China Overseas Land & Investment (0688.HK)
Real Estate · HKEX · Hong Kong
Fundamentals
Valuation and ratings
China Overseas Land & Investment trades at HK$13.66, which is 108% below the HK$28.40 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 32 out of 100, which is little in the way of a moat. 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 9.6 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 China Overseas Land & Investment
China Overseas Land & Investment Limited, an investment holding company, engages in the property development, commercial property operations, and other businesses in the People's Republic of China, the United Kingdom, and Macau. It is involved in the rental of properties; material procurement and supply chain management activities; issuance of guaranteed notes; property consultancy and real estate agency; and construction and building design consultancy activities. The company provides loan financing and security investment services; operates hotels; and develops and sells properties. In addition, the company engages in the investment and financing, land consolidation, regional planning, real estate development, engineering construction, industrial import, and property management businesses. Further, it offers urban services, including office buildings, flexible working space, shopping malls, star-rated hotels, long-term rental apartments, logistics parks, and architectural design and construction. The company was incorporated in 1979 and is based in Central, Hong Kong. China Overseas Land & Investment Limited is a subsidiary of China Overseas Holdings Limited.
0688.HK passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is China Overseas Land & Investment (0688.HK) undervalued?
Against our discounted cash flow estimate of HK$28.40, 0688.HK at HK$13.66 is 108% 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 0688.HK's P/E ratio?
0688.HK trades at 9.6 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.
The full research page for 0688.HK, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
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.