HC Group Valuation

Q: What is the Fair Price of 2280 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2280 (HK$0.16) is trading below our estimate of [[fair value]] (HK$3.35)

Is 2280 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 2280 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2280 (HK$0.16) is trading below our estimate of fair value (HK$3.35)

Significantly Below Fair Value: 2280 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2280?

Key metric: As 2280 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 2280. This is calculated by dividing 2280's market cap by their current revenue.
What is 2280's PS Ratio?
PS Ratio	0.01x
Sales	CN¥15.51b
Market Cap	CN¥197.42m

2280 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	0.05x
Enterprise Value/EBITDA	-5.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 2280's PS Ratio compare to its peers?

The above table shows the PS ratio for 2280 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	1.4x
936 Kaisa Capital Investment Holdings	1.1x	n/a	HK$243.8m
1001 Hong Kong Shanghai Alliance Holdings	0.08x	n/a	HK$178.2m
3313 ArtGo Holdings	4.3x	n/a	HK$361.5m
387 Leeport (Holdings)	0.3x	n/a	HK$163.4m
2280 HC Group	0.01x	n/a	HK$212.2m

Price-To-Sales vs Peers: 2280 is good value based on its Price-To-Sales Ratio (0x) compared to the peer average (1.5x).

Price to Sales Ratio vs Industry

How does 2280's PS Ratio compare vs other companies in the HK Trade Distributors Industry?

19 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	0.5x	3.1%
2280 HC Group	0.01x	n/a	US$27.27m
9878 Huitongda Network	0.1x	10.2%	US$1.43b
990 Theme International Holdings	0.09x	n/a	US$701.12m

19 Companies		Estimated Growth	Market Cap
Industry Avg.	0.5x	6.8%
2280 HC Group	0.01x	n/a	US$27.27m

No more companies

Price-To-Sales vs Industry: 2280 is good value based on its Price-To-Sales Ratio (0x) compared to the Hong Kong Trade Distributors industry average (0.4x).

Price to Sales Ratio vs Fair Ratio

What is 2280'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.

2280 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.01x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 2280'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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