China Chengtong Development Group (HKSE:00217) GF Value Rank : 0 (As of Jun. 21, 2024)

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What is China Chengtong Development Group GF Value Rank?

China Chengtong Development Group has the GF Value Rank of 0.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

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China Chengtong Development Group (HKSE:00217) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » China Chengtong Development Group Ltd (HKSE:00217) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

18 Harbour Road, Suite 6406, 64th Floor, Central Plaza, Wanchai, Hong Kong, HKG

Website

http://www.hk217.com

China Chengtong Development Group is an investment holding company and has its operations divided into five business segments: property development, property investment, finance leasing, bulk commodity trade, and marine recreation services and hotel. The property development segment holds land for property development projects. The property investment segment offers rental services and holds investment properties for appreciation. The finance leasing segment offers finance leasing services, such as arranging sales and leaseback transactions. The bulk commodity trade segment, which generates the vast majority of the company's revenue, includes the trading of coal, steel, and nonferrous metal. The company earns its revenue in the People's Republic of China.

Executives

China Chengtong Holdings Group Limited	2201 Interest of corporation controlled by you
China Chengtong Hong Kong Company Limited	2101 Beneficial owner

China Chengtong Development Group (HKSE:00217) Headlines

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