Yuexiu Services Group Limited

SEHK:6626 Stock Report

Market Cap: HK$4.6b

Yuexiu Services Group Valuation

Is 6626 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 6626 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6626 (HK$3.09) is trading below our estimate of fair value (HK$6.19)

Significantly Below Fair Value: 6626 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6626?

Key metric: As 6626 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6626. This is calculated by dividing 6626's market cap by their current earnings.
What is 6626's PE Ratio?
PE Ratio8.4x
EarningsCN¥517.00m
Market CapCN¥4.31b

Price to Earnings Ratio vs Peers

How does 6626's PE Ratio compare to its peers?

The above table shows the PE ratio for 6626 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6.3x
1995 Ever Sunshine Services Group
7.2x10.3%HK$3.5b
2156 C&D Property Management Group
6.4xn/aHK$3.5b
816 Jinmao Property Services
6.1x11.4%HK$2.3b
1755 S-Enjoy Service Group
5.4x7.5%HK$2.6b
6626 Yuexiu Services Group
8.4x14.6%HK$4.6b

Price-To-Earnings vs Peers: 6626 is expensive based on its Price-To-Earnings Ratio (8.4x) compared to the peer average (6.3x).


Price to Earnings Ratio vs Industry

How does 6626's PE Ratio compare vs other companies in the HK Real Estate Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
29 Dynamic Holdings
0.3xn/aUS$226.63m
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
6626 8.4xIndustry Avg. 7.2xNo. of Companies15PE0612182430+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6626 is expensive based on its Price-To-Earnings Ratio (8.4x) compared to the Hong Kong Real Estate industry average (7.2x).


Price to Earnings Ratio vs Fair Ratio

What is 6626'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.

6626 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.4x
Fair PE Ratio9.5x

Price-To-Earnings vs Fair Ratio: 6626 is good value based on its Price-To-Earnings Ratio (8.4x) compared to the estimated Fair Price-To-Earnings Ratio (9.5x).


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 6626 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$3.09
HK$4.09
+32.4%
11.2%HK$4.69HK$3.58n/a3
Nov ’25HK$3.30
HK$4.09
+24.0%
11.2%HK$4.69HK$3.58n/a3
Oct ’25HK$3.57
HK$4.09
+14.6%
11.2%HK$4.69HK$3.58n/a3
Sep ’25HK$3.13
HK$4.06
+29.7%
9.6%HK$4.62HK$3.52n/a4
Aug ’25HK$2.85
HK$4.16
+45.9%
10.4%HK$4.56HK$3.48n/a4
Jul ’25HK$3.11
HK$4.16
+33.7%
10.4%HK$4.56HK$3.48n/a4
Jun ’25HK$3.53
HK$4.16
+17.7%
10.4%HK$4.56HK$3.48n/a4
May ’25HK$2.98
HK$4.17
+39.9%
10.3%HK$4.58HK$3.49n/a4
Apr ’25HK$2.94
HK$4.17
+41.9%
10.3%HK$4.58HK$3.49n/a4
Mar ’25HK$2.69
HK$4.70
+74.6%
10.7%HK$5.53HK$4.19n/a4
Feb ’25HK$2.40
HK$4.70
+95.7%
10.7%HK$5.53HK$4.19n/a4
Jan ’25HK$2.58
HK$4.70
+82.1%
10.7%HK$5.53HK$4.19n/a4
Dec ’24HK$2.57
HK$4.61
+79.5%
10.1%HK$5.39HK$4.19n/a4
Nov ’24HK$2.74
HK$4.60
+67.8%
9.1%HK$5.40HK$4.20HK$3.305
Oct ’24HK$2.95
HK$4.60
+55.8%
9.1%HK$5.40HK$4.20HK$3.575
Sep ’24HK$3.16
HK$4.60
+45.5%
9.1%HK$5.40HK$4.20HK$3.135
Aug ’24HK$3.16
HK$4.70
+48.8%
7.5%HK$5.11HK$4.20HK$2.854
Jul ’24HK$2.86
HK$4.95
+73.0%
4.7%HK$5.20HK$4.63HK$3.113
Jun ’24HK$2.84
HK$4.95
+74.2%
4.7%HK$5.20HK$4.63HK$3.533
May ’24HK$3.78
HK$5.04
+33.3%
3.9%HK$5.20HK$4.76HK$2.983
Apr ’24HK$3.82
HK$5.04
+31.9%
3.9%HK$5.20HK$4.76HK$2.943
Mar ’24HK$4.87
HK$4.56
-6.4%
15.6%HK$5.68HK$3.73HK$2.694
Feb ’24HK$4.78
HK$4.56
-4.6%
15.6%HK$5.68HK$3.73HK$2.404
Jan ’24HK$3.31
HK$4.56
+37.7%
15.6%HK$5.68HK$3.73HK$2.584
Dec ’23HK$3.02
HK$4.56
+51.0%
15.6%HK$5.68HK$3.73HK$2.574
Nov ’23HK$2.41
HK$4.85
+101.4%
15.5%HK$5.98HK$3.93HK$2.744

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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