Yuexiu Property (SEHK:123) Valuation in Focus After Mixed October 2025 Sales Update

Yuexiu Property (SEHK:123) just released its October 2025 sales update, revealing an 8% decrease in contracted sales value and a 42% drop in gross floor area compared to the same period last year.

See our latest analysis for Yuexiu Property.

Yuexiu Property’s latest sales update arrives as the share price remains under pressure, closing at HK$4.70 after a year marked by persistent weakness. While recent news showed a modest pickup in year-to-date contracted sales value, overall momentum has been fading. The share price is down 7.66% so far this year and the total shareholder return is -20.11% over the past twelve months, which hints at continued caution among investors about the pace of recovery.

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With the stock trading below analyst price targets but facing recent sales setbacks, investors may wonder if Yuexiu Property offers an undervalued entry point or if the market has already accounted for its future prospects.

Price-to-Earnings of 30x: Is it justified?

With Yuexiu Property’s current share price at HK$4.70, the stock trades at a price-to-earnings (P/E) multiple of 30. This is significantly higher than both its peer average and the wider real estate industry.

The price-to-earnings ratio measures how much investors are willing to pay for every unit of earnings the company generates. For property developers like Yuexiu Property, it serves as a vital indicator of how the market values their ongoing profitability, factoring in future expectations and sector headwinds. A higher P/E often reflects optimism for outsized earnings growth or market resilience, but can also signal overvaluation if profit traction lags behind expectations.

This multiple stands well above the Hong Kong Real Estate industry average P/E of 13x and even exceeds the broader peer average of 28.9x. Compared to our own estimate of a fair P/E ratio (19.4x), the current premium is notable. This suggests that the market is pricing in far brighter prospects than what typical sector performance would justify.

Explore the SWS fair ratio for Yuexiu Property

Result: Price-to-Earnings of 30x (OVERVALUED)

However, persistent declines in revenue growth and below-sector returns could quickly challenge the case for a sustained valuation premium in the future.

Find out about the key risks to this Yuexiu Property narrative.

Another View: DCF Model Suggests Undervaluation

While the current price-to-earnings ratio points to overvaluation, our SWS DCF model tells a different story. Based on discounted cash flow analysis, Yuexiu Property’s share price sits far below its estimated fair value. Could the market be mispricing future cash flows, even as challenges remain?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Yuexiu Property for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 855 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Yuexiu Property Narrative

Whether you see things differently or want to test your own thesis, you can easily examine the data for yourself and craft a personal perspective in just a few minutes with Do it your way.

A great starting point for your Yuexiu Property research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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