China Communications Services Corporation Limited

SEHK:552 Stock Report

Market Cap: HK$30.2b

China Communications Services Valuation

Is 552 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-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 552 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 552 (HK$4.36) is trading below our estimate of fair value (HK$17.3)

Significantly Below Fair Value: 552 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 552?

Key metric: As 552 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 552. This is calculated by dividing 552's market cap by their current earnings.
What is 552's PE Ratio?
PE Ratio7.7x
EarningsCN¥3.67b
Market CapCN¥28.34b

Price to Earnings Ratio vs Peers

How does 552's PE Ratio compare to its peers?

The above table shows the PE ratio for 552 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.4x
2386 SINOPEC Engineering (Group)
12x12.2%HK$29.8b
1618 Metallurgical Corporation of China
5.7x15.5%HK$67.9b
3311 China State Construction International Holdings
6.1x12.6%HK$59.9b
586 China Conch Venture Holdings
6x16.4%HK$11.6b
552 China Communications Services
7.7x6.0%HK$30.2b

Price-To-Earnings vs Peers: 552 is expensive based on its Price-To-Earnings Ratio (7.7x) compared to the peer average (7.4x).

Price to Earnings Ratio vs Industry

How does 552's PE Ratio compare vs other companies in the HK Construction Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
8188 GME Group Holdings
1.6xn/aUS$23.25m
8373 Indigo Star Holdings
1.7xn/aUS$3.45m
No more companies available in this PE range
552 7.7xIndustry Avg. 11.1xNo. of Companies14PE0816243240+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 552 is good value based on its Price-To-Earnings Ratio (7.7x) compared to the Hong Kong Construction industry average (11.1x).

Price to Earnings Ratio vs Fair Ratio

What is 552'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.

552 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.7x
Fair PE Ratio6.5x

Price-To-Earnings vs Fair Ratio: 552 is expensive based on its Price-To-Earnings Ratio (7.7x) compared to the estimated Fair Price-To-Earnings Ratio (6.5x).

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 552 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$4.36
HK$4.77
+9.4%
15.6%HK$6.36HK$4.25n/a6
Dec ’25HK$4.08
HK$4.82
+18.0%
14.4%HK$6.41HK$4.29n/a7
Nov ’25HK$4.18
HK$4.80
+14.8%
17.8%HK$6.55HK$3.52n/a7
Oct ’25HK$4.21
HK$4.80
+14.0%
17.8%HK$6.55HK$3.52n/a7
Sep ’25HK$3.99
HK$4.79
+20.1%
17.6%HK$6.53HK$3.50n/a7
Aug ’25HK$4.11
HK$4.68
+13.9%
16.6%HK$6.28HK$3.50n/a7
Jul ’25HK$4.21
HK$4.61
+9.6%
16.0%HK$6.27HK$3.48n/a8
Jun ’25HK$3.77
HK$4.61
+22.4%
16.0%HK$6.27HK$3.48n/a8
May ’25HK$3.75
HK$4.61
+23.0%
16.3%HK$6.30HK$3.50n/a8
Apr ’25HK$3.65
HK$4.61
+26.3%
15.4%HK$6.31HK$3.50n/a9
Mar ’25HK$3.39
HK$4.50
+32.7%
11.2%HK$5.30HK$3.49n/a9
Feb ’25HK$3.20
HK$4.57
+42.7%
11.1%HK$5.32HK$3.50n/a10
Jan ’25HK$3.24
HK$4.62
+42.5%
12.6%HK$5.78HK$3.50n/a10
Dec ’24HK$3.29
HK$4.53
+37.7%
12.4%HK$5.66HK$3.48HK$4.0810
Nov ’24HK$3.22
HK$4.53
+40.7%
12.4%HK$5.66HK$3.48HK$4.1810
Oct ’24HK$3.29
HK$4.53
+37.7%
12.4%HK$5.66HK$3.48HK$4.2110
Sep ’24HK$3.53
HK$4.54
+28.7%
12.4%HK$5.68HK$3.50HK$3.9910
Aug ’24HK$3.66
HK$4.49
+22.7%
13.6%HK$5.77HK$3.48HK$4.119
Jul ’24HK$3.86
HK$4.54
+17.7%
16.4%HK$5.90HK$3.32HK$4.2110
Jun ’24HK$3.80
HK$4.65
+22.5%
16.0%HK$6.19HK$3.48HK$3.7711
May ’24HK$4.29
HK$4.65
+8.5%
16.0%HK$6.19HK$3.48HK$3.7511
Apr ’24HK$3.86
HK$4.70
+21.7%
15.9%HK$6.24HK$3.51HK$3.6511
Mar ’24HK$3.37
HK$4.49
+33.3%
16.0%HK$6.17HK$3.36HK$3.3912
Feb ’24HK$3.04
HK$4.58
+50.6%
16.2%HK$6.30HK$3.43HK$3.2012
Jan ’24HK$2.85
HK$4.48
+57.4%
15.3%HK$6.13HK$3.34HK$3.2412
Dec ’23HK$2.67
HK$4.34
+62.4%
14.2%HK$5.69HK$3.24HK$3.2912

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/21 06:47
End of Day Share Price 2024/12/20 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

China Communications Services Corporation Limited is covered by 34 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Pak Kin LaiABCI Securities Company Limited
Sung-yan ChanABCI Securities Company Limited
Jones KuBarclays