Arts Optical International Holdings Limited

SEHK:1120 Stock Report

Market Cap: HK$320.6m

Arts Optical International Holdings Valuation

Is 1120 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 1120 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1120 (HK$0.83) is trading below our estimate of fair value (HK$1.07)

Significantly Below Fair Value: 1120 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1120?

Key metric: As 1120 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1120. This is calculated by dividing 1120's market cap by their current earnings.
What is 1120's PE Ratio?
PE Ratio10x
EarningsHK$32.11m
Market CapHK$320.60m

Price to Earnings Ratio vs Peers

How does 1120's PE Ratio compare to its peers?

The above table shows the PE ratio for 1120 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.7x
2393 Yestar Healthcare Holdings
0.1xn/aHK$158.5m
1763 China Isotope & Radiation
8.2xn/aHK$3.5b
6929 OrbusNeich Medical Group Holdings
11.4x-3.1%HK$3.4b
2276 Shanghai Conant Optical
15x16.5%HK$6.3b
1120 Arts Optical International Holdings
10xn/aHK$320.6m

Price-To-Earnings vs Peers: 1120 is expensive based on its Price-To-Earnings Ratio (10x) compared to the peer average (8.7x).

Price to Earnings Ratio vs Industry

How does 1120's PE Ratio compare vs other companies in the HK Medical Equipment Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
2393 Yestar Healthcare Holdings
0.1xn/aUS$21.27m
No more companies available in this PE range
1120 10.0xIndustry Avg. 15.9xNo. of Companies5PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1120 is good value based on its Price-To-Earnings Ratio (10x) compared to the Hong Kong Medical Equipment industry average (15.9x).

Price to Earnings Ratio vs Fair Ratio

What is 1120'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.

1120 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1120'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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