Public Financial Holdings Valuation

Is 626 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 626 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 626 (HK$1.99) is trading below our estimate of fair value (HK$2.63)

Significantly Below Fair Value: 626 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 626?

Key metric: As 626 is an unprofitable bank we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for 626. This is calculated by dividing 626's market cap by their current book value.
What is 626's PB Ratio?
PB Ratio	0.3x
Book	HK$8.62b
Market Cap	HK$2.27b

626 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does 626's PB Ratio compare to its peers?

The above table shows the PB ratio for 626 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PB	Estimated Growth	Market Cap
Peer Average	0.2x
1916 Jiangxi Bank	0.08x	n/a	HK$4.2b
6138 Harbin Bank	0.06x	n/a	HK$3.7b
2139 Bank of Gansu	0.1x	n/a	HK$4.1b
1983 Luzhou Bank	0.4x	n/a	HK$5.4b
626 Public Financial Holdings	0.3x	n/a	HK$2.3b

Price-To-Book vs Peers: 626 is expensive based on its Price-To-Book Ratio (0.3x) compared to the peer average (0.2x).

Price to Book Ratio vs Industry

How does 626's PB Ratio compare vs other companies in the HK Banks Industry?

7 Companies	Price / Book	Estimated Growth	Market Cap
9668 China Bohai Bank	0.1x	n/a	US$2.08b
1216 Zhongyuan Bank	0.1x	n/a	US$1.43b
1578 Bank of Tianjin	0.1x	n/a	US$1.28b
2066 Shengjing Bank	0.1x	n/a	US$1.18b

7 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Book vs Industry: 626 is good value based on its Price-To-Book Ratio (0.3x) compared to the Hong Kong Banks industry average (0.3x).

Price to Book Ratio vs Fair Ratio

What is 626's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

626 PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	0.3x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate 626's Price-To-Book Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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