Honworld Group Valuation

Q: What is the Fair Price of 2226 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2226 (HK$0.7) is trading above our estimate of [[fair value]] (HK$0.01)

Is 2226 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

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 2226 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2226 (HK$0.7) is trading above our estimate of fair value (HK$0.01)

Significantly Below Fair Value: 2226 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2226?

Key metric: As 2226 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 2226. This is calculated by dividing 2226's market cap by their current revenue.
What is 2226's PS Ratio?
PS Ratio	1.4x
Sales	CN¥275.27m
Market Cap	CN¥377.20m

2226 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	12.7x
Enterprise Value/EBITDA	-112.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 2226's PS Ratio compare to its peers?

The above table shows the PS ratio for 2226 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	0.3x
2119 Tsit Wing International Holdings	0.6x	n/a	HK$403.6m
1262 Labixiaoxin Snacks Group	0.4x	n/a	HK$395.3m
1285 Jiashili Group	0.3x	n/a	HK$489.7m
3999 DaChan Food (Asia)	0.09x	n/a	HK$599.6m
2226 Honworld Group	1.4x	n/a	HK$405.1m

Price-To-Sales vs Peers: 2226 is expensive based on its Price-To-Sales Ratio (1.4x) compared to the peer average (0.3x).

Price to Sales Ratio vs Industry

How does 2226's PS Ratio compare vs other companies in the HK Food Industry?

7 Companies	Price / Sales	Estimated Growth	Market Cap
3838 China Starch Holdings	0.08x	n/a	US$130.25m
3999 DaChan Food (Asia)	0.09x	n/a	US$77.02m
841 Asia Cassava Resources Holdings	0.06x	n/a	US$9.46m
359 China Haisheng Juice Holdings	0.04x	n/a	US$8.06m

7 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 2226 is expensive based on its Price-To-Sales Ratio (1.4x) compared to the Hong Kong Food industry average (0.5x).

Price to Sales Ratio vs Fair Ratio

What is 2226'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.

2226 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.4x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 2226'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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