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Hang Lung Group (0010) Fair Value & Analysis

Real Estate · HK · Market cap HK$17.1B

HL Hang Lung Group 0010 · HK
PriceHK$13.36
Fair ValueHK$17.88
Upside+33.8%
Quality66/100
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Healthy Growth
Solidly profitable · 13.1% net margin
Moderate debt · generates free cash flow
6.72% dividend yield
Ranks above peers (9/15)
Moderate moat 52/100
Evidence: Medium Range HK$12.83 – HK$36.72 Share as image

Fair value as of: Aug 2, 2026

From 16 valuation models · updated 8 days ago

Fair value updated Aug 2, 2026, revised from HK$23.05 to HK$17.88 (−22.4%) since Jul 1, 2026. Share price +3.8% over the past month.

A solid business, screening 34% undervalued on our models.

What matters now

  • The model range is unusually wide (HK$12.83 to HK$36.72). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (66/100) at a price below fair value, the discount is the argument here, not the business quality.
  • As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
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Price vs Fair Value (5 years)

HK$16.69 HK$7.08 Fair Value HK$17.88 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range HK$7.08 – HK$16.69 · fair‑value band HK$12.83 – HK$36.72 · the HK$13.36 price screens below the HK$17.88 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

Hang Lung Group (0010) currently trades at HK$13.36, while our model-based Fair Value estimate is HK$17.88, implying the stock looks roughly 33.8% undervalued today. The Quality Score stands at 66/100 (solid quality), in the Real Estate sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Hang Lung Group generated revenue of HK$10.5B at a net margin of 13.1%. Revenue declined 3.1% year over year. It earns a return on equity of 1.6%. Net debt stands at HK$48.6B. Fundamentals as of Aug 2, 2026

Our scenario range runs from HK$12.83 (bear case) to HK$36.72 (bull case); at HK$13.36, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 21% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Real Estate peers we cover trades at -2% fair-value upside, at 34%, 0010 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$1.55 HK$16.30 HK$36.96 80
Residual Income HK$50.55 HK$48.10 HK$36.43 76
Rev-Margin DCF HK$2.73 HK$22.91 HK$45.33 74
All 16 models by family
DCF Models
FCF DCF HK$0.8000 HK$17.09 HK$41.16 38
5Y Revenue Exit HK$2.73 HK$22.80 HK$48.03 39
5Y EBITDA Exit HK$13.51 HK$42.49 HK$75.71 41
10Y Revenue Exit HK$0.6000 HK$18.60 HK$41.91 36
10Y EBITDA Exit HK$8.52 HK$32.10 HK$62.57 37
Dividend Discount
Gordon GGM HK$7.90 HK$16.42 HK$26.05 70
DDM Multi-Stage HK$7.90 HK$12.38 HK$17.14 61
Multiples
P/S Multiple HK$12.83 HK$17.10 HK$21.38 58
P/B Multiple HK$12.83 HK$17.10 HK$21.38 55
EV/EBIT HK$43.01 HK$67.90 HK$92.79 53
EV/EBITDA HK$27.44 HK$47.14 HK$66.85 54
EV/Revenue HK$5.81 HK$21.88 HK$37.95 43
Asset-Based
NCAV (Graham) HK$36.31 HK$48.66 HK$72.62 50
Growth DCF
Growth DCF HK$1.55 HK$16.30 HK$36.96 80
Rev-Margin DCF HK$2.73 HK$22.91 HK$45.33 74
Economic Profit
Residual Income HK$50.55 HK$48.10 HK$36.43 76

Widest divergence: Asset-Based (HK$48.66) versus Dividend Discount (HK$12.38). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$10.5B
Revenue growth (YoY) -3.1%
Net margin 13.1%
Return on equity 1.6%
Free cash flow HK$4.0B FY2025
P/E ratio 12.5
More key figures
Operating margin 59.1%
EPS (TTM) HK$1.00
Dividend yield 6.7%
EPS growth (YoY) -6.7%
Net debt HK$48.6B FY2025

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 66/100

Of which business quality 64 · Market factors (momentum, volatility) 44

Profitability 21
Margins and returns on capital today
Quality Growth 59
Are margins and returns improving?
Cashflow 99
Earnings quality: real cash, not paper profit
Fin. Strength 47
Balance sheet, leverage, solvency risk
Investment 92
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 29
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Hang Lung Group Limited, an investment holding company, operates as a property developer in Hong Kong and Mainland China. It operates through Property Leasing, Property Sales, and Hotels segments. The company develops properties for sale and lease, such as retail, office, residential and serviced houses and apartments.

Full company description

Hang Lung Group Limited, an investment holding company, operates as a property developer in Hong Kong and Mainland China. It operates through Property Leasing, Property Sales, and Hotels segments. The company develops properties for sale and lease, such as retail, office, residential and serviced houses and apartments. It also operates hotels; and shopping malls, office and industrial premises, residential premises, and car parking bays. In addition, it offers property management; financial; apartment operation and management; management; property agency; and hotel investment services, as well as property investment services for rental income. Hang Lung Group Limited was incorporated in 1960 and is headquartered in Central, Hong Kong.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hang Lung Group reported revenue of HK$10.4B in FY2025 versus HK$10.9B in FY2021, a compound −1.2%/yr. Reported net income was HK$1.4B in FY2025, compounding −14.7%/yr from FY2021.

Growth Quality 73/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$10.4B
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.5%
Avg. growth/yr (31Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.5%
Revenue −1.2%/yr
FY21 HK$10.9B
FY22 HK$10.9B
FY23 HK$11.0B
FY24 HK$11.8B
FY25 HK$10.4B
Net income −14.7%/yr
FY21 HK$2.6B
FY22 HK$2.7B
FY23 HK$2.8B
FY24 HK$1.6B
FY25 HK$1.4B
Character of growth · EPS growth decomposed (2014-2025) −9.2 % p.a.
Revenue per share −2.5 pp

of which total revenue −2.5 pp · buybacks/dilution +0.0 pp

EBIT margin −1.6 pp
Tax rate −3.1 pp
Residual (interest, one-offs) −1.9 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Hang Lung Group Fair Value". https://www.fairvalue-calculator.com/stock/0010

Peer Group

Real Estate Services · 520 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 67 · Top 25%
Fair Value upside +34% · Above median
Return on equity (TTM) 2% · Below median
Return on assets 2% · Below median
Net margin (TTM) 13% · Above median
Operating margin (TTM) 59% · Top 25%
Revenue growth -3% · Below median
Dividend yield (TTM) 6.7% · Top 25%
Debt / equity 0.51× · Higher than median

Valuation Multiples vs Real Estate Services median · lower = cheaper

P/E (TTM) 12.5× · Pricier than median
P/B 0.17× · Cheaper than 75% of peers
P/S (TTM) 1.64× · Cheaper than median
P/FCF 0.5× · Cheaper than 75% of peers
EV/EBITDA 9.5× · Cheaper than median
PEG 5.82× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 78 · sector 37
FUTURE 0 · sector 10
PAST 6 · sector 16
HEALTH 75 · sector 85
DIVIDEND 100 · sector 49

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Real Estate Services stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
Vingroup Joint Stock Company VIC 223,000 VND 25,731 VND -88%
KE Holdings 2423 HK$44.76 HK$18.03 -60%
Swire Properties Limited 1972 HK$23.90 HK$18.75 -22%
Plaza S.A MALLPLAZA 3,725 CLP 5,571 CLP +50%
SAGAA SAGAA kr 170.00 kr 75.55 -56%
Cencosud Shopping S.A CENCOMALLS 2,324 CLP 2,976 CLP +28%
PT Sarana Menara Nusantara Tbk. owns and TOWR 372.00 IDR 1,208 IDR +225%
PT Metropolitan Kentjana Tbk MKPI 20,975 IDR 19,160 IDR -9%
PT Bangun Kosambi Sukses Tbk, CBDK 3,530 IDR 3,464 IDR -2%
IRSA Inversiones y Representaciones Sociedad Anónima, IRSA 2,495 ARS 3,998 ARS +60%

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Frequently asked questions

Is Hang Lung Group (0010) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of HK$17.88 versus a price of HK$13.36, about +34% (undervalued).
What is the fair value of 0010?
Our model-based fair value for Hang Lung Group is HK$17.88 (as of Aug 2, 2026), built from audited fundamentals. The current price is HK$13.36.
What is the quality score of 0010?
Hang Lung Group has a Quality Score of 66/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Hang Lung Group (0010)?
Hang Lung Group reported trailing-twelve-month revenue of about HK$10.5B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of 0010?
The net profit margin of Hang Lung Group is about 13.1%, meaning it keeps roughly 13.1% of revenue as net income. Based on the latest reported figures.
Does Hang Lung Group pay a dividend?
Hang Lung Group currently shows a dividend yield of about 6.72% relative to its recent price (as of Aug 2, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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