Huazhang Technology Holding Valuation

Is 1673 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 1673 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1673 (HK$0.28) is trading below our estimate of fair value (HK$0.44)

Significantly Below Fair Value: 1673 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1673?

Key metric: As 1673 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1673. This is calculated by dividing 1673's market cap by their current revenue.
What is 1673's PS Ratio?
PS Ratio	0.9x
Sales	CN¥448.04m
Market Cap	CN¥400.99m

1673 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	0.6x
Enterprise Value/EBITDA	-18x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 1673's PS Ratio compare to its peers?

The above table shows the PS ratio for 1673 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	1.7x
1334 Ruichang International Holdings	0.8x	n/a	HK$450.0m
1721 FSM Holdings	5.3x	n/a	HK$450.0m
929 IPE Group	0.5x	n/a	HK$505.1m
3348 China PengFei Group	0.3x	n/a	HK$510.0m
1673 Huazhang Technology Holding	0.9x	n/a	HK$446.9m

Price-To-Sales vs Peers: 1673 is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (1.7x).

Price to Sales Ratio vs Industry

How does 1673's PS Ratio compare vs other companies in the HK Machinery Industry?

3 Companies	Price / Sales	Estimated Growth	Market Cap
2060 Pujiang International Group	0.07x	n/a	US$19.99m
118 Cosmos Machinery Enterprises	0.08x	n/a	US$19.93m
840 Xinjiang Tianye Water Saving Irrigation System	0.05x	n/a	US$14.95m

No more companies available in this PS range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 1673 is expensive based on its Price-To-Sales Ratio (0.9x) compared to the Hong Kong Machinery industry average (0.6x).

Price to Sales Ratio vs Fair Ratio

What is 1673'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.

1673 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.9x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 1673'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.

Discover undervalued companies

Greentown Management Holdings

HK$6.1b

An investment holding company, provides project management services in the People’s Republic of China.

9979

HK$3.01

-1.6%

-52.7%

BOC Aviation

HK$42.1b

Operates as an aircraft operating leasing company in Mainland China, Hong Kong, Macau, Taiwan, rest of the Asia Pacific, the Americas, Europe, the Middle East, and Africa.

2588

HK$60.70

2.5%

5.7%

Shanghai Electric Group

HK$146.5b

Provides industrial-grade eco-friendly smart system solutions in Mainland China and internationally.

2727

HK$3.25

8.7%

85.7%