Asia Cement (China) Holdings Valuation

Q: What is the Fair Price of 743 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

743 (HK$2.21) is trading above our estimate of [[fair value]] (HK$1.06)

Is 743 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 743 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 743 (HK$2.21) is trading above our estimate of fair value (HK$1.06)

Significantly Below Fair Value: 743 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 743?

Key metric: As 743 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 743. This is calculated by dividing 743's market cap by their current revenue.
What is 743's PS Ratio?
PS Ratio	0.6x
Sales	CN¥5.83b
Market Cap	CN¥3.22b

743 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	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 743's PS Ratio compare to its peers?

The above table shows the PS ratio for 743 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	1.6x
691 China Shanshui Cement Group	0.1x	n/a	HK$2.0b
1313 China Resources Building Materials Technology Holdings	0.5x	4.5%	HK$12.5b
2233 West China Cement	0.9x	24.3%	HK$8.3b
695 Dongwu Cement International	4.8x	n/a	HK$1.3b
743 Asia Cement (China) Holdings	0.6x	-0.5%	HK$3.5b

Price-To-Sales vs Peers: 743 is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (1.6x).

Price to Sales Ratio vs Industry

How does 743's PS Ratio compare vs other companies in the Asian Basic Materials Industry?

25 Companies	Price / Sales	Estimated Growth	Market Cap

25 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 743 is good value based on its Price-To-Sales Ratio (0.6x) compared to the Asian Basic Materials industry average (1.2x).

Price to Sales Ratio vs Fair Ratio

What is 743'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.

743 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.6x
Fair PS Ratio	0.2x

Price-To-Sales vs Fair Ratio: 743 is expensive based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (0.2x).

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.

Discover undervalued companies

Aluminum Corporation of China

HK$126.6b

Primarily engages in the exploration and mining of bauxite, coal, and other resources in the People's Republic of China and internationally.

2600

HK$4.78

-4.0%

22.9%

Jiangxi Copper

HK$64.0b

Engages in exploring, mining, ore dressing, smelting, refining, and processing of copper in Mainland China, Hong Kong, and internationally.

358

HK$12.44

-3.4%

13.3%

China Nonferrous Mining

HK$19.7b

An investment holding company, engages in the exploration, mining, ore processing, leaching, smelting, and sale of copper cathodes, blister copper, copper anodes.

1258

HK$5.04

-4.7%

5.2%