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Zhong Ao Home Group

SEHK:1538
Snowflake Description

Excellent balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1538
SEHK
HK$499M
Market Cap
  1. Home
  2. HK
  3. Real Estate
Company description

Zhong Ao Home Group Limited operates as an independent property management company in the People’s Republic of China. The last earnings update was 85 days ago. More info.


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1538 Share Price and Events
7 Day Returns
1.6%
SEHK:1538
3.6%
HK Real Estate
2.5%
HK Market
1 Year Returns
-1.6%
SEHK:1538
1.9%
HK Real Estate
-1.2%
HK Market
1538 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Zhong Ao Home Group (1538) 1.6% -6.1% -8.8% -1.6% -47.9% -
HK Real Estate 3.6% 2.8% 3.7% 1.9% 40.4% 43.9%
HK Market 2.5% -0.3% -0.9% -1.2% 10.3% 0.7%
1 Year Return vs Industry and Market
  • 1538 underperformed the Real Estate industry which returned 1.9% over the past year.
  • 1538 matched the Hong Kong Market (-1.2%) over the past year.
Price Volatility
1538
Industry
5yr Volatility vs Market

Value

 Is Zhong Ao Home Group 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 Zhong Ao Home Group 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 Zhong Ao Home Group.

SEHK:1538 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year HK Government Bond Rate 1.6%

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 SEHK:1538
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 1.6%
Equity Risk Premium S&P Global 6.3%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.049 (1 + (1- 25%) (46.46%))
1.278
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.28
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.55% + (1.278 * 6.33%)
9.64%

Discounted Cash Flow Calculation for SEHK:1538 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Zhong Ao Home Group 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.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

SEHK:1538 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 9.64%)
2020 118.94 Est @ 3.24% 108.48
2021 122.19 Est @ 2.73% 101.65
2022 125.10 Est @ 2.38% 94.92
2023 127.76 Est @ 2.13% 88.42
2024 130.26 Est @ 1.96% 82.22
2025 132.65 Est @ 1.83% 76.37
2026 134.97 Est @ 1.75% 70.88
2027 137.25 Est @ 1.69% 65.74
2028 139.51 Est @ 1.65% 60.95
2029 141.77 Est @ 1.62% 56.49
Present value of next 10 years cash flows CN¥806.00
SEHK:1538 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥141.77 × (1 + 1.55%) ÷ (9.64% – 1.55%)
CN¥1,779.89
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥1,779.89 ÷ (1 + 9.64%)10
CN¥709.19
SEHK:1538 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥806.00 + CN¥709.19
CN¥1,515.19
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥1,515.19 / 817.62
CN¥1.85
SEHK:1538 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1538)
1.114
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥1.85 x 1.114
HK$2.06
Value per share (HKD) From above. HK$2.06
Current discount Discount to share price of HK$0.62
= -1 x (HK$0.62 - HK$2.06) / HK$2.06
70%

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

Current Discount
Amount off the current price Zhong Ao Home Group is available for.
Intrinsic value
>50%
Share price is HK$0.62 vs Future cash flow value of HK$2.06
Current Discount Checks
For Zhong Ao Home Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Zhong Ao Home Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Zhong Ao Home Group'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 Zhong Ao Home Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Zhong Ao Home Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1538 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in CNY CN¥0.12
SEHK:1538 Share Price ** SEHK (2019-12-13) in HKD HK$0.62
SEHK:1538 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.898 CN¥0.56
Hong Kong Real Estate Industry PE Ratio Median Figure of 189 Publicly-Listed Real Estate Companies 6.64x
Hong Kong Market PE Ratio Median Figure of 1,470 Publicly-Listed Companies 10.25x

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

** Primary Listing of Zhong Ao Home Group.

SEHK:1538 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1538 Share Price ÷ EPS (both in CNY)

= 0.56 ÷ 0.12

4.48x

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

  • Zhong Ao Home Group is good value based on earnings compared to the HK Real Estate industry average.
  • Zhong Ao Home Group is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Zhong Ao Home Group's expected growth come at a high price?
Raw Data
SEHK:1538 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.48x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Hong Kong Real Estate Industry PEG Ratio Median Figure of 65 Publicly-Listed Real Estate Companies 0.28x
Hong Kong Market PEG Ratio Median Figure of 479 Publicly-Listed Companies 0.75x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for Zhong Ao Home Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Zhong Ao Home Group's assets?
Raw Data
SEHK:1538 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in CNY CN¥0.76
SEHK:1538 Share Price * SEHK (2019-12-13) in HKD HK$0.62
SEHK:1538 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.898 CN¥0.56
Hong Kong Real Estate Industry PB Ratio Median Figure of 237 Publicly-Listed Real Estate Companies 0.5x
Hong Kong Market PB Ratio Median Figure of 2,205 Publicly-Listed Companies 0.82x
SEHK:1538 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1538 Share Price ÷ Book Value per Share (both in CNY)

= 0.56 ÷ 0.76

0.74x

* Primary Listing of Zhong Ao Home Group.

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

  • Zhong Ao Home Group is overvalued based on assets compared to the HK Real Estate industry average.
X
Value checks
We assess Zhong Ao Home Group'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. Zhong Ao Home Group has a total score of 4/6, 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 Zhong Ao Home Group expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Zhong Ao Home Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

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
7.5%
Expected Real Estate industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Zhong Ao Home Group expected to grow at an attractive rate?
  • Unable to compare Zhong Ao Home Group's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Zhong Ao Home Group's earnings growth to the Hong Kong market average as no estimate data is available.
  • Unable to compare Zhong Ao Home Group's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:1538 Future Growth Rates Data Sources
Data Point Source Value (per year)
Hong Kong Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 7.5%
Hong Kong Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 16.1%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.7%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.3%

*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
SEHK:1538 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1538 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SEHK:1538 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-06-30 1,181 138 101
2019-03-31 1,102 97 99
2018-12-31 1,023 57 96
2018-09-30 1,012 64 94
2018-06-30 1,000 72 92
2018-03-31 989 106 91
2017-12-31 978 139 91
2017-09-30 964 65
2017-06-30 849 124 45
2017-03-31 743 15
2016-12-31 635 73 -6
2016-09-30 515 -9

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Zhong Ao Home Group is high growth as no earnings estimate data is available.
  • Unable to determine if Zhong Ao Home Group is high growth as no revenue estimate data is available.
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
SEHK:1538 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Zhong Ao Home Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1538 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SEHK:1538 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-06-30 0.12
2019-03-31 0.12
2018-12-31 0.12
2018-09-30 0.12
2018-06-30 0.11
2018-03-31 0.11
2017-12-31 0.11
2017-09-30 0.08
2017-06-30 0.06
2017-03-31 0.02
2016-12-31 -0.01
2016-09-30

*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.
  • Unable to establish if Zhong Ao Home Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether Zhong Ao Home Group is trading at Zhong Ao Home Group'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. Zhong Ao Home Group's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Real Estate companies here
  3. Zhong Ao Home Group's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Zhong Ao Home Group'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 Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong 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.
Zhong Ao Home Group has a total score of 0/6, 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 Zhong Ao Home Group 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 Zhong Ao Home Group'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.
  • Zhong Ao Home Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Zhong Ao Home Group's 1-year earnings growth is less than its 5-year average (9.8% vs 48.2%)
  • Zhong Ao Home Group's earnings growth has exceeded the HK Real Estate industry average in the past year (9.8% vs -11.5%).
Earnings and Revenue History
Zhong Ao Home Group'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 Zhong Ao Home Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1538 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 1,180.59 101.16 180.82
2019-03-31 1,101.80 98.62 168.71
2018-12-31 1,023.01 96.09 156.60
2018-09-30 1,011.53 94.10 174.16
2018-06-30 1,000.04 92.12 170.08
2018-03-31 988.80 91.33 145.80
2017-12-31 977.55 90.55 121.52
2017-09-30 963.60 65.43 118.92
2017-06-30 849.25 45.16 111.74
2017-03-31 743.43 15.44 124.14
2016-12-31 635.15 -6.38 129.13
2016-09-30 514.71 -9.06 115.67
2016-06-30 484.49 -6.41 107.88
2016-03-31 455.98 -2.29 80.85
2015-12-31 420.16 10.91 58.62
2014-12-31 361.20 56.03 25.24
2013-12-31 290.28 33.07 23.27
2012-12-31 197.45 12.80 16.78

*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.
  • Zhong Ao Home Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Zhong Ao Home Group used its assets more efficiently than the HK Real Estate industry average last year based on Return on Assets.
  • Zhong Ao Home Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Zhong Ao Home Group'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.
Zhong Ao Home Group has a total score of 4/6, 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 Zhong Ao Home Group'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 Zhong Ao Home Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Zhong Ao Home Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Zhong Ao Home Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Zhong Ao Home Group'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.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 6.7x 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 Zhong Ao Home Group Company Filings, last reported 5 months ago.

SEHK:1538 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 679.58 167.57 418.40
2019-03-31 679.58 167.57 418.40
2018-12-31 605.95 111.84 415.80
2018-09-30 605.95 111.84 415.80
2018-06-30 550.97 99.68 347.16
2018-03-31 550.97 99.68 347.16
2017-12-31 546.69 100.97 483.81
2017-09-30 546.69 100.97 483.81
2017-06-30 495.05 124.17 440.56
2017-03-31 495.05 124.17 440.56
2016-12-31 443.45 128.95 445.02
2016-09-30
2016-06-30 477.18 43.46 433.71
2016-03-31 501.74 29.64 449.11
2015-12-31 501.74 29.64 449.11
2014-12-31 95.64 12.00 65.62
2013-12-31 52.99 1.28 44.75
2012-12-31 18.92 1.31 29.27
  • Zhong Ao Home Group's level of debt (24.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (8.9% vs 24.7% today).
  • Debt is well covered by operating cash flow (82.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.7x coverage).
X
Financial health checks
We assess Zhong Ao Home Group'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. Zhong Ao Home Group has a total score of 5/6, 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 Zhong Ao Home Group'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
3.83%
Current annual income from Zhong Ao Home Group dividends.
If you bought HK$2,000 of Zhong Ao Home Group shares you are expected to receive HK$77 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?
  • Zhong Ao Home Group's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.22%).
  • Zhong Ao Home Group's dividend is below the markets top 25% of dividend payers in Hong Kong (6.14%).
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
SEHK:1538 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 0 Analyst Estimates (S&P Global) See Below
Hong Kong Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 136 Stocks 4.3%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 962 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.3%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.2%
Hong Kong Top 25% Dividend Yield 75th Percentile 6.1%

Industry and Market average data is calculated daily.

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

SEHK:1538 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
SEHK:1538 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-03-29 0.021 3.716
2018-03-27 0.040 5.853
2017-09-28 0.000 0.000
2017-08-31 0.000 0.000
2017-03-28 0.000 0.000
2016-05-31 0.021 2.085
2016-04-29 0.021 1.922
2016-03-22 0.021 1.876

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

  • Zhong Ao Home Group 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 Zhong Ao Home Group only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Zhong Ao Home Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.7x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Zhong Ao Home Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - 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 Zhong Ao Home Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Zhong Ao Home Group has a total score of 2/6, 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 Zhong Ao Home Group'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 Liu
COMPENSATION CN¥6,266,000
AGE 51
TENURE AS CEO 4.9 years
CEO Bio

Mr. Jian Liu founded Zhong Ao Home Group Limited in January 05, 2015 and has been its Chairman, Chief Executive Officer and Executive Director since January 05, 2015. Mr. Liu founded Guangdong Zhong Ao Property Management Company Limited in September 2005. He has been primarily responsible for overall operation and management, strategic planning and business development. Mr. Liu plays a key role in the Zhong Ao Home Group’s business development and has led its business expansion from Guangdong province to other parts of China. Prior to this, Mr. Liu worked at Guilin Park Hotel Co., Ltd. from May 1990 to August 1994 and his last position held was Manager. From September 1994 to March 1999, he worked at Guilin Royal Gardens Hotel Co., Ltd. and his last position held was Manager. From 1999 to December 2003, Mr. Liu served as General Manager of Guangzhou Olympic Garden Property Co. Ltd. From February 2004 to June 2005, Mr. Liu served as General Manager of Nanguo Aoyuan Property Company, both companies being subsidiaries of Guangdong Yabo Property Service Company Limited (“Guangdong Yabo”). Mr. Liu has been the Sole Director of Zhong Ao Property since September 2005. Mr. Liu serves as a Director of Zhong Ao Holdings, Zhong Ao HK, Guangzhou Suiya, Ningbo Disai, Hangzhou Huacheng, Hangzhou Lvdu, Guangzhou Daojia and Guangzhou Maiyue. Mr. Liu graduated from Huazhong University of Science and Technology with a bachelor’s degree in Economics in 1988. In 2008, Mr. Liu attained a master’s degree in Business Administration from Asia International Open University (Macau).

CEO Compensation
  • Jian's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Jian's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Zhong Ao Home Group management team in years:

4.9
Average Tenure
47
Average Age
  • The tenure for the Zhong Ao Home Group management team is about average.
Management Team

Jian Liu

TITLE
Chairman & CEO
COMPENSATION
CN¥6M
AGE
51
TENURE
4.9 yrs

Zhuo Chen

TITLE
Founder
COMPENSATION
CN¥3M
AGE
41
TENURE
14.3 yrs

Bing Liang

TITLE
VP & Executive Director
COMPENSATION
CN¥3M
AGE
47
TENURE
14.3 yrs

Weimin Long

TITLE
VP & Executive Director
COMPENSATION
CN¥3M
AGE
56
TENURE
11.5 yrs

Ho Yu

TITLE
Chief Financial Officer
AGE
42
TENURE
4.7 yrs

Tao Luo

TITLE
Chief Executive Officer of Hangzhou Yidao
AGE
32
TENURE
4.7 yrs

Kai Chun Siu

TITLE
Financial Controller & Company Secretary
AGE
51
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Zhong Ao Home Group board of directors in years:

4.7
Average Tenure
48.5
Average Age
  • The tenure for the Zhong Ao Home Group board of directors is about average.
Board of Directors

Zhuo Chen

TITLE
Founder
COMPENSATION
CN¥3M
AGE
41
TENURE
4.9 yrs

Bing Liang

TITLE
VP & Executive Director
COMPENSATION
CN¥3M
AGE
47
TENURE
4.9 yrs

Weimin Long

TITLE
VP & Executive Director
COMPENSATION
CN¥3M
AGE
56
TENURE
4.9 yrs

Weilun Zhang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥152K
AGE
47
TENURE
4.1 yrs

Jian Liu

TITLE
Chairman & CEO
COMPENSATION
CN¥6M
AGE
51
TENURE
4.9 yrs

Wai Cheung Chan

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥152K
AGE
46
TENURE
2.6 yrs

David Wei

TITLE
Non-Executive Director
COMPENSATION
CN¥150K
AGE
49
TENURE
4.7 yrs

Qimin Wu

TITLE
Non-Executive Director
COMPENSATION
CN¥102K
AGE
48
TENURE
4.7 yrs

Kevin Chan

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥152K
AGE
49
TENURE
2.6 yrs

Anxin Huang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥152K
AGE
56
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
29. Jul 19 Sell Briarwood Capital Management Inc. Company 25. Jul 19 25. Jul 19 -30,000,000 HK$0.70 HK$-20,999,923
X
Management checks
We assess Zhong Ao Home Group'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. Zhong Ao Home Group 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

Estimating The Fair Value Of Zhong Ao Home Group Limited (HKG:1538)

Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (CN¥, Millions) CN¥34.7m CN¥32.4m CN¥31.1m CN¥30.4m CN¥30.2m CN¥30.1m CN¥30.3m CN¥30.6m CN¥31.0m CN¥31.5m Growth Rate Estimate Source Est @ -10.25% Est @ -6.57% Est @ -4% Est @ -2.2% Est @ -0.94% Est @ -0.06% Est @ 0.56% Est @ 0.99% Est @ 1.3% Est @ 1.51% Present Value (CN¥, Millions) Discounted @ 8.75% CN¥31.9 CN¥27.4 CN¥24.2 CN¥21.8 CN¥19.8 CN¥18.2 CN¥16.8 CN¥15.6 CN¥14.6 CN¥13.6 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= CN¥204.0m After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = CN¥31m × (1 + 2%) ÷ (8.8% – 2%) = CN¥475m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = CN¥CN¥475m ÷ ( 1 + 8.8%)10 = CN¥205.42m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CN¥409.38m. … SEHK:1538 Intrinsic value, August 27th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Does Zhong Ao Home Group (HKG:1538) Have A Healthy Balance Sheet?

Despite its noteworthy liabilities, Zhong Ao Home Group boasts net cash, so it's fair to say it does not have a heavy debt load! … While Zhong Ao Home Group has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. … During the last three years, Zhong Ao Home Group produced sturdy free cash flow equating to 71% of its EBIT, about what we'd expect.

Simply Wall St -

What Did Zhong Ao Home Group Limited's (HKG:1538) CEO Take Home Last Year?

Check out our latest analysis for Zhong Ao Home Group How Does Jian Liu's Compensation Compare With Similar Sized Companies? … It would therefore appear that Zhong Ao Home Group Limited pays Jian Liu more than the median CEO remuneration at companies of a similar size, in the same market. … We examined the amount Zhong Ao Home Group Limited pays its CEO, and compared it to the amount paid by similar sized companies.

Simply Wall St -

Should You Be Excited About Zhong Ao Home Group Limited's (HKG:1538) 18% Return On Equity?

Our data shows Zhong Ao Home Group has a return on equity of 18% for the last year. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Zhong Ao Home Group: 18% = CN¥96m ÷ CN¥606m (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Combining Zhong Ao Home Group's Debt And Its 18% Return On Equity While Zhong Ao Home Group does have some debt, with debt to equity of just 0.18, we wouldn't say debt is excessive.

Simply Wall St -

Does The Zhong Ao Home Group Limited (HKG:1538) Share Price Tend To Follow The Market?

This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. … If this beta value holds true in the future, Zhong Ao Home Group shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. … What this means for you: Beta only tells us that the Zhong Ao Home Group share price is sensitive to broader market movements.

Simply Wall St -

Introducing Zhong Ao Home Group (HKG:1538), The Stock That Slid 54% In The Last Three Years

Unfortunately, that's been the case for longer term Zhong Ao Home Group Limited (HKG:1538) shareholders, since the share price is down 54% in the last three years, falling well short of the market return of around 33%. … We note that for Zhong Ao Home Group the TSR over the last 3 years was -50%, which is better than the share price return mentioned above. … A Different Perspective Zhong Ao Home Group shareholders are down 29% for the year (even including dividends), falling short of the market return.

Simply Wall St -

Calculating The Intrinsic Value Of Zhong Ao Home Group Limited (HKG:1538)

Today we will run through one way of estimating the intrinsic value of Zhong Ao Home Group Limited (HKG:1538). … by estimating the company's future cash flows and discounting them to their present value. … See our latest analysis for Zhong Ao Home Group

Simply Wall St -

Has Zhong Ao Home Group Limited (HKG:1538) Improved Earnings Growth In Recent Times?

After looking at Zhong Ao Home Group Limited's (HKG:1538) latest earnings announcement (31 December 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … How 1538 fared against its long-term earnings performance and its industry. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 38%, indicating the rate at which 1538 is growing has slowed down

Simply Wall St -

What Kind Of Share Price Volatility Should You Expect For Zhong Ao Home Group Limited (HKG:1538)?

If you're interested in Zhong Ao Home Group Limited (HKG:1538), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility).

Simply Wall St -

Is Zhong Ao Home Group Limited's (HKG:1538) Balance Sheet A Threat To Its Future?

Understanding the company's financial health becomes. … since poor capital management may bring about bankruptcies, … Let's work through some financial health checks you may wish to consider if you're interested in this stock.

Simply Wall St -

Company Info

Description

Zhong Ao Home Group Limited operates as an independent property management company in the People’s Republic of China. Its Property Management business offers property management, consulting, and ancillary services to the residential properties, and commercial and government buildings. It serves property developers and owners. The company’s Sale Assistance business provides cleaning, security, and maintenance services for model homes and sales centers of property developers; and general assistance to facilitate the sales process of the properties. Its Other businesses provides installation, repairing, and maintenance services primarily to the elevators of the properties under management; light-current engineering services to properties under management; and catering services, as well as operates canteens in government buildings. The company also engages in the sale of engineering spare parts to the elevator servicing companies. Zhong Ao Home Group Limited was founded in 2005 and is headquartered in Guangzhou, the People’s Republic of China. Zhong Ao Home Group Limited is a subsidiary of Qichang International Limited.

Details
Name: Zhong Ao Home Group Limited
1538
Exchange: SEHK
Founded: 2005
HK$498,749,420
817,622,000
Website: http://www.gdzawy.com
Address: Zhong Ao Home Group Limited
Han Xi Avenue,
1–2/F, Block 5,
Guangzhou,
Guangdong Province, China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1538 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 25. Nov 2015
Number of employees
Current staff
Staff numbers
15,666
Zhong Ao Home Group employees.
Industry
Real Estate Operating Companies
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/13 13:08
End of day share price update: 2019/12/13 00:00
Last estimates confirmation: 2017/03/28
Last earnings filing: 2019/09/19
Last earnings reported: 2019/06/30
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.