Yuexiu Real Estate Investment Trust

SEHK:405 Stock Report

Market Cap: HK$4.9b

Yuexiu Real Estate Investment Trust Valuation

Is 405 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 405 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 405 (HK$0.97) is trading above our estimate of fair value (HK$0.34)

Significantly Below Fair Value: 405 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 405?

Key metric: As 405 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 405. This is calculated by dividing 405's market cap by their current revenue.
What is 405's PS Ratio?
PS Ratio2.2x
SalesCN¥2.06b
Market CapCN¥4.58b

Price to Sales Ratio vs Peers

How does 405's PS Ratio compare to its peers?

The above table shows the PS ratio for 405 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.1x
87001 Hui Xian Real Estate Investment Trust
1.5xn/aCN¥3.6b
435 Sunlight Real Estate Investment Trust
3.8x-6.3%HK$3.1b
1503 China Merchants Commercial Real Estate Investment Trust
2.5xn/aHK$1.4b
778 Fortune Real Estate Investment Trust
4.5x-0.3%HK$7.9b
405 Yuexiu Real Estate Investment Trust
2.2x0.2%HK$4.9b

Price-To-Sales vs Peers: 405 is good value based on its Price-To-Sales Ratio (2.2x) compared to the peer average (3.1x).

Price to Sales Ratio vs Industry

How does 405's PS Ratio compare vs other companies in the Asian REITs Industry?

0 CompaniesPrice / SalesEstimated GrowthMarket Cap
405 2.2xIndustry Avg. 7.5xNo. of Companies14PS048121620+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 405 is good value based on its Price-To-Sales Ratio (2.2x) compared to the Asian REITs industry average (7.5x).

Price to Sales Ratio vs Fair Ratio

What is 405's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

405 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.2x
Fair PS Ratio3.5x

Price-To-Sales vs Fair Ratio: 405 is good value based on its Price-To-Sales Ratio (2.2x) compared to the estimated Fair Price-To-Sales Ratio (3.5x).

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 405 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$0.97
HK$1.36
+39.8%
20.3%HK$1.67HK$1.00n/a3
Nov ’25HK$1.05
HK$1.36
+29.1%
20.3%HK$1.67HK$1.00n/a3
Oct ’25HK$1.18
HK$1.30
+9.8%
21.6%HK$1.70HK$1.00n/a4
Sep ’25HK$0.96
HK$1.28
+32.9%
21.2%HK$1.66HK$1.00n/a4
Aug ’25HK$0.99
HK$1.31
+32.5%
19.1%HK$1.67HK$1.05n/a4
Jul ’25HK$0.95
HK$1.31
+38.1%
19.1%HK$1.67HK$1.05n/a4
Jun ’25HK$0.98
HK$1.31
+33.9%
19.1%HK$1.67HK$1.05n/a4
May ’25HK$0.87
HK$1.31
+50.8%
19.1%HK$1.67HK$1.05n/a4
Apr ’25HK$1.01
HK$1.31
+29.9%
19.1%HK$1.67HK$1.05n/a4
Mar ’25HK$1.06
HK$1.47
+38.7%
11.3%HK$1.66HK$1.22n/a4
Feb ’25HK$1.06
HK$1.62
+52.8%
17.5%HK$2.02HK$1.22n/a4
Jan ’25HK$1.26
HK$1.64
+30.0%
17.6%HK$2.05HK$1.23n/a4
Dec ’24HK$1.23
HK$1.59
+29.4%
17.6%HK$1.99HK$1.20n/a4
Nov ’24HK$1.10
HK$1.59
+44.7%
17.6%HK$1.99HK$1.20HK$1.054
Oct ’24HK$1.32
HK$1.71
+29.8%
10.0%HK$2.00HK$1.55HK$1.184
Sep ’24HK$1.47
HK$1.71
+16.6%
10.0%HK$2.00HK$1.55HK$0.964
Aug ’24HK$1.58
HK$1.94
+23.0%
7.4%HK$2.04HK$1.70HK$0.994
Jul ’24HK$1.67
HK$2.21
+32.2%
10.0%HK$2.58HK$2.01HK$0.954
Jun ’24HK$1.82
HK$2.21
+21.3%
10.0%HK$2.58HK$2.01HK$0.984
May ’24HK$2.06
HK$2.21
+7.2%
10.0%HK$2.58HK$2.01HK$0.874
Apr ’24HK$2.00
HK$2.21
+10.4%
10.0%HK$2.58HK$2.01HK$1.014
Mar ’24HK$2.51
HK$2.67
+6.4%
26.8%HK$3.42HK$1.56HK$1.064
Feb ’24HK$2.61
HK$2.65
+1.4%
25.4%HK$3.36HK$1.62HK$1.064
Jan ’24HK$1.97
HK$3.15
+59.8%
36.4%HK$4.79HK$1.56HK$1.264
Dec ’23HK$1.83
HK$3.15
+72.1%
36.4%HK$4.79HK$1.56HK$1.234
Nov ’23HK$1.41
HK$3.15
+123.3%
36.4%HK$4.79HK$1.56HK$1.104

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.

Discover undervalued companies

China Merchants Commercial Real Estate Investment Trust

HK$1.4b

China Merchants Commercial REIT is a Hong Kong collective investment scheme authorised under section 104 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and its units are listed on the Main Board of the Stock Exchange of Hong Kong Limited (the “HKSE”).

1503

HK$1.22

7D

0.8%

1Y

-11.6%

Sunlight Real Estate Investment Trust

HK$3.1b

Listed on The Stock Exchange of Hong Kong Limited since 21 December 2006, Sunlight REIT (stock code: 435) is a real estate investment trust authorized by the Securities and Futures Commission and constituted by the trust deed dated 26 May 2006 (as amended and restated) (the "Trust Deed").

435

HK$1.83

7D

-2.7%

1Y

-9.9%

Hui Xian Real Estate Investment Trust

CN¥3.6b

Hui Xian Real Estate Investment Trust (“Hui Xian REIT”) is a real estate investment trust constituted by a deed of trust entered on 1 April 2011 between, amongst the others, Hui Xian Asset Management Limited (as manager of Hui Xian REIT), and DB Trustees (Hong Kong) Limited (“Trustee”) (as amended, modified or supplemented from time to time) (“Trust Deed”).

87001

CN¥0.55

7D

0%

1Y

-37.5%