During the second quarter, the Tweedy Browne (Trades, Portfolio) Global Value Fund added to its stake in the Hang Lung Group (HKSE:00010, Financial)Â at an average price of 22.08 Hong Kong dollars ($2.85). The trade had a 0.11% impact on the Tweedy Browne (Trades, Portfolio) Global Value Fund's portfolio. It now owns 6,111,500 shares of the company.
The Hang Lung Group was founded on September 13, 1960. Since then, the company has established itself to becoming one of the largest real estate developers in Hong Kong. The Hang Lung Group is also engaged in investment holding and through its subsidiaries, property development for sales and leasing, property investment for rental income and other investments.
The Hang Lung Group has a market cap of HK$35.57 billion, an enterprise value of HK$106.25 billion, a price-earnings (P/E) ratio of 11.19 and a price-book (P/B) ratio of 0.49.
According to GuruFocus, the Hang Lung Group has a 5 of 10 financial strength rating, with a cash to debt ratio of 0.84, ranking it above 66% of the 1,562 companies in the global real estate services industry. The company also has a 7 of 10 profitability and growth rating, with an operating margin of 73.01%, ranking it above 87% of the companies within its industry.
The Tweedy Browne (Trades, Portfolio) Global Value Fund may have added to its stake in the Hang Lung Group for the following reasons:
- The company has more than 50 years of operating experience in the property development market.
- The company has a Beneish M-score of -3.05, indicating the company is not a manipulator of its financial results.
- The company has a Graham number of HK$54.50, which measures the stock's fundamental value by taking into account the company’s earnings per share and book value per share.
- The company has a projected FCF of HK$55.21, according to the company’s normalized free cash flow and the book value of the company.
- The company is trading below its intrinsic value, according to the Peter Lynch chart below.
Cheers to your investment success!
Disclosure: Author does not own any shares of this company.
Start a free 7-day trial of Premium Membership to GuruFocus.
