MECOM Power and Construction Limited

SEHK:1183 Stock Report

Market Cap: HK$753.1m

MECOM Power and Construction Valuation

Is 1183 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1183 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1183 (HK$0.19) is trading below our estimate of fair value (HK$0.27)

Significantly Below Fair Value: 1183 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1183?

Key metric: As 1183 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1183. This is calculated by dividing 1183's market cap by their current revenue.
What is 1183's PS Ratio?
PS Ratio0.5x
SalesMO$1.44b
Market CapMO$775.63m

Price to Sales Ratio vs Peers

How does 1183's PS Ratio compare to its peers?

The above table shows the PS ratio for 1183 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1x
1796 Metaspacex
1.9xn/aHK$854.4m
1627 Able Engineering Holdings
0.2xn/aHK$910.0m
9900 Gain Plus Holdings
0.6xn/aHK$725.4m
1283 Accel Group Holdings
1.3xn/aHK$737.0m
1183 MECOM Power and Construction
0.5xn/aHK$753.1m

Price-To-Sales vs Peers: 1183 is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

How does 1183's PS Ratio compare vs other companies in the HK Construction Industry?

35 CompaniesPrice / SalesEstimated GrowthMarket Cap
3996 China Energy Engineering
0.1xn/aUS$11.91b
1618 Metallurgical Corporation of China
0.06x6.9%US$9.09b
2355 Baoye Group
0.08xn/aUS$284.29m
240 Build King Holdings
0.09xn/aUS$154.77m
1183 0.5xIndustry Avg. 0.3xNo. of Companies35PS00.40.81.21.62+
35 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 1183 is expensive based on its Price-To-Sales Ratio (0.5x) compared to the Hong Kong Construction industry average (0.3x).

Price to Sales Ratio vs Fair Ratio

What is 1183's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1183 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 1183's Price-To-Sales 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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