Shimao Services Holdings Limited

SZSC:873 Stock Report

Market Cap: HK$2.2b

Shimao Services Holdings Valuation

Is 873 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-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 873 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 873 (HK$0.91) is trading below our estimate of fair value (HK$9.34)

Significantly Below Fair Value: 873 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 873?

Key metric: As 873 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 873. This is calculated by dividing 873's market cap by their current revenue.
What is 873's PS Ratio?
PS Ratio0.2x
SalesCN¥8.47b
Market CapCN¥2.07b

Price to Sales Ratio vs Peers

How does 873's PS Ratio compare to its peers?

The above table shows the PS ratio for 873 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.5x
816 Jinmao Property Services
0.8x17.4%HK$2.4b
1270 Langham Hospitality Investments
3.6x-6.6%HK$1.7b
1755 S-Enjoy Service Group
0.4x5.8%HK$2.7b
3658 New Hope Service Holdings
1x12.0%HK$1.5b
873 Shimao Services Holdings
0.2x6.7%HK$2.2b

Price-To-Sales vs Peers: 873 is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (1.5x).

Price to Sales Ratio vs Industry

How does 873's PS Ratio compare vs other companies in the HK Real Estate Industry?

89 CompaniesPrice / SalesEstimated GrowthMarket Cap
1908 C&D International Investment Group
0.2x3.1%US$3.51b
3900 Greentown China Holdings
0.2x-0.4%US$3.06b
1918 Sunac China Holdings
0.2x-14.2%US$2.81b
1030 Seazen Group
0.1x-22.6%US$1.78b
873 0.2xIndustry Avg. 0.6xNo. of Companies89PS00.81.62.43.24+
89 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 873 is good value based on its Price-To-Sales Ratio (0.2x) compared to the Hong Kong Real Estate industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is 873'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.

873 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.3x

Price-To-Sales vs Fair Ratio: 873 is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).

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 873 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
HK$1.10
0%
18.6%HK$1.42HK$0.81n/a5
Nov ’25n/a
HK$1.10
0%
18.6%HK$1.42HK$0.81n/a5
Oct ’25n/a
HK$1.10
0%
18.6%HK$1.42HK$0.81n/a5
Sep ’25n/a
HK$1.10
0%
18.6%HK$1.42HK$0.81n/a5
Aug ’25n/a
HK$1.10
0%
18.6%HK$1.42HK$0.81n/a5
Jul ’25n/a
HK$1.10
0%
18.6%HK$1.42HK$0.81n/a5
Jun ’25n/a
HK$1.10
0%
18.6%HK$1.42HK$0.81n/a5
May ’25n/a
HK$1.10
0%
18.6%HK$1.42HK$0.81n/a5
Apr ’25n/a
HK$1.10
0%
18.6%HK$1.42HK$0.81n/a5
Mar ’25HK$1.08
HK$1.10
+2.2%
18.6%HK$1.42HK$0.81n/a5
Feb ’25HK$0.89
HK$1.23
+38.6%
23.4%HK$1.65HK$0.81n/a5
Jan ’25HK$1.19
HK$1.41
+18.4%
22.0%HK$1.66HK$0.81n/a5
Dec ’24HK$1.22
HK$1.38
+13.5%
21.4%HK$1.63HK$0.81n/a5
Nov ’24HK$1.21
HK$1.38
+13.7%
21.1%HK$1.59HK$0.81n/a5
Oct ’24HK$1.32
HK$1.44
+9.3%
23.1%HK$1.89HK$0.81n/a6
Sep ’24HK$1.53
HK$1.80
+17.9%
21.6%HK$2.37HK$1.29n/a7
Aug ’24HK$1.69
HK$1.79
+5.7%
21.4%HK$2.27HK$1.24n/a7
Jul ’24HK$1.55
HK$1.81
+16.6%
21.4%HK$2.29HK$1.25n/a7
Jun ’24HK$1.47
HK$1.99
+35.4%
27.7%HK$2.94HK$1.27n/a7
May ’24HK$1.93
HK$2.18
+12.7%
29.9%HK$3.19HK$1.29n/a8
Apr ’24HK$1.97
HK$2.27
+15.4%
31.9%HK$3.20HK$1.06n/a8
Mar ’24HK$2.42
HK$2.24
-7.3%
30.8%HK$3.21HK$1.06HK$1.089
Feb ’24HK$2.94
HK$2.30
-21.8%
30.1%HK$3.24HK$1.08HK$0.899
Jan ’24HK$2.82
HK$2.08
-26.2%
32.1%HK$3.18HK$1.05HK$1.199
Dec ’23HK$2.93
HK$1.82
-37.9%
16.1%HK$2.23HK$1.26HK$1.229
Nov ’23HK$1.32
HK$1.82
+37.8%
16.1%HK$2.23HK$1.26HK$1.219

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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