Kwan On Holdings Valuation

Q: What is the Fair Price of 1559 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

1559 (HK$0.1) is trading below our estimate of [[fair value]] (HK$0.82)

Is 1559 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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 1559 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1559 (HK$0.1) is trading below our estimate of fair value (HK$0.82)

Significantly Below Fair Value: 1559 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1559?

Key metric: As 1559 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1559. This is calculated by dividing 1559's market cap by their current revenue.
What is 1559's PS Ratio?
PS Ratio	0.3x
Sales	HK$654.45m
Market Cap	HK$192.52m

1559 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	0.3x
Enterprise Value/EBITDA	-1.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 1559's PS Ratio compare to its peers?

The above table shows the PS ratio for 1559 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.3x
1865 Trendzon Holdings Group	0.5x	n/a	HK$180.6m
2663 KPa-BM Holdings	0.3x	n/a	HK$200.5m
2017 Chanhigh Holdings	0.08x	n/a	HK$173.2m
368 Superland Group Holdings	0.2x	n/a	HK$212.0m
1559 Kwan On Holdings	0.3x	n/a	HK$192.5m

Price-To-Sales vs Peers: 1559 is expensive based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.3x).

Price to Sales Ratio vs Industry

How does 1559's PS Ratio compare vs other companies in the HK Construction Industry?

35 Companies	Price / Sales	Estimated Growth	Market Cap
3996 China Energy Engineering	0.09x	n/a	US$11.61b
1618 Metallurgical Corporation of China	0.05x	6.9%	US$8.79b
2355 Baoye Group	0.08x	n/a	US$287.59m
240 Build King Holdings	0.09x	n/a	US$154.75m

35 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 1559 is expensive based on its Price-To-Sales Ratio (0.3x) compared to the Hong Kong Construction industry average (0.3x).

Price to Sales Ratio vs Fair Ratio

What is 1559'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.

1559 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.3x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 1559'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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