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Midea Real Estate Holding Ltd (3990) Fair Value & Analysis

Real Estate · HK · Market cap HK$3.9B

MR Midea Real Estate Holding Ltd 3990 · HK
PriceHK$2.48
Fair ValueHK$6.33
Upside+155.2%
Quality71/100
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Weak Growth
Solidly profitable · 13.5% net margin
Low debt · generates free cash flow
11.38% dividend yield
Ranks above peers (11/14)
Moderate moat 57/100
Evidence: High Range HK$4.55 – HK$8.10 Share as image

Fair value as of: Aug 13, 2026

From 16 valuation models · updated 3 days ago

Fair value updated Aug 13, 2026, revised from HK$6.71 to HK$6.33 (−5.7%) since Aug 6, 2026. Share price −12.7% over the past month.

A solid business, screening 155% undervalued on our models.

What matters now

  • The rarer combination: high quality (71/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (HK$4.55). The market is more pessimistic than our downside scenario.
  • 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$11.81 HK$2.23 Fair Value HK$6.33 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$2.23 – HK$11.81 · fair‑value band HK$4.55 – HK$8.10 · the HK$2.48 price screens below the HK$6.33 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Midea Real Estate Holding Ltd (3990) currently trades at HK$2.48, while our model-based Fair Value estimate is HK$6.33, implying the stock looks roughly 155.2% undervalued today. The Quality Score stands at 71/100 (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: high), always confirm before acting.

Over the trailing twelve months, Midea Real Estate Holding Ltd generated revenue of HK$4.1B at a net margin of 13.5%. Revenue declined 6.9% year over year. It earns a return on equity of 11.4%. The balance sheet holds a net cash position of HK$862M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$4.55 (bear case) to HK$8.10 (bull case); at HK$2.48, the current price sits below 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 58% below its 52-week high, currently below its 200-day average. For context, the median of 10 Real Estate peers we cover trades at 15% fair-value upside, at 155%, 3990 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$7.52 HK$9.67 HK$13.24 80
Residual Income HK$3.09 HK$3.48 HK$5.12 76
Rev-Margin DCF HK$6.49 HK$8.92 HK$11.92 74
All 16 models by family
DCF Models
FCF DCF HK$7.26 HK$9.49 HK$13.50 38
5Y Revenue Exit HK$6.49 HK$8.77 HK$12.09 39
5Y EBITDA Exit HK$7.77 HK$11.00 HK$15.27 41
10Y Revenue Exit HK$6.62 HK$8.32 HK$10.13 36
10Y EBITDA Exit HK$7.52 HK$9.67 HK$11.95 37
Dividend Discount
Gordon GGM HK$3.36 HK$3.66 HK$4.11 70
DDM Multi-Stage HK$3.36 HK$4.15 HK$5.23 61
Multiples
P/S Multiple HK$4.97 HK$6.62 HK$8.28 58
P/B Multiple HK$4.97 HK$6.62 HK$8.28 55
EV/EBIT HK$10.69 HK$13.87 HK$17.05 53
EV/EBITDA HK$9.28 HK$11.99 HK$14.71 54
EV/Revenue HK$6.41 HK$8.66 HK$10.92 43
Asset-Based
NCAV (Graham) HK$1.71 HK$2.29 HK$3.42 50
Growth DCF
Growth DCF HK$7.52 HK$9.67 HK$13.24 80
Rev-Margin DCF HK$6.49 HK$8.92 HK$11.92 74
Economic Profit
Residual Income HK$3.09 HK$3.48 HK$5.12 76

Widest divergence: DCF Models (HK$9.49) versus Asset-Based (HK$2.29). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$4.1B
Revenue growth (YoY) -6.9%
Net margin 13.5%
Return on equity 11.4%
Free cash flow HK$947M FY2025
P/E ratio 6.0 as of Jul 2, 2026
More key figures
Operating margin 21.2%
EPS (TTM) HK$0.2100
Dividend yield 11.4%
EPS growth (YoY) -20.1%
Net cash HK$862M FY2025

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

Quality Score breakdown

Overall quality 71/100

Of which business quality 70 · Market factors (momentum, volatility) 18

Profitability 41
Margins and returns on capital today
Quality Growth 54
Are margins and returns improving?
Cashflow 89
Earnings quality: real cash, not paper profit
Fin. Strength 81
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 51
Calm price path (market factor)
Momentum 7
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 63
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

Midea Real Estate Holding Limited, an investment holding company, provides property management services in the People's Republic of China. The company operates through Project Management Services Business; Property Management Services Business; Asset Operation Business; and Real Estate Technology Business.

Full company description

Midea Real Estate Holding Limited, an investment holding company, provides property management services in the People's Republic of China. The company operates through Project Management Services Business; Property Management Services Business; Asset Operation Business; and Real Estate Technology Business. It offers project management services primarily to property owners, such as project planning, design coordination, and construction supervision, as well as sales and marketing support; property management and value-added services, including consultancy services, cleaning, greening, repair and maintenance services, sales of goods, and leasing agency services for unsold parking spaces and properties for residential, commercial, and other types of properties; and community living services and brokerage services. The company also engages in designing, constructing, operating, or selling commercial properties and industrial parks; delivering commercial leasing and operational solutions; and manufacturing and sale of precast concrete, modular integrated construction, and other industrial components and materials. In addition, it provides intelligent space solutions comprising equipment and product procurement, and customized installation. The company was founded in 2004 and is headquartered in Foshan, the People's Republic of China. Midea Real Estate Holding Limited operates as a subsidiary of Midea Development Holding (BVI) Limited.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Midea Real Estate Holding Ltd reported revenue of HK$4.1B in FY2025 versus HK$73.7B in FY2021, a compound −51.3%/yr. Reported net income was HK$559M in FY2025, compounding −37.8%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$4.1B
Latest YoY
+11.4%
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.
−61.7%
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.
−39.8%
Avg. growth/yr (10Y) 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.
−6.7%
Revenue −51.3%/yr
FY21 HK$73.7B
FY22 HK$73.6B
FY23 HK$73.6B
FY24 HK$3.7B
FY25 HK$4.1B
Net income −37.8%/yr
FY21 HK$3.7B
FY22 HK$1.7B
FY23 HK$914M
FY24 −HK$2.1B
FY25 HK$559M

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Cite: Fair Value Calculator (2026). "Midea Real Estate Holding Ltd Fair Value". https://www.fairvalue-calculator.com/stock/3990

Peer Group

Real Estate - Development · 591 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 72 · Top 25%
Fair Value upside +155% · Top 25%
Return on equity (TTM) 11% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 13% · Above median
Operating margin (TTM) 21% · Above median
Revenue growth -7% · Below median
Dividend yield (TTM) 11.4% · Top 25%

Valuation Multiples vs Real Estate - Development median · lower = cheaper

P/E (TTM) 6.0× · Cheaper than 75% of peers
P/B 0.79× · Pricier than median
P/S (TTM) 0.94× · Pricier than median
P/FCF 0.5× · Cheaper than median
EV/EBITDA 2.5× · 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 100 · sector 47
FUTURE 0 · sector 0
PAST 46 · sector 10
HEALTH 100 · sector 85
DIVIDEND 100 · sector 58

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

Stock Price Fair Value vs Fair Value
DLF Limited DLF ₹661.75 ₹146.13 -78%
Lodha Developers Limited LODHA ₹1,209 ₹583.43 -52%
PT Pantai Indah Kapuk Dua Tbk, PANI 6,150 IDR 1,330 IDR -78%
PT Jaya Real Property, Tbk., JRPT 1,080 IDR 1,674 IDR +55%
PT Bumi Serpong Damai Tbk, BSDE 595.00 IDR 1,488 IDR +150%
PT Sentul City Tbk, BKSL 73.00 IDR 84.16 IDR +15%
PT Ciputra Development Tbk, CTRA 610.00 IDR 1,525 IDR +150%
Khang Dien House Trading and Investment Joint Stock Company KDH 18,150 VND 20,338 VND +12%
PT Duta Pertiwi Tbk DUTI 4,300 IDR 6,239 IDR +45%
PT Puradelta Lestari Tbk DMAS 147.00 IDR 164.33 IDR +12%

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Frequently asked questions

Is Midea Real Estate Holding Ltd (3990) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$6.33 versus a price of HK$2.48, about +155% (undervalued).
What is the fair value of 3990?
Our model-based fair value for Midea Real Estate Holding Ltd is HK$6.33 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$2.48.
What is the quality score of 3990?
Midea Real Estate Holding Ltd has a Quality Score of 71/100. 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 Midea Real Estate Holding Ltd (3990)?
Midea Real Estate Holding Ltd reported trailing-twelve-month revenue of about HK$4.1B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 3990?
The net profit margin of Midea Real Estate Holding Ltd is about 13.5%, meaning it keeps roughly 13.5% of revenue as net income. Based on the latest reported figures.
Does Midea Real Estate Holding Ltd pay a dividend?
Midea Real Estate Holding Ltd currently shows a dividend yield of about 11.38% 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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