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Champion Real Estate Investment Trust (2778) Fair Value & Analysis

Real Estate · HK · Market cap HK$12.7B

CR Champion Real Estate Investment Trust 2778 · HK
PriceHK$2.25
Fair ValueHK$2.80
Upside+24.4%
Quality56/100
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Weak Growth
Loss-making · -144.3% net margin
Low debt · generates free cash flow
6.12% dividend yield
Ranks above peers (9/13)
Narrow moat 35/100
Evidence: Medium Range HK$1.54 – HK$4.06 Share as image

Fair value as of: Aug 13, 2026

From 10 valuation models · updated 3 days ago

Share price +3.2% over the past month.

A solid business, screening 24% undervalued on our models.

What matters now

  • The model range is unusually wide (HK$1.54 to HK$4.06). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (56/100) 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$3.40 HK$1.26 Fair Value HK$2.80 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$1.26 – HK$3.40 · fair‑value band HK$1.54 – HK$4.06 · the HK$2.25 price screens below the HK$2.80 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Champion Real Estate Investment Trust (2778) currently trades at HK$2.25, while our model-based Fair Value estimate is HK$2.80, implying the stock looks roughly 24.4% undervalued today. The Quality Score stands at 56/100 (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.

Trailing-twelve-month revenue stands at HK$2.3B. Revenue declined 9.6% year over year. It earns a return on equity of -7.9%. Net debt stands at HK$13.8B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$1.54 (bear case) to HK$4.06 (bull case); at HK$2.25, 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 18% below its 52-week high and 20% above its 52-week low, currently below its 200-day average. For context, the median of 10 Real Estate peers we cover trades at -51% fair-value upside, at 24%, 2778 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$0.5500 80
Rev-Margin DCF HK$0.4000 HK$1.37 74
Gordon GGM HK$1.20 HK$1.31 HK$1.49 70
All 10 models by family
DCF Models
FCF DCF HK$0.6000 38
5Y Revenue Exit HK$0.3700 HK$1.50 39
10Y Revenue Exit HK$0.6100 36
Dividend Discount
Gordon GGM HK$1.20 HK$1.31 HK$1.49 70
DDM Multi-Stage HK$1.20 HK$1.51 HK$1.94 61
Multiples
EV/EBIT HK$1.91 HK$3.17 HK$4.43 53
EV/Revenue HK$0.7100 HK$1.48 43
Asset-Based
NCAV (Graham) HK$3.22 HK$4.31 HK$6.44 50
Growth DCF
Growth DCF HK$0.5500 80
Rev-Margin DCF HK$0.4000 HK$1.37 74

Widest divergence: Asset-Based (HK$4.31) versus DCF Models (HK$0.3700). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$2.3B
Revenue growth (YoY) -9.6%
Net margin -144%
Return on equity -7.9%
Free cash flow HK$737M FY2025
Operating margin 59.8%
More key figures
EPS (TTM) HK$-0.5400
Dividend yield 6.1%
EPS growth (YoY) +18.2%
Net debt HK$13.8B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 57 · Market factors (momentum, volatility) 48

Profitability 1
Margins and returns on capital today
Quality Growth 35
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 50
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 71
Calm price path (market factor)
Momentum 35
Price trend over the last 3–12 months (market factor)
52W Momentum 43
Distance to the 52-week high (market factor)
Net Issuance 73
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

Champion Real Estate Investment Trust is a trust formed to own and invest in income-producing office and retail properties. The Trust's focus is on Grade-A commercial properties in prime locations. It currently offers investors direct exposure to nearly 3 million sq. ft. of prime office and retail floor area.

Full company description

Champion Real Estate Investment Trust is a trust formed to own and invest in income-producing office and retail properties. The Trust's focus is on Grade-A commercial properties in prime locations. It currently offers investors direct exposure to nearly 3 million sq. ft. of prime office and retail floor area. These include two Hong Kong landmark properties, Three Garden Road and Langham Place, as well as joint venture stake in 66 Shoe Lane in Central London. Champion Real Estate Investment Trust was established on April 26, 2006 was incorporated in Hong Kong.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Champion Real Estate Investment Trust reported revenue of HK$2.3B in FY2025 versus HK$2.9B in FY2021, a compound −5.6%/yr. Reported net income was −HK$3.3B in FY2025.

Growth Quality 23/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$2.3B
Latest YoY
−7.9%
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.
−5.1%
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.
−5.3%
Avg. growth/yr (19Y) 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 −5.6%/yr
FY21 HK$2.9B
FY22 HK$2.7B
FY23 HK$2.5B
FY24 HK$2.5B
FY25 HK$2.3B
Net income
FY21 −HK$831M
FY22 −HK$749M
FY23 HK$221M
FY24 −HK$2.1B
FY25 −HK$3.3B

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Cite: Fair Value Calculator (2026). "Champion Real Estate Investment Trust Fair Value". https://www.fairvalue-calculator.com/stock/2778

Peer Group

REIT - Retail · 98 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 58 · Above median
Fair Value upside +24% · Top 25%
Return on assets 1% · Bottom 25%
Net margin (TTM) -144% · Bottom 25%
Operating margin (TTM) 60% · Above median
Revenue growth -10% · Bottom 25%
Dividend yield (TTM) 6.1% · Above median
Debt / equity 0.31× · Lower than 75% of peers

Valuation Multiples vs REIT - Retail median · lower = cheaper

P/S (TTM) 0.71× · Cheaper than 75% of peers
P/FCF 2.2× · Cheaper than 75% of peers
EV/EBITDA 9.3× · Cheaper than 75% of peers
PEG 0.29× · Cheaper 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 66 · sector 11
FUTURE 0 · sector 20
PAST 0 · sector 29
HEALTH 85 · sector 67
DIVIDEND 100 · sector 100

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 REIT - Retail stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Frequently asked questions

Is Champion Real Estate Investment Trust (2778) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$2.80 versus a price of HK$2.25, about +24% (undervalued).
What is the fair value of 2778?
Our model-based fair value for Champion Real Estate Investment Trust is HK$2.80 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$2.25.
What is the quality score of 2778?
Champion Real Estate Investment Trust has a Quality Score of 56/100. 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 Champion Real Estate Investment Trust (2778)?
Champion Real Estate Investment Trust reported trailing-twelve-month revenue of about HK$2.3B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 2778?
The net profit margin of Champion Real Estate Investment Trust is about -144.3%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Champion Real Estate Investment Trust pay a dividend?
Champion Real Estate Investment Trust currently shows a dividend yield of about 6.12% relative to its recent price (as of Aug 13, 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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