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    Why Yuexiu Property (SEHK:123) Is Back In The Spotlight

    Simply Wall St·09/12/2026 18:19:37
    語音播報

    Yuexiu Property (SEHK:123) has drawn fresh attention after securing two residential land parcels in Guangzhou’s Tianhe District for RMB 2,480.95 million, shortly after releasing August contracted sales figures.

    Despite the new Guangzhou land win and August contracted sales update, Yuexiu Property’s share price has slid. The 30-day share price return is down 20.08% and the 90-day share price return is down 29.78%, while the 1-year total shareholder return has declined 39.63%, pointing to fading momentum as investors reassess execution and sector risk.

    Spot potential rebound candidates around Yuexiu Property’s sector by scanning our hand picked 183 high quality undervalued stocks, which pairs compressed share prices with solid fundamentals.

    Yuexiu Property is committing fresh capital to Guangzhou residential land while the share price has been sliding, which puts you on a simple fork in the road: step in after this pullback or wait for a cheaper entry as the valuation picture clears.

    Preferred Price-to-Sales of 0.1x for Yuexiu Property: Is it justified?

    On simple revenue terms, Yuexiu Property trades on a P/S of 0.1x, which is far lower than both its peers and the wider Hong Kong real estate sector.

    The P/S ratio compares the company’s market value to its annual sales and is often used for property developers that are currently loss making or have volatile earnings. For Yuexiu Property, this metric anchors valuation to HK$75,532.12m of reported revenue rather than to net income, which is currently in a loss position.

    Relative to the Hong Kong real estate industry average P/S of 0.6x, the stock’s 0.1x multiple is deeply discounted. It also sits below the estimated fair P/S of 0.4x that the SWS model suggests could be a more typical level for the business over time. Those gaps indicate the market is assigning a heavy penalty to the shares.

    On top of that, the SWS DCF model indicates further valuation support, with Yuexiu Property at HK$3.13 trading well below an estimated future cash flow value of HK$94.50. The DCF framework estimates a fair value by projecting future cash flows for the group and then discounting them back to today using a required rate of return. That approach can be useful for a developer with weak current profitability because it focuses on the long run cash generation profile rather than a single difficult year.

    To see how the SWS DCF model works in detail and what sits behind that HK$94.50 figure, Look into how the SWS DCF model arrives at its fair value.

    Result: Preferred price-to-sales of 0.1x

    Still, Yuexiu Property carries clear risks, including ongoing losses on HK$75,532.12m of revenue and a 1 year total return that has declined 39.63%.

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

    Another View on Yuexiu Property’s Valuation

    The SWS DCF model offers a very different perspective on Yuexiu Property. At a share price of HK$3.13, the stock is compared with an estimated future cash flow value of HK$94.50. That gap suggests the market is heavily discounting the DCF scenario. Which signal do you trust more: price or model?

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

    123 Discounted Cash Flow as at Sep 2026
    123 Discounted Cash Flow as at Sep 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 183 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, with deep discounts on one side and clear execution questions on the other. Move fast, look through the data and pressure test the thesis yourself with the 3 key rewards and 1 important warning sign

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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.