Fair-Value Report — Starjoy Wellness and Travel (3662.HK)

Insider Signal

Signal verdict — GENUINE open-market accumulation. This is a real on-exchange purchase by an existing 8.98% beneficial owner, adding to a near-10% stake at prevailing market prices through a named brokerage. Song Haodong is not a listed director and does not appear in 2026 AGM board records. Their exact identity and any affiliation with China Aoyuan is not publicly disclosed — motive is opaque (could be an independent value investor, a Mainland strategic acquirer, or an Aoyuan-affiliated party). The purchase is not a subscription to new shares, a placing, a pledge artefact, an employee scheme, or a broker/custodian mechanical filing. Trade size (HKD 1.86M, ≈ 0.9% of market cap) is modest but consistent with measured accumulation at a five-year low. Signal is real; governance risk is separate.

Verified Snapshot (as of 2026-06-04)

All financials in RMB (reporting currency). FX assumption: 1 CNY ≈ 1.071 HKD (HKD/USD ~7.78, USD/CNY ~7.27, June 2026 estimate). Sources: FY2025 Annual Report (~April 2026, HKEX filing); HKEX DI Form 1 IS20260604E00290; Yahoo Finance / CNBC market data (accessed June 2026).

Business Overview

Starjoy Wellness and Travel Company Limited (renamed from Aoyuan Healthy Life Group Company Limited in January 2024) provides property management and commercial operational services primarily in Mainland China. Two reportable segments:

• Property Management Services (core revenue driver): Security, cleaning, gardening, engineering maintenance, and heating services for residential communities, commercial complexes, office buildings, villas, and tourist towns. Includes sales-assistance services and community value-added services.
• Commercial Operations: Commercial tenant sourcing, market positioning, mobile application operations, cleaning/gardening for commercial sites, health management, decoration and design management.

The company was originally built around China Aoyuan Group's (3883.HK) residential developments, creating deep customer-base dependency on a controlling shareholder that itself required a debt restructuring from 2022. The 2024 rebrand to "Starjoy Wellness and Travel" signals a strategic pivot toward wellness/tourism services, though the vast majority of FY2025 revenue (RMB 1.22B) still derives from property management. FY2025 headwinds included foreign exchange losses, declining bank deposit interest (structural, following PBOC rate cuts), goodwill impairment, and underperformance in the medical aesthetics segment inherited from the prior brand.

The company is operationally profitable on a core basis — management reports core NP of ~RMB 97–107M in FY2025, essentially flat with FY2024's RMB 104.9M — suggesting the underlying property management franchise generates resilient cash flows even as reported earnings were dragged by non-operating items. The balance sheet is conservatively leveraged (D/E 2.8%) with RMB 785M in net current assets, a meaningful liquidity buffer.

Valuation

Methodology: Governance-Adjusted Sector Multiple (P/E Primary; P/B Asset Cover)

A three-scenario P/E approach is used as the primary method, appropriate for a profitable operating company. A full DCF is not applied given medium-term cash-flow opacity under ongoing governance risk and potential continued non-recurring charges. P/B is used as an asset-cover secondary check — the balance sheet is large relative to market cap but related-party receivable quality is uncertain.

The applicable P/E multiple for HK-listed small-cap property management companies is 5–15× at the sector level (2026), compressing toward 3–7× for governance-challenged operators. Starjoy's HKEX censure and Aoyuan overhang place it firmly in the lower band. Normalised net profit is estimated at RMB 60M (between reported RMB 51.6M and company-adjusted core ~RMB 100M; the gap of ~RMB 48M includes structural lower interest income and ongoing medical aesthetics drag which partly recur, partially offset by one-time goodwill impairment).

Indicative Peer Multiples (HK property management, June 2026, governance-tiered)

Peer multiples are indicative estimates from available data; not independently verified in real-time for each name.

Three-Scenario Fair-Value Table

EPS bridge: Shares 726.2M. FX 1 CNY = 1.071 HKD. Normalised EPS (base): RMB 60M × 1.071 / 726.2M = HKD 0.089/share. Reported EPS (FY2025): RMB 51.6M × 1.071 / 726.2M = HKD 0.076/share.

Asset-Cover Check (Secondary, P/B)

Reported book value Dec 31, 2025: RMB 1,230M = HKD 1,317M → HKD 1.81/share. Current P/B = 0.15×. Even with a 70% governance/quality haircut on the book (reflecting risk of undisclosed related-party receivables, possible further impairment linked to Aoyuan), the residual asset value is HKD 0.54/share — still double the current price. At a 75% haircut: HKD 0.45/share, closely consistent with the base-case P/E target. The P/B of 0.15× is one of the deepest in the HK property management universe and provides a meaningful floor under most scenarios short of complete book-value destruction.

Note: the quality of receivables within the RMB 785M net current assets figure — including any amounts due from Aoyuan-related parties — cannot be independently verified from public filings. This is the principal reason for applying a large haircut in the asset-cover check.

Reverse Read

At HKD 0.2746 (market cap HKD 199M ≈ RMB 186M), the market implies P/E of 3.6× on FY2025 reported earnings, 1.9× on company-adjusted core earnings, and P/B of 0.15×. For the current price to be fair value at a base-case 5× P/E, sustainable annual NP would need to be approximately RMB 37M — a further 28% decline from the already-depressed FY2025 reported figure of RMB 51.6M, and a 63% drop from core NP. The stock is pricing in either permanent structural earnings impairment or significant ongoing book-value destruction from the controlling shareholder. If neither materialises at that severity, the current price is materially too cheap.

Conclusion

Rating: Speculative Buy | Base Fair Value: HKD 0.44 | Current Price: HKD 0.2746 (as of 2026-06-04)

The insider signal passes verification: Song Haodong is a beneficial-owner substantial shareholder executing a direct open-market purchase at a multi-year price low, through a named brokerage, adding meaningfully to an already near-10% stake. The signal is not a placing, subscription, pledge artefact, or institutional mechanical filing.

The quantitative case is compelling: the stock trades at 0.15× book and 3.6× reported P/E — below the level of even governance-challenged peers in the same sector. Core operating profitability (~RMB 100M) remains intact, the balance sheet carries minimal debt (D/E 2.8%), and net current assets of RMB 785M dwarf the HKD 199M market cap. On virtually any normalisation of earnings toward the core figure, the stock is materially undervalued.

The structural risk is real and should not be minimised. The HKEX censure represents a proven track record of minority shareholder harm. The controlling shareholder — China Aoyuan Group — is in financial restructuring and has historically used this subsidiary as a funding vehicle. Song Haodong's identity and potential relationship with Aoyuan is opaque, reducing the informational value of the signal. The bear case (HKD 0.14, –49%) is plausible if the business continues to deteriorate and further related-party extraction occurs.

On balance: meaningful asymmetry exists — +60% to the base, +220% to the bull, –49% to the bear — in a company with real operating cash flows and a massive asset base. For risk-tolerant investors who can accept the governance overhang, this is a Speculative Buy. Position sizing should be commensurate with that risk. This is not suitable for ESG-focused, risk-averse, or compliance-constrained portfolios.

Key Risks

• Governance / tunneling recurrence (primary risk): China Aoyuan remains controlling shareholder with a documented history of extracting value without minority consent. This risk persists until either Aoyuan's financial position fully stabilises or control changes.
• Earnings trajectory: Reported NP fell 46% in FY2025. If structural headwinds (medical aesthetics, lower interest rates, FX volatility) persist or worsen, normalised earnings may undershoot the RMB 60M base assumption.
• Opaque buyer identity: Song Haodong's relationship with Aoyuan or other stakeholders is not publicly disclosed. If the buyer is Aoyuan-affiliated, the insider signal conveys less independent information.
• Controlling shareholder overhang: Aoyuan may sell down its 3662 stake for liquidity, depressing the price. A change of control transaction could be at terms unfavourable to minorities.
• Micro-cap illiquidity: HKD 199M market cap and a small public float make exit at size difficult; price impact on liquidation is high.
• China property sector headwinds: Property management volumes are linked to new-build completions; Mainland residential starts remain structurally soft through 2026.
• FX / interest-rate sensitivity: CNY/HKD moves and declining PBOC deposit rates compress both reported earnings and interest income — headwinds not fully captured in the "core" earnings adjustment.
• Related-party receivable quality: The composition of the RMB 785M net current assets is not fully transparent in available public disclosures; hidden impairment risk cannot be ruled out.

Sources

• HKEX DI Form 1, filing ID IS20260604E00290 — Song Haodong (宋浩东) disclosure, event date 2026-06-04 (verified via HKEX DI system)
• Starjoy Wellness and Travel FY2025 Annual Results Announcement, HKEX, ~April 2026 (year ended Dec 31, 2025)
• HKEX Disciplinary Action against Starjoy Wellness and Travel and its directors, January 13, 2026
• Internal HKEX DI scanner log, 2026-06-04.json (filing capture: IS20260604E00290, stock code 03662)
• Yahoo Finance — 3662.HK price history and profile (accessed June 2026)
• CNBC — 3662-HK quote and market data (accessed June 2026)
• Simply Wall St — 3662.HK valuation note (accessed June 2026)
• MarketScreener — 3662.HK company profile (accessed June 2026)
• Minichart.com.sg — FY2025 results summary and profit warning (accessed June 2026)