LHN Limited

SEHK:1730 Stock Report

Market Cap: HK$1.0b

LHN Valuation

Is 1730 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-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1730 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1730 (HK$2.4) is trading below our estimate of fair value (HK$20.31)

Significantly Below Fair Value: 1730 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1730?

Key metric: As 1730 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1730. This is calculated by dividing 1730's market cap by their current earnings.
What is 1730's PE Ratio?
PE Ratio3.7x
EarningsS$47.29m
Market CapS$173.58m

Price to Earnings Ratio vs Peers

How does 1730's PE Ratio compare to its peers?

The above table shows the PE ratio for 1730 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.2x
266 Tian Teck Land
5.1xn/aHK$996.9m
898 Multifield International Holdings
3.6xn/aHK$702.3m
2270 Desun Real Estate Investment Services Group
16.3xn/aHK$750.5m
9608 Sundy Service Group
55.8xn/aHK$610.6m
1730 LHN
3.7x-26.4%HK$173.6m

Price-To-Earnings vs Peers: 1730 is good value based on its Price-To-Earnings Ratio (3.7x) compared to the peer average (20.2x).

Price to Earnings Ratio vs Industry

How does 1730's PE Ratio compare vs other companies in the HK Real Estate Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
29 Dynamic Holdings
0.3xn/aUS$226.02m
2768 Jiayuan International Group
1.4x31.6%US$151.18m
3883 China Aoyuan Group
0.06xn/aUS$126.25m
2117 Datang Group Holdings
1.2xn/aUS$87.18m
1730 3.7xIndustry Avg. 7.2xNo. of Companies15PE0612182430+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1730 is good value based on its Price-To-Earnings Ratio (3.7x) compared to the Hong Kong Real Estate industry average (7.2x).

Price to Earnings Ratio vs Fair Ratio

What is 1730's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1730 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.7x
Fair PE Ratio4.7x

Price-To-Earnings vs Fair Ratio: 1730 is good value based on its Price-To-Earnings Ratio (3.7x) compared to the estimated Fair Price-To-Earnings Ratio (4.7x).

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 1730 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$2.40
HK$2.52
+4.8%
3.0%HK$2.60HK$2.41n/a3
Nov ’25HK$2.03
HK$2.52
+23.9%
3.0%HK$2.60HK$2.41n/a3
Oct ’25HK$2.07
HK$2.52
+21.5%
3.0%HK$2.60HK$2.41n/a3
Sep ’25HK$1.88
HK$2.41
+28.1%
3.0%HK$2.48HK$2.31n/a3
Aug ’25HK$1.89
HK$2.41
+27.4%
3.0%HK$2.48HK$2.31n/a3
Jul ’25HK$1.90
HK$2.41
+26.7%
3.0%HK$2.48HK$2.31n/a3
Jun ’25HK$1.94
HK$2.41
+23.9%
3.0%HK$2.48HK$2.31n/a3
May ’25HK$1.85
HK$2.39
+29.5%
6.4%HK$2.61HK$2.26n/a3
Apr ’25HK$1.91
HK$2.41
+25.9%
6.4%HK$2.62HK$2.27n/a3
Mar ’25HK$1.93
HK$2.42
+25.5%
6.4%HK$2.64HK$2.29n/a3
Feb ’25HK$1.95
HK$2.42
+24.2%
6.4%HK$2.64HK$2.29n/a3
Jan ’25HK$1.90
HK$2.42
+27.5%
6.4%HK$2.64HK$2.29n/a3
Dec ’24HK$1.88
HK$3.06
+62.8%
6.8%HK$3.24HK$2.77n/a3
Nov ’24HK$1.76
HK$3.06
+73.9%
6.8%HK$3.24HK$2.77HK$2.033
Oct ’24HK$1.82
HK$3.06
+68.1%
6.8%HK$3.24HK$2.77HK$2.073
Sep ’24HK$1.85
HK$3.06
+65.4%
6.8%HK$3.24HK$2.77HK$1.883
Aug ’24HK$2.09
HK$3.06
+46.4%
6.8%HK$3.24HK$2.77HK$1.893

Analyst Forecast: Target price is less than 20% higher than the current share price.

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