Shanghai Electric Group Valuation
Is 2727 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation Score 5/6
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 2727 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 2727 (HK$3.02) is trading below our estimate of fair value (HK$5.72)
Significantly Below Fair Value: 2727 is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 2727?
Key metric: As 2727 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.
| What is 2727's PS Ratio? | |
|---|---|
| PS Ratio | 0.4x |
| Sales | CN¥113.02b |
| Market Cap | CN¥131.92b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.4x |
| Enterprise Value/EBITDA | 28.3x |
| PEG Ratio | 6x |
Price to Sales Ratio vs Peers
How does 2727's PS Ratio compare to its peers?
| Company | Forward PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 2.1x | ||
1072 Dongfang Electric | 0.4x | 9.0% | HK$50.3b |
1133 Harbin Electric | 0.2x | 13.5% | HK$5.7b |
1597 China Nature Energy Technology Holdings | 7.3x | n/a | HK$1.6b |
1 CK Hutchison Holdings | 0.6x | 14.6% | HK$154.2b |
2727 Shanghai Electric Group | 0.4x | 3.9% | HK$142.1b |
Price-To-Sales vs Peers: 2727 is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (2.1x).
Price to Sales Ratio vs Industry
How does 2727's PS Ratio compare vs other companies in the HK Electrical Industry?
| 9 Companies | Price / Sales | Estimated Growth | Market Cap |
|---|---|---|---|
1366 Jiangnan Group | 0.1x | n/a | US$309.80m |
842 Leoch International Technology | 0.1x | n/a | US$273.04m |
658 China High Speed Transmission Equipment Group | 0.07x | n/a | US$220.50m |
505 Xingye Alloy Materials Group | 0.1x | n/a | US$111.22m |
| 9 Companies | Estimated Growth | Market Cap |
|---|
Price-To-Sales vs Industry: 2727 is good value based on its Price-To-Sales Ratio (0.4x) compared to the Hong Kong Electrical industry average (0.5x).
Price to Sales Ratio vs Fair Ratio
What is 2727'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.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 0.4x |
| Fair PS Ratio | 0.6x |
Price-To-Sales vs Fair Ratio: 2727 is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | HK$3.02 | HK$2.06 -31.7% | 27.8% | HK$2.91 | HK$1.29 | n/a | 4 |
| Nov ’25 | HK$2.31 | HK$2.01 -13.2% | 29.2% | HK$2.90 | HK$1.29 | n/a | 4 |
| Oct ’25 | HK$1.75 | HK$1.78 +1.9% | 15.5% | HK$2.08 | HK$1.33 | n/a | 4 |
| Sep ’25 | HK$1.48 | HK$1.75 +18.1% | 15.7% | HK$2.02 | HK$1.30 | n/a | 4 |
| Aug ’25 | HK$1.55 | HK$1.75 +12.8% | 15.7% | HK$2.02 | HK$1.30 | n/a | 4 |
| Jul ’25 | HK$1.53 | HK$1.85 +20.6% | 20.9% | HK$2.39 | HK$1.30 | n/a | 4 |
| Jun ’25 | HK$1.57 | HK$1.90 +21.2% | 16.6% | HK$2.39 | HK$1.52 | n/a | 4 |
| May ’25 | HK$1.60 | HK$2.04 +27.8% | 17.7% | HK$2.39 | HK$1.52 | n/a | 4 |
| Apr ’25 | HK$1.52 | HK$2.07 +35.9% | 17.3% | HK$2.40 | HK$1.52 | n/a | 4 |
| Mar ’25 | HK$1.57 | HK$2.08 +32.6% | 17.6% | HK$2.42 | HK$1.52 | n/a | 4 |
| Feb ’25 | HK$1.45 | HK$2.09 +44.3% | 17.0% | HK$2.42 | HK$1.55 | n/a | 4 |
| Jan ’25 | HK$1.63 | HK$2.11 +29.5% | 17.4% | HK$2.46 | HK$1.56 | n/a | 4 |
| Dec ’24 | HK$1.67 | HK$2.22 +32.9% | 18.6% | HK$2.58 | HK$1.52 | n/a | 4 |
| Nov ’24 | HK$1.69 | HK$2.22 +31.4% | 18.6% | HK$2.58 | HK$1.52 | HK$2.31 | 4 |
| Oct ’24 | HK$1.83 | HK$2.22 +21.2% | 18.5% | HK$2.58 | HK$1.52 | HK$1.75 | 4 |
| Sep ’24 | HK$1.76 | HK$2.25 +27.8% | 24.3% | HK$2.67 | HK$1.48 | HK$1.48 | 3 |
| Aug ’24 | HK$1.90 | HK$2.22 +17.0% | 22.4% | HK$2.61 | HK$1.52 | HK$1.55 | 3 |
| Jul ’24 | HK$1.83 | HK$2.22 +21.5% | 22.4% | HK$2.61 | HK$1.52 | HK$1.53 | 3 |
| Jun ’24 | HK$1.96 | HK$2.22 +13.5% | 22.4% | HK$2.61 | HK$1.52 | HK$1.57 | 3 |
| May ’24 | HK$2.12 | HK$2.29 +8.0% | 19.5% | HK$2.68 | HK$1.55 | HK$1.60 | 4 |
| Apr ’24 | HK$1.96 | HK$2.31 +17.6% | 19.0% | HK$2.74 | HK$1.59 | HK$1.52 | 4 |
| Mar ’24 | HK$1.84 | HK$2.28 +24.0% | 17.1% | HK$2.72 | HK$1.58 | HK$1.57 | 5 |
| Feb ’24 | HK$1.89 | HK$2.33 +23.4% | 18.9% | HK$2.78 | HK$1.62 | HK$1.45 | 4 |
| Jan ’24 | HK$1.76 | HK$2.29 +30.1% | 19.6% | HK$2.70 | HK$1.57 | HK$1.63 | 4 |
| Dec ’23 | HK$1.83 | HK$2.13 +16.6% | 17.3% | HK$2.60 | HK$1.57 | HK$1.67 | 4 |
| Nov ’23 | HK$1.57 | HK$2.18 +39.2% | 19.9% | HK$2.61 | HK$1.58 | HK$1.69 | 4 |
Analyst Forecast: Target price is lower than the current share price.
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