Xuan Wu Cloud Technology Holdings Limited

SEHK:2392 Stock Report

Market Cap: HK$463.0m

Xuan Wu Cloud Technology Holdings Valuation

Is 2392 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 2392 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2392 (HK$0.83) is trading above our estimate of fair value (HK$0.14)

Significantly Below Fair Value: 2392 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2392?

Key metric: As 2392 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 2392. This is calculated by dividing 2392's market cap by their current revenue.
What is 2392's PS Ratio?
PS Ratio0.3x
SalesCN¥1.40b
Market CapCN¥429.94m

Price to Sales Ratio vs Peers

How does 2392's PS Ratio compare to its peers?

The above table shows the PS ratio for 2392 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.7x
2167 TI Cloud
0.8xn/aHK$408.5m
1297 Sinosoft Technology Group
0.7xn/aHK$397.3m
1522 BII Railway Transportation Technology Holdings
0.3xn/aHK$545.3m
1745 Lvji Technology Holdings
1xn/aHK$708.3m
2392 Xuan Wu Cloud Technology Holdings
0.3xn/aHK$463.0m

Price-To-Sales vs Peers: 2392 is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.7x).


Price to Sales Ratio vs Industry

How does 2392's PS Ratio compare vs other companies in the HK Software Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
6638 OneConnect Financial Technology
0.3x-6.0%US$105.17m
1933 OneForce Holdings
0.2xn/aUS$10.75m
8060 Global Link Communications Holdings
0.2xn/aUS$3.52m
No more companies available in this PS range
2392 0.3xIndustry Avg. 1.7xNo. of Companies6PS01.22.43.64.86+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 2392 is good value based on its Price-To-Sales Ratio (0.3x) compared to the Hong Kong Software industry average (1.7x).


Price to Sales Ratio vs Fair Ratio

What is 2392'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.

2392 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 2392's Price-To-Sales Fair Ratio for valuation analysis.


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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