Gold Peak Technology Group Valuation

Q: What is the Fair Price of 40 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

40 (HK$0.51) is trading below our estimate of [[fair value]] (HK$2.91)

Is 40 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 40 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 40 (HK$0.51) is trading below our estimate of fair value (HK$2.91)

Significantly Below Fair Value: 40 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 40?

Key metric: As 40 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 40. This is calculated by dividing 40's market cap by their current revenue.
What is 40's PS Ratio?
PS Ratio	0.07x
Sales	HK$6.53b
Market Cap	HK$466.89m

40 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	0.5x
Enterprise Value/EBITDA	7.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 40's PS Ratio compare to its peers?

The above table shows the PS ratio for 40 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	0.5x
438 IRICO Group New Energy	0.1x	n/a	HK$539.5m
698 Tongda Group Holdings	0.1x	3.0%	HK$808.1m
117 Tianli Holdings Group	0.3x	n/a	HK$171.3m
567 Daisho Microline Holdings	1.6x	n/a	HK$135.5m
40 Gold Peak Technology Group	0.07x	n/a	HK$466.9m

Price-To-Sales vs Peers: 40 is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.5x).

Price to Sales Ratio vs Industry

How does 40's PS Ratio compare vs other companies in the HK Electronic Industry?

12 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	0.3x	12.7%
40 Gold Peak Technology Group	0.07x	n/a	US$59.98m
856 VSTECS Holdings	0.09x	9.2%	US$919.75m
1184 S.A.S. Dragon Holdings	0.1x	n/a	US$329.63m

12 Companies		Estimated Growth	Market Cap
Industry Avg.	0.3x	23.6%
40 Gold Peak Technology Group	0.07x	n/a	US$59.98m

No more companies

Price-To-Sales vs Industry: 40 is good value based on its Price-To-Sales Ratio (0.1x) compared to the Hong Kong Electronic industry average (0.3x).

Price to Sales Ratio vs Fair Ratio

What is 40'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.

40 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.07x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 40'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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