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KWG Group Holdings

OTCPK:KWGP.F
Snowflake Description

Very undervalued with high growth potential and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KWGP.F
OTCPK
HK$26B
Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

KWG Group Holdings Limited, an investment holding company, engages in the investment, development, management, and sale of real estate properties in the People’s Republic of China. The last earnings update was 23 days ago. More info.


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KWGP.F Share Price and Events
7 Day Returns
0%
OTCPK:KWGP.F
-5.8%
US Real Estate
-3.9%
US Market
1 Year Returns
-
OTCPK:KWGP.F
-14.8%
US Real Estate
1.4%
US Market
KWGP.F Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
KWG Group Holdings (KWGP.F) 0% 0% - - - -
US Real Estate -5.8% -8.3% -7.1% -14.8% 21.3% 4.4%
US Market -3.9% -3.6% 1.8% 1.4% 35.8% 40.8%
1 Year Return vs Industry and Market
  • No trading data on KWGP.F.
  • No trading data on KWGP.F.
Price Volatility
KWGP.F
Industry
5yr Volatility vs Market

Value

 Is KWG Group Holdings 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 KWG Group Holdings 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 KWG Group Holdings.

OTCPK:KWGP.F Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) 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 OTCPK:KWGP.F
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 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.124 (1 + (1- 25%) (336.67%))
2.985
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 OTCPK:KWGP.F using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for KWG Group Holdings 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.

OTCPK:KWGP.F DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 14.65%)
2019 10,099.33 Analyst x3 8,808.84
2020 19,694.00 Analyst x4 14,982.55
2021 13,200.50 Analyst x4 8,759.28
2022 9,658.03 Est @ -26.84% 5,589.75
2023 7,922.86 Est @ -17.97% 3,999.55
2024 6,991.35 Est @ -11.76% 3,078.34
2025 6,473.21 Est @ -7.41% 2,486.00
2026 6,190.41 Est @ -4.37% 2,073.61
2027 6,051.80 Est @ -2.24% 1,768.15
2028 6,006.51 Est @ -0.75% 1,530.67
Present value of next 10 years cash flows CN¥53,076.73
OTCPK:KWGP.F DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥6,006.51 × (1 + 2.73%) ÷ (14.65% – 2.73%)
CN¥51,765.81
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥51,765.81 ÷ (1 + 14.65%)10
CN¥13,191.75
OTCPK:KWGP.F Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥53,076.73 + CN¥13,191.75
CN¥66,268.48
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥66,268.48 / 3,174.07
CN¥170.09
OTCPK:KWGP.F Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1813)
1.142
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥20.88 x 1.142
HK$23.84
Non-primary Listing Adjustment Factor 1 share in OTCPK:KWGP.F represents 0.12274x of SEHK:1813
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.12274x
Value per Share
(Listing Adjusted, USD)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 23.84 x 0.12274
$2.93
Value per share (USD) From above. $2.93
Current discount Discount to share price of $1.02
= -1 x ($1.02 - $2.93) / $2.93
65.1%

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

Current Discount
Amount off the current price KWG Group Holdings is available for.
Intrinsic value
>50%
Share price is $1.02 vs Future cash flow value of $2.93
Current Discount Checks
For KWG Group Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • KWG Group Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • KWG Group Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 KWG Group Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are KWG Group Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:KWGP.F PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥1.28
SEHK:1813 Share Price ** SEHK (2019-03-05) in HKD HK$8.31
SEHK:1813 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.876 CN¥7.28
United States of America Real Estate Industry PE Ratio Median Figure of 27 Publicly-Listed Real Estate Companies 16x
United States of America Market PE Ratio Median Figure of 3,087 Publicly-Listed Companies 17.79x

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

** Primary Listing of KWG Group Holdings.

OTCPK:KWGP.F PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1813 Share Price ÷ EPS (both in CNY)

= 7.28 ÷ 1.28

5.7x

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

  • KWG Group Holdings is good value based on earnings compared to the US Real Estate industry average.
  • KWG Group Holdings is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does KWG Group Holdings's expected growth come at a high price?
Raw Data
OTCPK:KWGP.F PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
22.3%per year
United States of America Real Estate Industry PEG Ratio Median Figure of 12 Publicly-Listed Real Estate Companies 0.34x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

OTCPK:KWGP.F PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.7x ÷ 22.3%

0.26x

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

  • KWG Group Holdings is good value based on expected growth next year.
Price based on value of assets
What value do investors place on KWG Group Holdings's assets?
Raw Data
OTCPK:KWGP.F PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥9.07
SEHK:1813 Share Price * SEHK (2019-03-05) in HKD HK$8.31
SEHK:1813 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.876 CN¥7.28
United States of America Real Estate Industry PB Ratio Median Figure of 53 Publicly-Listed Real Estate Companies 1.45x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
OTCPK:KWGP.F PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1813 Share Price ÷ Book Value per Share (both in CNY)

= 7.28 ÷ 9.07

0.8x

* Primary Listing of KWG Group Holdings.

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

  • KWG Group Holdings is good value based on assets compared to the US Real Estate industry average.
X
Value checks
We assess KWG Group Holdings'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. KWG Group Holdings has a total score of 6/6, 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.

Future Performance

 How is KWG Group Holdings expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

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
22.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is KWG Group Holdings expected to grow at an attractive rate?
  • KWG Group Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • KWG Group Holdings's earnings growth is expected to exceed the United States of America market average.
  • KWG Group Holdings's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:KWGP.F Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:KWGP.F Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 22.3%
OTCPK:KWGP.F Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 39.1%
United States of America Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 6.3%
United States of America Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 7.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
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
OTCPK:KWGP.F Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:KWGP.F Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 32,120 8,929 7,955 15
2020-12-31 25,568 5,142 6,795 20
2019-12-31 18,727 1,515 5,221 20
OTCPK:KWGP.F Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 7,477 -2,272 4,035
2018-09-30 7,314 -7,347 4,135
2018-06-30 7,150 -12,423 4,235
2018-03-31 9,347 -10,946 3,927
2017-12-31 11,543 -9,469 3,620
2017-09-30 11,408 -9,155 3,610
2017-06-30 11,274 -8,840 3,600
2017-03-31 10,070 -5,826 3,532
2016-12-31 8,865 -2,813 3,465
2016-09-30 9,366 -941 3,465
2016-06-30 9,866 931 3,466
2016-03-31 9,103 616 3,441

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • KWG Group Holdings's earnings are expected to grow significantly at over 20% yearly.
  • KWG Group Holdings's revenue is expected to grow significantly at over 20% yearly.
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
OTCPK:KWGP.F Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from KWG Group Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:KWGP.F Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.36 2.89 1.72 14.00
2020-12-31 2.06 2.85 1.66 19.00
2019-12-31 1.62 2.17 1.38 19.00
OTCPK:KWGP.F Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 1.28
2018-09-30 1.31
2018-06-30 1.34
2018-03-31 1.26
2017-12-31 1.17
2017-09-30 1.17
2017-06-30 1.18
2017-03-31 1.16
2016-12-31 1.15
2016-09-30 1.15
2016-06-30 1.16
2016-03-31 1.15

*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.
  • KWG Group Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess KWG Group Holdings'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.
KWG Group Holdings has a total score of 5/6, 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.

Past Performance

  How has KWG Group Holdings 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 KWG Group Holdings'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.
  • KWG Group Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • KWG Group Holdings's 1-year earnings growth exceeds its 5-year average (11.5% vs 7.4%)
  • KWG Group Holdings's earnings growth has exceeded the US Real Estate industry average in the past year (11.5% vs -15.8%).
Earnings and Revenue History
KWG Group Holdings'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 KWG Group Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:KWGP.F Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 7,477.47 4,035.42 1,845.92
2018-09-30 7,313.83 4,135.09 1,645.36
2018-06-30 7,150.20 4,234.77 1,444.81
2018-03-31 9,346.63 3,927.42 1,407.07
2017-12-31 11,543.07 3,620.07 1,369.32
2017-09-30 11,408.39 3,609.85 1,392.02
2017-06-30 11,273.71 3,599.63 1,414.73
2017-03-31 10,069.52 3,532.17 1,353.34
2016-12-31 8,865.33 3,464.71 1,291.96
2016-09-30 9,365.89 3,465.47 1,184.99
2016-06-30 9,866.45 3,466.23 1,078.01
2016-03-31 9,103.10 3,441.24 1,064.61
2015-12-31 8,339.76 3,416.25 1,051.21
2015-09-30 8,646.45 3,357.50 1,061.97
2015-06-30 8,953.14 3,298.75 1,072.73
2015-03-31 9,709.46 3,285.49 1,082.71
2014-12-31 10,465.79 3,272.23 1,092.70
2014-09-30 10,361.61 3,004.99 1,078.25
2014-06-30 10,257.43 2,737.75 1,063.80
2014-03-31 9,862.72 2,743.76 1,038.98
2013-12-31 9,468.00 2,749.77 1,014.16
2013-09-30 9,583.75 2,800.88 994.42
2013-06-30 9,699.50 2,852.00 974.67
2013-03-31 9,687.96 2,629.18 934.10
2012-12-31 9,676.42 2,406.37 893.54
2012-09-30 9,639.07 2,245.39 862.11
2012-06-30 9,601.72 2,084.41 830.69

*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.
  • KWG Group Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • KWG Group Holdings used its assets less efficiently than the US Real Estate industry average last year based on Return on Assets.
  • KWG Group Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess KWG Group Holdings'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.
KWG Group Holdings has a total score of 3/6, 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.

Health

 How is KWG Group Holdings'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 KWG Group Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • KWG Group Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • KWG Group Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of KWG Group Holdings'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 1.6x 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 KWG Group Holdings Company Filings, last reported 4 months ago.

OTCPK:KWGP.F Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 31,772.01 77,782.25 56,480.04
2018-09-30 31,772.01 77,782.25 56,480.04
2018-06-30 30,155.60 64,894.77 37,915.61
2018-03-31 30,155.60 64,894.77 37,915.61
2017-12-31 28,245.69 59,645.17 41,366.00
2017-09-30 28,245.69 59,645.17 41,366.00
2017-06-30 25,303.33 46,838.17 29,579.05
2017-03-31 25,303.33 46,838.17 29,579.05
2016-12-31 24,008.91 42,949.97 27,261.61
2016-09-30 24,008.91 42,949.97 27,261.61
2016-06-30 22,652.03 35,390.50 18,595.13
2016-03-31 22,652.03 35,390.50 18,595.13
2015-12-31 22,358.92 28,797.63 12,304.30
2015-09-30 22,358.92 28,797.63 12,304.30
2015-06-30 20,841.35 25,751.11 8,793.21
2015-03-31 20,841.35 25,751.11 8,793.21
2014-12-31 20,436.42 25,513.05 11,421.40
2014-09-30 20,436.42 25,513.05 11,421.40
2014-06-30 18,253.10 22,956.62 8,894.45
2014-03-31 18,253.10 22,956.62 8,894.45
2013-12-31 17,842.16 20,905.37 11,278.79
2013-09-30 17,842.16 20,905.37 11,278.79
2013-06-30 16,350.96 20,082.51 6,981.85
2013-03-31 16,350.96 20,082.51 6,981.85
2012-12-31 15,353.38 16,190.59 5,723.66
2012-09-30 15,353.38 16,190.59 5,723.66
2012-06-30 13,961.12 16,952.50 5,887.89
  • KWG Group Holdings's level of debt (244.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (117.3% vs 244.8% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are not well covered by earnings (EBIT is 1x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess KWG Group Holdings'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. KWG Group Holdings 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.

Dividends

 What is KWG Group Holdings'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
7.69%
Current annual income from KWG Group Holdings dividends. Estimated to be 10.53% next year.
If you bought $2,000 of KWG Group Holdings shares you are expected to receive $154 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?
  • KWG Group Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • KWG Group Holdings's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).
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
OTCPK:KWGP.F 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 20 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 1997 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 3.7%

Industry and Market average data is calculated daily.

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

OTCPK:KWGP.F Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.93 14.00
2020-12-31 0.77 18.00
2019-12-31 0.63 18.00
OTCPK:KWGP.F Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-03-25 0.560 7.162
2018-08-27 0.560 9.112
2018-03-23 0.410 4.882
2017-08-30 0.200 2.568
2017-08-28 0.200 3.694
2017-04-25 0.400 8.261
2015-05-04 0.330 7.485
2014-06-06 0.290 6.753
2013-06-07 0.150 4.248
2012-02-28 0.220 5.624
2011-03-10 0.110 3.464
2010-06-09 0.050 1.001

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

  • KWG Group Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but KWG Group Holdings only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of KWG Group Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess KWG Group Holdings'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 KWG Group Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. KWG Group Holdings has a total score of 4/6, see the detailed checks below.


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

Management

 What is the CEO of KWG Group Holdings'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
Jian Kong
COMPENSATION CN¥7,538,000
AGE 47
CEO Bio

Jian Tao Kong is an Executive Director and the Chief Executive Officer of KWG Group Holdings Limited (formerly known as KWG Property Holdings Ltd). Mr. Kong has over 22 years of experience in property development and have been a Director of the Company since 1995. Mr. Kong is also a Director of most of subsidiaries incorporated in the British Virgin Islands, various subsidiaries incorporated in the PRC and two subsidiaries incorporated in Hong Kong.

CEO Compensation
  • Jian's compensation has increased by more than 20% in the past year.
  • Jian's remuneration is lower than average for companies of similar size in United States of America.
Management Team

Jian Min Kong

TITLE
Chairman of the Board
COMPENSATION
CN¥8M
AGE
50

Jian Kong

TITLE
CEO & Director
COMPENSATION
CN¥8M
AGE
47

Kam Tsui

TITLE
CFO, Secretary & Executive Director
COMPENSATION
CN¥8M
AGE
49
TENURE
12.3 yrs

Jian Kong

TITLE
Executive VP & Director
COMPENSATION
CN¥8M
AGE
52

Fengjia Cai

TITLE
CEO of Real Estate Business & Executive Director
COMPENSATION
CN¥3M
AGE
48

Linda Wu

TITLE
Director of Investor Relations

Xiao Luo

TITLE
Director of Legal Affairs Division & Assistant to the Chairman
AGE
50

Huan Yang

TITLE
General Manager of Sales Management Centre
AGE
36
TENURE
4.3 yrs

Wen Chen

TITLE
General Manager of the Eastern China District
AGE
40
Board of Directors Tenure

Average tenure and age of the KWG Group Holdings board of directors in years:

11.7
Average Tenure
51
Average Age
  • The average tenure for the KWG Group Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Jian Min Kong

TITLE
Chairman of the Board
COMPENSATION
CN¥8M
AGE
50

Jian Kong

TITLE
CEO & Director
COMPENSATION
CN¥8M
AGE
47
TENURE
24.3 yrs

Kam Tsui

TITLE
CFO, Secretary & Executive Director
COMPENSATION
CN¥8M
AGE
49
TENURE
11.5 yrs

Jian Kong

TITLE
Executive VP & Director
COMPENSATION
CN¥8M
AGE
52

Fengjia Cai

TITLE
CEO of Real Estate Business & Executive Director
COMPENSATION
CN¥3M
AGE
48
TENURE
0.7 yrs

Chun Tam

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥456K
AGE
56
TENURE
11.9 yrs

Carmelo Lee

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥456K
AGE
58
TENURE
11.9 yrs

Bin Hai Li

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥456K
AGE
68
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 ($) Value ($)
07. Jan 19 Buy Peace Kind Investments Limited Company 30. Dec 18 30. Dec 18 144,338,500 $0.86 $124,045,662
07. Jan 19 Buy Right Rich Consultants Limited Company 30. Dec 18 30. Dec 18 179,715,000 $0.86 $154,448,509
07. Jan 19 Sell Plus Earn Consultants Limited Company 30. Dec 18 30. Dec 18 -324,053,500 $0.86 $-278,494,170
30. Oct 18 Buy Jian Min Kong Individual 30. Oct 18 30. Oct 18 1,000,500 $0.75 $747,475
29. Oct 18 Buy Jian Min Kong Individual 29. Oct 18 29. Oct 18 2,368,000 $0.74 $1,748,846
26. Oct 18 Buy Jian Min Kong Individual 26. Oct 18 26. Oct 18 3,100,000 $0.75 $2,338,984
24. Oct 18 Buy Jian Min Kong Individual 24. Oct 18 24. Oct 18 541,000 $0.72 $391,877
24. Oct 18 Buy Jian Min Kong Individual 23. Oct 18 23. Oct 18 1,939,000 $0.71 $1,381,840
22. Oct 18 Buy Jian Min Kong Individual 22. Oct 18 22. Oct 18 1,322,000 $0.73 $958,765
22. Oct 18 Buy Jian Min Kong Individual 19. Oct 18 19. Oct 18 1,545,000 $0.70 $1,075,445
12. Sep 18 Buy Jian Min Kong Individual 11. Sep 18 11. Sep 18 800,000 $0.96 $770,876
07. Sep 18 Buy Jian Min Kong Individual 06. Sep 18 06. Sep 18 700,000 $1.01 $709,950
06. Sep 18 Buy Jian Min Kong Individual 05. Sep 18 05. Sep 18 800,000 $1.03 $823,046
05. Sep 18 Buy Jian Min Kong Individual 04. Sep 18 04. Sep 18 4,000,000 $1.07 $4,284,668
06. Aug 18 Buy Plus Earn Consultants Limited Company 02. Aug 18 02. Aug 18 10,600,000 $1.13 $12,015,609
06. Aug 18 Buy Jian Kong Individual 02. Aug 18 02. Aug 18 40,100 $1.13 $45,455
14. Jun 18 Buy Jian Min Kong Individual 14. Jun 18 14. Jun 18 300,000 $1.52 $455,584
13. Jun 18 Buy Jian Min Kong Individual 13. Jun 18 13. Jun 18 400,000 $1.56 $625,546
12. Jun 18 Buy Jian Min Kong Individual 12. Jun 18 12. Jun 18 400,000 $1.62 $649,379
08. Jun 18 Buy Jian Min Kong Individual 08. Jun 18 08. Jun 18 400,000 $1.57 $629,856
11. Jun 18 Buy Jian Min Kong Individual 11. Jun 18 11. Jun 18 400,000 $1.61 $645,941
07. Jun 18 Buy Jian Min Kong Individual 07. Jun 18 07. Jun 18 400,000 $1.58 $630,176
06. Jun 18 Buy Jian Min Kong Individual 05. Jun 18 05. Jun 18 400,000 $1.57 $629,293
06. Jun 18 Buy Jian Min Kong Individual 06. Jun 18 06. Jun 18 400,000 $1.61 $643,584
04. Jun 18 Buy Jian Min Kong Individual 04. Jun 18 04. Jun 18 400,000 $1.54 $615,884
01. Jun 18 Buy Jian Min Kong Individual 01. Jun 18 01. Jun 18 400,000 $1.41 $564,747
31. May 18 Buy Jian Min Kong Individual 31. May 18 31. May 18 400,000 $1.38 $551,032
30. May 18 Buy Jian Min Kong Individual 30. May 18 30. May 18 400,000 $1.39 $554,860
29. May 18 Buy Jian Min Kong Individual 29. May 18 29. May 18 400,000 $1.42 $566,595
28. May 18 Buy Jian Min Kong Individual 28. May 18 28. May 18 400,000 $1.47 $588,088
25. May 18 Buy Jian Min Kong Individual 25. May 18 25. May 18 400,000 $1.48 $591,666
23. May 18 Buy Jian Min Kong Individual 23. May 18 23. May 18 400,000 $1.48 $590,251
24. May 18 Buy Jian Min Kong Individual 24. May 18 24. May 18 400,000 $1.47 $588,192
17. May 18 Buy Jian Min Kong Individual 17. May 18 17. May 18 300,000 $1.53 $459,173
21. May 18 Buy Jian Min Kong Individual 21. May 18 21. May 18 400,000 $1.55 $619,596
21. May 18 Buy Jian Min Kong Individual 18. May 18 18. May 18 500,000 $1.57 $786,431
X
Management checks
We assess KWG Group Holdings'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. KWG Group Holdings 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.

News

Simply Wall St News

Company Info

Description

KWG Group Holdings Limited, an investment holding company, engages in the investment, development, management, and sale of real estate properties in the People’s Republic of China. The company operates through Property Development, Property Investment, Hotel Operation, and Property Management segments. Its properties portfolio include mid- to high-end residential properties, serviced apartments, villas, office buildings, hotels, and shopping malls. The company also engages in the operation of hotels and food and beverage sales; and provision of other ancillary services. As of December 31, 2017, it had a land bank with gross floor area of approximately 13.52 million square meters. The company was formerly known as KWG Property Holding Limited and changed its name to KWG Group Holdings Limited in August 2018. The company was founded in 1995 and is headquartered in Guangzhou, the People’s Republic of China. KWG Group Holdings Limited is a subsidiary of Plus Earn Consultants Limited.

Details
Name: KWG Group Holdings Limited
KWGP.F
Exchange: OTCPK
Founded: 1995
HK$3,360,222,417
3,174,071,756
Website: http://www.kwgproperty.com
Address: KWG Group Holdings Limited
International Finance Place,
No. 8 Huaxia Road,
Guangzhou,
Guangdong Province, 510623,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1813 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 03. Jul 2007
OTCPK KWGP.F Ordinary Shares Pink Sheets LLC US USD 03. Jul 2007
DB KOU Ordinary Shares Deutsche Boerse AG DE EUR 03. Jul 2007
SHSC 1813 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 03. Jul 2007
SZSC 1813 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 03. Jul 2007
Number of employees
Current staff
Staff numbers
8,500
KWG Group Holdings employees.
Industry
Real Estate Development
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/16 01:57
End of day share price update: 2019/03/05 00:00
Last estimates confirmation: 2019/05/09
Last earnings filing: 2019/04/23
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


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.