Ruisen Life Service Co, Limited

SEHK:1922 Stock Report

Market Cap: HK$363.3m

Ruisen Life Service Co Valuation

Is 1922 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-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 1922 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1922 (HK$1.36) is trading below our estimate of fair value (HK$16.95)

Significantly Below Fair Value: 1922 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1922?

Key metric: As 1922 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1922. This is calculated by dividing 1922's market cap by their current earnings.
What is 1922's PE Ratio?
PE Ratio2.9x
EarningsCN¥116.82m
Market CapCN¥338.18m

Price to Earnings Ratio vs Peers

How does 1922's PE Ratio compare to its peers?

The above table shows the PE ratio for 1922 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.2x
2107 First Service Holding
6.1xn/aHK$379.2m
63 China Asia Valley Group
50.2xn/aHK$444.7m
2165 Ling Yue Services Group
3.5xn/aHK$400.0m
1895 Xinyuan Property Management Service (Cayman)
9.1xn/aHK$373.6m
1922 Ruisen Life Service Co
2.9xn/aHK$363.3m

Price-To-Earnings vs Peers: 1922 is good value based on its Price-To-Earnings Ratio (2.9x) compared to the peer average (18.4x).


Price to Earnings Ratio vs Industry

How does 1922'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
1922 2.9xIndustry Avg. 7.2xNo. of Companies15PE0612182430+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1922 is good value based on its Price-To-Earnings Ratio (2.9x) compared to the Hong Kong Real Estate industry average (7.2x).


Price to Earnings Ratio vs Fair Ratio

What is 1922'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.

1922 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio2.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1922's Price-To-Earnings 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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