New Hope Service Holdings Limited

SEHK:3658 Stock Report

Market Cap: HK$1.5b

New Hope Service Holdings Valuation

Is 3658 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 3658 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3658 (HK$1.87) is trading below our estimate of fair value (HK$7.22)

Significantly Below Fair Value: 3658 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3658?

Key metric: As 3658 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 3658. This is calculated by dividing 3658's market cap by their current earnings.
What is 3658's PE Ratio?
PE Ratio6.3x
EarningsCN¥223.60m
Market CapCN¥1.41b

Price to Earnings Ratio vs Peers

How does 3658's PE Ratio compare to its peers?

The above table shows the PE ratio for 3658 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.9x
6989 Excellence Commercial Property & Facilities Management Group
4.8xn/aHK$1.5b
9909 Powerlong Commercial Management Holdings
3.6x5.4%HK$1.5b
2215 Dexin Services Group
32.1xn/aHK$1.4b
6668 E-Star Commercial Management
7.2xn/aHK$1.3b
3658 New Hope Service Holdings
6.3x11.1%HK$1.5b

Price-To-Earnings vs Peers: 3658 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the peer average (11.9x).

Price to Earnings Ratio vs Industry

How does 3658's PE Ratio compare vs other companies in the HK Real Estate Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
29 Dynamic Holdings
0.3xn/aUS$227.42m
3883 China Aoyuan Group
0.07xn/aUS$153.39m
2768 Jiayuan International Group
1.4x31.6%US$151.18m
2117 Datang Group Holdings
1.2xn/aUS$87.18m
3658 6.3xIndustry Avg. 7.2xNo. of Companies16PE0612182430+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 3658 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the Hong Kong Real Estate industry average (7.3x).

Price to Earnings Ratio vs Fair Ratio

What is 3658'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.

3658 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.3x
Fair PE Ratio7.9x

Price-To-Earnings vs Fair Ratio: 3658 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the estimated Fair Price-To-Earnings Ratio (7.9x).

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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