$LINK REIT(00823.HK)
📉 Link REIT (0823.HK): Value Trap or Bargain?
Link REIT is showing a clear gap between its short-term price action and actual fundamentals. Here is the full picture.
🔷Technical Signals-4 hourly chart
• Bearish Trend: Units fell sharply from HK$39.60 to HK$36.80.
• Oversold: 14-day RSI at 27.80, deep in oversold territory selling pressure may ease.
• Support Levels: Price has broken below the lower Bollinger Band at HK$36.85. Next support sits around HK$35.00 to HK$35.50.
🔷 Fundamental Snapshot
1️⃣ Huge Valuation Discount:
P/B ratio just 0.64. A massive 36% discount to its net asset value of HK$57.75.
2️⃣ Solid Yield:
6.89% dividend yield, very attractive steady income for investors.
2️⃣ Accounting vs Reality:
Statutory negative EPS of -HK$2.86 comes from non-cash property revaluations.
It does not mean the business is underperforming.
⚖️ Long-Term Outlook
🟢 Bull Case: Essential retail assets, stable cash flow, high yield and a large margin of safety on asset value.
🔴 Bear Case: Hong Kong retail headwinds, falling rental rates and high interest rates could keep weighing on the price longer.
Is this 36% discount enough margin of safety for you or are you waiting for the trend to turn first? 🙄
Not financial advice. Please do your own DD.
