Shenzhen Investment Limited

SZSC:604 Stock Report

Market Cap: HK$8.4b

Shenzhen Investment Valuation

Is 604 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: 604 (HK$0.94) is trading above our estimate of fair value (HK$0.12)

Significantly Below Fair Value: 604 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 604?

Other financial metrics that can be useful for relative valuation.

604 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.3x
Enterprise Value/EBITDA31.4x
PEG Ration/a

Price to Sales Ratio vs Peers

How does 604's PS Ratio compare to its peers?

The above table shows the PS ratio for 604 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.7x
697 Shoucheng Holdings
7.8x21.7%HK$8.4b
41 Great Eagle Holdings
0.8xn/aHK$8.7b
683 Kerry Properties
1.8x9.8%HK$23.3b
535 Gemdale Properties and Investment
0.2xn/aHK$4.8b
604 Shenzhen Investment
0.6x39.3%HK$8.4b

Price-To-Sales vs Peers: 604 is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (2.7x).


Price to Earnings Ratio vs Industry

How does 604's PE Ratio compare vs other companies in the HK Real Estate Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.4%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.4%
n/an/an/a
No more companies

Price-To-Sales vs Industry: 604 is good value based on its Price-To-Sales Ratio (0.6x) compared to the Hong Kong Real Estate industry average (0.7x).


Price to Sales Ratio vs Fair Ratio

What is 604'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.

604 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: 604 is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).


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 604 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$0.94
HK$1.08
+14.4%
7.0%HK$1.15HK$1.00n/a2
Oct ’25HK$1.01
HK$1.08
+6.4%
7.0%HK$1.15HK$1.00n/a2
Sep ’25HK$0.78
HK$1.13
+44.2%
2.2%HK$1.15HK$1.10n/a2
Aug ’25HK$0.95
HK$1.32
+38.9%
16.7%HK$1.54HK$1.10n/a2
Jul ’25HK$0.93
HK$1.32
+41.9%
16.7%HK$1.54HK$1.10n/a2
Jun ’25HK$1.06
HK$1.44
+35.8%
23.6%HK$1.78HK$1.10n/a2
May ’25HK$1.00
HK$1.44
+44.0%
23.6%HK$1.78HK$1.10n/a2
Apr ’25HK$1.02
HK$1.44
+41.2%
23.6%HK$1.78HK$1.10n/a2
Mar ’25HK$1.04
HK$1.74
+67.3%
2.3%HK$1.78HK$1.70n/a2
Feb ’25HK$1.08
HK$1.74
+61.1%
2.3%HK$1.78HK$1.70n/a2
Jan ’25HK$1.15
HK$1.74
+51.3%
2.3%HK$1.78HK$1.70n/a2
Dec ’24HK$1.13
HK$1.74
+54.0%
2.3%HK$1.78HK$1.70n/a2
Nov ’24HK$1.15
HK$1.74
+51.3%
2.3%HK$1.78HK$1.70n/a2
Oct ’24HK$1.25
HK$1.74
+39.2%
2.3%HK$1.78HK$1.70HK$1.012
Sep ’24HK$1.38
HK$1.79
+29.7%
0.6%HK$1.80HK$1.78HK$0.782
Aug ’24HK$1.53
HK$1.79
+17.0%
0.6%HK$1.80HK$1.78HK$0.952
Jul ’24HK$1.40
HK$1.79
+27.9%
0.6%HK$1.80HK$1.78HK$0.932
Jun ’24HK$1.38
HK$1.79
+29.7%
0.6%HK$1.80HK$1.78HK$1.062
May ’24HK$1.51
HK$1.79
+18.5%
0.6%HK$1.80HK$1.78HK$1.002
Apr ’24HK$1.39
HK$1.79
+28.8%
0.6%HK$1.80HK$1.78HK$1.022
Mar ’24HK$1.46
HK$1.75
+19.9%
2.9%HK$1.80HK$1.70HK$1.042
Feb ’24HK$1.58
HK$1.75
+10.8%
2.9%HK$1.80HK$1.70HK$1.082
Jan ’24HK$1.34
HK$1.85
+38.1%
8.1%HK$2.00HK$1.70HK$1.152
Dec ’23HK$1.25
HK$2.05
+64.0%
2.4%HK$2.10HK$2.00HK$1.132
Nov ’23HK$1.04
HK$2.05
+97.1%
2.4%HK$2.10HK$2.00HK$1.152
Oct ’23HK$1.19
HK$2.02
+69.5%
3.1%HK$2.10HK$1.95HK$1.253

Analyst Forecast: Target price is less than 20% higher than the current share price.


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