Should You Consider China Uptown Group Company Limited (HKG:2330)?

Simply Wall St

Attractive stocks have exceptional fundamentals. In the case of China Uptown Group Company Limited (HKG:2330), there's is a company that has been able to sustain great financial health, trading at an attractive share price. Below, I've touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, take a look at the report on China Uptown Group here.

Undervalued with excellent balance sheet

2330's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that 2330 manages its cash and cost levels well, which is a key determinant of the company’s health. 2330 appears to have made good use of debt, producing operating cash levels of 2.79x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. 2330 is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of 2330's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the real estate industry, 2330 is also trading below its peers, relative to earnings generated. This supports the theory that 2330 is potentially underpriced.

SEHK:2330 Price Estimation Relative to Market, September 21st 2019

Next Steps:

For China Uptown Group, I've put together three important factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for 2330’s future growth? Take a look at our free research report of analyst consensus for 2330’s outlook.
  2. Historical Performance: What has 2330's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 2330? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.