China Overseas Land & Investment Limited

SZSC:688 Stock Report

Market Cap: HK$143.6b

China Overseas Land & Investment Valuation

Is 688 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 688 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 688 (HK$13.12) is trading above our estimate of fair value (HK$7.66)

Significantly Below Fair Value: 688 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 688?

Key metric: As 688 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 688. This is calculated by dividing 688's market cap by their current earnings.
What is 688's PE Ratio?
PE Ratio6x
EarningsCN¥22.43b
Market CapCN¥133.69b

Price to Earnings Ratio vs Peers

How does 688's PE Ratio compare to its peers?

The above table shows the PE ratio for 688 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.2x
1113 CK Asset Holdings
7x1.4%HK$109.7b
1109 China Resources Land
5.3x4.9%HK$159.7b
12 Henderson Land Development
18.2x17.3%HK$118.1b
960 Longfor Group Holdings
6.4x4.5%HK$73.0b
688 China Overseas Land & Investment
6x5.7%HK$143.6b

Price-To-Earnings vs Peers: 688 is good value based on its Price-To-Earnings Ratio (6x) compared to the peer average (9.2x).

Price to Earnings Ratio vs Industry

How does 688's PE Ratio compare vs other companies in the HK Real Estate Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
29 Dynamic Holdings
0.3xn/aUS$226.69m
2768 Jiayuan International Group
1.4x31.6%US$151.18m
3883 China Aoyuan Group
0.06xn/aUS$126.28m
2117 Datang Group Holdings
1.2xn/aUS$87.18m
688 6.0xIndustry Avg. 7.2xNo. of Companies15PE0612182430+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 688 is good value based on its Price-To-Earnings Ratio (6x) compared to the Hong Kong Real Estate industry average (7.2x).

Price to Earnings Ratio vs Fair Ratio

What is 688'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.

688 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6x
Fair PE Ratio12.8x

Price-To-Earnings vs Fair Ratio: 688 is good value based on its Price-To-Earnings Ratio (6x) compared to the estimated Fair Price-To-Earnings Ratio (12.8x).

Analyst Price Targets

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

The above table shows the analyst 688 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$13.12
HK$16.80
+28.0%
15.3%HK$21.00HK$12.17n/a18
Nov ’25HK$15.50
HK$16.82
+8.5%
15.1%HK$21.00HK$12.37n/a18
Oct ’25HK$15.92
HK$16.10
+1.1%
13.1%HK$21.00HK$12.53n/a18
Sep ’25HK$12.38
HK$16.09
+29.9%
11.0%HK$21.00HK$12.70n/a18
Aug ’25HK$12.44
HK$17.74
+42.6%
14.6%HK$24.30HK$12.70n/a19
Jul ’25HK$13.54
HK$18.16
+34.2%
14.0%HK$24.30HK$13.10n/a20
Jun ’25HK$14.74
HK$18.05
+22.5%
14.3%HK$24.30HK$13.10n/a20
May ’25HK$14.58
HK$17.62
+20.9%
12.0%HK$21.00HK$13.10n/a20
Apr ’25HK$11.26
HK$17.63
+56.6%
13.3%HK$21.74HK$13.10n/a20
Mar ’25HK$11.44
HK$20.30
+77.5%
15.5%HK$26.88HK$15.30n/a20
Feb ’25HK$11.56
HK$20.59
+78.1%
14.4%HK$26.88HK$15.60n/a20
Jan ’25HK$13.76
HK$21.88
+59.0%
12.4%HK$26.88HK$15.60n/a21
Dec ’24HK$14.22
HK$22.43
+57.7%
10.9%HK$26.88HK$17.60n/a21
Nov ’24HK$14.88
HK$22.41
+50.6%
11.1%HK$26.88HK$17.60HK$15.5021
Oct ’24HK$16.24
HK$22.51
+38.6%
11.0%HK$26.88HK$17.60HK$15.9221
Sep ’24HK$16.54
HK$23.02
+39.2%
11.0%HK$27.90HK$17.60HK$12.3823
Aug ’24HK$18.38
HK$24.87
+35.3%
10.3%HK$31.00HK$19.35HK$12.4423
Jul ’24HK$17.08
HK$24.98
+46.3%
10.0%HK$31.00HK$19.35HK$13.5423
Jun ’24HK$15.70
HK$25.35
+61.4%
8.7%HK$31.00HK$20.48HK$14.7422
May ’24HK$19.84
HK$25.51
+28.6%
8.7%HK$31.00HK$21.08HK$14.5822
Apr ’24HK$18.96
HK$26.43
+39.4%
11.0%HK$31.50HK$21.21HK$11.2623
Mar ’24HK$20.40
HK$27.06
+32.7%
10.1%HK$31.50HK$21.21HK$11.4423
Feb ’24HK$21.40
HK$27.19
+27.1%
10.1%HK$31.50HK$21.59HK$11.5623
Jan ’24HK$20.60
HK$27.53
+33.6%
10.1%HK$32.20HK$21.60HK$13.7622
Dec ’23HK$20.45
HK$27.59
+34.9%
10.5%HK$32.20HK$21.60HK$14.2223
Nov ’23HK$15.14
HK$27.50
+81.6%
10.7%HK$32.20HK$21.60HK$14.8824

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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