IGG Inc

SZSC:799 Stock Report

Market Cap: HK$4.0b

IGG Valuation

Is 799 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: 799 (HK$3.46) is trading below our estimate of fair value (HK$5.07)

Significantly Below Fair Value: 799 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 799?

Key metric: As 799 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 799. This is calculated by dividing 799's market cap by their current revenue.
What is 799's PS Ratio?
PS Ratio0.9x
SalesHK$4.60b
Market CapHK$3.95b

Price to Sales Ratio vs Peers

How does 799's PS Ratio compare to its peers?

The above table shows the PS ratio for 799 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.6x
9890 ZX
0.6xn/aHK$4.4b
1119 iDreamSky Technology Holdings
2.4xn/aHK$4.1b
777 NetDragon Websoft Holdings
0.7x4.7%HK$5.3b
434 Boyaa Interactive International
6.8xn/aHK$2.9b
799 IGG
0.9x12.1%HK$4.0b

Price-To-Sales vs Peers: 799 is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (1.8x).

Price to Sales Ratio vs Industry

How does 799's PS Ratio compare vs other companies in the HK Entertainment Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
6860 FingerTango
0.3xn/aUS$24.65m
491 Emperor Culture Group
0.3xn/aUS$19.41m
1132 Orange Sky Golden Harvest Entertainment (Holdings)
0.1xn/aUS$14.39m
571 eSun Holdings
0.07xn/aUS$10.15m
799 0.9xIndustry Avg. 1.5xNo. of Companies9PS01.22.43.64.86+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 799 is good value based on its Price-To-Sales Ratio (0.9x) compared to the Hong Kong Entertainment industry average (1.6x).

Price to Sales Ratio vs Fair Ratio

What is 799'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.

799 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ratio1.3x

Price-To-Sales vs Fair Ratio: 799 is good value based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).

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 799 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
HK$4.96
0%
14.6%HK$5.68HK$3.63n/a5
Nov ’25n/a
HK$4.96
0%
14.6%HK$5.68HK$3.63n/a5
Oct ’25n/a
HK$4.96
0%
14.6%HK$5.68HK$3.63n/a5
Sep ’25n/a
HK$4.96
0%
14.6%HK$5.68HK$3.63n/a5
Aug ’25n/a
HK$4.96
0%
14.6%HK$5.68HK$3.63n/a5
Jul ’25n/a
HK$4.96
0%
14.6%HK$5.68HK$3.63n/a5
Jun ’25n/a
HK$4.96
0%
14.6%HK$5.68HK$3.63n/a5
May ’25n/a
HK$4.96
0%
14.6%HK$5.68HK$3.63n/a5
Apr ’25n/a
HK$4.96
0%
14.6%HK$5.68HK$3.63n/a5
Mar ’25n/a
HK$4.96
0%
14.6%HK$5.68HK$3.63n/a5
Feb ’25HK$2.74
HK$4.96
+80.9%
14.7%HK$5.67HK$3.62n/a5
Jan ’25HK$3.24
HK$4.96
+53.0%
13.4%HK$5.67HK$3.62n/a6
Dec ’24HK$3.29
HK$4.67
+41.9%
19.7%HK$5.66HK$2.99n/a7
Nov ’24HK$3.19
HK$5.49
+72.2%
42.0%HK$11.16HK$3.00n/a8
Oct ’24HK$3.23
HK$5.49
+70.1%
42.0%HK$11.16HK$3.00n/a8
Sep ’24HK$3.68
HK$5.61
+52.4%
43.9%HK$11.20HK$3.01n/a7
Aug ’24HK$4.13
HK$6.53
+58.2%
36.8%HK$11.18HK$3.00n/a7
Jul ’24HK$3.88
HK$6.53
+68.4%
36.8%HK$11.18HK$3.00n/a7
Jun ’24HK$4.45
HK$6.88
+54.7%
35.7%HK$11.20HK$3.01n/a6
May ’24HK$6.47
HK$6.88
+6.4%
35.7%HK$11.20HK$3.01n/a6
Apr ’24HK$3.08
HK$3.42
+11.1%
8.9%HK$3.82HK$3.01n/a5
Mar ’24HK$2.97
HK$3.42
+15.3%
8.9%HK$3.82HK$3.01n/a5
Feb ’24HK$3.08
HK$3.42
+11.1%
8.8%HK$3.80HK$3.00HK$2.745
Jan ’24HK$2.90
HK$3.51
+21.0%
7.2%HK$3.97HK$3.17HK$3.246
Dec ’23HK$2.77
HK$3.51
+26.7%
7.2%HK$3.97HK$3.17HK$3.296
Nov ’23HK$2.17
HK$3.64
+67.5%
8.2%HK$4.00HK$3.20HK$3.196

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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