Rare Earth Magnesium Technology Group Holdings Limited

SEHK:601 Stock Report

Market Cap: HK$66.4m

Rare Earth Magnesium Technology Group Holdings Valuation

Is 601 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-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 601 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 601 (HK$0.11) is trading below our estimate of fair value (HK$0.18)

Significantly Below Fair Value: 601 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 601?

Key metric: As 601 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 601. This is calculated by dividing 601's market cap by their current revenue.
What is 601's PS Ratio?
PS Ratio0.2x
SalesHK$266.94m
Market CapHK$66.37m

Price to Sales Ratio vs Peers

How does 601's PS Ratio compare to its peers?

The above table shows the PS ratio for 601 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.4x
8028 Timeless Resources Holdings
0.5xn/aHK$48.9m
1380 China Kingstone Mining Holdings
0.4xn/aHK$30.1m
8331 P.B. Group
0.3xn/aHK$23.1m
195 Greentech Technology International
0.5xn/aHK$382.5m
601 Rare Earth Magnesium Technology Group Holdings
0.2xn/aHK$66.4m

Price-To-Sales vs Peers: 601 is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.4x).

Price to Sales Ratio vs Industry

How does 601's PS Ratio compare vs other companies in the HK Metals and Mining Industry?

13 CompaniesPrice / SalesEstimated GrowthMarket Cap
358 Jiangxi Copper
0.08x7.1%US$8.29b
323 Maanshan Iron & Steel
0.09x-0.9%US$2.18b
581 China Oriental Group
0.08xn/aUS$540.38m
1091 South Manganese Investment
0.08xn/aUS$158.56m
601 0.2xIndustry Avg. 0.5xNo. of Companies13PS00.40.81.21.62+
13 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 601 is good value based on its Price-To-Sales Ratio (0.2x) compared to the Hong Kong Metals and Mining industry average (0.5x).

Price to Sales Ratio vs Fair Ratio

What is 601'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.

601 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 601'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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