OTCPK:SOLL.F

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Shui On Land Limited, an investment holding company, develops and sells properties in the Chinese Mainland.


Snowflake Analysis

Very undervalued with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Shui On Land's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SOLL.F

2.1%

US Real Estate

1.7%

US Market


1 Year Return

n/a

SOLL.F

-18.1%

US Real Estate

8.5%

US Market

Return vs Industry: Insufficient data to determine how SOLL.F performed against the US Real Estate industry.

Return vs Market: Insufficient data to determine how SOLL.F performed against the US Market.


Shareholder returns

SOLL.FIndustryMarket
7 Day0%2.1%1.7%
30 Day0%10.6%9.5%
90 Dayn/a-27.1%0.1%
1 Yearn/a-17.5%-18.1%11.0%8.5%
3 Year-11.4%-11.4%-17.9%-19.8%32.2%23.5%
5 Yearn/a-24.4%-26.7%58.6%40.8%

Price Volatility Vs. Market

How volatile is Shui On Land's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Shui On Land 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: SOLL.F ($0.2) is trading below our estimate of fair value ($0.49)

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


Price To Earnings Ratio

PE vs Industry: SOLL.F is good value based on its PE Ratio (5.1x) compared to the Real Estate industry average (14.8x).

PE vs Market: SOLL.F is good value based on its PE Ratio (5.1x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: SOLL.F is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: SOLL.F is good value based on its PB Ratio (0.2x) compared to the US Real Estate industry average (1.1x).


Next Steps

Future Growth

How is Shui On Land forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOLL.F's forecast earnings growth (5.2% per year) is above the savings rate (2.2%).

Earnings vs Market: SOLL.F's earnings (5.2% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: SOLL.F's revenue is expected to decline over the next 3 years (-12.4% per year).

High Growth Revenue: SOLL.F's revenue is forecast to decline over the next 3 years (-12.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOLL.F's Return on Equity is forecast to be low in 3 years time (2.4%).


Next Steps

Past Performance

How has Shui On Land performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOLL.F has high quality earnings.

Growing Profit Margin: SOLL.F's current net profit margins (18.6%) are higher than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: SOLL.F's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: SOLL.F's earnings growth over the past year (1.4%) is below its 5-year average (9.7% per year).

Earnings vs Industry: SOLL.F earnings growth over the past year (1.4%) exceeded the Real Estate industry -6.4%.


Return on Equity

High ROE: SOLL.F's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is Shui On Land's financial position?


Financial Position Analysis

Short Term Liabilities: SOLL.F's short term assets (CN¥34.3B) exceed its short term liabilities (CN¥20.9B).

Long Term Liabilities: SOLL.F's short term assets (CN¥34.3B) do not cover its long term liabilities (CN¥38.2B).


Debt to Equity History and Analysis

Debt Level: SOLL.F's debt to equity ratio (80%) is considered high.

Reducing Debt: SOLL.F's debt to equity ratio has reduced from 107.4% to 80% over the past 5 years.

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

Interest Coverage: SOLL.F's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Shui On Land's current dividend yield, its reliability and sustainability?

8.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SOLL.F's dividend (8.85%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: SOLL.F's dividend (8.85%) is in the top 25% of dividend payers in the US market (4.55%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45%), SOLL.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Douglas Sung (52yo)

3.42yrs

Tenure

CN¥20,307,000

Compensation

Mr. He Hau Sung, also known as Douglas, has been the Chief Financial Officer and Executive Director at Shui On Land Limited since January 4, 2016 and its Managing Director and Chief Investment Officer. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Douglas's total compensation ($USD2.85M) is below average for companies of similar size in the US market ($USD4.76M).

Compensation vs Earnings: Douglas's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
He Hau Sung
MD, CFO3.42yrsCN¥20.31mno data
B. Y. Lo
Executive Director1.83yrsCN¥6.13mno data
Hong Sui Lo
Executive Chairman16.33yrsno data0.023% CN¥317.3k
Ka Ping Sze
Head of Investor Relationsno datano datano data
Kim Uy
Director of Legal Affairs & Company Secretaryno datano datano data
Y. LEI
Director of Corporate Development Department & Asset Management Departmentno datano datano data
K. Lee
Director of Human Resources8.08yrsno datano data
Pit Wong
Chief Economist & Director of Development Researchno datano datano data
Jessica Wang
Managing Director of Project Development & Asset Management at SOMno datano datano data

5.8yrs

Average Tenure

54yo

Average Age

Experienced Management: SOLL.F's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
He Hau Sung
MD, CFO3.42yrsCN¥20.31mno data
B. Y. Lo
Executive Director1.83yrsCN¥6.13mno data
Hong Sui Lo
Executive Chairman16.33yrsno data0.023% CN¥317.3k
John Reginald Hartnell Bond
Independent Non-Executive Director13.75yrsCN¥352.00k0.0031% CN¥42.9k
Roger Lee McCarthy
Independent Non-Executive Director14.08yrsCN¥352.00k0.0025% CN¥34.3k
Anthony John Liddell Nightingale
Independent Non-Executive Director4.42yrsCN¥308.00kno data
Gary Clark Biddle
Independent Non-Executive Director14.08yrsCN¥528.00k0.0038% CN¥52.4k
David John Shaw
Independent Non-Executive Director14.08yrsCN¥352.00kno data

13.9yrs

Average Tenure

71yo

Average Age

Experienced Board: SOLL.F's board of directors are seasoned and experienced ( 13.9 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

Shui On Land Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shui On Land Limited
  • Ticker: SOLL.F
  • Exchange: OTCPK
  • Founded: 2004
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$10.723b
  • Listing Market Cap: HK$1.383b
  • Shares outstanding: 8.06b
  • Website: https://www.shuionland.com

Number of Employees


Location

  • Shui On Land Limited
  • Shui On Plaza
  • 26th Floor
  • Shanghai
  • 200021
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
272SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2006
OL5DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2006
SOLL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2006
272SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2006
272SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2006
SOLL.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

Shui On Land Limited, an investment holding company, develops and sells properties in the Chinese Mainland. It operates through three segments: Property Development, Property Investment, and Construction. The Property Development segment develops and sells properties, such as residential, office, retail, entertainment, and cultural properties. The Property Investment segment leases offices and commercial/mall properties; provides property management services; and operates hotels. The Construction segment engages in the construction, interior fitting-out, renovation, and maintenance of building premises, as well as the provision of related consultancy services. The company also engages in the development of science and technology; and retail business. In addition, it provides business and hotel management, food and beverage, management, secretarial, education and business information consultancy, cultural diffusion, debt financing, construction, electronic commerce, and decoration services. The company was founded in 2004 and is headquartered in Shanghai, 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 Analysis2020/06/02 11:57
End of Day Share Price2020/04/27 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.