SEHK:331Construction
FSE Lifestyle Services (SEHK:331) Dividend Cut Reinforces Market Caution Despite Low P/E and Undervaluation
FSE Lifestyle Services (SEHK:331) enters the earnings season trading at a Price-to-Earnings Ratio of 5.9x. This is considerably lower than its peer average of 50x and also below the Hong Kong Construction industry average of 10.3x. Despite its share price of HK$5.9 sitting under the estimated fair value of HK$13.22 based on discounted cash flow analysis, the company has seen negative earnings growth over the past year following a track record of high quality earnings.
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