Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
South China Holdings Company Limited operates as an investment holding company with a diverse portfolio of business activities. Its primary operations are structured across three main divisions: manufacturing and trading, property investment and development, and agriculture and forestry. The manufacturing and trading segment is dedicated to the production and distribution of various merchandise, including toys, footwear, and leather goods. This division also encompasses the manufacture and sale of electronic products, leather chemical products, and sports equipment. Through its property investment and development segment, the company actively acquires, develops, and manages real estate assets. Its significant property holdings include approximately 690,000 square meters of gross floor area in mainland China, complemented by an additional 26,000 square meters in Hong Kong. The agriculture and forestry segment is involved in the cultivation of fruit trees and diverse crops, the rearing of livestock and aquatic products, and comprehensive forestation projects, alongside the sale of the resulting agricultural produce. This includes substantial efforts in planting trees and various crops. The company's operations extend globally, with a significant presence in the People's Republic of China, the United States, Europe, and Japan. Founded in 1976, the company changed its name from South China (China) Limited to South China Holdings Company Limited in June 2015 and is headquartered in Central, Hong Kong.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is undervalued on P/FCF.