Metallurgical Corporation of China Ltd.

SHSC:1618 Stock Report

Market Cap: HK$68.5b

Metallurgical Corporation of China Valuation

Is 1618 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 1618 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1618 (HK$1.65) is trading below our estimate of fair value (HK$17.27)

Significantly Below Fair Value: 1618 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1618?

Key metric: As 1618 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1618. This is calculated by dividing 1618's market cap by their current earnings.
What is 1618's PE Ratio?
PE Ratio5.8x
EarningsCN¥5.53b
Market CapCN¥63.75b

Price to Earnings Ratio vs Peers

How does 1618's PE Ratio compare to its peers?

The above table shows the PE ratio for 1618 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average5.2x
3996 China Energy Engineering
4.5xn/aHK$90.4b
3311 China State Construction International Holdings
5.8x12.3%HK$57.1b
1800 China Communications Construction
3.4x10.0%HK$154.8b
552 China Communications Services
7.1x6.0%HK$28.0b
1618 Metallurgical Corporation of China
5.8x15.5%HK$68.5b

Price-To-Earnings vs Peers: 1618 is expensive based on its Price-To-Earnings Ratio (5.8x) compared to the peer average (5.2x).

Price to Earnings Ratio vs Industry

How does 1618's PE Ratio compare vs other companies in the HK Construction Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
385 Chinney Alliance Group
1.9xn/aUS$26.75m
8188 GME Group Holdings
1.5xn/aUS$22.36m
1591 Shun Wo Group Holdings
1.8xn/aUS$9.25m
8373 Indigo Star Holdings
1.5xn/aUS$3.24m
No more companies available in this PE range
1618 5.8xIndustry Avg. 9.4xNo. of Companies14PE0816243240+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1618 is good value based on its Price-To-Earnings Ratio (5.8x) compared to the Hong Kong Construction industry average (9.5x).

Price to Earnings Ratio vs Fair Ratio

What is 1618'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.

1618 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.8x
Fair PE Ratio9.4x

Price-To-Earnings vs Fair Ratio: 1618 is good value based on its Price-To-Earnings Ratio (5.8x) compared to the estimated Fair Price-To-Earnings Ratio (9.4x).

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

7D

-5.5%

1Y

-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

7D

-3.4%

1Y

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

7D

3.0%

1Y

77.7%