Redsun Services Group Limited

SEHK:1971 Stock Report

Market Cap: HK$244.9m

Redsun Services Group Valuation

Is 1971 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 1971 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1971 (HK$0.59) is trading below our estimate of fair value (HK$2.3)

Significantly Below Fair Value: 1971 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1971?

Key metric: As 1971 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1971. This is calculated by dividing 1971's market cap by their current revenue.
What is 1971's PS Ratio?
PS Ratio0.2x
SalesCN¥985.26m
Market CapCN¥227.66m

Price to Sales Ratio vs Peers

How does 1971's PS Ratio compare to its peers?

The above table shows the PS ratio for 1971 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.1x
2376 Lushang Life Services
0.6xn/aHK$200.0m
2207 Ronshine Service Holding
0.3xn/aHK$284.5m
1538 Zhong Ao Home Group
0.1xn/aHK$269.2m
3699 Everbright Grand China Assets
3.2xn/aHK$165.5m
1971 Redsun Services Group
0.2xn/aHK$244.9m

Price-To-Sales vs Peers: 1971 is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (1.1x).

Price to Sales Ratio vs Industry

How does 1971's PS Ratio compare vs other companies in the HK Real Estate Industry?

90 CompaniesPrice / SalesEstimated GrowthMarket Cap
1908 C&D International Investment Group
0.2x3.1%US$3.26b
3900 Greentown China Holdings
0.1x-0.4%US$2.93b
1918 Sunac China Holdings
0.1x-14.2%US$2.69b
817 China Jinmao Holdings Group
0.2x-1.0%US$1.79b
1971 0.2xIndustry Avg. 0.6xNo. of Companies90PS00.81.62.43.24+
90 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 1971 is good value based on its Price-To-Sales Ratio (0.2x) compared to the Hong Kong Real Estate industry average (0.6x).

Price to Sales Ratio vs Fair Ratio

What is 1971'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.

1971 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 1971'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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