Kinetic Development Group Limited

SEHK:1277 Stock Report

Market Cap: HK$11.9b

Kinetic Development Group Valuation

Is 1277 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 1277 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1277 (HK$1.41) is trading below our estimate of fair value (HK$3.76)

Significantly Below Fair Value: 1277 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1277?

Key metric: As 1277 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1277. This is calculated by dividing 1277's market cap by their current earnings.
What is 1277's PE Ratio?
PE Ratio4.3x
EarningsCN¥2.60b
Market CapCN¥11.11b

Price to Earnings Ratio vs Peers

How does 1277's PE Ratio compare to its peers?

The above table shows the PE ratio for 1277 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.9x
1164 CGN Mining
29.5x25.8%HK$12.7b
866 China Qinfa Group
29.4xn/aHK$3.4b
1171 Yankuang Energy Group
5.4x-2.1%HK$131.4b
1898 China Coal Energy
7.2x3.3%HK$167.4b
1277 Kinetic Development Group
4.3xn/aHK$11.9b

Price-To-Earnings vs Peers: 1277 is good value based on its Price-To-Earnings Ratio (4.3x) compared to the peer average (17.9x).


Price to Earnings Ratio vs Industry

How does 1277's PE Ratio compare vs other companies in the HK Oil and Gas Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
663 King Stone Energy Group
1.3xn/aUS$15.51m
276 Mongolia Energy
0.07xn/aUS$14.99m
No more companies available in this PE range
1277 4.3xIndustry Avg. 9.1xNo. of Companies4PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1277 is good value based on its Price-To-Earnings Ratio (4.3x) compared to the Hong Kong Oil and Gas industry average (9.1x).


Price to Earnings Ratio vs Fair Ratio

What is 1277'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.

1277 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1277'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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