Changsha Broad Homes Industrial Group Valuation

Is 2163 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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 2163 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2163 (HK$0.95) is trading below our estimate of fair value (HK$1.7)

Significantly Below Fair Value: 2163 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2163?

Key metric: As 2163 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 2163. This is calculated by dividing 2163's market cap by their current revenue.
What is 2163's PS Ratio?
PS Ratio	0.2x
Sales	CN¥2.11b
Market Cap	CN¥431.19m

2163 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	2x
Enterprise Value/EBITDA	90.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 2163's PS Ratio compare to its peers?

The above table shows the PS ratio for 2163 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	2x
6063 Lotus Horizon Holdings	2x	n/a	HK$490.0m
8021 WLS Holdings	5.1x	n/a	HK$416.6m
9639 Chizun Investment International	0.8x	n/a	HK$440.0m
406 Yau Lee Holdings	0.06x	n/a	HK$446.8m
2163 Changsha Broad Homes Industrial Group	0.2x	n/a	HK$463.3m

Price-To-Sales vs Peers: 2163 is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (2x).

Price to Sales Ratio vs Industry

How does 2163'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: 2163 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 2163'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.

2163 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 2163'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

Zhengzhou Coal Mining Machinery Group

CN¥21.4b

Manufactures and sells coal mining and excavating equipment in the People’s Republic of China, Germany, and internationally.

564

CN¥9.63

-3.4%

28.2%

BOC Aviation

HK$41.6b

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$60.00

-0.2%

5.3%

China Aircraft Leasing Group Holdings

HK$2.2b

An investment holding company, provides aircraft leasing services to airline companies in Mainland China and internationally.

1848

HK$3.02

-2.9%

-20.5%