Poly Property Group Co., Limited

SHSC:119 Stock Report

Market Cap: HK$6.2b

Poly Property Group Valuation

Is 119 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 119 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 119 (HK$1.62) is trading below our estimate of fair value (HK$28.21)

Significantly Below Fair Value: 119 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 119?

Key metric: As 119 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 119. This is calculated by dividing 119's market cap by their current earnings.
What is 119's PE Ratio?
PE Ratio4.9x
EarningsCN¥1.18b
Market CapCN¥5.75b

Price to Earnings Ratio vs Peers

How does 119's PE Ratio compare to its peers?

The above table shows the PE ratio for 119 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.8x
28 Tian An China Investments
7.6xn/aHK$5.5b
81 China Overseas Grand Oceans Group
4.3x2.2%HK$6.8b
34 Kowloon Development
19.1xn/aHK$5.1b
3990 Midea Real Estate Holding
8.2x13.0%HK$4.5b
119 Poly Property Group
4.9x-2.1%HK$6.2b

Price-To-Earnings vs Peers: 119 is good value based on its Price-To-Earnings Ratio (4.9x) compared to the peer average (9.8x).

Price to Earnings Ratio vs Industry

How does 119's PE Ratio compare vs other companies in the HK Real Estate Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
29 Dynamic Holdings
0.3xn/aUS$227.42m
3883 China Aoyuan Group
0.07xn/aUS$153.39m
2768 Jiayuan International Group
1.4x31.6%US$151.18m
2117 Datang Group Holdings
1.2xn/aUS$87.18m
119 4.9xIndustry Avg. 7.2xNo. of Companies16PE0612182430+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 119 is good value based on its Price-To-Earnings Ratio (4.9x) compared to the Hong Kong Real Estate industry average (7.3x).

Price to Earnings Ratio vs Fair Ratio

What is 119's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

119 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.9x
Fair PE Ratio7.3x

Price-To-Earnings vs Fair Ratio: 119 is good value based on its Price-To-Earnings Ratio (4.9x) compared to the estimated Fair Price-To-Earnings Ratio (7.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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