VSTECS Holdings Limited

SEHK:856 Stock Report

Market Cap: HK$7.4b

VSTECS Holdings Valuation

Is 856 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 856 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 856 (HK$5.2) is trading above our estimate of fair value (HK$0.3)

Significantly Below Fair Value: 856 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 856?

Key metric: As 856 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 856. This is calculated by dividing 856's market cap by their current earnings.
What is 856's PE Ratio?
PE Ratio8.5x
EarningsHK$873.27m
Market CapHK$7.45b

Price to Earnings Ratio vs Peers

How does 856's PE Ratio compare to its peers?

The above table shows the PE ratio for 856 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.8x
1184 S.A.S. Dragon Holdings
5.6xn/aHK$2.6b
400 Ingdan
7.4xn/aHK$1.8b
3991 Changhong Jiahua Holdings
4.1xn/aHK$1.5b
6036 Apex Ace Holding
134xn/aHK$569.2m
856 VSTECS Holdings
8.5xn/aHK$7.4b

Price-To-Earnings vs Peers: 856 is good value based on its Price-To-Earnings Ratio (8.5x) compared to the peer average (37.8x).

Price to Earnings Ratio vs Industry

How does 856's PE Ratio compare vs other companies in the HK Electronic Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
76 Elate Holdings
0.6xn/aUS$17.27m
1822 China Wood International Holding
0.08xn/aUS$12.16m
911 Qianhai Health Holdings
0.6xn/aUS$5.88m
No more companies available in this PE range
856 8.5xIndustry Avg. 8.2xNo. of Companies7PE0612182430+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 856 is expensive based on its Price-To-Earnings Ratio (8.5x) compared to the Hong Kong Electronic industry average (8.2x).

Price to Earnings Ratio vs Fair Ratio

What is 856's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

856 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 856's Price-To-Earnings 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?

The above table shows the analyst 856 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$5.20
HK$5.44
+4.5%
0.6%HK$5.47HK$5.40n/a2
Dec ’25HK$5.05
HK$5.68
+12.4%
6.0%HK$6.16HK$5.40n/a3
Nov ’25HK$4.53
HK$5.44
+20.0%
0.6%HK$5.47HK$5.40n/a2
Oct ’24HK$4.40
HK$5.90
+34.1%
1.7%HK$6.00HK$5.80HK$4.682
Sep ’24HK$4.08
HK$5.90
+44.6%
1.7%HK$6.00HK$5.80HK$4.302
Aug ’24HK$3.86
HK$5.90
+52.8%
1.7%HK$6.00HK$5.80HK$4.322
Jul ’24HK$4.03
HK$5.90
+46.4%
1.7%HK$6.00HK$5.80HK$4.432
Jun ’24HK$3.99
HK$5.90
+47.9%
1.7%HK$6.00HK$5.80HK$4.612
May ’24HK$4.50
HK$5.90
+31.1%
1.7%HK$6.00HK$5.80HK$5.002
Mar ’24HK$4.75
HK$8.75
+84.2%
2.9%HK$9.00HK$8.50HK$4.072
Feb ’24HK$4.97
HK$8.75
+76.1%
2.9%HK$9.00HK$8.50HK$4.242
Jan ’24HK$4.50
HK$8.75
+94.4%
2.9%HK$9.00HK$8.50HK$4.402
Dec ’23HK$4.30
HK$8.75
+103.5%
2.9%HK$9.00HK$8.50HK$3.872

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/21 15:07
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

VSTECS Holdings Limited is covered by 11 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
Zeyuan YangCitic Securities Co., Ltd.
Steven ZhangDBS Vickers Research
Li XiongGuosen Securities Co., Ltd.