- China Vanke Dollar Bonds Tumble to Record Lows as Crisis Worsens
Nov 27, 2025
(Bloomberg) -- China’s real estate sector suffered another blow after China Vanke Co. proposed delaying repayment on a local bond, sending some of its notes plunging to record lows and fueling concerns about Beijing’s willingness to support even the largest distressed developers.
Vanke, once the nation’s largest builder by sales, is seeking to delay paying principal on a 2 billion yuan ($283 million) note due Dec. 15, according to a filing to the Shanghai clearing house late Wednesday. The company’s dollar bond due in 2027 fell 17 cents Thursday morning to about 23 cents, the lowest since issuance in 2017. That brings losses on the note to 60% just this week.
Most Read from Bloomberg
Despite Star Architect’s Alleged Misconduct, New Harlem and Princeton Museums Shine High-Rises Are Changing the Slovak Capital of Bratislava Beyond Recognition Bikeshare Shouldn’t Kick Tourists to the Curb DC Mayor Bowser Won’t Seek Reelection in 2026
Volatility swirled among the firm’s onshore securities, in a market where low liquidity can amplify moves. After earlier declines that triggered trading halts issued in the Shenzhen Stock Exchange’s bid-ask quotation and trading system, some of Vanke’s yuan bonds rebounded in over-the-counter channels that aren’t subject to those halts. That sent one note that had earlier been near 40 yuan to about 90 yuan.
The developer’s surprise move to seek delaying repayment on local debt is another setback for the housing industry, which is still struggling to recover from years of sales declines and massive defaults by China Evergrande Group, Country Garden Holdings Co. and others. Vanke had long been considered one of the healthier property firms.
There were early signs of broader unease spreading. Other yet-to-default builders are also coming under pressure, with Longfor Group Holdings Ltd.’s dollar bond due in 2028 dropping 4 cents, set for the biggest daily decline in more than two years.
“Everyone’s core fear is simple,” said Li Huan, co-founder of asset manager Forest Capital (Hong Kong) Ltd. “If a flagship name like Vanke defaults or forces a big haircut, the contagion to the whole property sector and credit market will be massive.”
The company’s shares tumbled as much as 8.5% in Hong Kong to a record low earlier, before paring the decline to last trade down about 4%. The stock has lost more than a third of its value since a September peak. A Bloomberg gauge of Chinese developer shares fell 0.3%, extending its streak of losses to five days, the most since May.
The firm will arrange a meeting with holders of the yuan note on Dec. 10 to discuss the proposal, the firm said.
Story Continues
The suddenly mounting debt problems facing Vanke have become a key gauge of China’s stance on the real estate sector, which has been a drag on the economy for several years. Policymakers need to strike a delicate balance of trying to revive the moribund market without having to rescue individual firms.
Vanke’s bid to postpone repayment follows steep selloffs of its bonds and stocks this week.
“A default by Vanke would indicate that the government’s will to support the property sector is weakening” and would deepen the industry slump, said Leonard Law, a senior credit analyst at Lucror Analytics Pte. “This would also make it harder for other property developers to issue bonds for refinancing.”
The developer’s two notes maturing next month had been indicated close to par, a sign that investors were betting the debt would be paid on time. In addition to the Dec. 15 maturity, Vanke has a 3.7 billion yuan note due on Dec. 28.
Vanke’s largest shareholder, Shenzhen Metro Group Co., has extended about 30 billion yuan in loans to the cash-strapped builder, a crucial funding source that helped Vanke repay bonds this year. That lifeline was thrown into doubt after Shenzhen Metro signaled tighter borrowing terms for Vanke, one of China’s largest real estate companies.
“The extension is very surprising to the market,” said Yao Yu, founder of Shenzhen-based credit rating startup RatingDog, adding that support from Shenzhen Metro “has become suddenly meaningless.”
About 13.4 billion yuan of Vanke’s onshore bonds are due to mature or face redemption options by the end of June, according to Bloomberg calculations. That’s far more than the amount of untapped loans Vanke has available from Shenzhen Metro, based on their latest pact.
Vanke’s contracted sales for the first 10 months of the year were about 100 billion yuan, half the level of a year earlier. As of September, Vanke held about 60 billion yuan in cash, versus roughly 152 billion yuan in short-term debt, according to estimates from Bloomberg Intelligence analysts Daniel Fan and Hui Yen Tay.
The bond extension “could ease near-term maturity pressure, though around 13 billion yuan in bonds maturing by next June still face extension risk,” the BI analysts noted.
China has been considering new measures to turn around the housing market, such as subsidizing interest costs on new mortgages, people familiar with the matter said last week. Yet the effects of easing measures in September last year faded after a brief recovery.
“If Vanke’s bonds default at this time, it would undermine the effectiveness of government rescue policies,” said Li Gen, a founder of Beijing G Capital Private Fund Management Center, which focuses on China’s high-yield bond market. “It may accelerate the home price declines, and the creditworthiness of other state-owned developers would come under scrutiny.”
Global banks mostly have dim outlooks for China real estate, which has been experiencing a renewed sales slump since the second quarter. UBS Group AG expects home prices to fall for at least another two years. Fitch Ratings said last month that new home sales by area could decline 15%-20% from their current level before the sector stabilizes.
As they try to cushion against the impact from debt problems, authorities are keeping a close eye on borrowers. Financial regulators are stepping up scrutiny of bond market violations, focusing on disclosure failures related to debt defaults, particularly in the real estate sector, according to a report in the official Shanghai Securities News.
--With assistance from Qingqi She, Pearl Liu, Trista Xinyi Luo and Kari Lindberg.
(Adds local bond volatility)
Most Read from Bloomberg Businessweek
Pulte’s Move to Fix Credit Scores Is Bad News for Homebuyers The AI Industry Is Built on a Big Unproven Assumption Target Needs More Than a Vibe Shift to Turn Its Business Around The Dirty Secret of Biodegradable Plastic Permabull Tom Lee Sees Bitcoin as High as $200,000 by January’s End
©2025 Bloomberg L.P.
View Comments
- Does Longfor’s Recent 12% Rally Signal a Reversal in Fortune for 2025?
Sep 9, 2025
Wondering whether Longfor Group Holdings deserves a spot in your portfolio right now? You are not alone. With shares climbing 6.3% in just the last week and booking a substantial 10.3% gain over the past month, the stock has definitely caught investors’ attention. Year-to-date, Longfor is up 12.3%, and the 1-year return sits at an impressive 47.5%. These numbers are hard to ignore, especially considering the uncertainty that has hung over Chinese real estate stocks in recent years.
If you zoom out further, the picture gets a bit more complicated. Over three and five years, returns are still deeply negative at -53.9% and -66.8%, respectively. Those declines were largely fueled by sector-wide concerns about debt and liquidity risks, but the recent momentum hints that the market may be rethinking the risk profile for leading property developers, especially as government support and policy tweaks boost sentiment.
Here is where things get particularly interesting for value-minded investors. Longfor Group Holdings recently scored a 5 out of 6 on our valuation checklist, indicating that the company is currently undervalued in five key categories. This is a strong signal that there could be more gains ahead, at least from a valuation perspective.
Now let's break down those different valuation methods and see where Longfor stands. And if you are looking for the smartest way to evaluate whether the stock is right for you, keep reading for an approach that goes beyond the usual ratios and multiples.
Longfor Group Holdings delivered 47.5% returns over the last year. See how this stacks up to the rest of the Real Estate industry.
Approach 1: Longfor Group Holdings Discounted Cash Flow (DCF) Analysis
The Discounted Cash Flow (DCF) model projects Longfor Group Holdings' future free cash flows and discounts them back to today's value, offering an estimate of what the company is intrinsically worth. By focusing on cash generation potential rather than simple earnings or book value, DCF seeks to give a fuller picture of underlying value.
Longfor's latest twelve-month free cash flow stands at approximately CN¥29.38 Billion. Analyst estimates suggest free cash flow could rise to around CN¥39.78 Billion by the end of 2027. Projections further ahead, extrapolated by Simply Wall St, indicate free cash flow potentially reaching over CN¥105.34 Billion by 2035. This growth is factored into the DCF model, using a two-stage approach to account for faster growth in the near term and then transitioning to more stabilized growth over the long term.
Story Continues
Based on these projections, the DCF analysis estimates Longfor's intrinsic fair value at CN¥99.30 per share. This is significantly higher than the current trading price, implying the stock is trading at an 88.7% discount to its calculated fair value. Such a wide gap suggests the market may be underestimating the company’s cash generation potential and improvement in operating conditions.
Result: UNDERVALUED
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Longfor Group Holdings.960 Discounted Cash Flow as at Sep 2025
Our Discounted Cash Flow (DCF) analysis suggests Longfor Group Holdings is undervalued by 88.7%. Track this in your watchlist or portfolio, or discover more undervalued stocks.
Approach 2: Longfor Group Holdings Price vs Earnings
The Price-to-Earnings (PE) ratio is a widely used benchmark for valuing profitable companies because it links the share price to the company’s underlying earnings power. For investors, a lower PE can indicate a bargain, while a higher PE might suggest the stock is priced to reflect strong future growth or lower risk.
It is important to remember that what constitutes a “normal” or “fair” PE ratio varies across industries and market conditions. Companies with higher growth prospects or lower risk typically justify a higher PE, while those facing more uncertainty generally trade at a lower multiple.
Currently, Longfor Group Holdings trades at 9.2x earnings. This is noticeably lower than both the average PE of its real estate peers (18.6x) and the broader industry average of 13.7x. At first glance, the stock appears undervalued relative to these benchmarks.
However, Simply Wall St’s proprietary “Fair Ratio” provides a more tailored perspective. This metric takes into account important factors like Longfor’s earnings growth, profit margins, industry characteristics, market cap, and specific risks. Unlike a simple peer or industry comparison, the Fair Ratio (13.7x) better reflects where a balanced valuation should sit for this company at this time.
Comparing Longfor’s actual PE (9.2x) to its Fair Ratio (13.7x), the stock is trading well below what would be considered a fair value given its fundamentals and the wider market context. This suggests a meaningful margin of safety for investors considering the shares at current levels.
Result: UNDERVALUEDSEHK:960 PE Ratio as at Sep 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.
Upgrade Your Decision Making: Choose your Longfor Group Holdings Narrative
Earlier, we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives. A Narrative is simply the story you believe about a company’s future, connecting your expectations for things like revenue and profit growth to a fair value for the stock. Narratives bridge the gap between numbers and personal insight, helping you tie together Longfor Group Holdings’ journey, your assumptions, and the estimated share price in a clear and actionable way.
On Simply Wall St’s widely used Community page, Narratives are easy to create and explore. They offer a dynamic, visual way for millions of investors to refine their buy or sell decisions as new information emerges. Narratives also make it simple to compare your own view against others, revealing where your outlook differs and what fresh news might mean for your estimate of fair value versus the current market price.
For example, one investor might see Longfor’s fair value as quite high thanks to optimistic growth projections. Another may adopt a more cautious view with a much lower estimate based on slower expected recovery. Narratives make these different perspectives clear, actionable, and continuously updated as reality changes.
Do you think there's more to the story for Longfor Group Holdings? Create your own Narrative to let the Community know!SEHK:960 Earnings & Revenue History as at Sep 2025
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.
Companies discussed in this article include 0960.HK.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
View Comments
- Why Chinese property stocks are rallying sharply
Aug 25, 2025
Investing.com -- Chinese property stocks jumped on Monday as fresh measures in Shanghai to spur home purchases added to hopes of further government support for the struggling sector.
The HS Mainland Properties index, which tracks Chinese developers listed in Hong Kong, closed 2.7% higher Monday.
Gains came after Shanghai authorities waived property taxes for some first-time buyers and relaxed limits on how many homes can be purchased in the city’s suburban districts. Similar steps were introduced in Beijing earlier this month.
China Vanke (HK:2202) led the rally, soaring 10% to HK$5.68 and heading for its best day since April, even after reporting weaker first-half results.
The developer disclosed last week that Shenzhen Metro has provided about 24 billion yuan ($3.35 billion) in loans. Vanke has also repaid 24.39 billion yuan in public debt and faces no offshore maturities before 2027. Still, Zhang said the company is unlikely to return to profit before that year.
Vanke acknowledged its challenges but pointed to an improving policy backdrop, saying government “policies have continuously shown positive signals, promoting the recovery and stabilization of the real estate market.”
Other developers also advanced, supported by brighter market sentiment amid growing expectations of U.S. interest rate cuts. Sunac China (HK:1918) gained 6.6%, Sino-Ocean Group (HK:3377) added 6.8%, Ke Holdings (HK:2423) rose 6% and Kaisa Group (HK:1638) climbed 7.95%.
Longfor Properties (HK:0960) was up 6.7%.
- Here are the Top 10 Singaporean Analysts, According to TipRanks
Jan 14, 2025
Analysts help investors make informed investment decisions by predicting future market trends and evaluating a company’s financial health. Among these analysts, some are known for their high accuracy in predictions and reliable recommendations. TipRanks helps identify these Top analysts by ranking them based on success rate, average return, and number of recommendations. Today, TipRanks has recognized the 10 best Singaporean analysts for identifying the best investment opportunities.
Stay Ahead of the Market:
Discover outperforming stocks and invest smarter with Top Smart Score Stocks Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
But before we move ahead, it is important to highlight that we used TipRanks’ Expert Center tool to find analysts with a high success rate.
Now, let’s take a look at the Top 10 analysts, whose ratings were most successful over a one-year time frame, from October 2023 to September 2024.
#1. Paul Chew – Phillip Securities
Topping the list is Paul Chew from Phillip Securities, with an impressive overall success rate of 87% and an average return of 8.2%. Notably, his most remarkable rating has been on Oiltek International (SG:HQU), a provider of integrated engineering solutions for the edible oil refining and renewable energy industries. His Buy recommendation on HQU stock, spanning from August 7, 2024 to November 11, 2024, yielded a return of 40.6%.
#2. Sam Wong – Jefferies
Securing the second position is Jefferies analyst Sam Wong. Over a one-year timeframe, the analyst boasts an average return of 6.7% per rating and a success rate of 68%. His most outstanding rating has been on China Pacific Insurance (CHPXF), a Chinese insurance company. His Buy recommendation on CHPXF stock during the period from July 22, 2024 to October 22, 2024 produced a return of 42.7%.
#3. Kenneth Tan – CGS-CIMB
Kenneth Tan bags the third spot on the list, with an 88% overall success rate and an average return of 11.4%. His best recommendation has been on Singtel (SG:Z74) (SNGNF), a Singaporean telecommunications conglomerate. The analyst’s Buy call on SNGNF stock generated a stellar 61.8% return between June 19, 2024, and September 19, 2024.
#4. Adrian Loh – UOB Kay Hian
Adrian Loh holds the fourth position on the list. Over a one-year period ended September 2024, the analyst has a success rate of 70% and has witnessed an average return of 10.2%. Loh’s top recommendation is Seatrium (SG:5E2) (SMBMF), a provider of engineering solutions to the offshore, marine, and energy industries. The analyst generated a profit of 52.3% through his Buy recommendation on OGC stock from August 5, 2024 to November 5, 2024.
Story Continues
#5. Tabitha Foo – DBS
Tabitha Foo is placed fifth on the list. The analyst has a 68% overall success rate and a 9.3% average return per rating. Foo’s best recommendation has been on United Airlines (UAL), a major provider of U.S. domestic and international air travel services. The analysts’ Buy call on UAL stock generated a 59.8% return between July 18, 2024 and October 18, 2024.
#6. Pei Hwa Ho – DBS
DBS analyst Pei Hwa Ho is sixth on this list, with a success rate of 69% and an average return of 6%. Ho’s best call was a Buy on the shares of Seatrium. The recommendation generated a return of 55.2% from July 29, 2024, to October 29, 2024.
#7. Jonathan Koh – UOB Kay Hian
Carey MacRury is in seventh place. Between October 2023 and September 2024, the analyst generated an average return of 4.6% with a 68% success rate. His best recommendation was on Keppel DC REIT (SG:AJBU) (KPDCF), a Singapore-based real estate investment trust specializing in data center properties. The analyst delivered a return of 36.8% from the Buy call on the stock from September 13, 2024, to December 13, 2024.
#8. Glenn Thum – Phillip Securities
Phillip Securities analyst Glenn Thum ranks eighth on the list. Thum has a 74% success rate and an average return of 7%. His best rating was on software company Silverlake Axis (SLVFF). His Buy rating on the stock between November 20, 2024, and February 20, 2024, generated an impressive return of 36.2%.
#9. Foo Zhi Wei – Macquarie
Foo Zhi Wei holds the ninth spot on the list. He has a 78% success rate and an average return of 8.1%. Wei’s top recommendation was on Singtel. The Buy recommendation generated a return of 46.6% from June 20, 2024 to September 20, 2024.
#10. Jason Lam – DBS
Taking the tenth position is Jason Lam. The analyst has a 69% overall success rate and has witnessed an average return of 11.7%. His top recommendation was for an investment holding company, Longfor (LNGPF). Through his Buy call on LNGPF stock, Lam generated a solid return of 33.3% from March 9, 2024 to June 9, 2024.
Ending Thoughts
Despite macro uncertainty, these top analysts generated significant returns from their stock selections. By following Top Analysts’ ratings, investors can potentially enhance their portfolio’s profitability, as they have a track record of generating significant returns from their recommendations.
View Comments
- China stimulus draws investors back to offshore bonds of troubled property sector
Oct 3, 2024
By Xie Yu and Summer Zhen
HONG KONG (Reuters) - Some Chinese and global institutional investors are revisiting Chinese property bonds, betting on an improvement in outlook as the government accelerates efforts to boost economic growth and revive a property sector in the throes of a debt crisis.
Investors began returning after the announcement on Tuesday of the most aggressive stimulus measures since the pandemic, mostly targeting the property sector and triggering a rally in the offshore bonds of property developers.
Credit investment specialist Beijing G Capital Private Fund Management Center placed orders worth "a few dozens of millions of yuan" to buy property bonds for the first time in several months, said its chairman, Li Gen.
"We saw determination to revive the property sector ... which is a sea change" from efforts of recent years, said Li.
The rally underscores the extent to which the stimulus is restoring confidence in the sector, though analysts are split on prospects for revival in the near term.
The sector, a pillar of the world's second-largest economy, has lurched from one crisis to another since 2021 after a regulatory crackdown on debt-fuelled construction spooked investors and lenders alike, squeezing access to funds.
Sales slowed and many developers defaulted on repayment obligations, pushing the value of developers' U.S. dollar-denominated bonds to historic lows.
The bonds of leading developers which did not default - including China Vanke and Longfor Group - have been among the rally's biggest gainers.
Vanke dollar bonds maturing in November 2027 rose as far as 70 cents against the dollar as of Thursday from 49 cents before Tuesday's announcement, Duration Finance data showed.
Longfor dollar bonds due April 2027 reached 84 cents from 75 cents over the same time frame, the data showed.
Offshore bonds of developers that defaulted also perked up, with Country Garden's dollar bonds due September adding around 2 cents to trade at around 9.1 cents.
Story continues
The prices of property shares have also rallied since the announcement.
'POSITIVE STANCE'
Investor sentiment received a further boost two days after the stimulus announcement when China's leaders pledged to meet the 2024 economic growth target of roughly 5% and "stop decline" in the housing market.
On Sunday, Guangzhou became the first top-tier city to lift all curbs on home purchases, while Shanghai and Shenzhen said they would lower the minimum down payment ratio for first home buyers and make purchases by non-local buyers easier.
Enhanced Investment Products, a $400 million Hong Kong-based hedge fund, has been increasing its holdings of Vanke 2027 dollar bonds, said Chief Investment Officer Jason Jiang.
"While the stock rebound could be more significant, buying Vanke bonds provides a better safety margin," Jiang said.
A trigger for where the market will go next might be home sales data due for release after China's week-long Golden Week holiday which ends on Oct. 7, Jiang said.
Another Hong Kong-based credit fund manager said property bonds made up as much as 20% of their portfolio having stocked up before announcement thinking them over-sold.
It has been cashing out since due to uncertainty about whether the measures could lift new home sales enough to revive the sector in the near term, said the manager, declining to be identified as they were not authorised to speak to the media.
Distressed debt hedge fund Gramercy Funds Management, based in Greenwich in Connecticut, U.S., has a portfolio of bonds of defaulted developers, betting on a sector revival. The rally has boosted returns and improving macro and sector fundamentals will boost them further, said Deputy CIO Philip Meier.
"The latest actions by the Chinese authorities underpin our positive stance and substantially de-risk the case for owning these bonds," said Meier.
(Reporting by Xie Yu and Summer Zhen; Editing by Sumeet Chatterjee and Christopher Cushing)
- Chinese Stocks Jump After Top Leaders Vow Further Support for Economy
Sep 26, 2024
First it was the central bank. Now China's top political leaders are pledging to shore up the country's moribund economy and, in particular, its battered property sector. Here's how markets reacted to the Politburo's intervention: + In New York, the Nasdaq Golden Dragon Index jumped nearly 10%.
View comments
- China’s Housing Woes Push Vanke, Longfor Deeper Into Distress
Sep 10, 2024
(Bloomberg) -- Some of China’s most closely watched property developers slid by the most in months, after home sales data underscored a worsening real estate slump.
Most Read from Bloomberg
How Americans Voted Their Way Into a Housing Crisis World's Second Tallest Tower Spurs Debate About Who Needs It Chicago Halts Hiring as Deficit Tops $1 Billion Through 2025 UC Berkeley Gives Transfer Students a Purpose-Built Home on Campus The Plan for the World’s Most Ambitious Skyscraper Renovation
China Vanke Co.’s 3.5% dollar bond due 2029 was down about 5 cents on the dollar on Tuesday at 42.4 cents, the steepest daily decline since March 4.
Other developers also saw deep slumps. A 3.95% dollar bond due 2029 issued by Longfor Group Holdings Ltd. fell by around 2 cents to 65.1 cents, and is poised to touch its lowest price since May, according to Bloomberg compiled data.
Chinese builders are facing relentless pressure from continued declines in property sales and growing worries about their liquidity. Vanke’s contracted sales slid 24% in August from a year earlier, worsening from a 13% drop in July. The sagging sales data followed the company’s first half-year loss in more than two decades.
A Bloomberg index tracking Chinese real estate stocks fell by as much as 5.3% Tuesday morning, the biggest intraday decline since May after some property companies were removed from the China-HK stock connect. Shares of CIFI Holdings Group Co. fell as much as 29%, while Vanke was down as much as 3.1% in Hong Kong.
READ: China Property Shares Plunge After Removal From Stock Connect
“Investors are selling because of the weak property sales data and there’s no sign of stabilization in sight,” said Ting Meng, senior Asia credit strategist at Australia & New Zealand Banking Group Ltd. “It still needs a while for the industry to recover,” she added.
Earlier this month, S&P Ratings downgraded China Vanke’s long-term rating to BB- from BB+, citing reasons including poor sales and weakened liquidity. The ratings firm expects Vanke’s contracted sales to decline by 35% in 2024 and 18% in 2025.
Despite Chinese regulators’ efforts to jump start the real estate sector, the residential slump continues to deepen. In August, the value of new-home sales from the 100 biggest real estate companies fell about 26.8% from a year earlier to 251 billion yuan ($35.4 billion), according to preliminary data from China Real Estate Information Corp. That compares with a 19.7% decline in July.
“The market has been looking for more decisive policy support towards the property sector, unfortunately this has not been forthcoming,” said Clement Chong, head of fixed income research at Eastspring Investments. “Investors’ confidence around a sustained recovery in the property sector is not very high at the moment,” he added.
Story continues
(Updates with more details throughout)
Most Read from Bloomberg Businessweek
Putting Olive Oil in a Squeeze Bottle Earned This Startup a Cult Following ‘They Have Stolen Our Business’: When You Leave Russia, Putin Sets the Terms Learning to Manage People by Talking to a Bot The Average American Eats 42 Pounds of Cheese a Year, and That Number Could Go Up How Local Governments Got Hooked on One Company’s Janky Software
©2024 Bloomberg L.P.
View comments
- Cathay Pacific Airways Leads Three SEHK Dividend Stocks To Consider
Jul 14, 2024
Amidst a backdrop of global economic shifts and market recalibrations, the Hong Kong stock market remains a focal point for investors seeking stable returns through dividend-paying stocks. In this environment, understanding the characteristics that define resilient and potentially lucrative investments becomes crucial, especially in sectors like aviation where companies like Cathay Pacific Airways are prominent.
Top 10 Dividend Stocks In Hong Kong
Name Dividend Yield Dividend Rating CITIC Telecom International Holdings (SEHK:1883) 9.30% ★★★★★★ China Construction Bank (SEHK:939) 7.61% ★★★★★☆ S.A.S. Dragon Holdings (SEHK:1184) 8.86% ★★★★★☆ China Electronics Huada Technology (SEHK:85) 8.08% ★★★★★☆ Chongqing Rural Commercial Bank (SEHK:3618) 7.81% ★★★★★☆ International Housewares Retail (SEHK:1373) 8.89% ★★★★★☆ China Overseas Grand Oceans Group (SEHK:81) 8.36% ★★★★★☆ Bank of China (SEHK:3988) 7.09% ★★★★★☆ China Mobile (SEHK:941) 6.20% ★★★★★☆ Sinopharm Group (SEHK:1099) 4.44% ★★★★★☆
Click here to see the full list of 93 stocks from our Top SEHK Dividend Stocks screener.
Let's uncover some gems from our specialized screener.
Cathay Pacific Airways
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Cathay Pacific Airways Limited operates globally, providing international passenger and air cargo transportation services, with a market capitalization of approximately HK$53.69 billion.
Operations: Cathay Pacific Airways Limited generates its revenue primarily through its segments: Cathay Pacific at HK$85.34 billion, HK Express at HK$5.60 billion, Air Hong Kong at HK$3.45 billion, and Airline Services at HK$3.86 billion.
Dividend Yield: 5.2%
Cathay Pacific Airways has demonstrated a mixed performance as a dividend stock. While the company maintains a low dividend yield of 5.16% relative to Hong Kong's top dividend payers, its dividends are well-covered by earnings and cash flows, with payout ratios at 30.5% and 14.1%, respectively. Recent strategic moves include redeeming HK$9.98 billion in preference shares, enhancing financial flexibility but also reflecting potential volatility in future payouts due to unreliable historical dividend growth and forecasted earnings declines averaging -4.7% annually over the next three years.
Get an in-depth perspective on Cathay Pacific Airways' performance by reading our dividend report here. According our valuation report, there's an indication that Cathay Pacific Airways' share price might be on the cheaper side. SEHK:293 Dividend History as at Jul 2024
Bank of Communications
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Bank of Communications Co., Ltd. operates as a commercial bank offering a range of banking products and services, with a market capitalization of approximately HK$520.64 billion.
Story continues
Operations: Bank of Communications Co., Ltd. generates revenue primarily through its Corporate Banking Business at CN¥97.35 billion, Personal Banking at CN¥81.71 billion, and Treasury Business at CN¥20.99 billion.
Dividend Yield: 6.8%
Bank of Communications Co., Ltd. offers a stable dividend yield at 6.84%, underpinned by a modest payout ratio of 32.7%, suggesting that dividends are well-covered by earnings. Recent financial activities include the distribution of a final dividend of RMB 0.375 per share, with payment due on 31 July 2024, reflecting the company's commitment to returning value to shareholders despite its yield being slightly lower than the top quartile in Hong Kong's market. Additionally, leadership transitions with new appointments may influence strategic directions affecting future profitability and dividend sustainability.
Click here and access our complete dividend analysis report to understand the dynamics of Bank of Communications. Our expertly prepared valuation report Bank of Communications implies its share price may be lower than expected. SEHK:3328 Dividend History as at Jul 2024
Longfor Group Holdings
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Longfor Group Holdings Limited operates in property development, investment, and management across the People’s Republic of China, with a market capitalization of approximately HK$77.96 billion.
Operations: Longfor Group Holdings Limited generates revenue primarily through property development at CN¥155.86 billion, followed by services and others at CN¥18.14 billion, and investment property operations at CN¥12.94 billion.
Dividend Yield: 5.1%
Longfor Group Holdings Limited recently declared a reduced final dividend of RMB 0.23 per share, with the payout set for 22 August 2024. This follows a series of robust monthly sales results, including RMB 10.04 billion in June alone, indicating strong operational performance. However, despite these positive sales figures and a low payout ratio of 26.6%, which suggests earnings sufficiently cover the dividend, the company's dividend track record has been unstable over the past decade with recent decreases highlighting potential concerns for long-term sustainability in its dividend policy.
Click here to discover the nuances of Longfor Group Holdings with our detailed analytical dividend report. Upon reviewing our latest valuation report, Longfor Group Holdings' share price might be too pessimistic. SEHK:960 Dividend History as at Jul 2024
Turning Ideas Into Actions
Get an in-depth perspective on all 93 Top SEHK Dividend Stocks by using our screener here. Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly. Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.
Ready To Venture Into Other Investment Styles?
Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value.
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.
Companies discussed in this article include SEHK:293 SEHK:3328 and SEHK:960.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
View comments
- Exploring Three Dividend Stocks In May 2024
May 16, 2024
As global markets display resilience, with indices like the S&P 500 approaching record highs amidst a backdrop of economic recalibration and cautious investor sentiment, it's an opportune moment to consider the stability offered by dividend stocks. In light of recent market dynamics, a good dividend stock typically combines reliable payouts with strong business fundamentals, making them potentially attractive in uncertain economic climates.
Top 10 Dividend Stocks
Name Dividend Yield Dividend Rating Yamato Kogyo (TSE:5444) 3.48% ★★★★★★ Guaranty Trust Holding (NGSE:GTCO) 7.57% ★★★★★★ Globeride (TSE:7990) 3.56% ★★★★★★ Mitsubishi Shokuhin (TSE:7451) 3.45% ★★★★★★ HITO-Communications HoldingsInc (TSE:4433) 3.41% ★★★★★★ Kwong Lung Enterprise (TPEX:8916) 5.99% ★★★★★★ Banque Cantonale Vaudoise (SWX:BCVN) 4.57% ★★★★★★ Toyo Kanetsu K.K (TSE:6369) 3.80% ★★★★★★ GakkyushaLtd (TSE:9769) 4.11% ★★★★★★ Innotech (TSE:9880) 4.15% ★★★★★★
Click here to see the full list of 1828 stocks from our Top Dividend Stocks screener.
Let's explore several standout options from the results in the screener.
CCK Consolidated Holdings Berhad
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: CCK Consolidated Holdings Berhad is an investment holding company involved in the rearing and production of poultry, prawns, and seafood products, with a market capitalization of approximately MYR 757.48 million.
Operations: CCK Consolidated Holdings Berhad generates revenue primarily through its retail segment, which brought in MYR 872.83 million, followed by poultry at MYR 336.47 million, and prawns contributing MYR 109.56 million.
Dividend Yield: 3.1%
CCK Consolidated Holdings Berhad announced a dividend of MYR 0.0425 per share for FY 2023, reflecting a commitment to shareholder returns despite its historical volatility in dividend payments. The company's dividends are well-supported by earnings and cash flows, with payout ratios of 31.2% and 33.1% respectively, suggesting sustainability from a financial perspective. However, the dividend yield stands at a modest 3.15%, which is lower compared to the top quartile of Malaysian market payers at 4.41%. Recent board changes and strong yearly earnings growth indicate potential strategic shifts that could impact future dividends.
Click here and access our complete dividend analysis report to understand the dynamics of CCK Consolidated Holdings Berhad. Our valuation report here indicates CCK Consolidated Holdings Berhad may be undervalued. KLSE:CCK Dividend History as at May 2024
DB Insurance
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: DB Insurance Co., Ltd. offers a range of insurance products and services within South Korea, with a market capitalization of approximately ₩6.25 billion.
Story continues
Operations: DB Insurance Co., Ltd. generates revenue primarily from its Non-Life Insurance Sector, which contributes ₩19.04 billion, followed by the Life Insurance Sector at ₩1.50 billion, and a smaller contribution from the Installment Finance Sector at ₩0.04 billion.
Dividend Yield: 4.7%
DB Insurance Co., Ltd. has demonstrated a commitment to dividends, maintaining stable payments with a low cash payout ratio of 7.2% and an earnings payout ratio of 18.3%, ensuring dividends are well-covered by both earnings and cash flows. Despite only initiating dividends four years ago, the company has shown growth in its dividend payments. Currently, its dividend yield of 4.67% ranks in the top quartile within the KR market, outpacing the average of 3.47%. Recent corporate activities include an upcoming Q1 earnings report on May 10, 2024, following their Annual General Meeting on March 22, highlighting ongoing operational transparency and governance.
Unlock comprehensive insights into our analysis of DB Insurance stock in this dividend report. Insights from our recent valuation report point to the potential undervaluation of DB Insurance shares in the market. KOSE:A005830 Dividend History as at May 2024
Longfor Group Holdings
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Longfor Group Holdings Limited operates in property development, investment, and management across the People’s Republic of China, with a market capitalization of approximately HK$84.19 billion.
Operations: Longfor Group Holdings Limited generates revenue primarily through three segments: property development at CN¥155.86 billion, services and others at CN¥18.14 billion, and investment property operation at CN¥12.94 billion.
Dividend Yield: 4.3%
Longfor Group Holdings has experienced volatility in its dividend payments over the past decade, with recent decreases noted. Despite this instability, the dividends are well-supported by a low payout ratio of 26.6% from earnings and an even lower cash payout ratio of 11.6%. However, the dividend yield of 4.31% is below the top tier in Hong Kong's market. The company's financial position shows concern with debt not adequately covered by operating cash flow, alongside significant insider selling and a forecasted earnings growth of only 4.48% per year. Recent business expansions include acquiring new land for RMB 624 million but face challenges from declining sales and profitability in a tough real estate market.
Take a closer look at Longfor Group Holdings' potential here in our dividend report. In light of our recent valuation report, it seems possible that Longfor Group Holdings is trading behind its estimated value. SEHK:960 Dividend History as at May 2024
Key Takeaways
Unlock our comprehensive list of 1828 Top Dividend Stocks by clicking here. Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools. Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.
Looking For Alternative Opportunities?
Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value.
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.
Companies discussed in this article include KLSE:CCKKOSE:A005830 and SEHK:960.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
View comments
- Health Care Roundup: Market Talk
Feb 6, 2024
Vanda Pharmaceuticals, Cytokinetics and more in the latest Market Talks covering the Health Care sector.
