Powerlong Real Estate Holdings Limited

SEHK:1238 Stock Report

Market Cap: HK$2.2b

Powerlong Real Estate Holdings Valuation

Is 1238 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 1238 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1238 (HK$0.53) is trading below our estimate of fair value (HK$2.63)

Significantly Below Fair Value: 1238 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1238?

Key metric: As 1238 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1238. This is calculated by dividing 1238's market cap by their current revenue.
What is 1238's PS Ratio?
PS Ratio0.08x
SalesCN¥26.26b
Market CapCN¥2.04b

Price to Sales Ratio vs Peers

How does 1238's PS Ratio compare to its peers?

The above table shows the PS ratio for 1238 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.08x
3377 Sino-Ocean Group Holding
0.05xn/aHK$2.2b
563 Shanghai Industrial Urban Development Group
0.2xn/aHK$1.9b
884 CIFI Holdings (Group)
0.05x-20.2%HK$3.2b
3333 China Evergrande Group
0.007xn/aHK$2.2b
1238 Powerlong Real Estate Holdings
0.08x-9.5%HK$2.2b

Price-To-Sales vs Peers: 1238 is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.1x).

Price to Sales Ratio vs Industry

How does 1238's PS Ratio compare vs other companies in the HK Real Estate Industry?

89 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.0.6x4.7%
1238 Powerlong Real Estate Holdings
 0.08x-9.5%US$281.90m
1908 C&D International Investment Group
0.2x3.1%US$3.29b
3900 Greentown China Holdings
0.1x-0.4%US$2.97b
1238 0.1xIndustry Avg. 0.6xNo. of Companies89PS00.81.62.43.24+
89 CompaniesEstimated GrowthMarket Cap
Industry Avg.0.6x21.1%
1238 Powerlong Real Estate Holdings
 0.08xn/aUS$281.90m
No more companies

Price-To-Sales vs Industry: 1238 is good value based on its Price-To-Sales Ratio (0.1x) compared to the Hong Kong Real Estate industry average (0.6x).

Price to Sales Ratio vs Fair Ratio

What is 1238'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.

1238 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.08x
Fair PS Ratio0.1x

Price-To-Sales vs Fair Ratio: 1238 is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.1x).

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 1238 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$0.53
HK$0.76
+42.6%
0.7%HK$0.76HK$0.75n/a2
Nov ’25HK$0.59
HK$0.76
+28.1%
0.7%HK$0.76HK$0.75n/a2
Oct ’25HK$0.67
HK$0.76
+12.8%
0.7%HK$0.76HK$0.75n/a2
Sep ’25HK$0.52
HK$0.81
+56.0%
9.8%HK$0.89HK$0.73n/a2
Aug ’25HK$0.59
HK$0.81
+37.5%
9.8%HK$0.89HK$0.73n/a2
Jul ’25HK$0.58
HK$0.81
+39.8%
9.8%HK$0.89HK$0.73n/a2
Jun ’25HK$0.73
HK$0.85
+16.0%
13.4%HK$0.96HK$0.73n/a2
May ’25HK$0.66
HK$0.85
+28.3%
13.4%HK$0.96HK$0.73n/a2
Apr ’25HK$0.61
HK$0.85
+38.8%
13.4%HK$0.96HK$0.73n/a2
Mar ’25HK$0.64
HK$0.85
+33.4%
13.9%HK$0.97HK$0.74n/a2
Feb ’25HK$0.62
HK$0.85
+37.7%
13.9%HK$0.97HK$0.74n/a2
Jan ’25HK$0.73
HK$0.85
+16.4%
13.6%HK$0.97HK$0.73n/a2
Dec ’24HK$0.71
HK$0.96
+35.4%
1.2%HK$0.97HK$0.95n/a2
Nov ’24HK$0.76
HK$0.96
+26.2%
2.3%HK$0.98HK$0.94HK$0.592
Oct ’24HK$0.94
HK$0.90
-3.8%
8.3%HK$0.98HK$0.80HK$0.673
Sep ’24HK$0.84
HK$1.74
+107.6%
83.5%HK$4.26HK$0.80HK$0.524
Aug ’24HK$1.02
HK$1.77
+74.0%
74.5%HK$4.32HK$0.80HK$0.595
Jul ’24HK$0.93
HK$1.89
+102.9%
67.8%HK$4.37HK$0.97HK$0.585
Jun ’24HK$0.89
HK$1.89
+112.0%
67.8%HK$4.37HK$0.97HK$0.735
May ’24HK$1.22
HK$2.20
+80.0%
57.1%HK$4.54HK$0.99HK$0.665
Apr ’24HK$1.36
HK$2.72
+100.3%
63.5%HK$5.52HK$0.85HK$0.616
Mar ’24HK$1.70
HK$2.72
+59.9%
64.9%HK$5.55HK$0.72HK$0.646
Feb ’24HK$1.75
HK$3.67
+109.6%
75.7%HK$9.12HK$0.74HK$0.627
Jan ’24HK$1.57
HK$3.24
+106.4%
82.5%HK$8.89HK$0.72HK$0.738
Dec ’23HK$1.25
HK$2.98
+138.3%
88.2%HK$8.52HK$0.67HK$0.718
Nov ’23HK$0.69
HK$3.29
+376.8%
80.0%HK$8.62HK$0.67HK$0.769

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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