SEHK:26Real Estate
China Motor Bus (SEHK:26) Losses Escalate 45% Per Year, Undermining Premium Valuation Narrative
China Motor Bus Company (SEHK:26) is currently in the red, with net losses growing at a rate of 45% per year over the past five years. Despite ongoing losses, the company’s price-to-sales ratio comes in at 16x, far above the Hong Kong Real Estate industry average of 0.7x and the peer average of 2.7x. With shares last changing hands at HK$59, investors are paying a steep premium compared to the discounted cash flow fair value estimate of HK$41.92, and there are no signs of accelerating profit...