AInnovation Technology Group Co., Ltd

SZSC:2121 Stock Report

Market Cap: HK$3.7b

AInnovation Technology Group Valuation

Is 2121 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 2121 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2121 (HK$6.7) is trading below our estimate of fair value (HK$22.03)

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 Ratio2.5x
SalesCN¥1.40b
Market CapCN¥3.45b

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.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.4x
9911 Newborn Town
1x15.6%HK$4.5b
596 Inspur Digital Enterprise Technology
0.4x23.3%HK$3.9b
9669 Beisen Holding
3.3x15.0%HK$3.2b
1675 AsiaInfo Technologies
0.7x4.2%HK$5.6b
2121 AInnovation Technology Group
2.5x13.2%HK$3.7b

Price-To-Sales vs Peers: 2121 is expensive based on its Price-To-Sales Ratio (2.5x) compared to the peer average (1.4x).


Price to Sales Ratio vs Industry

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

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
6638 OneConnect Financial Technology
0.2x-20.1%US$97.80m
1522 BII Railway Transportation Technology Holdings
0.3xn/aUS$72.82m
2392 Xuan Wu Cloud Technology Holdings
0.3xn/aUS$62.36m
1933 OneForce Holdings
0.2xn/aUS$10.00m
2121 2.5xIndustry Avg. 1.7xNo. of Companies7PS01.63.24.86.48+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 2121 is expensive based on its Price-To-Sales Ratio (2.5x) compared to the Hong Kong Software industry average (1.7x).


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 Ratio2.5x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: 2121 is expensive based on its Price-To-Sales Ratio (2.5x) 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.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$6.70
HK$6.53
-2.6%
35.1%HK$9.71HK$4.40n/a3
Dec ’25HK$5.78
HK$4.96
-14.2%
11.0%HK$5.51HK$4.41n/a2
Nov ’25HK$4.80
HK$10.78
+124.6%
75.2%HK$22.23HK$4.50n/a3
Oct ’25HK$4.81
HK$10.78
+124.1%
75.2%HK$22.23HK$4.50n/a3
Sep ’25HK$3.92
HK$10.78
+175.0%
75.2%HK$22.23HK$4.50n/a3
Aug ’25HK$4.31
HK$15.14
+251.4%
33.3%HK$21.98HK$9.99n/a3
Jul ’25HK$5.17
HK$15.14
+192.9%
33.3%HK$21.98HK$9.99n/a3
Jun ’25HK$4.92
HK$15.14
+207.8%
33.3%HK$21.98HK$9.99n/a3
May ’25HK$4.88
HK$15.14
+210.3%
33.3%HK$21.98HK$9.99n/a3
Apr ’25HK$7.34
HK$14.88
+102.7%
31.4%HK$21.18HK$9.99n/a3
Mar ’25HK$6.73
HK$30.22
+349.1%
23.8%HK$38.81HK$21.23n/a3
Feb ’25HK$6.04
HK$28.37
+369.7%
22.7%HK$38.00HK$20.79n/a4
Jan ’25HK$9.27
HK$28.37
+206.0%
22.7%HK$38.00HK$20.79n/a4
Dec ’24HK$10.80
HK$28.37
+162.7%
22.7%HK$38.00HK$20.79HK$5.784
Nov ’24HK$7.20
HK$28.37
+294.0%
22.7%HK$38.00HK$20.79HK$4.804
Oct ’24HK$12.00
HK$28.37
+136.4%
22.7%HK$38.00HK$20.79HK$4.814
Sep ’24HK$20.85
HK$29.88
+43.3%
23.9%HK$38.40HK$21.01HK$3.924
Aug ’24HK$17.02
HK$30.98
+82.0%
24.5%HK$39.43HK$21.00HK$4.314
Jul ’24HK$18.36
HK$30.98
+68.7%
24.5%HK$39.43HK$21.00HK$5.174
Jun ’24HK$21.70
HK$30.98
+42.8%
24.5%HK$39.43HK$21.00HK$4.924
May ’24HK$20.60
HK$30.98
+50.4%
24.5%HK$39.43HK$21.00HK$4.884
Apr ’24HK$14.92
HK$32.94
+120.8%
19.9%HK$39.49HK$26.39HK$7.342
Mar ’24HK$15.80
HK$33.99
+115.1%
23.6%HK$46.24HK$26.02HK$6.734
Feb ’24HK$24.25
HK$33.99
+40.2%
23.6%HK$46.24HK$26.02HK$6.044
Jan ’24HK$23.00
HK$33.99
+47.8%
23.6%HK$46.24HK$26.02HK$9.274
Dec ’23HK$20.70
HK$33.99
+64.2%
23.6%HK$46.24HK$26.02HK$10.804

Analyst Forecast: Target price is lower than the current share price.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 23:06
End of Day Share Price 2024/12/20 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

AInnovation Technology Group Co., Ltd is covered by 5 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Kai QianChina International Capital Corporation Limited
Liping ZhaoChina International Capital Corporation Limited
Colin LiuChina Renaissance Securities