Xinyuan Property Management Service (Cayman) Ltd.’s (HKG:1895) Share Price Boosted 28% But Its Business Prospects Need A Lift Too
The Xinyuan Property Management Service (Cayman) Ltd. (HKG:1895) share price has done very well over the last month, posting an excellent gain of 28%. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 12% in the last twelve months.
Although its price has surged higher, Xinyuan Property Management Service (Cayman)’s price-to-earnings (or “P/E”) ratio of 3.5x might still make it look like a strong buy right now compared to the market in Hong Kong, where around half of the companies have P/E ratios above 12x and even P/E’s above 24x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.
