The Wharf Holdings (0004.HK)
Real Estate · HKEX · Hong Kong
Fundamentals
Valuation and ratings
The Wharf Holdings trades at HK$19.13, which is 116% below the HK$41.36 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 51 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 940.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About The Wharf Holdings
The Wharf (Holdings) Limited was the 17th company registered in Hong Kong and is currently the 7th with the longest history. Wharf is also one of the 30 constituent stocks in the original Hang Seng Index from the 1960s. The Group upholds a long-standing mission of (Building for Tomorrow). With a proven track record in management and execution, the Group's businesses comprise Investment Properties, Development Properties and Hotels in Hong Kong and Mainland China. Other businesses include Logistics Infrastructure through Modern Terminals and Hong Kong Air Cargo Terminals. In Hong Kong, the Group's exclusive Peak Portfolio, comprising a rare collection of unique properties, features the highest bespoke quality and craftsmanship catering to the demands of a privileged and discerning clientele. As at the end of 2024, the Group's attributable land bank in Hong Kong was about 2.8 million square feet, of which about 550,000 square feet on The Peak. The Group's Mainland China Investment Properties are led by the International Finance Squares (IFS) at the very heart of CBD in select cities. IFS developments in Chengdu and Changsha have become trendsetting landmarks with unrivalled location, superior planning and design, retailer and shopper critical mass and top-notch management. The Mainland China Development Properties land bank further depleted to 1.2 million square meters at the end of 2024. The bulk of unsold stocks are commercial properties in grossly over-supplied markets. Wharf Hotels operates 16 hotels across Hong Kong, Mainland China and the Philippines under three brands Niccolo, Marco Polo and Maqo. The Group wholly owns four of these properties and holds 50% stake in another. In June 2024, a third hotel owned by the Group at Changsha IFS opened under a park Hyatt flag. The Group also owns and operates Modern Terminals, which operates container terminals in Hong Kong and Shenzhen, and is a founding partner in Hong Kong Air Cargo Terminals. Both have been key components for Hong Kong's success as an international trade and transportation hub for decades. Building for Tomorrow also extends to Wharf's (Business-in-Community) (BIC) commitment. Flagship school improvement program (Project WeCan) grows from strength to strength along with a series of BIC initiatives, with an aim of helping different segments of society in Hong Kong and the Mainland. The Group has also been devoting effort to embrace sustainable practices in our businesses to build a more sustainable future. Recognizing the impact of climate change, the Group works towards its 2030 targets to minimize carbon emissions and explores energy efficiency and renewable energy in operations. The Group has also committed to setting science-based targets and has submitted near-term targets for validation by the Science Based Targets initiative (SBTi). The Group was recognized with a host of awards for its business achievements and contributions to the community. The Wharf (Holdings) Limited was founded and incorporated in 1886 in Hong Kong.
0004.HK passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is The Wharf Holdings (0004.HK) undervalued?
Against our discounted cash flow estimate of HK$41.36, 0004.HK at HK$19.13 is 116% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 0004.HK's P/E ratio?
0004.HK trades at 940.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.