Theme International Holdings Valuation

Q: What is the Fair Price of 990 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

990 (HK$0.45) is trading below our estimate of [[fair value]] (HK$3.4)

Is 990 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-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 990 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 990 (HK$0.45) is trading below our estimate of fair value (HK$3.4)

Significantly Below Fair Value: 990 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 990?

Key metric: As 990 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 990. This is calculated by dividing 990's market cap by their current earnings.
What is 990's PE Ratio?
PE Ratio	9x
Earnings	HK$665.29m
Market Cap	HK$5.99b

990 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	0.02x
Enterprise Value/EBITDA	1.2x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 990's PE Ratio compare to its peers?

The above table shows the PE ratio for 990 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	20.9x
2098 Zall Smart Commerce Group	47.1x	n/a	HK$4.0b
9930 Horizon Construction Development	4.5x	14.6%	HK$4.8b
1733 E-Commodities Holdings	1.8x	n/a	HK$3.8b
9878 Huitongda Network	30x	29.0%	HK$10.6b
990 Theme International Holdings	9x	n/a	HK$6.0b

Price-To-Earnings vs Peers: 990 is good value based on its Price-To-Earnings Ratio (9x) compared to the peer average (20.9x).

Price to Earnings Ratio vs Industry

How does 990's PE Ratio compare vs other companies in the HK Trade Distributors Industry?

5 Companies	Price / Earnings	Estimated Growth	Market Cap
1733 E-Commodities Holdings	1.8x	n/a	US$488.51m
1001 Hong Kong Shanghai Alliance Holdings	2.2x	n/a	US$22.08m
380 China Pipe Group	1.7x	n/a	US$14.21m
1142 E&P Global Holdings	0.6x	n/a	US$8.38m

5 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 990 is good value based on its Price-To-Earnings Ratio (9x) compared to the Hong Kong Trade Distributors industry average (10.4x).

Price to Earnings Ratio vs Fair Ratio

What is 990'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.

990 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 990's Price-To-Earnings 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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