Zhongsheng Group Holdings Limited

SEHK:881 Stock Report

Market Cap: HK$40.2b

Zhongsheng Group Holdings Valuation

Is 881 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 881 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 881 (HK$17) is trading below our estimate of fair value (HK$62.38)

Significantly Below Fair Value: 881 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 881?

Key metric: As 881 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 881. This is calculated by dividing 881's market cap by their current earnings.
What is 881's PE Ratio?
PE Ratio10.4x
EarningsCN¥3.59b
Market CapCN¥37.45b

Price to Earnings Ratio vs Peers

How does 881's PE Ratio compare to its peers?

The above table shows the PE ratio for 881 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average44.5x
2473 XXF Group Holdings
114.3xn/aHK$8.3b
3669 China Yongda Automobiles Services Holdings
12.3x23.5%HK$3.7b
1268 China MeiDong Auto Holdings
40.7x79.0%HK$3.2b
1929 Chow Tai Fook Jewellery Group
10.9x7.3%HK$70.7b
881 Zhongsheng Group Holdings
10.4x16.7%HK$40.2b

Price-To-Earnings vs Peers: 881 is good value based on its Price-To-Earnings Ratio (10.4x) compared to the peer average (44.5x).

Price to Earnings Ratio vs Industry

How does 881's PE Ratio compare vs other companies in the HK Specialty Retail Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
84 Stelux Holdings International
0.2xn/aUS$10.26m
No more companies available in this PE range
881 10.4xIndustry Avg. 8.6xNo. of Companies6PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 881 is expensive based on its Price-To-Earnings Ratio (10.4x) compared to the Hong Kong Specialty Retail industry average (8.6x).

Price to Earnings Ratio vs Fair Ratio

What is 881'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.

881 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.4x
Fair PE Ratio15.5x

Price-To-Earnings vs Fair Ratio: 881 is good value based on its Price-To-Earnings Ratio (10.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.5x).

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 881 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$17.00
HK$18.40
+8.2%
31.0%HK$29.93HK$8.77n/a17
Nov ’25HK$11.70
HK$13.64
+16.6%
26.9%HK$20.54HK$8.32n/a18
Oct ’25HK$14.42
HK$13.46
-6.7%
29.0%HK$20.78HK$8.06n/a18
Sep ’25HK$8.95
HK$17.22
+92.4%
30.9%HK$28.32HK$8.38n/a18
Aug ’25HK$11.42
HK$17.99
+57.5%
27.0%HK$27.99HK$8.22n/a18
Jul ’25HK$11.42
HK$18.88
+65.3%
21.9%HK$27.99HK$9.90n/a18
Jun ’25HK$14.14
HK$18.91
+33.7%
21.9%HK$28.00HK$9.92n/a18
May ’25HK$14.38
HK$18.93
+31.7%
21.9%HK$27.98HK$9.94n/a18
Apr ’25HK$13.56
HK$20.81
+53.5%
29.8%HK$35.45HK$9.97n/a19
Mar ’25HK$14.38
HK$22.70
+57.9%
36.7%HK$45.42HK$10.00n/a18
Feb ’25HK$13.74
HK$25.52
+85.8%
30.0%HK$45.56HK$14.01n/a18
Jan ’25HK$18.68
HK$33.54
+79.5%
26.9%HK$54.19HK$14.13n/a18
Dec ’24HK$17.56
HK$34.50
+96.5%
26.2%HK$53.69HK$14.00n/a18
Nov ’24HK$18.38
HK$34.53
+87.9%
26.0%HK$52.72HK$13.90HK$11.7017
Oct ’24HK$22.05
HK$34.60
+56.9%
26.0%HK$52.83HK$13.93HK$14.4217
Sep ’24HK$23.90
HK$36.98
+54.7%
26.4%HK$54.92HK$13.98HK$8.9519
Aug ’24HK$26.80
HK$42.63
+59.1%
25.8%HK$64.04HK$18.05HK$11.4219
Jul ’24HK$29.95
HK$47.49
+58.5%
23.1%HK$66.34HK$18.13HK$11.4219
Jun ’24HK$28.15
HK$48.88
+73.6%
22.1%HK$67.30HK$18.40HK$14.1419
May ’24HK$33.40
HK$50.21
+50.3%
22.0%HK$69.21HK$18.92HK$14.3819
Apr ’24HK$38.70
HK$50.34
+30.1%
22.0%HK$69.42HK$18.98HK$13.5619
Mar ’24HK$41.15
HK$54.82
+33.2%
24.7%HK$83.46HK$25.03HK$14.3818
Feb ’24HK$45.55
HK$60.47
+32.8%
21.8%HK$85.26HK$30.40HK$13.7418
Jan ’24HK$40.15
HK$57.99
+44.4%
23.2%HK$89.99HK$29.42HK$18.6817
Dec ’23HK$41.95
HK$57.29
+36.6%
22.9%HK$87.55HK$29.09HK$17.5617
Nov ’23HK$31.80
HK$56.14
+76.6%
22.3%HK$85.21HK$31.21HK$18.3816

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

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