OTCPK:GZUH.Y

Stock Analysis Report

Executive Summary

Guangzhou R&F Properties Co., Ltd., together with its subsidiaries, engages in the development and sale of residential and commercial properties in the People’s Republic of China, Malaysia, Cambodia, Korea, the United Kingdom, and Australia.


Snowflake Analysis

Very undervalued established dividend payer.


Similar Companies

Share Price & News

How has Guangzhou R&F Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

GZUH.Y

-1.4%

US Real Estate

2.4%

US Market


1 Year Return

-33.6%

GZUH.Y

-36.3%

US Real Estate

-10.0%

US Market

Return vs Industry: GZUH.Y exceeded the US Real Estate industry which returned -39.4% over the past year.

Return vs Market: GZUH.Y underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

GZUH.YIndustryMarket
7 Day0%-1.4%2.4%
30 Day-11.9%-33.5%-11.0%
90 Dayn/a-41.4%-19.4%
1 Year-33.6%-33.6%-35.8%-36.3%-8.1%-10.0%
3 Yearn/a-23.0%-24.9%17.3%9.6%
5 Year19.5%19.5%-35.7%-37.6%36.1%21.1%

Price Volatility Vs. Market

How volatile is Guangzhou R&F Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Guangzhou R&F Properties 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: GZUH.Y ($29.56) is trading below our estimate of fair value ($146)

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


Price To Earnings Ratio

PE vs Industry: GZUH.Y is good value based on its PE Ratio (3.2x) compared to the Real Estate industry average (17x).

PE vs Market: GZUH.Y is good value based on its PE Ratio (3.2x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: GZUH.Y is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: GZUH.Y is good value based on its PB Ratio (0.4x) compared to the US Real Estate industry average (1x).


Next Steps

Future Growth

How is Guangzhou R&F Properties forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GZUH.Y's forecast earnings growth (14.8% per year) is above the savings rate (1.7%).

Earnings vs Market: GZUH.Y's earnings (14.8% per year) are forecast to grow faster than the US market (13.4% per year).

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

Revenue vs Market: GZUH.Y's revenue (16% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: GZUH.Y's revenue (16% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GZUH.Y's Return on Equity is forecast to be low in 3 years time (15%).


Next Steps

Past Performance

How has Guangzhou R&F Properties performed over the past 5 years?

17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GZUH.Y has high quality earnings.

Growing Profit Margin: GZUH.Y's current net profit margins (10.7%) are lower than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: GZUH.Y's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: GZUH.Y's earnings growth over the past year (15.5%) is below its 5-year average (17.7% per year).

Earnings vs Industry: GZUH.Y earnings growth over the past year (15.5%) exceeded the Real Estate industry 10.4%.


Return on Equity

High ROE: GZUH.Y's Return on Equity (12.6%) is considered low.


Next Steps

Financial Health

How is Guangzhou R&F Properties's financial position?


Financial Position Analysis

Short Term Liabilities: GZUH.Y's short term assets (CN¥323.7B) exceed its short term liabilities (CN¥204.3B).

Long Term Liabilities: GZUH.Y's short term assets (CN¥323.7B) exceed its long term liabilities (CN¥143.2B).


Debt to Equity History and Analysis

Debt Level: GZUH.Y's debt to equity ratio (247%) is considered high.

Reducing Debt: GZUH.Y's debt to equity ratio has increased from 129.8% to 247% over the past 5 years.

Debt Coverage: GZUH.Y's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: GZUH.Y's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Guangzhou R&F Properties's current dividend yield, its reliability and sustainability?

13.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GZUH.Y's dividend (13.53%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: GZUH.Y's dividend (13.53%) is in the top 25% of dividend payers in the US market (5.66%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.7%), GZUH.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GZUH.Y's dividends in 3 years are forecast to be well covered by earnings (38.6% payout ratio).


Next Steps

Management

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

14.9yrs

Average management tenure


CEO

Li Zhang (65yo)

15.25s

Tenure

CN¥5,290,000

Compensation

Mr. Li Zhang co-founded Guangzhou R&f Properties Co., Ltd. in August 1994 and has been its Chief Executive Officer since 2005. Mr. Zhang is the Co-Chairman of Guangzhou R&f Properties Co., Ltd. Mr. Zhang h ...


CEO Compensation Analysis

Compensation vs Market: Li's total compensation ($USD745.87K) is below average for companies of similar size in the US market ($USD5.69M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Li Zhang
Co-Founder15.25yrsCN¥5.29m29.52% CN¥1.4b
Sze Lim Li
Co-Founder & Chairmanno dataCN¥5.30m30.56% CN¥1.4b
Yaonan Zhou
Deputy VP & Executive Director18.5yrsCN¥6.48m0.66% CN¥30.6m
Jing Lu
Deputy GM & Executive Director18.5yrsCN¥2.61m1% CN¥46.8m
Ling Zhu
Chief Financial Officer14.5yrsno datano data
Michael Lee
Joint Company Secretary4.58yrsno datano data
Sze Yin Cheung
Joint Company Secretary4.58yrsno datano data
Jie Hu
Vice GM12.83yrsno datano data

14.9yrs

Average Tenure

59yo

Average Age

Experienced Management: GZUH.Y's management team is seasoned and experienced (14.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Li Zhang
Co-Founder15.25yrsCN¥5.29m29.52% CN¥1.4b
Sze Lim Li
Co-Founder & Chairmanno dataCN¥5.30m30.56% CN¥1.4b
Yaonan Zhou
Deputy VP & Executive Director18.5yrsCN¥6.48m0.66% CN¥30.6m
Jing Lu
Deputy GM & Executive Director18.5yrsCN¥2.61m1% CN¥46.8m
Chun Wong
Independent Non-Executive Director2.92yrsCN¥335.00kno data
Ercheng Zheng
Independent Non-Executive Director5.92yrsCN¥315.00kno data
Lin Zhang
Non-Executive Director15.83yrsCN¥416.00kno data
Helen Li
Non-Executive Director14.92yrsCN¥416.00k0.029% CN¥1.3m
Liangnuan Chen
Chairman of the Supervisory Committeeno dataCN¥72.00k0.57% CN¥26.7m
Yau Wah Ng
Independent Non-Executive Director4.92yrsCN¥315.00k0.017% CN¥784.2k

14.9yrs

Average Tenure

64yo

Average Age

Experienced Board: GZUH.Y's board of directors are seasoned and experienced ( 14.9 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

Guangzhou R&F Properties Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Guangzhou R&F Properties Co., Ltd.
  • Ticker: GZUH.Y
  • Exchange: OTCPK
  • Founded: 1994
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$36.142b
  • Listing Market Cap: HK$4.662b
  • Shares outstanding: 3.50b
  • Website: https://www.rfchina.com

Number of Employees


Location

  • Guangzhou R&F Properties Co., Ltd.
  • R&F Center
  • 45-54th Floor
  • Guangzhou
  • Guangdong Province
  • 510623
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2777SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJul 2005
G5HADB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJul 2005
GZUH.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDJul 2005
2777SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJul 2005
2777SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJul 2005
GZUH.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2008

Biography

Guangzhou R&F Properties Co., Ltd., together with its subsidiaries, engages in the development and sale of residential and commercial properties in the People’s Republic of China, Malaysia, Cambodia, Korea, the United Kingdom, and Australia. The company engages in the development and investment of various properties, including hotels, office buildings, and shopping malls in Beijing, Guangzhou, and other cities. It is also involved in the operation and management of hotels; provides property management and leasing, as well as marketing development services; and operates a construction company and football club. Guangzhou R&F Properties Co., Ltd. was founded in 1994 and is headquartered in Guangzhou, 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 Analysis2020/04/07 02:49
End of Day Share Price2020/03/10 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.