AInnovation Technology Group (SZSC:2121) Stock Valuation, Peer Comparison & Price Targets

Q: What is the Fair Price of 2121 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2121 (HK$4.76) is trading below our estimate of [[fair value]] (HK$22.26)

Share Price vs Fair Value

What is the Fair Price of 2121 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2121 (HK$4.76) is trading below our estimate of fair value (HK$22.26)

Significantly Below Fair Value: 2121 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2121?

Key metric: As 2121 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 2121. This is calculated by dividing 2121's market cap by their current revenue.
What is 2121's PS Ratio?
PS Ratio	1.7x
Sales	CN¥1.40b
Market Cap	CN¥2.43b

2121 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	-4.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 2121's PS Ratio compare to its peers?

The above table shows the PS ratio for 2121 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1.7x
9669 Beisen Holding	3x	15.0%	HK$2.8b
9911 Newborn Town	0.9x	15.6%	HK$4.2b
2567 Qiniu	1.2x	n/a	HK$1.8b
1588 Chanjet Information Technology	1.6x	15.4%	HK$1.5b
2121 AInnovation Technology Group	1.7x	15.6%	HK$2.6b

Price-To-Sales vs Peers: 2121 is expensive based on its Price-To-Sales Ratio (1.7x) compared to the peer average (1.7x).

Price to Sales Ratio vs Industry

How does 2121's PS Ratio compare vs other companies in the HK Software Industry?

3 Companies	Price / Sales	Estimated Growth	Market Cap
6638 OneConnect Financial Technology	0.2x	-6.5%	US$97.69m
1933 OneForce Holdings	0.2x	n/a	US$11.26m
8060 Global Link Communications Holdings	0.2x	n/a	US$3.52m

No more companies available in this PS range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 2121 is expensive based on its Price-To-Sales Ratio (1.7x) compared to the Hong Kong Software industry average (1.6x).

Price to Sales Ratio vs Fair Ratio

What is 2121'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.

2121 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.7x
Fair PS Ratio	1.2x

Price-To-Sales vs Fair Ratio: 2121 is expensive based on its Price-To-Sales Ratio (1.7x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).

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 2121 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	HK$4.76	HK$4.96 +4.2%	11.0%	HK$5.50	HK$4.41	n/a	2
Nov ’25	HK$4.80	HK$10.78 +124.6%	75.2%	HK$22.23	HK$4.50	n/a	3
Oct ’25	HK$4.81	HK$10.78 +124.1%	75.2%	HK$22.23	HK$4.50	n/a	3
Sep ’25	HK$3.92	HK$10.78 +175.0%	75.2%	HK$22.23	HK$4.50	n/a	3
Aug ’25	HK$4.31	HK$15.14 +251.4%	33.3%	HK$21.98	HK$9.99	n/a	3
Jul ’25	HK$5.17	HK$15.14 +192.9%	33.3%	HK$21.98	HK$9.99	n/a	3
Jun ’25	HK$4.92	HK$15.14 +207.8%	33.3%	HK$21.98	HK$9.99	n/a	3
May ’25	HK$4.88	HK$15.14 +210.3%	33.3%	HK$21.98	HK$9.99	n/a	3
Apr ’25	HK$7.34	HK$14.88 +102.7%	31.4%	HK$21.18	HK$9.99	n/a	3
Mar ’25	HK$6.73	HK$30.22 +349.1%	23.8%	HK$38.81	HK$21.23	n/a	3
Feb ’25	HK$6.04	HK$28.37 +369.7%	22.7%	HK$38.00	HK$20.79	n/a	4
Jan ’25	HK$9.27	HK$28.37 +206.0%	22.7%	HK$38.00	HK$20.79	n/a	4
Dec ’24	HK$10.80	HK$28.37 +162.7%	22.7%	HK$38.00	HK$20.79	n/a	4
Nov ’24	HK$7.20	HK$28.37 +294.0%	22.7%	HK$38.00	HK$20.79	HK$4.80	4
Oct ’24	HK$12.00	HK$28.37 +136.4%	22.7%	HK$38.00	HK$20.79	HK$4.81	4
Sep ’24	HK$20.85	HK$29.88 +43.3%	23.9%	HK$38.40	HK$21.01	HK$3.92	4
Aug ’24	HK$17.02	HK$30.98 +82.0%	24.5%	HK$39.43	HK$21.00	HK$4.31	4
Jul ’24	HK$18.36	HK$30.98 +68.7%	24.5%	HK$39.43	HK$21.00	HK$5.17	4
Jun ’24	HK$21.70	HK$30.98 +42.8%	24.5%	HK$39.43	HK$21.00	HK$4.92	4
May ’24	HK$20.60	HK$30.98 +50.4%	24.5%	HK$39.43	HK$21.00	HK$4.88	4
Apr ’24	HK$14.92	HK$32.94 +120.8%	19.9%	HK$39.49	HK$26.39	HK$7.34	2
Mar ’24	HK$15.80	HK$33.99 +115.1%	23.6%	HK$46.24	HK$26.02	HK$6.73	4
Feb ’24	HK$24.25	HK$33.99 +40.2%	23.6%	HK$46.24	HK$26.02	HK$6.04	4
Jan ’24	HK$23.00	HK$33.99 +47.8%	23.6%	HK$46.24	HK$26.02	HK$9.27	4
Dec ’23	HK$20.70	HK$33.99 +64.2%	23.6%	HK$46.24	HK$26.02	HK$10.80	4
Nov ’23	HK$20.30	HK$33.99 +67.4%	23.6%	HK$46.24	HK$26.02	HK$7.20	4

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

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AInnovation Technology Group Valuation