Should You Reconsider Guangdong Investment After Its 75% Share Price Surge?

Simply Wall St.

Sep 15

Thinking about what to do with your Guangdong Investment shares, or considering buying in? You are not alone. After all, the company's stock has caught the eye of many investors lately, thanks to a ...

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You are not alone. After all, the company's stock has caught the eye of many investors lately, thanks to a ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/utilities/hkg-270/guangdong-investment-shares/news/should-you-reconsider-guangdong-investment-after-its-75-shar\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Should You Reconsider Guangdong Investment After Its 75% Share Price Surge?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nShould You Reconsider Guangdong Investment After Its 75% Share Price Surge?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-09-15 21:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/utilities/hkg-270/guangdong-investment-shares/news/should-you-reconsider-guangdong-investment-after-its-75-shar><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Thinking about what to do with your Guangdong Investment shares, or considering buying in? You are not alone. After all, the company's stock has caught the eye of many investors lately, thanks to a ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/utilities/hkg-270/guangdong-investment-shares/news/should-you-reconsider-guangdong-investment-after-its-75-shar\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00BHRH8C09.USD","symbol_name":"LM MARTIN CURRIE ASIA PACIFIC EX JAPAN REAL INC \"A\" (USD) INC","start_time":0,"source_url":"https://simplywall.st/stocks/hk/utilities/hkg-270/guangdong-investment-shares/news/should-you-reconsider-guangdong-investment-after-its-75-shar","article_id":"2567149185","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9551000-choice2-main-header/1585187012384"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/utilities/hkg-270/guangdong-investment-shares/news/should-you-reconsider-guangdong-investment-after-its-75-shar","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2567149185","pubTimestamp":1757942737,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Thinking about what to do with your Guangdong Investment shares, or considering buying in? You are not alone. After all, the company's stock has caught the eye of many investors lately, thanks to a strong set of returns that stand out in the current market climate. While the last week delivered relatively modest growth of 0.8%, the stock is up 8.1% in the past month and, more strikingly, it has surged by 75.3% over the last year. That kind of momentum is tough to ignore. But if you zoom out...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00BHRH8C09.USD":"LM MARTIN CURRIE ASIA PACIFIC EX JAPAN REAL INC \"A\" (USD) INC","BK1552":"水务股","00270":"粤海投资","BK1589":"北水核心资产","IE00BHRH8D16.HKD":"FTGF MARTIN CURRIE ASIA PACIFIC URBAN TRENDS INCOME \"A\" (HKD) INC","BK1194":"水公用事业","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","IE00BG0RBZ43.SGD":"Legg Mason Martin Currie - Asia Pacific Ex Japan Real Income A Mdis SGD Plus","BK4211":"区域性银行","FCF":"第一联邦金融"},"translate_title":"粤海投资股价大涨75%，该不该重新考虑？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00270":0.9,"DCF":1,"FCF":1},"content_text":"Thinking about what to do with your Guangdong Investment shares, or considering buying in? You are not alone. After all, the company's stock has caught the eye of many investors lately, thanks to a strong set of returns that stand out in the current market climate. While the last week delivered relatively modest growth of 0.8%, the stock is up 8.1% in the past month and, more strikingly, it has surged by 75.3% over the last year. That kind of momentum is tough to ignore. But if you zoom out further, you will see some volatility, including a three-year gain of 32.0% and a five-year loss of 16.6%, which shows just how much sentiment, risk, and opportunity have shifted for Guangdong Investment over different time frames. Some of these price swings can be traced to broader market trends and renewed optimism around select infrastructure and water services companies, as investors seek stability and growth in uncertain times. Of course, impressive price action always begs the next question: Is the stock still undervalued, or has the market finally caught up? According to our value score, a six-point checklist that tallies up key measures of undervaluation, Guangdong Investment scores a 4. This indicates there are still several signals flashing underpriced for careful buyers. In the following sections, we will dig into how Guangdong scores across those valuation checks, using different approaches like price-to-earnings and book value. At the end, I will share what I believe is the best way to cut through the noise and understand what this valuation really means for you as an investor. Guangdong Investment delivered 75.3% returns over the last year. See how this stacks up to the rest of the Water Utilities industry. AdvertisementApproach 1: Guangdong Investment Discounted Cash Flow (DCF) Analysis The Discounted Cash Flow (DCF) model is a tool that calculates a company's intrinsic value by projecting its future cash flows and discounting them back to their present value. This approach helps investors estimate what Guangdong Investment’s shares are truly worth today based on anticipated cash generation. Currently, Guangdong Investment generates Free Cash Flow (FCF) of HK$9.59 billion. The analysis projects this figure forward, taking into account expected growth rates. According to available data, analyst estimates anticipate FCF of HK$6.59 billion by 2027. Longer-term projections (extrapolated by Simply Wall St beyond 2027) foresee FCF remaining above HK$7 billion annually by 2035. These projections are all expressed in Hong Kong dollars and provide a view of consistent, sizeable cash generation over the coming decade. Based on the 2 Stage Free Cash Flow to Equity model, Guangdong Investment’s intrinsic value is estimated at HK$21.67 per share. When compared to its current market price, the DCF calculation suggests the stock is trading at a 65.6% discount to its fair value, signaling a significant undervaluation at present. Result: UNDERVALUED Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Guangdong Investment. 270 Discounted Cash Flow as at Sep 2025 Our Discounted Cash Flow (DCF) analysis suggests Guangdong Investment is undervalued by 65.6%. Track this in your watchlist or portfolio, or discover more undervalued stocks. Approach 2: Guangdong Investment Price vs Earnings The price-to-earnings (PE) ratio is often the go-to metric for valuing profitable companies like Guangdong Investment, as it directly relates the company’s share price to its earnings power. For steady, income-generating firms, this multiple helps investors quickly gauge how much they are paying for each dollar of earnings. The \"right\" PE ratio depends on several factors, including growth prospects and perceived risk. In general, companies with higher expected earnings growth or stronger industry positions can justify a higher multiple. Those facing greater risks or slower growth usually deserve a discount. Guangdong Investment currently trades at a PE of 11.3x. For context, this is nearly identical to the peer average of 11.3x but noticeably below the Water Utilities industry average of 16.6x. These comparisons suggest the market’s pricing is somewhat reserved despite the company’s recent strong performance. Simply Wall St’s proprietary \"Fair Ratio,\" which blends key variables like expected earnings growth, profit margin, industry norms, market capitalization, and company-specific risks, estimates Guangdong Investment’s fair PE ratio at 9.6x. This tailored benchmark does more than simply compare Guangdong against the crowd; it offers a more nuanced view of value in the context of its unique strengths and risk factors. With Guangdong Investment’s actual PE ratio sitting above its Fair Ratio, the stock appears slightly expensive based on its earnings profile and unique fundamentals. Result: OVERVALUED SEHK:270 PE Ratio as at Sep 2025 PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Guangdong Investment Narrative Earlier, we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives. Put simply, a Narrative is your personal story or perspective about a company. It combines your fair value estimate and your expectations for revenue, earnings, and margins. Narratives connect the dots between the big-picture story you believe in, a financial forecast that supports it, and the resulting fair value for the stock. This approach, available right on Simply Wall St’s Community page, empowers millions of investors to make decisions grounded in their unique outlooks rather than just market consensus. Narratives make it easy to track whether the current stock price is above or below what you believe the company is worth. This can help you decide when to buy or sell. Best of all, Narratives update dynamically when news, earnings, or forecasts change, so your view stays relevant. For example, some investors might see Guangdong Investment’s fair value at the high end, expecting strong water sector growth. Others may take a more cautious view, planning for lower margins and more moderate gains. Do you think there's more to the story for Guangdong Investment? Create your own Narrative to let the Community know! SEHK:270 Earnings & Revenue History as at Sep 2025  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}