China ZhengTong Auto Services Holdings Limited

SEHK:1728 Stock Report

Market Cap: HK$438.5m

China ZhengTong Auto Services Holdings Valuation

Is 1728 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 1728 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 1728's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 1728's fair value for valuation analysis.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1728?

Key metric: As 1728 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1728. This is calculated by dividing 1728's market cap by their current revenue.
What is 1728's PS Ratio?
PS Ratio0.02x
SalesCN¥21.70b
Market CapCN¥408.11m

Price to Sales Ratio vs Peers

How does 1728's PS Ratio compare to its peers?

The above table shows the PS ratio for 1728 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.2x
6909 BetterLife Holding
0.05xn/aHK$479.3m
1293 Grand Baoxin Auto Group
0.01xn/aHK$425.6m
8418 Optima Automobile Group Holdings
0.8xn/aHK$340.0m
2337 United Strength Power Holdings
0.08xn/aHK$655.4m
1728 China ZhengTong Auto Services Holdings
0.02x-5.3%HK$438.5m

Price-To-Sales vs Peers: 1728 is good value based on its Price-To-Sales Ratio (0x) compared to the peer average (0.2x).


Price to Sales Ratio vs Industry

How does 1728's PS Ratio compare vs other companies in the HK Specialty Retail Industry?

14 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.0.4x13.3%
1728 China ZhengTong Auto Services Holdings
0.02x-5.3%US$56.32m
3669 China Yongda Automobiles Services Holdings
0.05x-1.7%US$472.66m
3836 China Harmony Auto Holding
0.06x13.2%US$133.07m
1728 0.0xIndustry Avg. 0.4xNo. of Companies14PS00.40.81.21.62+
14 CompaniesEstimated GrowthMarket Cap
Industry Avg.0.4x22.1%
1728 China ZhengTong Auto Services Holdings
0.02x22.0%US$56.32m
No more companies

Price-To-Sales vs Industry: 1728 is good value based on its Price-To-Sales Ratio (0x) compared to the Hong Kong Specialty Retail industry average (0.4x).


Price to Sales Ratio vs Fair Ratio

What is 1728'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.

1728 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.02x
Fair PS Ratio0.04x

Price-To-Sales vs Fair Ratio: 1728 is good value based on its Price-To-Sales Ratio (0x) compared to the estimated Fair Price-To-Sales Ratio (0x).


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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