Guangzhou R&F Properties Co., Ltd.

SEHK:2777 Stock Report

Market Cap: HK$6.2b

Guangzhou R&F Properties Valuation

Is 2777 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 2777 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 2777's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 2777's fair value for valuation analysis.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2777?

Key metric: As 2777 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 2777. This is calculated by dividing 2777's market cap by their current revenue.
What is 2777's PS Ratio?
PS Ratio0.2x
SalesCN¥34.03b
Market CapCN¥5.79b

Price to Sales Ratio vs Peers

How does 2777's PS Ratio compare to its peers?

The above table shows the PS ratio for 2777 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.1x
173 K. Wah International Holdings
1.3x17.3%HK$5.4b
588 Beijing North Star
0.3xn/aHK$6.1b
258 Tomson Group
14.9xn/aHK$5.0b
3380 Logan Group
0.1xn/aHK$5.5b
2777 Guangzhou R&F Properties
0.2x5.2%HK$6.2b

Price-To-Sales vs Peers: 2777 is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (4.1x).


Price to Sales Ratio vs Industry

How does 2777's PS Ratio compare vs other companies in the HK Real Estate Industry?

90 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.0.6x4.7%
2777 Guangzhou R&F Properties
0.2x5.2%US$800.36m
1908 C&D International Investment Group
0.2x3.1%US$3.26b
3900 Greentown China Holdings
0.1x-0.4%US$2.93b
2777 0.2xIndustry Avg. 0.6xNo. of Companies90PS00.81.62.43.24+
90 CompaniesEstimated GrowthMarket Cap
Industry Avg.0.6x21.1%
2777 Guangzhou R&F Properties
0.2xn/aUS$800.36m
No more companies

Price-To-Sales vs Industry: 2777 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 2777'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.

2777 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.1x

Price-To-Sales vs Fair Ratio: 2777 is expensive based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.1x).


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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