Zhongsheng Group Holdings Limited

SEHK:881 Stock Report

Market Cap: HK$34.8b

Zhongsheng Group Holdings Valuation

Is 881 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-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$15.08) is trading below our estimate of fair value (HK$58.05)

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 Ratio9.3x
EarningsCN¥3.59b
Market CapCN¥32.73b

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 Average40.1x
2473 XXF Group Holdings
97.3xn/aHK$6.8b
3669 China Yongda Automobiles Services Holdings
15.8x18.5%HK$4.7b
1268 China MeiDong Auto Holdings
37.7x79.3%HK$2.9b
6909 BetterLife Holding
9.8xn/aHK$572.7m
881 Zhongsheng Group Holdings
9.3x17.1%HK$34.8b

Price-To-Earnings vs Peers: 881 is good value based on its Price-To-Earnings Ratio (9.3x) compared to the peer average (40.1x).

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$10.41m
No more companies available in this PE range
881 9.3xIndustry Avg. 9.7xNo. of Companies8PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 881 is good value based on its Price-To-Earnings Ratio (9.3x) compared to the Hong Kong Specialty Retail industry average (9.6x).

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 Ratio9.3x
Fair PE Ratio15.3x

Price-To-Earnings vs Fair Ratio: 881 is good value based on its Price-To-Earnings Ratio (9.3x) compared to the estimated Fair Price-To-Earnings Ratio (15.3x).

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 881 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$15.08
HK$18.55
+23.0%
30.7%HK$29.71HK$8.98n/a17
Dec ’25HK$15.32
HK$18.62
+21.6%
30.9%HK$29.90HK$8.76n/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$14.00HK$15.3218
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

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/24 01:14
End of Day Share Price 2024/12/24 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Zhongsheng Group Holdings Limited is covered by 32 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Y. YeungBNP Paribas Securities (Asia)
Jia LouBOCI Research Ltd.
Michael MengBOCI Research Ltd.