3.73%
$ 1.7m
John Qiang Chen
Independent Director8yrsUS$36.00kno data
Christy Young Shue
Independent Director8yrsUS$24.00kno data
Yuankai Wen
Independent Director10.58yrsUS$14.55kno data

9.3yrs

Average Tenure

53yo

Average Age

Experienced Board: HGSH's board of directors are considered experienced (9.3 years average tenure).


Ownership

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


Insider Trading Volume

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.


Top Shareholders

Company Information

China HGS Real Estate Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China HGS Real Estate Inc.
  • Ticker: HGSH
  • Exchange: NasdaqCM
  • Founded: 1995
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: US$45.501m
  • Shares outstanding: 45.05m
  • Website: https://www.chinahgs.com

Number of Employees


Location

  • China HGS Real Estate Inc.
  • 6 Xinghan Road
  • 19th Floor
  • Hanzhong
  • Shaanxi Province
  • 723000
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HGSHNasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDSep 2009
29RDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 2009

Biography

China HGS Real Estate Inc., through its subsidiaries, develops real estate properties in the People’s Republic of China. It engages in the construction and sale of residential apartments, parking lots, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/13 00:09
End of Day Share Price2020/08/12 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


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.