China Shengmu Organic Milk Limited

SEHK:1432 Stock Report

Market Cap: HK$1.4b

China Shengmu Organic Milk Valuation

Is 1432 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 1432 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1432 (HK$0.17) is trading above our estimate of fair value (HK$0.06)

Significantly Below Fair Value: 1432 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1432?

Key metric: As 1432 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1432. This is calculated by dividing 1432's market cap by their current revenue.
What is 1432's PS Ratio?
PS Ratio0.4x
SalesCN¥3.31b
Market CapCN¥1.31b

Price to Sales Ratio vs Peers

How does 1432's PS Ratio compare to its peers?

The above table shows the PS ratio for 1432 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.5x
1431 YuanShengTai Dairy Farm
0.3xn/aHK$755.2m
875 Congyu Intelligent Agricultural Holdings
1.1xn/aHK$735.8m
9858 China Youran Dairy Group
0.3x8.9%HK$5.3b
3839 Chia Tai Enterprises International
0.2xn/aHK$411.6m
1432 China Shengmu Organic Milk
0.4xn/aHK$1.4b

Price-To-Sales vs Peers: 1432 is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.5x).

Price to Sales Ratio vs Industry

How does 1432's PS Ratio compare vs other companies in the HK Food Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
3838 China Starch Holdings
0.08xn/aUS$130.27m
3999 DaChan Food (Asia)
0.09xn/aUS$75.72m
841 Asia Cassava Resources Holdings
0.05xn/aUS$8.26m
359 China Haisheng Juice Holdings
0.04xn/aUS$8.06m
1432 0.4xIndustry Avg. 0.5xNo. of Companies13PS00.61.21.82.43+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 1432 is good value based on its Price-To-Sales Ratio (0.4x) compared to the Hong Kong Food industry average (0.5x).

Price to Sales Ratio vs Fair Ratio

What is 1432'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.

1432 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 1432's Price-To-Sales 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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