Ruicheng (China) Media Group Limited

SEHK:1640 Stock Report

Market Cap: HK$1.6b

Ruicheng (China) Media Group Valuation

Is 1640 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 1640 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1640 (HK$2.84) is trading below our estimate of fair value (HK$7.88)

Significantly Below Fair Value: 1640 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1640?

Key metric: As 1640 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1640. This is calculated by dividing 1640's market cap by their current revenue.
What is 1640's PS Ratio?
PS Ratio6.5x
SalesCN¥228.12m
Market CapCN¥1.48b

Price to Sales Ratio vs Peers

How does 1640's PS Ratio compare to its peers?

The above table shows the PS ratio for 1640 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.8x
2405 Powerwin Tech Group
12xn/aHK$1.9b
2422 Rego Interactive
4.8xn/aHK$1.2b
2540 Lesi Group
1.3xn/aHK$860.0m
2486 Plus Group Holdings
1.2xn/aHK$822.3m
1640 Ruicheng (China) Media Group
6.5xn/aHK$1.6b

Price-To-Sales vs Peers: 1640 is expensive based on its Price-To-Sales Ratio (6.5x) compared to the peer average (4.8x).

Price to Sales Ratio vs Industry

How does 1640's PS Ratio compare vs other companies in the HK Media Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
1948 Uju Holding
0.07xn/aUS$75.92m
2131 Netjoy Holdings
0.1xn/aUS$54.04m
6988 Joy Spreader Group
0.09x60.5%US$35.05m
6696 Many Idea Cloud Holdings
0.1xn/aUS$29.36m
1640 6.5xIndustry Avg. 0.8xNo. of Companies9PS00.61.21.82.43+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 1640 is expensive based on its Price-To-Sales Ratio (6.5x) compared to the Hong Kong Media industry average (0.8x).

Price to Sales Ratio vs Fair Ratio

What is 1640'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.

1640 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.5x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 1640'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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