OTCPK:SOHO.F

Stock Analysis Report

Executive Summary

SOHO China Limited, together with its subsidiaries, engages in the real estate development, and property leasing and management activities in China.


Snowflake Analysis

Slightly overvalued with concerning outlook.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.0%

SOHO.F

19.0%

US Real Estate

7.2%

US Market


1 Year Return

17.5%

SOHO.F

-30.9%

US Real Estate

-10.4%

US Market

Return vs Industry: SOHO.F exceeded the US Real Estate industry which returned -30.9% over the past year.

Return vs Market: SOHO.F exceeded the US Market which returned -10.4% over the past year.


Shareholder returns

SOHO.FIndustryMarket
7 Day5.0%19.0%7.2%
30 Day27.0%-30.3%-12.6%
90 Day23.7%-37.8%-19.4%
1 Year17.5%17.5%-30.3%-30.9%-8.5%-10.4%
3 Year-13.0%-13.0%-15.3%-17.4%15.8%8.3%
5 Year-26.6%-26.6%-31.1%-33.2%35.8%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

13.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SOHO.F ($0.47) is trading above our estimate of fair value ($0.07)

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


Price To Earnings Ratio

PE vs Industry: SOHO.F is good value based on its PE Ratio (13.6x) compared to the Real Estate industry average (15.8x).

PE vs Market: SOHO.F is poor value based on its PE Ratio (13.6x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: SOHO.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SOHO.F is good value based on its PB Ratio (0.5x) compared to the US Real Estate industry average (1.1x).


Next Steps

Future Growth

How is SOHO China forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-34.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOHO.F's earnings are forecast to decline over the next 3 years (-34.7% per year).

Earnings vs Market: SOHO.F's earnings are forecast to decline over the next 3 years (-34.7% per year).

High Growth Earnings: SOHO.F's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SOHO.F's revenue (15.7% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: SOHO.F's revenue (15.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOHO.F's Return on Equity is forecast to be low in 3 years time (1.7%).


Next Steps

Past Performance

How has SOHO China performed over the past 5 years?

-0.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOHO.F has a large one-off gain of CN¥1.2B impacting its December 31 2019 financial results.

Growing Profit Margin: SOHO.F's current net profit margins (72.1%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: SOHO.F's earnings have declined by -0.8% per year over the past 5 years.

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

Earnings vs Industry: SOHO.F had negative earnings growth (-30.8%) over the past year, making it difficult to compare to the Real Estate industry average (10.6%).


Return on Equity

High ROE: SOHO.F's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is SOHO China's financial position?


Financial Position Analysis

Short Term Liabilities: SOHO.F's short term assets (CN¥5.4B) do not cover its short term liabilities (CN¥6.8B).

Long Term Liabilities: SOHO.F's short term assets (CN¥5.4B) do not cover its long term liabilities (CN¥25.8B).


Debt to Equity History and Analysis

Debt Level: SOHO.F's debt to equity ratio (48.5%) is considered high.

Reducing Debt: SOHO.F's debt to equity ratio has reduced from 50.8% to 48.5% over the past 5 years.

Debt Coverage: SOHO.F's debt is not well covered by operating cash flow (2.9%).

Interest Coverage: SOHO.F's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: SOHO.F has a high level of physical assets or inventory.

Debt Coverage by Assets: SOHO.F's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

0.62%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: SOHO.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SOHO.F'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?

11.7yrs

Average management tenure


CEO

Shynn Zhang (54yo)

13s

Tenure

CN¥2,647,000

Compensation

Mrs. Pan Xin Zhang, also known as Marita, serves as the Chief Executive Officer of Soho China Ltd. Ms. Zhang Co-founded Soho China Ltd. in 1995. She serves as an Executive Director of Soho China Ltd. Mrs.  ...


CEO Compensation Analysis

Compensation vs Market: Shynn's total compensation ($USD372.88K) is below average for companies of similar size in the US market ($USD5.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Shiyi Pan
Chairman of the Board & Co-Founder13yrsCN¥3.50mno data
Xin Marita Pan Zhang
CEO, Executive Director & Co-Founder13yrsCN¥2.65m32.01% CN¥814.5m
Ni Kuiyang
CFO & VP11.67yrsno datano data
Ling Xu
Investor Relations Officerno datano datano data
Sau Ping Wong
Company Secretary1.42yrsno datano data

11.7yrs

Average Tenure

49yo

Average Age

Experienced Management: SOHO.F's management team is seasoned and experienced (11.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shiyi Pan
Chairman of the Board & Co-Founder13yrsCN¥3.50mno data
Xin Marita Pan Zhang
CEO, Executive Director & Co-Founder13yrsCN¥2.65m32.01% CN¥814.5m
Qiang Chang Sun
Independent Non-Executive Director4.83yrsCN¥283.00kno data
Jingsheng Huang
Independent Non-Executive Director1.58yrsCN¥118.00kno data
Ming Hua Xiong
Independent Non-Executive Director4.83yrsCN¥283.00kno data

4.8yrs

Average Tenure

56yo

Average Age

Experienced Board: SOHO.F's board of directors are considered experienced (4.8 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

SOHO China Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SOHO China Limited
  • Ticker: SOHO.F
  • Exchange: OTCPK
  • Founded: 1995
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$19.731b
  • Listing Market Cap: HK$2.545b
  • Shares outstanding: 5.19b
  • Website: https://www.sohochina.com

Number of Employees


Location

  • SOHO China Limited
  • Tower A, Chaowai SOHO
  • 11th Floor
  • Beijing
  • 100020
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
410SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2007
45SDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2007
SOHO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2007
410SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2007
410SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2007

Biography

SOHO China Limited, together with its subsidiaries, engages in the real estate development, and property leasing and management activities in China. The company operates in two segments, Properties Development and Properties Investment. It invests in, develops, rents, and sells various properties, as well as operates serviced apartments. The company was founded in 1995 and is headquartered in Beijing, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:44
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.