--- title: "Poly Property Group (SEHK:119) Valuation Check After April 2026 Contracted Sales Update" type: "News" locale: "en" url: "https://longbridge.com/en/news/285849168.md" description: "Poly Property Group (SEHK:119) reported April 2026 contracted sales of CN¥4.2b, indicating improved momentum with a share price increase of 20.73% over the past week and 61.92% over the past year. The stock trades at a P/E of 34.3x, below peers but high compared to the Hong Kong real estate sector average of 10.8x. A DCF analysis suggests a fair value of HK$5.10, indicating a potential undervaluation. Investors are advised to weigh P/E and cash flow perspectives when assessing the stock's value and risks." datetime: "2026-05-10T18:20:59.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285849168.md) - [en](https://longbridge.com/en/news/285849168.md) - [zh-HK](https://longbridge.com/zh-HK/news/285849168.md) --- # Poly Property Group (SEHK:119) Valuation Check After April 2026 Contracted Sales Update ## April contracted sales update and why it matters Poly Property Group (SEHK:119) reported contracted sales of about CN¥4.2b for April 2026, providing a fresh data point on how its real estate development projects are converting into signed deals. See our latest analysis for Poly Property Group. Against this sales backdrop, Poly Property Group’s share price at HK$2.33 sits on a 7 day share price return of 20.73% and a 1 year total shareholder return of 61.92%. This points to recently improving momentum after a quieter few months. If April’s sales update has you rethinking where growth and income might come from next, it could be worth scanning beyond property stocks and checking out the 99 top founder-led companies With the stock up 62% over the past year and trading below some analysts’ price targets, the key question now is whether Poly Property Group still trades at a discount or if the market is already pricing in future growth. ## Preferred P/E of 34.3x: Is it justified? Poly Property Group currently trades on a P/E of 34.3x, which sits well below its peer average but well above the broader Hong Kong real estate sector. The P/E ratio compares the share price with earnings per share and is often used to gauge how much investors are paying for each unit of current earnings. For a property developer with cyclical earnings and exposure to project timing and one off items, that yardstick can influence how investors interpret both recent results and future potential. Against direct peers, Poly Property Group is described as good value based on its P/E of 34.3x versus a peer average of 75.1x. This suggests the stock is priced at a discount to companies with similar business profiles. Set against the wider Hong Kong real estate industry, however, the picture flips. The current 34.3x P/E is framed as expensive compared with the industry average of 10.8x and is well above an estimated fair P/E of 8.6x that the market could move towards over time. That contrast, cheap against peers but rich against the industry and fair ratio, underlines how sensitive the investment case is to what investors assume about future earnings quality and recovery paths. Explore the SWS fair ratio for Poly Property Group **Result: Price-to-earnings of 34.3x (OVERVALUED).** However, recent declines in revenue and net income, along with Poly Property Group’s reliance on property development revenues, could challenge investor confidence if earnings recovery stalls. Find out about the key risks to this Poly Property Group narrative. ## Another view on value While the P/E screen suggests Poly Property Group is expensive against the wider Hong Kong real estate sector, our DCF model points the other way. At HK$2.33, the stock sits below an estimated future cash flow value of HK$5.10, which implies a wide valuation gap. That kind of disconnect between earnings based and cash flow based views raises a practical question for you as an investor: which signal should carry more weight for your own process, the P/E check or the cash flow view from the SWS DCF model? Look into how the SWS DCF model arrives at its fair value. 119 Discounted Cash Flow as at May 2026 Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Poly Property Group 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 231 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 The mix of risks and rewards around Poly Property Group can feel finely balanced, so it makes sense to review the numbers yourself and move quickly to shape your own view, starting with the 2 key rewards and 3 important warning signs ## Looking for more investment ideas? If Poly Property Group has sharpened your thinking, do not stop here. Broaden your watchlist with focused stock ideas built from clear fundamentals and risks. - Target robust businesses with strong cash generation and quality metrics using the 231 high quality undervalued stocks. - Strengthen your income stream by scanning companies that look built to sustain higher yields with the 481 dividend fortresses. - Prioritise resilience by focusing on companies that score well on financial stability through the 306 resilient stocks with low risk scores. _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._ ### **New:** Manage All Your Stock Portfolios in One Place We've created the **ultimate portfolio companion** for stock investors, **and it's free.** • Connect an unlimited number of Portfolios and see your total in one currency • Be alerted to new Warning Signs or Risks via email or mobile • Track the Fair Value of your stocks Try a Demo Portfolio for Free ### Related Stocks - [00119.HK](https://longbridge.com/en/quote/00119.HK.md) ## Related News & Research - [Poly Property Group Posts RMB15.4 Billion in Contracted Sales for First Four Months of 2026](https://longbridge.com/en/news/285700164.md) - [Ravelin Properties REIT Reports First Quarter 2026 Results | SLTTF Stock News](https://longbridge.com/en/news/286625033.md) - [A Look At China Overseas Land & Investment (SEHK:688) Valuation After Upbeat Broker Reports On Sector Recovery](https://longbridge.com/en/news/286679974.md) - [Tikehau Capital: Disclosure of Shares Repurchases From 8 May 2026 to 14 May 2026](https://longbridge.com/en/news/286788898.md) - [‘Chicken wine’ ad banned for implying alcohol is therapeutic](https://longbridge.com/en/news/287029011.md)