China Huajun Group Valuation

Q: What is the Fair Price of 377 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

377 (HK$0.68) is trading below our estimate of [[fair value]] (HK$1164.28)

Is 377 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 377 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 377 (HK$0.68) is trading below our estimate of fair value (HK$1164.28)

Significantly Below Fair Value: 377 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 377?

Key metric: As 377 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 377. This is calculated by dividing 377's market cap by their current revenue.
What is 377's PS Ratio?
PS Ratio	0.03x
Sales	CN¥1.44b
Market Cap	CN¥38.96m

377 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	3.6x
Enterprise Value/EBITDA	-46.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 377's PS Ratio compare to its peers?

The above table shows the PS ratio for 377 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	0.5x
8269 Wealth Glory Holdings	1.7x	n/a	HK$54.3m
645 Ares Asia	0.06x	n/a	HK$33.4m
1142 E&P Global Holdings	0.09x	n/a	HK$59.5m
997 Chinlink International Holdings	0.3x	n/a	HK$26.9m
377 China Huajun Group	0.03x	n/a	HK$41.8m

Price-To-Sales vs Peers: 377 is good value based on its Price-To-Sales Ratio (0x) compared to the peer average (0.5x).

Price to Sales Ratio vs Industry

How does 377's PS Ratio compare vs other companies in the HK Trade Distributors Industry?

20 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	0.4x	2.9%
377 China Huajun Group	0.03x	n/a	US$5.38m
9878 Huitongda Network	0.1x	10.2%	US$1.34b
990 Theme International Holdings	0.1x	n/a	US$726.81m

20 Companies		Estimated Growth	Market Cap
Industry Avg.	0.4x	6.5%
377 China Huajun Group	0.03x	n/a	US$5.38m

No more companies

Price-To-Sales vs Industry: 377 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 377'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.

377 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.03x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 377'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$5.9b

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

9979

HK$2.94

-5.5%

-51.6%

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%

Shanghai Electric Group

HK$143.1b

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

2727

HK$3.11

3.0%

77.7%