<div id="readability-page-1"><div><p>HSBC Global Research recently highlighted Seazen Group (SEHK:1030) as a top pick among Chinese property developers after Shenzhen relaxed home purchase restrictions, drawing attention to how supportive policies could affect the stock.</p> <p>See our latest analysis for Seazen Group.</p> <p>Seazen Group’s share price at HK$2.21 has seen a 7 day share price return of 5.74% and a 30 day share price return of 6.76%. However, the 90 day share price return of 13.33% and 5 year total shareholder return of 70.91% point to momentum that has recently softened, despite a 1 year total shareholder return of 14.51% and 3 year total shareholder return of 30.00%.</p> <p>If you are looking beyond Chinese property stocks for other ideas, this is a good moment to widen your search and check out 97 top founder-led companies</p> <p>With the stock trading at HK$2.21, a value score of 1 and HSBC’s target price sitting higher at HK$2.98, you have to ask: is Seazen still undervalued, or are markets already pricing in future growth?</p> <h2>Price to Earnings of 35.7x: Is it justified?</h2> <p>On a P/E of 35.7x at a last close of HK$2.21, Seazen Group looks expensive against both its own fair ratio and the wider Hong Kong real estate sector.</p> <p>The P/E ratio compares the share price with earnings per share and is a quick way to see how much investors are paying for each unit of profit. For Seazen, a higher P/E can reflect expectations for the forecast earnings growth of 41.19% per year, even though reported earnings have declined by 63.8% per year over the past 5 years and saw a 19.9% contraction over the past year.</p> <p>Compared with the Hong Kong real estate industry average P/E of 10.4x, Seazen’s 35.7x multiple is much richer. It is also well above the estimated fair P/E of 23.4x that the market could move towards if pricing lines up more closely with its earnings profile.</p> <p>Explore the SWS fair ratio for Seazen Group</p> <p><strong>Result: Price-to-Earnings of 35.7x (OVERVALUED)</strong></p> <p>However, there are clear risks here, including annual revenue contraction of 21.35% and a 5 year total shareholder return of -70.91%.</p> <p>Find out about the key risks to this Seazen Group narrative.</p> <h2>Another View on Value</h2> <p>While the P/E of 35.7x looks expensive against both the Hong Kong real estate sector average of 10.4x and the fair ratio of 23.4x, the SWS DCF model presents an even starker picture. It shows an estimated future cash flow value of HK$0.11 compared with the current HK$2.21.</p> <p>This gap indicates that the share price may carry considerable valuation risk if cash flows align with that model. The key question is whether you think the market will continue paying a premium for earnings growth or move closer to cash flow value.</p> <p>Look into how the SWS DCF model arrives at its fair value.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/b2e2640c-162f-4dde-86fb-11140ae64db8/chart/dcf/query-ZGF0ZT0yMDI2LTA1LTA0?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/b2e2640c-162f-4dde-86fb-11140ae64db8/chart/dcf/query-ZGF0ZT0yMDI2LTA1LTA0"/><figcaption>1030 Discounted Cash Flow as at May 2026</figcaption></figure><p>Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Seazen 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 243 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.</p> <h2>Next Steps</h2> <p>Mixed signals like these can create both anxiety and opportunity. Move quickly, review the full picture, and weigh up the 1 key reward and 1 important warning sign</p> <h2>Looking for more investment ideas?</h2> <p>If Seazen has caught your attention, do not stop here. Broaden your watchlist now so you are not late to the next compelling opportunity.</p> <ul> <li>Target higher potential value by scanning companies that combine quality fundamentals with attractive pricing using the 243 high quality undervalued stocks.</li> <li>Strengthen your portfolio’s foundation by focusing on businesses with robust finances through the solid balance sheet and fundamentals stocks screener (386 results).</li> <li>Hunt for overlooked opportunities that the market may be missing with the screener containing 573 high quality undiscovered gems.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p><div><h3><strong>New: </strong>Manage All Your Stock Portfolios in One Place</h3><p>We've created the <strong>ultimate portfolio companion</strong> for stock investors, <strong>and it's free.</strong></p><p>• Connect an unlimited number of Portfolios and see your total in one currency<br/>• Be alerted to new Warning Signs or Risks via email or mobile<br/>• Track the Fair Value of your stocks<br/></p><p>Try a Demo Portfolio for Free</p></div></div></div>

01030

159768

515060

<p>HSBC Global Research has identified Seazen Group (SEHK:1030) as a top pick among Chinese property developers following Shenzhen's easing of home purchase restrictions. The stock, currently priced at HK$2.21, has shown mixed performance with a 90-day return of 13.33% but a concerning P/E ratio of 35.7x, significantly higher than the industry average of 10.4x. Despite expectations for earnings growth, risks include a 21.35% revenue contraction and a substantial decline in past earnings. Analysts suggest caution due to potential valuation risks.</p>

Simplywall

SEAZEN

Yinhua CSI Interior Real Estate Theme ETF

ChinaAMC CSI All Share Real Estate ETF

HSBC HOLDINGS

HSBC

HSBC Holdings Plc

HSBC 5xShortSG241213

Seazen Group (SEHK:1030) Valuation Check After HSBC Buy Rating And Shenzhen Policy Easing