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    Yuexiu Property (SEHK:123) Looks Cheap Following Its 90% To 95% Profit Warning

    Simply Wall St·07/20/2026 19:25:23
    語音播報

    Yuexiu Property (SEHK:123) has warned that profit attributable to equity holders and core net profit for the first half of 2026 are expected to decline by about 90% to 95% compared with a year earlier.

    See our latest analysis for Yuexiu Property.

    At a share price of HK$3.72, Yuexiu Property has seen short term share price momentum pick up, with a 1-day share price return of 1.64% and a 7-day share price return of 6.59%. However, the year to date share price return is down 7.46% and the 1-year total shareholder return has declined 17.85%, pointing to fading longer term momentum even as the company issues sharply weaker profit guidance and continues to add to its Guangzhou land bank.

    If you are weighing how this profit warning fits into your broader portfolio, it can help to look at other areas of the market too, including 108 top founder-led companies

    Bulls may see Yuexiu Property’s profit warning and Guangzhou land purchase as setting up a recovery, while bears focus on shrinking earnings and weak margins. Which side do the current numbers lean toward as valuation comes into focus?

    Preferred Multiple of 0.1x: Is it justified?

    Based on current data, Yuexiu Property looks cheap on a P/S multiple, with the stock trading at around 0.1x sales while still reflecting weak recent profitability.

    The P/S ratio compares the company’s market value to its revenue, which can be useful for real estate developers where earnings can be volatile from project timing. For Yuexiu Property, the combination of a low P/S and thin net profit margins of 0.06%, down from 1.2% a year earlier, suggests the market may be giving limited credit to current earnings quality and recent profit trends even though earnings are assessed as high quality.

    Against peers, Yuexiu Property’s 0.1x P/S is well below both the Hong Kong real estate industry average of 0.6x and the peer average of 0.5x. It is also below an estimated fair P/S ratio of 0.4x that the market could move toward if sentiment or fundamentals shift.

    Explore the SWS fair ratio for Yuexiu Property

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

    However, Yuexiu Property still faces risks from shrinking annual revenue and a 3 year total shareholder return that has declined about 50%, which can pressure sentiment.

    Find out about the key risks to this Yuexiu Property narrative.

    Another view on Yuexiu Property’s value

    While Yuexiu Property looks inexpensive on a 0.1x P/S ratio, the SWS DCF model presents a contrasting picture, with an estimated future cash flow value of HK$110.59 per share. This figure is very large compared with the current HK$3.72 price, so which signal should carry more weight for you?

    Look into how the SWS DCF model arrives at its fair value.

    123 Discounted Cash Flow as at Jul 2026
    123 Discounted Cash Flow as at Jul 2026

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Yuexiu Property for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 238 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

    Next Steps

    Sentiment around Yuexiu Property is clearly mixed. If you are interested in this stock, review the data now and weigh both the 4 key rewards and 3 important warning signs

    Looking for more investment ideas beyond Yuexiu Property?

    If Yuexiu Property has your attention, do not stop here. Broaden your watchlist now, or you risk missing other opportunities that might fit your goals even better.

    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.