Guangdong - Hong Kong Greater Bay Area Holdings Limited

SEHK:1396 Stock Report

Market Cap: HK$166.9m

Guangdong - Hong Kong Greater Bay Area Holdings Valuation

Is 1396 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 1396 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1396 (HK$0.21) is trading below our estimate of fair value (HK$78.79)

Significantly Below Fair Value: 1396 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1396?

Key metric: As 1396 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1396. This is calculated by dividing 1396's market cap by their current revenue.
What is 1396's PS Ratio?
PS Ratio0.06x
SalesCN¥2.77b
Market CapCN¥155.34m

Price to Sales Ratio vs Peers

How does 1396's PS Ratio compare to its peers?

The above table shows the PS ratio for 1396 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2x
2286 Chen Xing Development Holdings
0.1xn/aHK$180.0m
313 Richly Field China Development
7.3xn/aHK$233.4m
1218 Easyknit International Holdings
0.6xn/aHK$144.3m
1996 Redsun Properties Group
0.01xn/aHK$207.0m
1396 Guangdong - Hong Kong Greater Bay Area Holdings
0.06xn/aHK$166.9m

Price-To-Sales vs Peers: 1396 is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (2x).


Price to Sales Ratio vs Industry

How does 1396's PS Ratio compare vs other companies in the HK Real Estate Industry?

89 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.0.6x4.7%
1396 Guangdong - Hong Kong Greater Bay Area Holdings
0.06xn/aUS$21.44m
1908 C&D International Investment Group
0.2x3.1%US$3.29b
3900 Greentown China Holdings
0.1x-0.4%US$2.97b
1396 0.1xIndustry Avg. 0.6xNo. of Companies89PS00.81.62.43.24+
89 CompaniesEstimated GrowthMarket Cap
Industry Avg.0.6x21.1%
1396 Guangdong - Hong Kong Greater Bay Area Holdings
0.06xn/aUS$21.44m
No more companies

Price-To-Sales vs Industry: 1396 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 1396'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.

1396 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.06x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 1396'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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