Renco Holdings Group Limited

SEHK:2323 Stock Report

Market Cap: HK$39.7m

Renco Holdings Group Valuation

Is 2323 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-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 2323 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2323 (HK$0.02) is trading below our estimate of fair value (HK$0.06)

Significantly Below Fair Value: 2323 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2323?

Key metric: As 2323 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 2323. This is calculated by dividing 2323's market cap by their current revenue.
What is 2323's PS Ratio?
PS Ratio0.2x
SalesHK$254.14m
Market CapHK$39.72m

Price to Sales Ratio vs Peers

How does 2323's PS Ratio compare to its peers?

The above table shows the PS ratio for 2323 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.8x
8249 Zhejiang RuiYuan Intelligent Control Technology
1.4xn/aHK$35.5m
515 China Silver Technology Holdings
0.3xn/aHK$61.2m
8375 Vertical International Holdings
0.7xn/aHK$61.9m
675 K & P International Holdings
0.5xn/aHK$96.1m
2323 Renco Holdings Group
0.2xn/aHK$39.7m

Price-To-Sales vs Peers: 2323 is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.8x).

Price to Sales Ratio vs Industry

How does 2323's PS Ratio compare vs other companies in the HK Electronic Industry?

12 CompaniesPrice / SalesEstimated GrowthMarket Cap
856 VSTECS Holdings
0.09x9.2%US$919.75m
1184 S.A.S. Dragon Holdings
0.1xn/aUS$329.63m
3991 Changhong Jiahua Holdings
0.04xn/aUS$191.53m
40 Gold Peak Technology Group
0.07xn/aUS$59.98m
2323 0.2xIndustry Avg. 0.3xNo. of Companies21PS00.40.81.21.62+
12 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 2323 is good value based on its Price-To-Sales Ratio (0.2x) compared to the Hong Kong Electronic industry average (0.3x).

Price to Sales Ratio vs Fair Ratio

What is 2323'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.

2323 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 2323'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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