OTCPK:CHVK.F

Stock Analysis Report

Executive Summary

China Vanke Co., Ltd., a real-estate company, develops and sells properties in the People’s Republic of China.


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

CHVK.F

19.5%

US Real Estate

9.4%

US Market


1 Year Return

-29.5%

CHVK.F

-28.8%

US Real Estate

-6.8%

US Market

Return vs Industry: CHVK.F matched the US Real Estate industry which returned -28.8% over the past year.

Return vs Market: CHVK.F underperformed the US Market which returned -6.8% over the past year.


Shareholder returns

CHVK.FIndustryMarket
7 Day0%19.5%9.4%
30 Day-20.9%-20.2%-3.9%
90 Day-28.4%-33.3%-16.5%
1 Year-29.5%-29.5%-28.3%-28.8%-4.8%-6.8%
3 Year12.7%12.7%-10.9%-13.0%23.4%15.2%
5 Yearn/a-26.5%-28.6%41.3%25.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is China Vanke undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHVK.F ($3.1) is trading below our estimate of fair value ($7.04)

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


Price To Earnings Ratio

PE vs Industry: CHVK.F is good value based on its PE Ratio (7.7x) compared to the Real Estate industry average (18.3x).

PE vs Market: CHVK.F is good value based on its PE Ratio (7.7x) compared to the US market (13.6x).


Price to Earnings Growth Ratio

PEG Ratio: CHVK.F is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: CHVK.F is overvalued based on its PB Ratio (1.6x) compared to the US Real Estate industry average (1.1x).


Next Steps

Future Growth

How is China Vanke forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHVK.F's forecast earnings growth (13.6% per year) is above the savings rate (1.7%).

Earnings vs Market: CHVK.F's earnings (13.6% per year) are forecast to grow faster than the US market (11.4% per year).

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

Revenue vs Market: CHVK.F's revenue (16.1% per year) is forecast to grow faster than the US market (6.9% per year).

High Growth Revenue: CHVK.F's revenue (16.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CHVK.F's Return on Equity is forecast to be low in 3 years time (19.1%).


Next Steps

Past Performance

How has China Vanke performed over the past 5 years?

20.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHVK.F has high quality earnings.

Growing Profit Margin: CHVK.F's current net profit margins (10.6%) are lower than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: CHVK.F's earnings have grown significantly by 20.3% per year over the past 5 years.

Accelerating Growth: CHVK.F's earnings growth over the past year (15.1%) is below its 5-year average (20.3% per year).

Earnings vs Industry: CHVK.F earnings growth over the past year (15.1%) exceeded the Real Estate industry 2.7%.


Return on Equity

High ROE: CHVK.F's Return on Equity (20.4%) is considered high.


Next Steps

Financial Health

How is China Vanke's financial position?


Financial Position Analysis

Short Term Liabilities: CHVK.F's short term assets (CN¥1,439.0B) exceed its short term liabilities (CN¥1,272.6B).

Long Term Liabilities: CHVK.F's short term assets (CN¥1,439.0B) exceed its long term liabilities (CN¥186.7B).


Debt to Equity History and Analysis

Debt Level: CHVK.F's debt to equity ratio (95.3%) is considered high.

Reducing Debt: CHVK.F's debt to equity ratio has increased from 59.5% to 95.3% over the past 5 years.

Debt Coverage: CHVK.F's debt is not well covered by operating cash flow (17.7%).

Interest Coverage: CHVK.F's interest payments on its debt are well covered by EBIT (105.5x coverage).


Balance Sheet


Next Steps

Dividend

What is China Vanke's current dividend yield, its reliability and sustainability?

3.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CHVK.F's dividend (3.92%) is higher than the bottom 25% of dividend payers in the US market (1.87%).

High Dividend: CHVK.F's dividend (3.92%) is low compared to the top 25% of dividend payers in the US market (5.12%).


Stability and Growth of Payments

Stable Dividend: CHVK.F's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.1%), CHVK.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CHVK.F's dividends in 3 years are forecast to be well covered by earnings (30.1% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Jiusheng Zhu (50yo)

2.25s

Tenure

CN¥11,274,000

Compensation

Mr. Jiusheng Zhu, MBA, has been President and Chief Executive Officer at China Vanke Co., Ltd. since January 31, 2018 and served as its Senior Vice President since June 2012 until 2015. Mr. Zhu has been Gr ...


CEO Compensation Analysis

Compensation vs Market: Jiusheng's total compensation ($USD1.60M) is below average for companies of similar size in the US market ($USD11.76M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Liang Yu
Chairman of the Board & Group Partner2.83yrsCN¥12.52m0.065% CN¥27.3m
Jiusheng Zhu
President2.25yrsCN¥11.27mno data
Wenjin Wang
Executive Director & Group Partner6.08yrsCN¥8.79m0.020% CN¥8.6m
Xu Zhang
Group Partner2.83yrsCN¥9.41m0.0080% CN¥3.4m
Jia Sun
Senior VP4.08yrsCN¥360.00kno data
Xu Zhu
Secretary of the Board & Group Partner4.08yrsCN¥5.68m0.000080% CN¥33.7k
Huihua Han
Executive VP0.083yrno datano data
Haiwu Wang
Executive VP & COOno datano datano data
Ding Changfeng
Group Partnerno dataCN¥4.85mno data
Jiwen Zhang
Group Partner & Chief Partner of Meisha Education Business Unit0.083yrCN¥5.56mno data

2.3yrs

Average Tenure

49.5yo

Average Age

Experienced Management: CHVK.F's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Liang Yu
Chairman of the Board & Group Partner2.83yrsCN¥12.52m0.065% CN¥27.3m
Wenjin Wang
Executive Director & Group Partner6.08yrsCN¥8.79m0.020% CN¥8.6m
Xu Zhang
Group Partner2.83yrsCN¥9.41m0.0080% CN¥3.4m
Qingping Zhou
Employee Representative Member of the Supervisory Committee & GM of Audit Supervision Department10.25yrsCN¥1.67m0.00018% CN¥75.9k
Shi Wang
Honorary Chairman2.83yrsno datano data
Dong Xie
Chairman of the Supervisory Committee & Group Partnerno dataCN¥3.97m0.013% CN¥5.6m
Dian Kang
Independent Non-Executive Director2.83yrsCN¥600.00kno data
Maode Lin
Vice Chairman of the Board2.83yrsCN¥360.00kno data
Kar Ling Ng
Independent Non-Executive Director2.83yrsCN¥600.00kno data
Qiang Li
Independent Non-Executive Director2.83yrsCN¥600.00kno data

2.8yrs

Average Tenure

55yo

Average Age

Experienced Board: CHVK.F's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Vanke Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Vanke Co., Ltd.
  • Ticker: CHVK.F
  • Exchange: OTCPK
  • Founded: 1984
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: CN¥296.950b
  • Listing Market Cap: CN¥42.164b
  • Shares outstanding: 11.30b
  • Website: https://www.vanke.com

Number of Employees


Location

  • China Vanke Co., Ltd.
  • Vanke Center
  • No. 33 Huanmei Road
  • Shenzhen
  • Guangdong Province
  • 518083
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2SZSE (Shenzhen Stock Exchange)YesDomestic SharesCNCNYFeb 1994
2XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)YesDomestic SharesCNCNYFeb 1994
2202SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDJun 2014
18VDB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURJun 2014
2202SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDJun 2014
CHVK.FOTCPK (Pink Sheets LLC)Foreign Shares-Foreign ListedUSUSDJun 2014
CHVK.YOTCPK (Pink Sheets LLC)UNSPONSORD ADSUSUSDMay 2018

Biography

China Vanke Co., Ltd., a real-estate company, develops and sells properties in the People’s Republic of China. The company operates through Property Development and Property Management segments. It develops commodity housing properties; and commercial and office properties, as well as other ancillary facilities. The company also provides property management and related services to purchasers and tenants of its own developed residential properties and shopping arcades, as well as to the external property developers; and undertakes construction contracts. In addition, it is involved in the development and operation of logistics properties and warehouses, skiing resorts, and elderly care and educational facilities; and rental of apartments. China Vanke Co., Ltd. was founded in 1984 and is headquartered in Shenzhen, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 06:22
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.