BBMG Corporation

SHSC:2009 Stock Report

Market Cap: HK$18.5b

BBMG Valuation

Is 2009 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-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 2009 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2009 (HK$0.79) is trading above our estimate of fair value (HK$0.45)

Significantly Below Fair Value: 2009 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2009?

Key metric: As 2009 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 2009. This is calculated by dividing 2009's market cap by their current revenue.
What is 2009's PS Ratio?
PS Ratio0.07x
SalesCN¥112.40b
Market CapCN¥17.25b

Price to Sales Ratio vs Peers

How does 2009's PS Ratio compare to its peers?

The above table shows the PS ratio for 2009 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.5x
3323 China National Building Material
0.1x7.6%HK$27.9b
1313 China Resources Building Materials Technology Holdings
0.5x4.9%HK$12.8b
2233 West China Cement
0.9x24.3%HK$8.1b
743 Asia Cement (China) Holdings
0.6x-0.5%HK$3.5b
2009 BBMG
0.07x1.8%HK$18.5b

Price-To-Sales vs Peers: 2009 is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.5x).

Price to Sales Ratio vs Industry

How does 2009's PS Ratio compare vs other companies in the Asian Basic Materials Industry?

28 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.1.2x5.6%
2009 BBMG
 0.07x1.8%US$2.38b
2009 0.1xIndustry Avg. 1.2xNo. of Companies48PS012345+
28 CompaniesEstimated GrowthMarket Cap
Industry Avg.1.2x27.5%
2009 BBMG
 0.07x62.6%US$2.38b
No more companies

Price-To-Sales vs Industry: 2009 is good value based on its Price-To-Sales Ratio (0.1x) compared to the Asian Basic Materials industry average (1.2x).

Price to Sales Ratio vs Fair Ratio

What is 2009'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.

2009 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.07x
Fair PS Ratio0.3x

Price-To-Sales vs Fair Ratio: 2009 is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 2009 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$0.79
HK$1.12
+41.4%
37.5%HK$1.74HK$0.60n/a5
Nov ’25HK$0.80
HK$1.16
+45.4%
35.7%HK$1.77HK$0.61n/a5
Oct ’25HK$0.80
HK$1.21
+51.4%
38.7%HK$1.95HK$0.61n/a5
Sep ’25HK$0.57
HK$1.22
+114.9%
38.5%HK$1.98HK$0.60n/a5
Aug ’25HK$0.59
HK$1.22
+107.6%
38.5%HK$1.98HK$0.60n/a5
Jul ’25HK$0.56
HK$1.22
+118.7%
38.5%HK$1.98HK$0.60n/a5
Jun ’25HK$0.64
HK$1.25
+94.8%
37.4%HK$1.99HK$0.60n/a5
May ’25HK$0.65
HK$1.28
+96.9%
38.3%HK$1.99HK$0.59n/a5
Apr ’25HK$0.62
HK$1.43
+130.5%
48.0%HK$2.62HK$0.60n/a5
Mar ’25HK$0.64
HK$1.43
+123.3%
48.0%HK$2.62HK$0.60n/a5
Feb ’25HK$0.63
HK$1.43
+126.9%
48.0%HK$2.62HK$0.60n/a5
Jan ’25HK$0.73
HK$1.48
+102.2%
43.1%HK$2.62HK$0.81n/a5
Dec ’24HK$0.74
HK$1.48
+100.0%
43.6%HK$2.64HK$0.81n/a5
Nov ’24HK$0.76
HK$1.47
+94.0%
50.3%HK$2.62HK$0.79HK$0.804
Oct ’24HK$0.81
HK$1.38
+70.4%
50.2%HK$2.63HK$0.79HK$0.805
Sep ’24HK$0.82
HK$1.34
+63.8%
46.8%HK$2.62HK$0.80HK$0.576
Aug ’24HK$0.92
HK$1.35
+46.7%
46.5%HK$2.63HK$0.81HK$0.596
Jul ’24HK$0.86
HK$1.39
+62.1%
45.1%HK$2.69HK$0.88HK$0.566
Jun ’24HK$0.86
HK$1.39
+62.1%
45.1%HK$2.69HK$0.88HK$0.646
May ’24HK$1.01
HK$1.48
+46.4%
45.5%HK$2.75HK$0.90HK$0.656
Apr ’24HK$1.02
HK$1.55
+51.9%
41.2%HK$2.75HK$0.99HK$0.626
Mar ’24HK$1.08
HK$1.59
+46.9%
44.6%HK$2.93HK$0.98HK$0.646
Feb ’24HK$1.05
HK$1.63
+55.2%
44.0%HK$2.98HK$1.00HK$0.636
Jan ’24HK$1.01
HK$1.58
+56.4%
44.1%HK$2.90HK$0.96HK$0.736
Dec ’23HK$0.97
HK$1.53
+58.1%
44.4%HK$2.82HK$0.94HK$0.746
Nov ’23HK$0.83
HK$1.52
+82.6%
44.7%HK$2.80HK$0.92HK$0.766

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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