China Communications Construction

SEHK:1800 Stock Report

Mkt Cap: HK$116.3b

We’ve recently updated our valuation analysis.

China Communications Construction Valuation

Is 1800 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1800?

Other financial metrics that can be useful for relative valuation.

1800 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/Revenue0.9x
Enterprise Value/EBITDA13.8x
PEG Ratio0.2x

Price to Earnings Ratio vs Peers

How does 1800's PE Ratio compare to its peers?

The above table shows the PE ratio for 1800 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average4.7x
1618 Metallurgical Corporation of China
3.9x16.3%HK$68.6b
3311 China State Construction International Holdings
5.8x13.4%HK$42.3b
3996 China Energy Engineering
5x11.7%HK$38.4b
586 China Conch Venture Holdings
4.3x10.4%HK$28.7b
1800 China Communications Construction
3.4x14.2%HK$116.3b

Price-To-Earnings vs Peers: 1800 is good value based on its Price-To-Earnings Ratio (3.4x) compared to the peer average (4.7x).


Price to Earnings Ratio vs Industry

How does 1800's PE Ratio compare vs other companies in the HK Construction Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.9%
n/an/an/a

Price-To-Earnings vs Industry: 1800 is good value based on its Price-To-Earnings Ratio (3.4x) compared to the Hong Kong Construction industry average (9x)


Price to Earnings Ratio vs Fair Ratio

What is 1800's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1800 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.4x
Fair PE Ratio7.8x

Price-To-Earnings vs Fair Ratio: 1800 is good value based on its Price-To-Earnings Ratio (3.4x) compared to the estimated Fair Price-To-Earnings Ratio (7.8x).


Share Price vs Fair Value

What is the Fair Price of 1800 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1800 (HK$3.73) is trading below our estimate of fair value (HK$6.59)

Significantly Below Fair Value: 1800 is trading below fair value by more than 20%.


Analyst Price Targets

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

The above table shows the analyst 1800 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$3.73
HK$5.10
+36.7%
21.8%HK$7.70HK$3.31n/a11
Nov ’23HK$3.14
HK$5.20
+65.6%
21.5%HK$7.70HK$3.31n/a11
Oct ’23HK$3.30
HK$5.32
+61.2%
21.8%HK$7.89HK$3.39n/a11
Sep ’23HK$3.75
HK$5.53
+47.6%
24.0%HK$8.16HK$3.30n/a11
Aug ’23HK$3.72
HK$5.61
+50.8%
21.8%HK$7.99HK$3.37n/a11
Jul ’23HK$4.04
HK$5.64
+39.5%
21.8%HK$8.04HK$3.40n/a11
Jun ’23HK$4.40
HK$5.66
+28.7%
21.3%HK$8.09HK$3.42n/a12
May ’23HK$4.53
HK$5.59
+23.4%
21.9%HK$8.15HK$3.47n/a12
Apr ’23HK$4.12
HK$5.59
+35.6%
23.6%HK$8.12HK$3.91n/a12
Mar ’23HK$4.64
HK$5.73
+23.5%
22.0%HK$7.69HK$3.93n/a11
Feb ’23HK$4.52
HK$5.62
+24.3%
21.9%HK$7.60HK$3.89n/a11
Jan ’23HK$4.24
HK$5.63
+32.7%
21.6%HK$7.76HK$3.88n/a11
Dec ’22HK$4.07
HK$5.69
+39.8%
20.9%HK$7.71HK$4.11n/a11
Nov ’22HK$4.09
HK$5.77
+41.1%
19.3%HK$7.70HK$4.10HK$3.149
Oct ’22HK$4.18
HK$5.58
+33.5%
20.6%HK$7.66HK$3.77HK$3.3011
Sep ’22HK$4.21
HK$5.31
+26.0%
22.8%HK$7.63HK$3.75HK$3.7511
Aug ’22HK$3.75
HK$5.11
+36.3%
23.5%HK$7.63HK$3.75HK$3.7212
Jul ’22HK$3.77
HK$5.12
+35.7%
23.8%HK$7.72HK$3.75HK$4.0412
Jun ’22HK$3.84
HK$5.14
+34.0%
23.6%HK$7.75HK$3.76HK$4.4012
May ’22HK$3.73
HK$5.23
+40.3%
23.1%HK$7.71HK$3.74HK$4.5312
Apr ’22HK$3.83
HK$5.22
+36.4%
21.8%HK$7.61HK$3.69HK$4.1213
Mar ’22HK$3.88
HK$5.59
+44.1%
20.7%HK$7.97HK$4.00HK$4.6411
Feb ’22HK$3.58
HK$5.45
+52.2%
21.7%HK$7.97HK$4.00HK$4.5212
Jan ’22HK$3.35
HK$6.19
+84.8%
34.3%HK$12.10HK$4.01HK$4.2416
Dec ’21HK$4.07
HK$6.31
+54.9%
31.4%HK$11.94HK$4.50HK$4.0716
Nov ’21HK$4.05
HK$6.24
+54.1%
31.0%HK$11.80HK$4.45HK$4.0916

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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