Theme International Holdings Limited

SZSC:990 Stock Report

Market Cap: HK$5.4b

Theme International Holdings Valuation

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$0.4) is trading below our estimate of fair value (HK$3.38)

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 Ratio8.1x
EarningsHK$665.29m
Market CapHK$5.39b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.1x
2098 Zall Smart Commerce Group
45.6xn/aHK$3.9b
9930 Horizon Construction Development
4x14.6%HK$4.4b
1733 E-Commodities Holdings
1.8xn/aHK$3.8b
9878 Huitongda Network
29.1x29.0%HK$11.0b
990 Theme International Holdings
8.1xn/aHK$5.4b

Price-To-Earnings vs Peers: 990 is good value based on its Price-To-Earnings Ratio (8.1x) 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 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1733 E-Commodities Holdings
1.8xn/aUS$484.99m
1001 Hong Kong Shanghai Alliance Holdings
2.3xn/aUS$22.90m
380 China Pipe Group
1.8xn/aUS$14.72m
1581 Progressive Path Group Holdings
1.6xn/aUS$7.84m
990 8.1xIndustry Avg. 10.4xNo. of Companies6PE01020304050+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 990 is good value based on its Price-To-Earnings Ratio (8.1x) 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 Ratio8.1x
Fair PE Ration/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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