Shing Chi Holdings Valuation

Is 1741 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 1741 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1741 (HK$0.05) is trading below our estimate of fair value (HK$0.45)

Significantly Below Fair Value: 1741 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1741?

Key metric: As 1741 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1741. This is calculated by dividing 1741's market cap by their current revenue.
What is 1741's PS Ratio?
PS Ratio	0.2x
Sales	HK$210.38m
Market Cap	HK$42.40m

1741 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	0.2x
Enterprise Value/EBITDA	-6.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 1741's PS Ratio compare to its peers?

The above table shows the PS ratio for 1741 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	0.2x
8616 Sunray Engineering Group	0.2x	n/a	HK$38.0m
8535 Vistar Holdings	0.1x	n/a	HK$43.2m
1429 Skymission Group Holdings	0.07x	n/a	HK$43.2m
784 Ling Yui Holdings	0.2x	n/a	HK$38.4m
1741 Shing Chi Holdings	0.2x	n/a	HK$42.4m

Price-To-Sales vs Peers: 1741 is expensive based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.2x).

Price to Sales Ratio vs Industry

How does 1741's PS Ratio compare vs other companies in the HK Construction Industry?

36 Companies	Price / Sales	Estimated Growth	Market Cap
3996 China Energy Engineering	0.09x	n/a	US$11.60b
1618 Metallurgical Corporation of China	0.05x	6.9%	US$8.83b
2355 Baoye Group	0.08x	n/a	US$291.71m
240 Build King Holdings	0.09x	n/a	US$151.61m

36 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 1741 is good value based on its Price-To-Sales Ratio (0.2x) compared to the Hong Kong Construction industry average (0.3x).

Price to Sales Ratio vs Fair Ratio

What is 1741'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.

1741 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.2x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 1741'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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