OTCPK:WRFR.F

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Wharf Real Estate Investment

Executive Summary

Wharf Real Estate Investment Company Limited, an investment holding company, invests in, develops, owns, and operates real estate properties in Hong Kong, Mainland China, and Singapore.


Snowflake Analysis

Mediocre balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Wharf Real Estate Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.3%

WRFR.F

2.1%

US Real Estate

1.7%

US Market


1 Year Return

n/a

WRFR.F

-18.1%

US Real Estate

8.5%

US Market

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

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


Shareholder returns

WRFR.FIndustryMarket
7 Day4.3%2.1%1.7%
30 Day4.3%10.6%9.5%
90 Day-12.2%-27.1%0.1%
1 Yearn/a-17.5%-18.1%11.0%8.5%
3 Yearn/a-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 Wharf Real Estate Investment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Wharf Real Estate Investment undervalued compared to its fair value and its price relative to the market?

24.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WRFR.F ($3.96) is trading above our estimate of fair value ($3.18)

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


Price To Earnings Ratio

PE vs Industry: WRFR.F is poor value based on its PE Ratio (23.8x) compared to the Real Estate industry average (14.8x).

PE vs Market: WRFR.F is poor value based on its PE Ratio (23.8x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: WRFR.F is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: WRFR.F is good value based on its PB Ratio (0.4x) compared to the US Real Estate industry average (1.1x).


Next Steps

Future Growth

How is Wharf Real Estate Investment forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

21.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WRFR.F's forecast earnings growth (21.1% per year) is above the savings rate (2.2%).

Earnings vs Market: WRFR.F's earnings (21.1% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WRFR.F's revenue (0.9% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: WRFR.F's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WRFR.F's Return on Equity is forecast to be low in 3 years time (4.1%).


Next Steps

Past Performance

How has Wharf Real Estate Investment performed over the past 5 years?

-15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WRFR.F has a large one-off loss of HK$5.9B impacting its December 31 2019 financial results.

Growing Profit Margin: WRFR.F's current net profit margins (24.5%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: WRFR.F's earnings have declined by -15.3% per year over the past 5 years.

Accelerating Growth: WRFR.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: WRFR.F had negative earnings growth (-78.2%) over the past year, making it difficult to compare to the Real Estate industry average (-6.4%).


Return on Equity

High ROE: WRFR.F's Return on Equity (1.8%) is considered low.


Next Steps

Financial Health

How is Wharf Real Estate Investment's financial position?


Financial Position Analysis

Short Term Liabilities: WRFR.F's short term assets (HK$9.0B) do not cover its short term liabilities (HK$26.9B).

Long Term Liabilities: WRFR.F's short term assets (HK$9.0B) do not cover its long term liabilities (HK$36.0B).


Debt to Equity History and Analysis

Debt Level: WRFR.F's debt to equity ratio (20.6%) is considered satisfactory.

Reducing Debt: WRFR.F's debt to equity ratio has increased from 19.5% to 20.6% over the past 5 years.

Debt Coverage: WRFR.F's debt is well covered by operating cash flow (26.4%).

Interest Coverage: WRFR.F's interest payments on its debt are well covered by EBIT (13.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Wharf Real Estate Investment's current dividend yield, its reliability and sustainability?

6.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WRFR.F's dividend (6.6%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: WRFR.F's dividend (6.6%) is in the top 25% of dividend payers in the US market (4.55%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, WRFR.F has been paying a dividend for less than 10 years.

Growing Dividend: WRFR.F's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (156.9%), WRFR.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WRFR.F's dividends in 3 years are forecast to be covered by earnings (63% payout ratio).


Next Steps

Management

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

2.7yrs

Average board tenure


CEO

Stephen Ng (67yo)

2.67yrs

Tenure

HK$13,109,000

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 ($USD1.69M) is below average for companies of similar size in the US market ($USD11.64M).

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


Board Members

NamePositionTenureCompensationOwnership
Tin Hoi Ng
Chairman & MD2.67yrsHK$13.11m0.041% HK$5.1m
Yuk Fong Lee
Executive Vice Chairman2.67yrsHK$19.67mno data
Yiu Cheung Tsui
Executive Vice Chairman2yrsHK$7.58mno data
Yen Thean Leng
Executive Director2.83yrsHK$12.23mno data
Chung Ying Hui
Company Secretary & Director0.42yrno datano data
Siu Kee Au
Independent Non-Executive Director2.67yrsHK$450.00kno data
Eng Kiong Yeoh
Independent Non-Executive Director2.67yrsHK$400.00k0.00066% HK$80.5k
Richard Gareth Williams
Independent Non-Executive Director2.67yrsHK$400.00kno data
Kwan Yuen Leung
Independent Non-Executive Director2yrsHK$250.00k0.00022% HK$26.8k

2.7yrs

Average Tenure

68yo

Average Age

Experienced Board: WRFR.F's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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 Real Estate Investment Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wharf Real Estate Investment Company Limited
  • Ticker: WRFR.F
  • Exchange: OTCPK
  • Founded: 1886
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: HK$94.578b
  • Listing Market Cap: HK$12.202b
  • Shares outstanding: 3.04b
  • Website: https://www.wharfreic.com

Number of Employees


Location

  • Wharf Real Estate Investment Company Limited
  • Ocean Centre
  • 16th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1997SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2017
1997SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2017
1997SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2017
4WFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2017
WRFR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2017

Biography

Wharf Real Estate Investment Company Limited, an investment holding company, invests in, develops, owns, and operates real estate properties in Hong Kong, Mainland China, and Singapore. The company operates through Investment Properties, Development Properties, and Hotels segments. It primarily operates Harbour City, a commercial space comprising offices, retail shops, serviced apartments, hotels and club, and car parking spaces; and Times Square, a retail space that consists of office and car parking spaces. The company also operates Wheelock House and Crawford House commercial properties; The Murray, a luxury hotel that consists of 336 rooms; Plaza Hollywood, a shopping mall with retail outlets, restaurants, and a stadium housing six-screen cinema multiplex; and The Star Ferry, which provides a ferry service between Tsim Sha Tsui and Wan Chai. In addition, it offers leasing, finance, and management services; and accepts bank deposits. Wharf Real Estate Investment Company Limited was founded in 1886 and is headquartered in Kowloon, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 05:35
End of Day Share Price2020/06/01 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.