Hainan Meilan International Airport Valuation

Q: What is the Fair Price of 357 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

357 (HK$7.75) is trading above our estimate of [[fair value]] (HK$0.11)

Is 357 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: 357 (HK$7.75) is trading above our estimate of fair value (HK$0.11)

Significantly Below Fair Value: 357 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 357?

Key metric: As 357 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 357. This is calculated by dividing 357's market cap by their current revenue.
What is 357's PS Ratio?
PS Ratio	1.6x
Sales	CN¥2.17b
Market Cap	CN¥3.41b

357 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	3.3x
Enterprise Value/EBITDA	23.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 357's PS Ratio compare to its peers?

The above table shows the PS ratio for 357 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	1.2x
694 Beijing Capital International Airport	2.2x	12.9%	HK$12.6b
1785 Chengdu Expressway	1.2x	n/a	HK$3.7b
3382 Tianjin Port Development Holdings	0.3x	n/a	HK$3.8b
1052 Yuexiu Transport Infrastructure	1.2x	-1.8%	HK$6.1b
357 Hainan Meilan International Airport	1.6x	15.4%	HK$3.7b

Price-To-Sales vs Peers: 357 is expensive based on its Price-To-Sales Ratio (1.6x) compared to the peer average (1.2x).

Price to Sales Ratio vs Industry

How does 357's PS Ratio compare vs other companies in the HK Infrastructure Industry?

1 Company	Price / Sales	Estimated Growth	Market Cap
269 China Resources and Transportation Group	0.2x	n/a	US$13.61m

No more companies available in this PS range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 357 is expensive based on its Price-To-Sales Ratio (1.6x) compared to the Hong Kong Infrastructure industry average (1.4x).

Price to Sales Ratio vs Fair Ratio

What is 357'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.

357 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.6x
Fair PS Ratio	0.5x

Price-To-Sales vs Fair Ratio: 357 is expensive based on its Price-To-Sales Ratio (1.6x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).

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 357 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	HK$7.75	HK$9.32 +20.3%	21.8%	HK$11.97	HK$6.30	n/a	4
Nov ’25	HK$9.06	HK$8.56 -5.6%	28.5%	HK$12.20	HK$6.23	n/a	4
Oct ’25	HK$8.83	HK$9.59 +8.6%	31.9%	HK$13.89	HK$6.20	n/a	5
Sep ’25	HK$6.90	HK$9.59 +38.9%	31.9%	HK$13.89	HK$6.20	n/a	5
Aug ’25	HK$7.55	HK$9.60 +27.2%	30.5%	HK$13.69	HK$6.20	n/a	5
Jul ’25	HK$7.69	HK$9.83 +27.9%	27.2%	HK$13.67	HK$6.57	n/a	5
Jun ’25	HK$9.80	HK$9.83 +0.3%	27.2%	HK$13.67	HK$6.57	n/a	5
May ’25	HK$7.65	HK$9.50 +24.2%	32.5%	HK$13.73	HK$5.59	n/a	5
Apr ’25	HK$7.03	HK$10.38 +47.7%	27.0%	HK$13.94	HK$7.02	n/a	6
Mar ’25	HK$7.32	HK$11.60 +58.5%	26.6%	HK$15.14	HK$7.06	n/a	7
Feb ’25	HK$5.85	HK$11.52 +97.0%	26.1%	HK$15.29	HK$7.17	n/a	6
Jan ’25	HK$6.93	HK$11.52 +66.3%	26.1%	HK$15.29	HK$7.17	n/a	6
Dec ’24	HK$6.95	HK$12.73 +83.1%	30.7%	HK$19.81	HK$7.79	n/a	7
Nov ’24	HK$6.61	HK$14.32 +116.6%	38.2%	HK$25.63	HK$7.68	HK$9.06	8
Oct ’24	HK$7.20	HK$14.32 +98.9%	38.2%	HK$25.63	HK$7.68	HK$8.83	8
Sep ’24	HK$7.53	HK$20.88 +177.2%	41.2%	HK$34.65	HK$7.73	HK$6.90	10
Aug ’24	HK$11.78	HK$26.23 +122.6%	21.4%	HK$34.99	HK$16.13	HK$7.55	10
Jul ’24	HK$9.71	HK$26.20 +169.8%	21.8%	HK$35.26	HK$16.25	HK$7.69	10
Jun ’24	HK$13.12	HK$26.77 +104.1%	20.2%	HK$35.48	HK$16.35	HK$9.80	10
May ’24	HK$16.20	HK$28.68 +77.0%	14.4%	HK$36.65	HK$24.61	HK$7.65	10
Apr ’24	HK$19.10	HK$28.70 +50.3%	15.2%	HK$36.65	HK$24.61	HK$7.03	9
Mar ’24	HK$20.85	HK$29.39 +41.0%	14.3%	HK$37.04	HK$24.93	HK$7.32	8
Feb ’24	HK$22.65	HK$29.65 +30.9%	13.9%	HK$37.22	HK$25.05	HK$5.85	8
Jan ’24	HK$23.75	HK$26.94 +13.4%	6.3%	HK$29.74	HK$24.43	HK$6.93	7
Dec ’23	HK$21.20	HK$25.84 +21.9%	6.7%	HK$29.12	HK$23.42	HK$6.95	7
Nov ’23	HK$13.38	HK$25.50 +90.6%	7.0%	HK$28.83	HK$23.19	HK$6.61	7

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.