$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.