KWG Group Holdings

KWG Property Holding is an investment holding company. Co.'s portfolio provides different types of products, which include mid- to high-end residential properties, serviced apartments, villas, office buildings, hotels and shopping malls. Co.'s segments include: property development, which is engaged in the sale of properties; property investment, which is engaged in leasing of properties; hotel operation, which is engaged in the operation of hotels; and property management, which is engaged in the provision of property management services.
  • TickerA0MUW7
  • ISINKYG532241042
  • SectorReal Estate Investment & Services
  • CountryGermany

Analysts

UOB
Nick Liu Sunliang ...
  • Shaun Tan

Property - 1H19 results round-up: Rising pressure.

Since revenue of property developers has a lag of 2-3 years from pre-sales to carryover, most of the project settlements in 1H19 were sold in 2016-17. Therefore, earnings of property developers in 1H19 were still eye-catching. However, with the further tightening of policies and financing in the property sector, pressure on sales and investment will increase and impact the cash flow of developers. Maintain MARKET WEIGHT.

UOB
Nick Liu Sunliang ...
  • Shaun Tan

KWG Group (1813 HK): 1H19: Brilliant results; growth expected to accelerate. BUY

KWG’s 1H19 net profit of Rmb6.15b (up 184% yoy) is lower than our expectation. The property business is based in Guangzhou but is expanding nationwide and has entered nearly 40 cities with more than 150 projects on hand. The major growth drivers include a stable debt structure and high dividend rates. Maintain BUY with a target price of HK$9.01.

UOB
Nick Liu Sunliang ...
  • Shaun Tan

China Property - Weekly: Valuation of some developers will decline.

The decision from Politburo meeting emphasised continued policy tightening, and we believe the real estate industry will find it difficult to obtain a dividend policy in the short term. However, we still recommend paying attention to real estate developers whose sales will keep growing in the industry, as sales data now represents operating profit 2-3 years later. Maintain MARKET WEIGHT.

UOB
Nick Liu Sunliang ...
  • Shaun Tan

China Property - Weekly: 1H19 results preview.

Amid expectations of a decline in investment, China’s policy fine-tuning will play a key role in stabilising the market. We expect the profit gap between housing developers to widen and industry concentration to increase significantly when total sales volumes show a downtrend. At the same time, the sector’s valuations will fall, but leading developers’ valuations will rebound. Downgrade to MARKET WEIGHT.

UOB
Nick Liu Sunliang ...
  • Shaun Tan

China Property - Weekly: Performances will continue to improve.

Last week (14-20 July), 32,842 new houses were sold in the 30 cities we monitor, down 11.46% wow. Transaction area totalled 3.49m sqm, down 10.17% wow. New inventory in 15 cities increased 9.42% wow. Transaction-to-new-launch ratio reached 0.97x, lower than the 1.30x in the week of 7-13 July. Leading developers are trading at 4.12-9.45x 2019F PE and at a 22.7-67.5% discount to last week's NAV. Maintain OVERWEIGHT.

KWG Group Holdings Limited: Update to credit analysis

Our credit view of KWG, reflecting its strong market position and good funding access, balanced against its high leverage and execution risk stemming from its fast expansion.

KWG Group Holdings Limited - December 2018 (LTM): Peer Snapshot

Compares key performance metrics against industry peers.

Moody's announces completion of a periodic review of ratings of KWG Group Holdings Limited

Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of KWG Group Holdings Limited. Global Credit Research- 16 May 2019. Hong Kong, May 16, 2019-- Moody's Investors Service has completed a periodic review of the ratings of KWG Group Holdings Limited and other ratings that are associated with the same analytical unit.

KWG Group Holdings Limited: Update to credit analysis

Our credit view of KWG, reflecting its strong market position and good funding access, but rating is constrained by high leverage, and execution risk stem from fast expansion.

KWG Group Holdings Limited - June 2018 (LTM): Peer Snapshot

Compares key performance metrics against industry peers.

UOB
Nick Liu Sunliang ...
  • Shaun Tan

KWG Group (1813 HK): 1H19: Brilliant results; growth expected to accelerate. BUY

KWG’s 1H19 net profit of Rmb6.15b (up 184% yoy) is lower than our expectation. The property business is based in Guangzhou but is expanding nationwide and has entered nearly 40 cities with more than 150 projects on hand. The major growth drivers include a stable debt structure and high dividend rates. Maintain BUY with a target price of HK$9.01.

UOB
Nick Liu Sunliang ...
  • Shaun Tan

China Property: Embracing megacity clusters. OVERWEIGHT

With the government’s efforts to foster and develop city clusters in China, we see huge housing demand in core metroplolitan areas arising from urbanisation and cross-regional population flows into those areas. Naturally, the YRD and GBA will remain the main magnets for population in the future, given their vast potential. Urbanisation rates in YRD (68.5%) and GBA (84.4%) are notably higher than in the rest of China (59.6%). Maintain OVERWEIGHT with CIFI, Ronshine and Times China as top BUYs.

1 director bought

A director at KWG Group Holdings Limite bought 3,368,500 shares at 5.813HKD and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The...

KWG GROUP HOLDINGS LTD. sees a downgrade to Slightly Negative on account of less fundamental stars

The independent financial analyst theScreener just lowered the general evaluation of KWG GROUP HOLDINGS LTD. (HK), active in the Real Estate Holding & Development industry. As regards its fundamental valuation, the title now shows 3 out of 4 stars while market behaviour can be considered risky. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Slightly Negative. As of the analysis date April 30, 2019, the closing price was HKD 9.18 and its target price was estimated at HKD 6.72.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

UOB
Nick Liu Sunliang ...
  • Shaun Tan

Property - 1H19 results round-up: Rising pressure.

Since revenue of property developers has a lag of 2-3 years from pre-sales to carryover, most of the project settlements in 1H19 were sold in 2016-17. Therefore, earnings of property developers in 1H19 were still eye-catching. However, with the further tightening of policies and financing in the property sector, pressure on sales and investment will increase and impact the cash flow of developers. Maintain MARKET WEIGHT.

UOB
Nick Liu Sunliang ...
  • Shaun Tan

China Property - Weekly: Valuation of some developers will decline.

The decision from Politburo meeting emphasised continued policy tightening, and we believe the real estate industry will find it difficult to obtain a dividend policy in the short term. However, we still recommend paying attention to real estate developers whose sales will keep growing in the industry, as sales data now represents operating profit 2-3 years later. Maintain MARKET WEIGHT.

UOB
Nick Liu Sunliang ...
  • Shaun Tan

China Property - Weekly: 1H19 results preview.

Amid expectations of a decline in investment, China’s policy fine-tuning will play a key role in stabilising the market. We expect the profit gap between housing developers to widen and industry concentration to increase significantly when total sales volumes show a downtrend. At the same time, the sector’s valuations will fall, but leading developers’ valuations will rebound. Downgrade to MARKET WEIGHT.

UOB
Nick Liu Sunliang ...
  • Shaun Tan

China Property - Weekly: Performances will continue to improve.

Last week (14-20 July), 32,842 new houses were sold in the 30 cities we monitor, down 11.46% wow. Transaction area totalled 3.49m sqm, down 10.17% wow. New inventory in 15 cities increased 9.42% wow. Transaction-to-new-launch ratio reached 0.97x, lower than the 1.30x in the week of 7-13 July. Leading developers are trading at 4.12-9.45x 2019F PE and at a 22.7-67.5% discount to last week's NAV. Maintain OVERWEIGHT.

UOB
Nick Liu Sunliang

China Property - Weekly: Financing channel may not tighten further.

Last week (7- 13 July), 37,011 new houses were sold in the 30 cities we monitor, down 6.0% wow. Transaction area totalled 3.87m sqm, down 6.1% wow. New inventory in 15 cities increased 61.3% wow. Transaction-to-new-launch ratio reached 1.30x, higher than the 0.75x in the week of 30 June-6 July. Leading developers are trading at 4.1-9.2x 2019F PE and at a 21.4-65.2% discount to NAV last week. Maintain OVERWEIGHT.

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