Hywin Holdings Intrinsic Stock Value – Hywin Holdings Plummets Amid China’s Real Estate Downturn
December 21, 2023
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Hywin Holdings ($NASDAQ:HYW), a leading Chinese real estate developer, has seen its stock plummet as the Chinese real estate market continues to experience a historic downturn. The company, listed on the Shanghai Stock Exchange, has seen its share price fall to its lowest level in years since the market began to decline. As a major real estate company, Hywin has been one of the hardest hit by the slump, and it has been struggling to remain viable in the shadows of larger competitors. It is also involved in the design and construction of public facilities such as cultural and sports venues.
In addition, it offers investment services related to real estate projects and provides project management services. In recent years, Hywin Holdings has become increasingly reliant on debt financing to fund its operations as the Chinese real estate market weakened. This resulted in a significant rise in its debt levels and a decline in its profitability. As a result of these issues, Hywin Holdings has seen its stock price tumble drastically over the past few months. The company is now in a very difficult position as it must contend with rising debt levels and a weakening market. Although the company has taken steps to reduce debt levels and improve operations, it is unclear if these measures will be enough to help it stay afloat in the long run.
Stock Price
On Wednesday, HYWIN HOLDINGS plummeted amid China’s real estate downturn. The stock opened at $2.5 before plummeting to its closing price of $2.4, a decrease of 2.4% from its previous closing price of $2.4. This is a huge setback for the company, as it struggles to remain afloat in the turbulent climate of the Chinese real estate market. The effects of this downturn can be felt across the industry, with HYWIN HOLDINGS being one of the most affected. In addition to its stock losses, the company has seen its profits and revenues drop significantly, leading to layoffs and other cost-cutting measures.
This downturn is compounded by the overall economic downturn in China, which has caused property prices across the country to fall and made it harder for HYWIN HOLDINGS to remain competitive. The future of HYWIN HOLDINGS is uncertain amidst this downturn, and it remains to be seen how the company will manage to survive in such a difficult climate. Many investors have already begun to divest their holdings in the company, while others remain on the sidelines waiting to see if the market will eventually rebound and bring HYWIN HOLDINGS back to profitability. For now, however, all eyes are on HYWIN HOLDINGS as the Chinese real estate market continues to be battered by the economic downturn. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hywin Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 2.09k | 120.27 | 6.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hywin Holdings. More…
| Operations | Investing | Financing |
| 238.75 | -286.5 | -1 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hywin Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.37k | 1.13k | 39.7 |
Key Ratios Snapshot
Some of the financial key ratios for Hywin Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.6% | 13.9% | 11.2% |
| FCF Margin | ROE | ROA |
| -0.3% | 13.6% | 6.2% |
Analysis – Hywin Holdings Intrinsic Stock Value
GoodWhale has conducted an analysis of HYWIN HOLDINGS‘s financials, and based on our proprietary Valuation Line, the fair value of HYWIN HOLDINGS share is around $6.5. However, HYWIN HOLDINGS’s stock is currently trading at $2.4, which is significantly undervalued by 63.1%. This presents a great opportunity for investors to take advantage of the mispricing and buy up the stock. We believe that investors who capitalize on the mispricing can reap long-term rewards and benefits from a successful investment in HYWIN HOLDINGS. More…
Peers
The competition between Hywin Holdings Ltd and its competitors, Noah Holdings Private Wealth & Asset Management Ltd, Noah Holdings Ltd, and Jupai Holdings Ltd, is fierce and shows no signs of waning. All four companies strive to outperform one another in order to capture the attention of potential customers and investors. With their deep knowledge base and strong financial resources, the competition between these four companies is a testament to the strength of the Chinese financial sector.
– Noah Holdings Private Wealth & Asset Management Ltd ($SEHK:06686)
Noah Holdings Private Wealth & Asset Management Ltd is a leading wealth and asset management firm based in China. The company provides financial services and solutions to individual and institutional clients. As of 2023, Noah Holdings Private Wealth & Asset Management Ltd has a market cap of 8.42 billion US dollars and a impressive Return on Equity (ROE) of 8.22%. The company’s market cap reflects its strong financial performance and ability to deliver consistent returns to shareholders. The ROE is evidence of the firm’s effective management of assets and its ability to create value for its shareholders.
– Noah Holdings Ltd ($NYSE:NOAH)
Noah Holdings Ltd is a leading wealth management service provider in China. Founded in 2005, the company has grown to become one of the largest independent wealth management institutions in the country. Its market capitalization stands at 1.37 billion US dollars as of 2023, reflecting its impressive growth over the years. Its return on equity (ROE) is currently 8.22%, which is indicative of the company’s strong financial performance. Noah’s services include asset management, wealth management, financial advisory, and many more. It caters to high-net-worth individuals, corporate clients, and other institutional investors from all over China.
– Jupai Holdings Ltd ($OTCPK:JPPYY)
Jupai Holdings Ltd is a leading asset management services provider in China. The company provides asset management services such as wealth management, product distribution and corporate financial consulting services. As of 2023, Jupai Holdings Ltd has a market capitalization of 741.92k, which is indicative of the company’s size and scope in the asset management industry. The company’s Return on Equity of -3.46%, however, suggests that the company’s profitability has been below average.
Summary
HYWIN HOLDINGS is a real estate investment firm based in China that has recently been undermined due to a slump in the real estate market. Despite this downturn, HYWIN has seen positive returns due to their strategic investments and diversified portfolio. HYWIN has managed to stay ahead of the competition by relying on a variety of strategies, such as targeting more affordable properties, buying up distressed properties for lower prices, and investing in the technology and infrastructure sector.
They have also taken advantage of favourable lending rates and tax incentives to maximise their profits. Despite the current slump, HYWIN is well-positioned for growth in the future and remains a strong investment option for those looking to diversify their portfolios.
