How This Works
A stock earns up to 14 points in total. Anything scoring 9 or above passed enough tests across all three frameworks to be worth serious attention. Margin of Safety tells you how far the current price sits below our calculated fair value — the wider the gap, the more protection you have if things go wrong.
This is a starting point for research, not a final recommendation. Before investing in any stock, especially foreign-listed ones, understand the currency risk, the regulatory environment, and the specific business.
This Week at a Glance
Cement · Energy
Media · Real Estate
Automotive · Materials
Property · Retail
Hong Kong dominated this week. 15 of 16 qualifying stocks pay dividends. Yields range from 0.44% (UHS) to 6.14% (VICI Properties).
Stocks by Exchange
Hong Kong Stock Exchange
Eight Hong Kong-listed companies passed the 9-point threshold — more than any other exchange. The Hang Seng Index gained 28.7% in 2025 and HSBC Private Bank forecasts it reaching 31,000 by end of 2026. Despite this, many individual stocks remain historically cheap by Western standards. Key risks across all HKEX names: US-China geopolitical tension, the slow recovery of China's property sector, and currency risk (Hong Kong dollar) for non-local investors.
Container shipping and integrated logistics across Mainland China, Hong Kong, Taiwan, Japan, and Southeast Asia — freight forwarding, warehousing, and shipping agency services. Founded 1991, Wan Chai, Hong Kong.
Joint top-scoring stock of the week. A P/E of 1.7 means the entire business is priced at less than two years of its own earnings. Graham Number puts fair value at HKD 21.96 against a price of HKD 5.58 — a 75% discount. ROE of 42%, debt almost non-existent (D/E 0.10), consistent dividends.
5-Year Price Chart & Valuation
China's largest — and the world's largest — cement producer, with annual production capacity exceeding 400 million metric tonnes. Every building, bridge, and road in China's infrastructure rollout requires their product.
Passes every Graham defensive test. Net asset value exceeds entire market cap — buying below liquidation value. Piotroski of 6 indicates reasonable financial health. Fortress balance sheet (D/E 0.14).
5-Year Price Chart & Valuation
Li Ka-shing's flagship holding company. Ports (43 in 23 countries), Watson's pharmacies (12 countries), telecoms, infrastructure, and energy across 50+ countries.
Trading at 44 cents per dollar of book value. Net asset value far exceeds market cap. Massive free cash flow and decades of consistent dividends. Posted a 7% rise in underlying profit for 2025.
5-Year Price Chart & Valuation
China's largest state-owned life insurer — over 300 million policyholders. One of the largest financial institutions in the world by customer base.
P/E of 4.4 for the world's largest life insurer by reach. ROE of 28% confirms genuine profitability. Passes all Buffett checks. Analyst consensus price target HKD 33.01 — 19% above current price. Earnings grew strongly through the first nine months of 2025.
5-Year Price Chart & Valuation
China's fourth-largest state-backed insurer. Extraordinary ROE of 35% and P/E under 4. The 5.79% dividend yield is the highest of any insurance stock on this list. The concern is leverage — D/E of 1.92 is more than three times the leverage of China Life. A secondary option for insurance exposure with higher yield and higher risk.
5-Year Price Chart & Valuation
One of China's three state-owned telecoms. D/E of 9.19 is the second-highest leverage flag on the entire list. Low ROE of 6% means debt service consumes most returns. A state utility — it will not collapse, but exceptional shareholder returns are unlikely. The value case rests entirely on asset cheapness, not earnings quality.
5-Year Price Chart & Valuation
China's largest oil and gas company, state-owned. Low debt, consistent dividends. Oil price is the dominant variable — PetroChina has no control over it. The 28% margin of safety is the thinnest on the HKEX list, and a Piotroski of 3 flags some financial deterioration. An oil price play, not a quality compounder.
5-Year Price Chart & Valuation
One of Hong Kong's major property developers. Qualified on deep asset discount (P/B 0.45). P/E of 24 is expensive, not cheap. ROE of 2% means the business is barely earning its cost of capital. HK property faces sustained pressure from higher rates and reduced buyer activity. The asset discount is real but may persist for years.
5-Year Price Chart & Valuation
United States
Five US-listed stocks passed the threshold. US equities are generally more expensive than HK or European counterparts, so qualifiers here are businesses going through specific difficulties that have suppressed valuations — not cheap markets across the board.
One of America's largest home and auto insurers, protecting roughly 16 million households since 1931.
P/E of 5.7 with a 40% ROE — a highly profitable business selling cheaply. Low debt, consistent dividends. Graham Number puts fair value at $307.
5-Year Price Chart & Valuation
America's largest cable and broadband provider. Also owns NBCUniversal, Peacock streaming, and Universal theme parks. Over $120 billion in annual revenue.
P/E of 5.4 for a $120 billion revenue business. 72% gross margin. ROE of 21%. Piotroski of 7. Dividend raised in 2025. Graham Number at $57 vs current $29.63 — a 48% discount.
5-Year Price Chart & Valuation
One of America's largest hospital operators. Highest Piotroski score of any US stock on this list at 8/9 — a composite of profitability, leverage, liquidity, and efficiency. Fell 11% in February 2026 after volume guidance disappointed. Management attributes the shortfall to deliberate capacity investments expected to pay off in 2026. Healthcare demand is structurally defensive. The 27% margin of safety is the tightest on the US list, but the Piotroski of 8 is the best quality signal available.
5-Year Price Chart & Valuation
Bermuda-based specialty insurer and reinsurer. Cleanest balance sheet on the entire list (D/E 0.12). 20% ROE. Less exposed to retail catastrophe claims than Allstate. Specialty reinsurance is more analytically priced and less correlated to single weather events. 25% margin of safety is the minimum threshold; this is the most defensively positioned stock on the US list. Does not currently pay a dividend.
5-Year Price Chart & Valuation
Owns the land and buildings of Caesars Palace, MGM Grand, and the Venetian. Does not run the casinos — collects long-term rent from the operators. 99% gross margin from the leasing model. As a REIT, legally required to pay out 90% of taxable income — hence the 6.14% yield. Rate-sensitive: US Federal Reserve rate path in 2026 is the primary variable. Casino tenants are on long-term leases so near-term income is secure.
5-Year Price Chart & Valuation
Germany
Three German stocks qualified. Germany's economy faced industrial weakness, high energy costs, and automotive disruption through 2024–2025. Valuations reflect that pessimism — creating some of the deepest discounts on the entire list.
One of Germany's largest residential landlords — approximately 166,300 rental apartments, primarily in North Rhine-Westphalia. Provides affordable housing to hundreds of thousands of tenants.
P/E of 3.7, 70% margin of safety, and an ROE of 18% that reflects genuine operational profitability. LEG has guided for record operational profit in 2026. Buyer interest in their apartments has "significantly increased" per management.
5-Year Price Chart & Valuation
The Porsche and Piech family holding company, controlling a 31.9% voting stake in Volkswagen Group — owner of VW, Audi, Porsche AG, Lamborghini, Bentley, SEAT, and Skoda.
Widest margin of safety on the entire list at 78%. P/B of 0.27 — buying EUR 1 of assets for 27 cents. Graham Number at EUR 155 vs current EUR 33.62. Minimal debt, consistent dividends.
5-Year Price Chart & Valuation
One of the world's top-five potash producers. Qualified on asset cheapness (P/B 0.53) and minimal debt. Currently loss-making — ROE of -19% and negative gross margin. Potash prices collapsed from post-pandemic highs as Russian and Belarusian supply partially normalised global markets. The margin of safety cannot be calculated as the formula requires positive earnings. A turnaround story without confirmed earnings recovery — the highest risk position on the German list.
5-Year Price Chart & Valuation
(negative earnings)
Risk & Dividend Summary
| Stock | Exchange | Score | Margin of Safety | Div Yield | Risk | Primary Risk Factor |
|---|---|---|---|---|---|---|
| SITC Intl (1308.HK) | HKEX | 12 | 75% | 5.67% | HIGH | Freight rate collapse, trade war |
| Anhui Conch (0914.HK) | HKEX | 12 | 51% | 5.15% | MEDIUM | China construction cycle recovery |
| CK Hutchison (0001.HK) | HKEX | 11 | 37% | 3.61% | MED-HIGH | Panama port deal uncertainty |
| China Life (2628.HK) | HKEX | 11 | 52% | 3.46% | MEDIUM | State ownership, equity portfolio |
| New China Life (1336.HK) | HKEX | 9 | 55% | 5.79% | MED-HIGH | Elevated leverage (D/E 1.92) |
| China Unicom (0762.HK) | HKEX | 9 | 53% | 4.10% | HIGH | Very high debt (D/E 9.19) |
| PetroChina (0857.HK) | HKEX | 9 | 28% | 4.86% | MEDIUM | Oil price dependency |
| Henderson Land (0012.HK) | HKEX | 9 | 31% | 4.19% | HIGH | HK property depression, low ROE |
| Allstate (ALL) | NYSE | 9 | 30% | 2.00% | MEDIUM | Catastrophe loss exposure |
| Comcast (CMCSA) | NASDAQ | 9 | 48% | 4.45% | MED-HIGH | Broadband subscriber decline |
| Universal Health (UHS) | NYSE | 9 | 27% | 0.44% | MEDIUM | Volume recovery execution |
| Arch Capital (ACGL) | NASDAQ | 8 | 25% | None | LOW-MED | Cleanest balance sheet on the list |
| VICI Properties (VICI) | NYSE | 8 | 26% | 6.14% | MEDIUM | US interest rate sensitivity |
| LEG Immobilien (LEG.DE) | XETRA | 9 | 70% | 4.67% | MEDIUM | Rate sensitivity, refinancing costs |
| Porsche Holding (PAH3.DE) | XETRA | 9 | 78% | 4.49% | HIGH | Volkswagen structural decline |
| K+S AG (SDF.DE) | XETRA | 9 | N/A | 0.48% | HIGH | Negative earnings, potash pricing |
Dividend Income Overview
A note on high yields: A high yield is not always a good sign. If a company's earnings are falling or its share price has dropped sharply, the yield appears high simply because the denominator (the price) is low. Context matters.
| Stock | Exchange | Yield | Annual Dividend | Category | Sustainability Note |
|---|---|---|---|---|---|
| VICI Properties (VICI) | NYSE | 6.14% | $1.78 / share | High Income | REIT structure — legally mandated payout |
| New China Life (1336.HK) | HKEX | 5.79% | HKD 2.91 / share | High Income | High yield but elevated leverage risk |
| SITC International (1308.HK) | HKEX | 5.67% | HKD 2.00 / share | High Income | Under earnings pressure — cyclical risk |
| Anhui Conch (0914.HK) | HKEX | 5.15% | HKD 1.04 / share | High Income | Fortress balance sheet supports dividend |
| PetroChina (0857.HK) | HKEX | 4.86% | HKD 0.52 / share | Good Income | Oil price dependent |
| LEG Immobilien (LEG.DE) | XETRA | 4.67% | EUR 2.92 / share | Good Income | Strong — record profit guidance 2026 |
| Porsche Holding (PAH3.DE) | XETRA | 4.49% | EUR 1.51 / share | Good Income | Depends on VW performance |
| Comcast (CMCSA) | NASDAQ | 4.45% | $1.32 / share | Good Income | Strong — dividend raised in 2025 |
| Henderson Land (0012.HK) | HKEX | 4.19% | HKD 1.26 / share | Good Income | HK property pressure — monitor closely |
| China Unicom (0762.HK) | HKEX | 4.10% | HKD 0.30 / share | Good Income | State utility — stable but low returns |
| CK Hutchison (0001.HK) | HKEX | 3.61% | HKD 2.31 / share | Moderate | Decades of consistency |
| China Life (2628.HK) | HKEX | 3.46% | HKD 0.96 / share | Moderate | Strong — backed by ROE 28% |
| Allstate (ALL) | NYSE | 2.00% | $4.32 / share | Moderate | Strong — backed by ROE 40% |
| K+S AG (SDF.DE) | XETRA | 0.48% | EUR 0.07 / share | Negligible | Loss-making — dividend at risk |
| Universal Health (UHS) | NYSE | 0.44% | $0.80 / share | Negligible | Growth-focused — not an income play |
| Arch Capital (ACGL) | NASDAQ | — | No dividend | None | Retains capital for growth |
The most sustainable dividends — backed by strong, growing earnings — belong to China Life (ROE 28%), Allstate (ROE 40%), Comcast (raised in 2025), and LEG Immobilien (record profit guidance for 2026).
Cross-Market Sector Battles
Insurance — HK vs US
Sector Winner InsideContenders: China Life (2628.HK) · New China Life (1336.HK) · Allstate (ALL) · Arch Capital (ACGL)
China Life leads on price — P/E of 4.4, ROE 28%, MoS 52%, strongest earnings momentum heading into 2026. The largest insurer by scale on this list.
New China Life has a cheaper P/E (3.8) and higher ROE (35%), but D/E of 1.92 is more than three times China Life's leverage. Insurance companies have inherent liability risk; financial leverage amplifies it.
Allstate is the quality pick in the US — ROE of 40%, active premium repricing, and $307 fair value vs $216 price. But $315 million in catastrophe losses in early 2026 creates near-term earnings drag.
Arch Capital is the cleanest balance sheet (D/E 0.12) and most defensively positioned, but the 25% margin of safety leaves limited upside.
Real Estate — Germany vs US vs Hong Kong
Sector Winner InsideContenders: LEG Immobilien (LEG.DE) · Vonovia (VNA.DE, Score 8) · VICI Properties (VICI) · Henderson Land (0012.HK)
LEG Immobilien leads on almost every metric: P/E of 3.7, MoS 70%, ROE 18%, and record operational profit guidance for 2026. Germany's rental market features regulated rents and long-term tenancies — making earnings highly predictable once rate pressure eases.
Vonovia, Germany's largest residential landlord, also scored 8/14 and offers a 50% margin of safety with lower leverage than LEG. A strong alternative.
VICI Properties has a 99% gross margin from its casino leasing model and a 6.14% yield, but at only 26% margin of safety and high rate sensitivity, the risk-reward is less compelling.
Henderson Land offers the deepest asset discount in HK property (P/B 0.45), but ROE of just 2% means the business is barely earning its cost of capital. Asset discount is real but illiquid.
Telecoms — Hong Kong vs United States
Sector Winner InsideContenders: China Unicom (0762.HK) · Comcast (CMCSA)
China Unicom has a 53% margin of safety and Piotroski of 7, but D/E of 9.19 means the business runs on borrowed money at a scale that leaves almost nothing for shareholders. ROE of 6% confirms it. A state utility — stable but not an exceptional investment.
Comcast generates $120 billion in revenue, holds a 72% gross margin, earns 21% ROE, and has a physical infrastructure network worth hundreds of billions to replicate. Four quarters of broadband subscriber losses are the headline risk. But losing 181,000 subscribers from a base of 50 million is a problem — not an extinction event. The 48% discount provides substantial buffer.
Industrials & Conglomerates — Asia vs Europe
Sector Winner InsideContenders: Anhui Conch Cement (0914.HK) · CK Hutchison (0001.HK) · Porsche Holding (PAH3.DE) · Volkswagen (VOW3.DE, Score 8)
Anhui Conch is the highest-scoring industrial at 12/14. Fortress balance sheet (D/E 0.14), trading below liquidation value, and a near-term catalyst in its April 29 earnings report. Morningstar forecasts a demand recovery as Chinese infrastructure spending increases.
CK Hutchison is a global conglomerate with a live $22.8 billion value catalyst (the port sale) and confirmed 7% underlying profit growth in 2025. The 37% margin of safety is the constraint.
PAH3 and VW both offer extreme asset discounts (78% and 71% respectively) but are fundamentally bets on Volkswagen recovering from structural EV disruption. That is a much longer and more uncertain journey than a cement demand recovery cycle.
China Life Insurance
Of the 42 stocks that qualified this week, China Life Insurance offers the most compelling combination of quality, value, and forward momentum.
It is not the cheapest stock on the list. SITC's P/E of 1.7 and PAH3's 78% margin of safety are both more extreme. But extreme cheapness without earnings stability is a value trap. China Life avoids that problem entirely.
In plain terms: you are buying the world's largest life insurer — 300 million policyholders — at a price that implies paying 4.4 years of current earnings for the entire company. The average US insurer trades at 12 to 15 times earnings. This business earned a 28% return on equity in the most recent period — meaning it is genuinely excellent at converting capital into profit, not just cheap by accident.
Earnings grew strongly through the first nine months of 2025. The analyst consensus price target is HKD 33.01 — 19% above the current price — before any value investing assumptions are applied. Our Graham Number puts intrinsic value at HKD 58.37, implying 52% upside from the current price of HKD 27.74.
The risks are real but manageable. State ownership introduces policy risk. The investment portfolio has exposure to Chinese equities. Foreign investors carry HKD currency risk.
Against those risks: 300 million policyholders today, and China has 300 million citizens over 60 with that number growing every year. The demographic tailwind is structural, not cyclical. The balance sheet is solid. Earnings momentum is confirmed. The stock is priced as if none of this matters.