HKBN Ltd.

SEHK:1310 Stock Report

Market Cap: HK$5.8b

HKBN Valuation

Is 1310 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 1310 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1310 (HK$4.39) is trading below our estimate of fair value (HK$9.01)

Significantly Below Fair Value: 1310 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1310?

Key metric: As 1310 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1310. This is calculated by dividing 1310's market cap by their current revenue.
What is 1310's PS Ratio?
PS Ratio0.5x
SalesHK$10.65b
Market CapHK$5.76b

Price to Sales Ratio vs Peers

How does 1310's PS Ratio compare to its peers?

The above table shows the PS ratio for 1310 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.3x
8 PCCW
0.9x2.6%HK$32.9b
6823 HKT Trust and HKT
2.1x1.9%HK$71.6b
788 China Tower
1.7x4.1%HK$178.3b
762 China Unicom (Hong Kong)
0.5x2.6%HK$198.0b
1310 HKBN
0.5x2.4%HK$5.8b

Price-To-Sales vs Peers: 1310 is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (1.3x).

Price to Sales Ratio vs Industry

How does 1310's PS Ratio compare vs other companies in the Asian Telecom Industry?

16 CompaniesPrice / SalesEstimated GrowthMarket Cap
1310 0.5xIndustry Avg. 1.9xNo. of Companies19PS01.63.24.86.48+
16 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 1310 is good value based on its Price-To-Sales Ratio (0.5x) compared to the Asian Telecom industry average (1.9x).

Price to Sales Ratio vs Fair Ratio

What is 1310'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.

1310 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ratio0.6x

Price-To-Sales vs Fair Ratio: 1310 is good value based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).

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.

Discover undervalued companies

PCCW

HK$32.9b

Provides telecommunications and related services in Hong Kong, Mainland and other parts of China, Singapore, and internationally.

8

HK$4.25

7D

-1.4%

1Y

6.0%

China Telecom

HK$597.5b

Provides wireline and mobile telecommunications services primarily in the People’s Republic of China.

728

HK$4.44

7D

-0.2%

1Y

23.3%

HKBN

HK$5.8b

An investment holding company, provides fixed telecommunications network, international telecommunications, and mobile services to residential and enterprise customers in Hong Kong, Mainland China, and Macao.

1310

HK$4.39

7D

6.0%

1Y

24.0%