China Communications Services (SZSC:552) Stock Valuation, Peer Comparison & Price Targets

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

552 (HK$4.08) is trading below our estimate of [[fair value]] (HK$17.55)

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$4.08) is trading below our estimate of fair value (HK$17.55)

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 Ratio	7.2x
Earnings	CN¥3.67b
Market Cap	CN¥26.29b

552 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	0.03x
Enterprise Value/EBITDA	1.5x
PEG Ratio	1.2x

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	6.9x
2386 SINOPEC Engineering (Group)	10x	12.2%	HK$25.2b
586 China Conch Venture Holdings	6.1x	16.4%	HK$11.9b
1618 Metallurgical Corporation of China	5.7x	15.5%	HK$68.8b
3311 China State Construction International Holdings	5.6x	12.3%	HK$54.6b
552 China Communications Services	7.2x	6.0%	HK$28.3b

Price-To-Earnings vs Peers: 552 is expensive based on its Price-To-Earnings Ratio (7.2x) compared to the peer average (6.9x).

Price to Earnings Ratio vs Industry

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

3 Companies	Price / Earnings	Estimated Growth	Market Cap
385 Chinney Alliance Group	2x	n/a	US$27.13m
8188 GME Group Holdings	1.5x	n/a	US$22.36m
8373 Indigo Star Holdings	1.5x	n/a	US$3.19m

No more companies available in this PE range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 552 is good value based on its Price-To-Earnings Ratio (7.2x) compared to the Hong Kong Construction industry average (10.1x).

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 Ratio	7.2x
Fair PE Ratio	6.4x

Price-To-Earnings vs Fair Ratio: 552 is expensive based on its Price-To-Earnings Ratio (7.2x) compared to the estimated Fair Price-To-Earnings Ratio (6.4x).

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.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	HK$4.08	HK$4.82 +18.0%	14.4%	HK$6.41	HK$4.29	n/a	7
Nov ’25	HK$4.18	HK$4.80 +14.8%	17.8%	HK$6.55	HK$3.52	n/a	7
Oct ’25	HK$4.21	HK$4.80 +14.0%	17.8%	HK$6.55	HK$3.52	n/a	7
Sep ’25	HK$3.99	HK$4.79 +20.1%	17.6%	HK$6.53	HK$3.50	n/a	7
Aug ’25	HK$4.11	HK$4.68 +13.9%	16.6%	HK$6.28	HK$3.50	n/a	7
Jul ’25	HK$4.21	HK$4.61 +9.6%	16.0%	HK$6.27	HK$3.48	n/a	8
Jun ’25	HK$3.77	HK$4.61 +22.4%	16.0%	HK$6.27	HK$3.48	n/a	8
May ’25	HK$3.75	HK$4.61 +23.0%	16.3%	HK$6.30	HK$3.50	n/a	8
Apr ’25	HK$3.65	HK$4.61 +26.3%	15.4%	HK$6.31	HK$3.50	n/a	9
Mar ’25	HK$3.39	HK$4.50 +32.7%	11.2%	HK$5.30	HK$3.49	n/a	9
Feb ’25	HK$3.20	HK$4.57 +42.7%	11.1%	HK$5.32	HK$3.50	n/a	10
Jan ’25	HK$3.24	HK$4.62 +42.5%	12.6%	HK$5.78	HK$3.50	n/a	10
Dec ’24	HK$3.29	HK$4.53 +37.7%	12.4%	HK$5.66	HK$3.48	n/a	10
Nov ’24	HK$3.22	HK$4.53 +40.7%	12.4%	HK$5.66	HK$3.48	HK$4.18	10
Oct ’24	HK$3.29	HK$4.53 +37.7%	12.4%	HK$5.66	HK$3.48	HK$4.21	10
Sep ’24	HK$3.53	HK$4.54 +28.7%	12.4%	HK$5.68	HK$3.50	HK$3.99	10
Aug ’24	HK$3.66	HK$4.49 +22.7%	13.6%	HK$5.77	HK$3.48	HK$4.11	9
Jul ’24	HK$3.86	HK$4.54 +17.7%	16.4%	HK$5.90	HK$3.32	HK$4.21	10
Jun ’24	HK$3.80	HK$4.65 +22.5%	16.0%	HK$6.19	HK$3.48	HK$3.77	11
May ’24	HK$4.29	HK$4.65 +8.5%	16.0%	HK$6.19	HK$3.48	HK$3.75	11
Apr ’24	HK$3.86	HK$4.70 +21.7%	15.9%	HK$6.24	HK$3.51	HK$3.65	11
Mar ’24	HK$3.37	HK$4.49 +33.3%	16.0%	HK$6.17	HK$3.36	HK$3.39	12
Feb ’24	HK$3.04	HK$4.58 +50.6%	16.2%	HK$6.30	HK$3.43	HK$3.20	12
Jan ’24	HK$2.85	HK$4.48 +57.4%	15.3%	HK$6.13	HK$3.34	HK$3.24	12
Dec ’23	HK$2.67	HK$4.34 +62.4%	14.2%	HK$5.69	HK$3.24	HK$3.29	12
Nov ’23	HK$2.27	HK$4.38 +92.8%	14.2%	HK$5.79	HK$3.30	HK$3.22	12

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

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China Communications Services Valuation