Sunac Services Holdings Limited

SEHK:1516 Stock Report

Market Cap: HK$5.3b

Sunac Services Holdings Valuation

Is 1516 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 1516 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1516 (HK$1.72) is trading below our estimate of fair value (HK$21.42)

Significantly Below Fair Value: 1516 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1516?

Key metric: As 1516 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1516. This is calculated by dividing 1516's market cap by their current revenue.
What is 1516's PS Ratio?
PS Ratio0.7x
SalesCN¥7.10b
Market CapCN¥4.89b

Price to Sales Ratio vs Peers

How does 1516's PS Ratio compare to its peers?

The above table shows the PS ratio for 1516 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.9x
9666 Jinke Smart Services Group
0.7x5.6%HK$3.8b
3319 A-Living Smart City Services
0.3x2.4%HK$4.1b
410 SOHO China
2.1xn/aHK$3.8b
6666 Evergrande Property Services Group
0.6xn/aHK$8.3b
1516 Sunac Services Holdings
0.7x6.5%HK$5.3b

Price-To-Sales vs Peers: 1516 is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (0.9x).


Price to Sales Ratio vs Industry

How does 1516's PS Ratio compare vs other companies in the HK Real Estate Industry?

89 CompaniesPrice / SalesEstimated GrowthMarket Cap
1908 C&D International Investment Group
0.2x3.1%US$3.29b
3900 Greentown China Holdings
0.1x-0.4%US$2.97b
1918 Sunac China Holdings
0.2x-14.2%US$2.76b
817 China Jinmao Holdings Group
0.2x-1.0%US$1.77b
1516 0.7xIndustry Avg. 0.6xNo. of Companies89PS00.81.62.43.24+
89 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 1516 is expensive based on its Price-To-Sales Ratio (0.7x) compared to the Hong Kong Real Estate industry average (0.6x).


Price to Sales Ratio vs Fair Ratio

What is 1516'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.

1516 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio0.6x

Price-To-Sales vs Fair Ratio: 1516 is expensive based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).


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 1516 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$1.72
HK$2.08
+20.9%
28.8%HK$3.18HK$1.20n/a7
Nov ’25HK$1.96
HK$2.06
+5.0%
27.4%HK$3.18HK$1.20n/a8
Oct ’25HK$2.27
HK$1.94
-14.5%
21.1%HK$2.50HK$1.20n/a7
Sep ’25HK$1.69
HK$1.83
+8.0%
17.3%HK$2.20HK$1.20n/a8
Aug ’25HK$1.71
HK$1.87
+9.1%
19.9%HK$2.48HK$1.20n/a8
Jul ’25HK$1.81
HK$1.87
+3.1%
19.9%HK$2.48HK$1.20n/a8
Jun ’25HK$1.88
HK$1.87
-0.7%
19.9%HK$2.48HK$1.20n/a8
May ’25HK$1.96
HK$1.80
-8.0%
19.5%HK$2.48HK$1.20n/a8
Apr ’25HK$1.86
HK$1.95
+4.6%
20.0%HK$2.48HK$1.20n/a8
Mar ’25HK$1.98
HK$2.04
+3.2%
22.5%HK$2.70HK$1.20n/a8
Feb ’25HK$1.61
HK$2.08
+29.2%
20.7%HK$2.70HK$1.20n/a9
Jan ’25HK$1.87
HK$2.28
+21.9%
18.2%HK$2.70HK$1.20n/a9
Dec ’24HK$2.27
HK$2.28
+0.4%
18.2%HK$2.70HK$1.20n/a9
Nov ’24HK$2.07
HK$2.28
+10.1%
18.2%HK$2.70HK$1.20HK$1.969
Oct ’24HK$2.47
HK$2.44
-1.1%
25.6%HK$3.90HK$1.20HK$2.2710
Sep ’24HK$2.45
HK$2.59
+5.6%
25.1%HK$3.90HK$1.30HK$1.6911
Aug ’24HK$2.48
HK$2.83
+14.0%
25.3%HK$3.90HK$1.30HK$1.7111
Jul ’24HK$2.21
HK$3.00
+35.5%
24.1%HK$3.90HK$1.30HK$1.8111
Jun ’24HK$2.12
HK$3.00
+41.3%
24.1%HK$3.90HK$1.30HK$1.8811
May ’24HK$2.83
HK$3.00
+5.8%
24.1%HK$3.90HK$1.30HK$1.9611
Apr ’24HK$3.35
HK$2.93
-12.7%
23.3%HK$3.60HK$1.30HK$1.8610
Mar ’24HK$3.35
HK$4.67
+39.4%
81.3%HK$15.80HK$1.30HK$1.9811
Feb ’24HK$4.01
HK$4.68
+16.7%
81.0%HK$15.80HK$1.30HK$1.6111
Jan ’24HK$4.20
HK$4.31
+2.5%
90.4%HK$15.80HK$1.30HK$1.8711
Dec ’23HK$3.75
HK$4.05
+7.9%
98.4%HK$15.80HK$1.30HK$2.2711
Nov ’23HK$1.42
HK$4.33
+205.2%
90.7%HK$15.80HK$1.30HK$2.0712

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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