Hopson Development Holdings Limited

SEHK:754 Stock Report

Market Cap: HK$12.0b

Hopson Development Holdings Valuation

Is 754 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-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 754 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 754 (HK$3.16) is trading below our estimate of fair value (HK$22.17)

Significantly Below Fair Value: 754 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 754?

Key metric: As 754 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 754. This is calculated by dividing 754's market cap by their current earnings.
What is 754's PE Ratio?
PE Ratio129.7x
EarningsHK$92.38m
Market CapHK$11.98b

Price to Earnings Ratio vs Peers

How does 754's PE Ratio compare to its peers?

The above table shows the PE ratio for 754 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6.1x
81 China Overseas Grand Oceans Group
4.1x7.4%HK$6.4b
119 Poly Property Group
4.8x-2.1%HK$6.1b
3990 Midea Real Estate Holding
7.8x13.0%HK$4.2b
28 Tian An China Investments
7.8xn/aHK$5.6b
754 Hopson Development Holdings
129.7xn/aHK$12.0b

Price-To-Earnings vs Peers: 754 is expensive based on its Price-To-Earnings Ratio (129.7x) compared to the peer average (6.1x).


Price to Earnings Ratio vs Industry

How does 754's PE Ratio compare vs other companies in the HK Real Estate Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
29 Dynamic Holdings
0.4xn/aUS$264.45m
2768 Jiayuan International Group
1.4x31.6%US$151.18m
3883 China Aoyuan Group
0.06xn/aUS$120.92m
2117 Datang Group Holdings
1.2xn/aUS$87.18m
754 129.7xIndustry Avg. 7.2xNo. of Companies14PE0612182430+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 754 is expensive based on its Price-To-Earnings Ratio (129.7x) compared to the Hong Kong Real Estate industry average (7.3x).


Price to Earnings Ratio vs Fair Ratio

What is 754'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.

754 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio129.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 754'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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