Elevator Pitch
Hong Kong-listed Mainland China property developer Shimao Property Holdings Limited (SIOPF) (SHMAY) [813:HK] is back on the path of growth since 2017 after stagnant contracted sales growth in the 2014-2016 period. The company's contracted sales for the first eight months of FY2019 grew 41% YoY, and future growth is backed by its M&A-driven land banking strategy. The planned spin-off of the hotels and property management business in 2021 could also offer potential upside in the future.
Shimao Property's valuations are above historical averages. It is trading at 6.3 times