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    Country Garden (SEHK:2007) Leadership Shake-Up Sparks Fresh Look at Its Depressed Price-to-Sales Valuation

    Simply Wall St·12/15/2025 11:13:33
    語音播報

    Country Garden Holdings (SEHK:2007) just reshuffled its top ranks, moving long time president Mo Bin into a co chairman role while elevating Cheng Guangyu to president, paired with fresh November sales figures.

    See our latest analysis for Country Garden Holdings.

    Even with the leadership reshuffle and November’s RMB 2.35 billion in attributable contracted sales, sentiment remains fragile. A 1 month share price return of negative 11.11% and a 5 year total shareholder return of negative 94.76% underscore fading momentum.

    If this kind of turnaround story has you reassessing your watchlist, it could be worth exploring fast growing stocks with high insider ownership as a way to uncover other high conviction ideas beyond the big names.

    With new leadership in place but the share price still languishing after years of heavy losses, are investors looking at a deeply discounted recovery play here? Or is the market already bracing for weaker growth ahead?

    Price-to-Sales of 0.1x: Is it justified?

    On a price-to-sales basis, Country Garden looks heavily discounted, with its 0.1x multiple suggesting the HK$0.48 share price reflects deep pessimism compared with peers.

    The price-to-sales ratio compares the company’s market value with the revenue it generates. It can be a useful gauge for loss-making or cyclical property developers where earnings are volatile or negative.

    For Country Garden, the 0.1x level stands far below both the estimated fair price-to-sales ratio of 0.2x and the Hong Kong real estate industry average of 0.7x. This implies the market is pricing in a much weaker revenue and margin outlook than those benchmarks and that there could be room for a re-rating if conditions stabilize.

    Compared with similar companies, Country Garden also appears inexpensive relative to a 0.3x peer average price-to-sales ratio. This reinforces the impression that investors are applying a steep discount that could narrow if sentiment improves.

    Explore the SWS fair ratio for Country Garden Holdings

    Result: Price-to-Sales of 0.1x (UNDERVALUED)

    However, significant risks remain, including sharply contracting revenue and ongoing net losses, which could pressure liquidity and derail any sustained valuation recovery.

    Find out about the key risks to this Country Garden Holdings narrative.

    Build Your Own Country Garden Holdings Narrative

    If you see the story differently or want to dig into the numbers yourself, you can build a customized view in just minutes, Do it your way.

    A great starting point for your Country Garden Holdings research is our analysis highlighting 2 important warning signs that could impact your investment decision.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.