Sun Art Retail Group Valuation

Q: What is the Fair Price of 6808 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6808 (HK$2.14) is trading below our estimate of [[fair value]] (HK$5.35)

Is 6808 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation 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 6808 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6808 (HK$2.14) is trading below our estimate of fair value (HK$5.35)

Significantly Below Fair Value: 6808 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6808?

Key metric: As 6808 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 6808. This is calculated by dividing 6808's market cap by their current revenue.
What is 6808's PS Ratio?
PS Ratio	0.3x
Sales	CN¥71.51b
Market Cap	CN¥18.99b

6808 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	0.2x
Enterprise Value/EBITDA	9.4x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 6808's PS Ratio compare to its peers?

The above table shows the PS ratio for 6808 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1.6x
1137 Hong Kong Technology Venture	0.3x	n/a	HK$1.1b
980 Lianhua Supermarket Holdings	0.02x	n/a	HK$459.0m
1833 Ping An Healthcare and Technology	3.4x	7.0%	HK$16.5b
6086 Fangzhou	2.7x	n/a	HK$7.1b
6808 Sun Art Retail Group	0.3x	3.6%	HK$20.4b

Price-To-Sales vs Peers: 6808 is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (1.6x).

Price to Sales Ratio vs Industry

How does 6808's PS Ratio compare vs other companies in the HK Consumer Retailing Industry?

5 Companies	Price / Sales	Estimated Growth	Market Cap
9886 Dingdang Health Technology Group	0.1x	13.1%	US$95.94m
980 Lianhua Supermarket Holdings	0.02x	n/a	US$58.98m
814 Beijing Jingkelong	0.01x	n/a	US$19.07m
759 CEC International Holdings	0.07x	n/a	US$12.41m

5 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 6808 is good value based on its Price-To-Sales Ratio (0.3x) compared to the Hong Kong Consumer Retailing industry average (0.6x).

Price to Sales Ratio vs Fair Ratio

What is 6808'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.

6808 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.3x
Fair PS Ratio	0.6x

Price-To-Sales vs Fair Ratio: 6808 is good value based on its Price-To-Sales Ratio (0.3x) 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?

The above table shows the analyst 6808 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$2.14	HK$2.12 -0.7%	18.4%	HK$2.71	HK$1.60	n/a	12
Nov ’25	HK$2.22	HK$1.91 -13.7%	15.0%	HK$2.40	HK$1.48	n/a	12
Oct ’25	HK$1.79	HK$1.88 +5.0%	13.9%	HK$2.36	HK$1.50	n/a	13
Sep ’25	HK$1.40	HK$1.81 +29.3%	14.6%	HK$2.30	HK$1.46	n/a	13
Aug ’25	HK$1.26	HK$1.81 +43.7%	14.6%	HK$2.30	HK$1.46	n/a	13
Jul ’25	HK$1.49	HK$1.88 +26.0%	16.6%	HK$2.49	HK$1.46	n/a	13
Jun ’25	HK$1.75	HK$1.89 +8.1%	17.2%	HK$2.50	HK$1.46	n/a	12
May ’25	HK$1.63	HK$1.69 +3.6%	31.6%	HK$2.78	HK$1.09	n/a	11
Apr ’25	HK$1.56	HK$1.83 +17.3%	34.5%	HK$3.17	HK$1.09	n/a	13
Mar ’25	HK$1.31	HK$1.93 +47.2%	37.8%	HK$3.18	HK$1.09	n/a	13
Feb ’25	HK$1.00	HK$2.08 +107.6%	32.8%	HK$3.19	HK$1.10	n/a	14
Jan ’25	HK$1.40	HK$2.24 +60.3%	28.9%	HK$3.96	HK$1.58	n/a	15
Dec ’24	HK$1.34	HK$2.67 +99.0%	66.8%	HK$9.13	HK$1.57	n/a	16
Nov ’24	HK$1.63	HK$3.04 +86.8%	56.1%	HK$8.96	HK$1.80	HK$2.22	16
Oct ’24	HK$1.66	HK$3.05 +83.5%	56.2%	HK$8.98	HK$1.80	HK$1.79	16
Sep ’24	HK$1.84	HK$3.12 +69.6%	53.8%	HK$9.01	HK$1.98	HK$1.40	16
Aug ’24	HK$2.35	HK$3.14 +33.8%	54.0%	HK$9.10	HK$2.00	HK$1.26	16
Jul ’24	HK$2.02	HK$3.23 +60.0%	53.2%	HK$9.10	HK$2.00	HK$1.49	15
Jun ’24	HK$1.86	HK$3.31 +77.8%	50.9%	HK$9.27	HK$2.14	HK$1.75	16
May ’24	HK$3.40	HK$2.98 -12.4%	30.8%	HK$5.00	HK$1.60	HK$1.63	15
Apr ’24	HK$3.15	HK$2.79 -11.3%	27.5%	HK$4.65	HK$1.60	HK$1.56	15
Mar ’24	HK$3.01	HK$3.24 +7.7%	57.2%	HK$9.84	HK$1.60	HK$1.31	16
Feb ’24	HK$3.27	HK$3.56 +8.8%	64.6%	HK$9.94	HK$1.70	HK$1.00	17
Jan ’24	HK$2.56	HK$3.43 +33.9%	65.4%	HK$9.64	HK$1.65	HK$1.40	17
Dec ’23	HK$2.16	HK$3.35 +55.1%	65.3%	HK$9.41	HK$1.61	HK$1.34	17
Nov ’23	HK$1.31	HK$3.41 +160.5%	63.0%	HK$9.30	HK$1.59	HK$1.63	17

Analyst Forecast: Target price is lower than the current share price.