Nam Tai Property Inc., through its subsidiaries, owns, develops, and operates technology parks in the People's Republic of China. It focuses on redeveloping three parcels of land in Gushu and Guangming, Shenzhen into technology parks, as well as rents properties. The company was formerly known as Nam Tai Electronics, Inc. and changed its name to Nam Tai Property Inc. in April 2014. Nam Tai Property Inc. was founded in 1975 and is headquartered in Shenzhen, the People's Republic of China.

China

Nam Tai Property Inc.

Real Estate

The company pays dividends on rare occasions. There have only been a few years with dividend payments in the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are somewhat mixed. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. 

NTPIF reported revenue of USD 0mn in the last 12 months, down 0% from FY22. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS fell 0% from FY22 to USD 0.00.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). The stock has outperformed this peer group by 161ppts over past six months and grown 16ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is 'fair'.

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.1 in the past several years. This ratio implies a weak shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

NTPIF has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is very unstable and becomes extremely unfavourable on the days with the lowest activity. However, under highly turbulent market conditions, the trading volume tends to improve significantly. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a very small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note resilient historical revenue growth, low margin volatility, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to bleak profitability, negligible return on capital, poor working capital management, inadequate interest coverage, and poor cash flow generation.

In highly turbulent market conditions, NTPIF is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, NTPIF is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

Nam Tai Property Inc.

$ 4.25

2

Nam Tai Property Inc.

$ 4.25

2

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

$ 4.25

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