OTCPK:WARF.F

Stock Analysis Report

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Executive Summary

Founded in 1886 with Hong Kong as its base, The Wharf (Holdings) Limited (Stock code: 0004) is the 17th company incorporated in Hong Kong and a premier company with a long history.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has Wharf (Holdings)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

WARF.F

3.0%

US Real Estate

1.0%

US Market


1 Year Return

-37.0%

WARF.F

-27.6%

US Real Estate

4.1%

US Market

Return vs Industry: WARF.F underperformed the US Real Estate industry which returned -27.2% over the past year.

Return vs Market: WARF.F underperformed the US Market which returned 3.7% over the past year.


Shareholder returns

WARF.FIndustryMarket
7 Day0%3.0%1.0%
30 Day0%2.7%5.4%
90 Day-31.4%-35.1%-5.7%
1 Year-37.0%-37.0%-27.1%-27.6%6.5%4.1%
3 Yearn/a-24.6%-26.2%28.3%19.8%
5 Year-74.4%-74.4%-33.2%-35.3%52.2%35.0%

Price Volatility Vs. Market

How volatile is Wharf (Holdings)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Wharf (Holdings) undervalued compared to its fair value and its price relative to the market?

11.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WARF.F ($1.79) is trading above our estimate of fair value ($1.23)

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


Price To Earnings Ratio

PE vs Industry: WARF.F is good value based on its PE Ratio (11.7x) compared to the Real Estate industry average (14.4x).

PE vs Market: WARF.F is good value based on its PE Ratio (11.7x) compared to the US market (15x).


Price to Earnings Growth Ratio

PEG Ratio: WARF.F is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: WARF.F is good value based on its PB Ratio (0.3x) compared to the US Real Estate industry average (1x).

Future Growth

How is Wharf (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WARF.F's forecast earnings growth (17.6% per year) is above the savings rate (2.2%).

Earnings vs Market: WARF.F's earnings (17.6% per year) are forecast to grow slower than the US market (21.5% per year).

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

Revenue vs Market: WARF.F's revenue (9.6% per year) is forecast to grow faster than the US market (8.9% per year).

High Growth Revenue: WARF.F's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WARF.F's Return on Equity is forecast to be low in 3 years time (4.3%).

Past Performance

How has Wharf (Holdings) performed over the past 5 years?

-28.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WARF.F has high quality earnings.

Growing Profit Margin: WARF.F's current net profit margins (20.1%) are lower than last year (31.5%).


Past Earnings Growth Analysis

Earnings Trend: WARF.F's earnings have declined by -28.4% per year over the past 5 years.

Accelerating Growth: WARF.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: WARF.F had negative earnings growth (-48.9%) over the past year, making it difficult to compare to the Real Estate industry average (-6.4%).


Return on Equity

High ROE: WARF.F's Return on Equity (2.4%) is considered low.

Financial Health

How is Wharf (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: WARF.F's short term assets (HK$73.4B) exceed its short term liabilities (HK$47.2B).

Long Term Liabilities: WARF.F's short term assets (HK$73.4B) exceed its long term liabilities (HK$48.6B).


Debt to Equity History and Analysis

Debt Level: WARF.F's debt to equity ratio (32%) is considered satisfactory.

Reducing Debt: WARF.F's debt to equity ratio has increased from 25.4% to 32% over the past 5 years.

Debt Coverage: WARF.F's debt is not well covered by operating cash flow (19.9%).

Interest Coverage: WARF.F's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet

Dividend

What is Wharf (Holdings)'s current dividend yield, its reliability and sustainability?

2.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WARF.F's dividend (2.5%) is higher than the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: WARF.F's dividend (2.5%) is low compared to the top 25% of dividend payers in the US market (4.73%).


Stability and Growth of Payments

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

Growing Dividend: WARF.F's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.3%), WARF.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WARF.F's dividends in 3 years are forecast to be well covered by earnings (25.8% payout ratio).

Management

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

11.9yrs

Average management tenure


CEO

Stephen Ng (67yo)

31yrs

Tenure

HK$19,501,000

Compensation

Mr. Tin Hoi Ng, also known as Stephen, serves as Non-Executive Director of Greentown China Holdings Limited since June 15, 2012. Mr. Ng serves as the Chief Executive Officer of Harbour Centre Development L ...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD2.51M) is below average for companies of similar size in the US market ($USD7.43M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tin Hoi Ng
Chairman & MD31yrsHK$19.50m0.066% HK$3.4m
Yuk Fong Lee
Vice Chairman5yrsHK$8.69m0.012% HK$602.7k
Yiu Cheung Tsui
Vice Chairman & Group CFO5yrsHK$9.73m0.0098% HK$502.2k
On Kiu Chow
Deputy Chairman5yrsHK$14.93m0.0066% HK$334.8k
Kwok Pong Chan
Executive Director5yrsHK$12.60m0.026% HK$1.3m
Agnes Hui
Senior Managerno datano datano data
Kwong Ching Woo
Senior Counselno datano datano data
Chung Ying Hui
Company Secretary6.83yrsno datano data
Angela Ng
Investor Relations Managerno datano datano data

11.9yrs

Average Tenure

67yo

Average Age

Experienced Management: WARF.F's management team is seasoned and experienced (11.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tin Hoi Ng
Chairman & MD31yrsHK$19.50m0.066% HK$3.4m
Yuk Fong Lee
Vice Chairman5yrsHK$8.69m0.012% HK$602.7k
Yiu Cheung Tsui
Vice Chairman & Group CFO5yrsHK$9.73m0.0098% HK$502.2k
On Kiu Chow
Deputy Chairman5yrsHK$14.93m0.0066% HK$334.8k
Kwok Pong Chan
Executive Director5yrsHK$12.60m0.026% HK$1.3m
Hans Michael Jebsen
Independent Non-Executive Director19.33yrsHK$400.00kno data
Kwan Yiu Chen
Independent Non-Executive Director18.33yrsHK$250.00kno data
David Turnbull
Independent Non-Executive Director6.5yrsHK$450.00kno data
Kang Fang
Independent Non-Executive Director27.33yrsHK$400.00k0.0033% HK$167.4k
Elizabeth Law
Independent Non-Executive Director2.75yrsHK$450.00kno data

5.0yrs

Average Tenure

66yo

Average Age

Experienced Board: WARF.F's board of directors are considered experienced (5 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Wharf (Holdings) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wharf (Holdings) Limited
  • Ticker: WARF.F
  • Exchange: OTCPK
  • Founded: 1886
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: HK$39.582b
  • Listing Market Cap: HK$5.103b
  • Shares outstanding: 3.05b
  • Website: https://www.wharfholdings.com

Number of Employees


Location

  • Wharf (Holdings) Limited
  • Ocean Centre
  • 16th Floor
  • Kowloon City
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
WHADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
WARF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
4SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
4SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
WARF.YOTCPK (Pink Sheets LLC)ADRUSUSDFeb 2009

Biography

Founded in 1886 with Hong Kong as its base, The Wharf (Holdings) Limited (Stock code: 0004) is the 17th company incorporated in Hong Kong and a premier company with a long history. As one of the 30 constituent stocks in the original Hang Seng Index since more than 50 years ago, Wharf is among the top local blue chips that is most actively traded and widely held. Backed by a long standing mission of “Building for Tomorrow” and a proven track record in management and execution, the Group has produced consistent and productive performance over the years. Subsequent to the separate listing of Wharf Real Estate Investment Company Limited in November 2017 which focuses on its Hong Kong investment properties portfolio, The Wharf (Holdings) Limited's businesses are largely property-related, comprising Investment Properties, Hotels and Development Properties in Hong Kong and Mainland China. Other businesses include Logistics through Modern Terminals and Hong Kong Air Cargo Terminals. Wharf’s Peak Portfolio redefines the concept of luxury living with a collection of the rare and most prestigious residences, epitomising a unique and exclusive lifestyle at the most sought-after addresses in town. Besides the highly-acclaimed Mount Nicholson, other properties under development include 1 Plantation Road, 11 Plantation Road and 77 Peak Road. Besides The Peak Portfolio, the development pipeline of Hong Kong Properties also includes the Kowloon Tong Residential Project and projects in Kowloon East. In the Mainland, Wharf spearheads its investment properties with the International Finance Square (IFS) series at the very heart of CBD or new CBD in high potential cities including Changsha, Chengdu, Chongqing, Suzhou and Wuxi. IFS developments are positioned as trendsetting landmarks with unrivalled locations, superior planning and design, retailer and shopper critical mass, as well as top-notch retail management. Changsha IFS, 2018’s newest to the collection, and Chengdu IFS opened in 2014 are comparable to Harbour City in Hong Kong in scale and prominence. The boutique Chongqing IFS, featuring the largest cluster of first-tier brands in Chongqing, was opened in 2017. The Group continues to adopt a selective land acquisition policy with strategic focus on key Tier 1 or 2 cities in order to secure high quality land bank with returns. The development property landbank at the end of June 2019 totalled 3.6 million square metres. Wharf Hotels manages an expanding portfolio of 17 hotels in Asia, spearheaded by a prominent Niccolo brand in recent years. The Wharf Hotels owns four contemporary, urban, chic Niccolo hotels (including The Murray, Hong Kong and Niccolo Changsha) and manages 13 Marco Polo hotels in Hong Kong, Mainland China and the Philippines. Niccolo Suzhou is the newest addition under development and is scheduled to open in 2021. The Group also owns and operates Modern Terminals and Hong Kong Air Cargo Terminals, key components in Hong Kong’s success as a hub for international trade and international transportation for decades. CME2 is the Group’s long-term investment, representing a strategic initiative of reinvesting capital and profit released from the CME1 exit in Hong Kong in a progressive new economy infrastructure CME2 arena that covers much larger markets with greater growth potential. “Building for Tomorrow” also extends to Wharf’s “Business-in-Community” (“BIC”) pursuit. With the flagship school improvement programme “Project Wecan” growing from strength to strength, the Group supports a series of BIC initiatives including Wu Zhi Qiao (Bridge to China) Charitable Foundation, Shanghai International Tower-running Grand Prix and Operation Panda with an aim of promoting BIC and to bring benefits to different segments of society. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 04:27
End of Day Share Price2020/04/20 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.