SEHK:1127Commercial Services
Lion Rock Group (SEHK:1127) Stock Cheapness Clashes With Thinner Margins
Lion Rock Group’s share price barely moved into these results, with a flat 7 day return and only a small lift over the past month, yet the earnings story is more charged than the price suggests. The headline is simple. Profitability has softened while the stock still trades on a low trailing P/E of 4.9x and well below a discounted cash flow estimate of HK$5.99 per share.
That mix of thinner margins and a wide valuation gap is what the market is wrestling with today. The rest of the numbers...