China Dredging Environment Protection Holdings Valuation

Q: What is the Fair Price of 871 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

871 (HK$0.16) is trading below our estimate of [[fair value]] (HK$0.25)

Is 871 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 871 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 871 (HK$0.16) is trading below our estimate of fair value (HK$0.25)

Significantly Below Fair Value: 871 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 871?

Key metric: As 871 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 871. This is calculated by dividing 871's market cap by their current revenue.
What is 871's PS Ratio?
PS Ratio	0.7x
Sales	CN¥318.56m
Market Cap	CN¥221.23m

871 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	2.5x
Enterprise Value/EBITDA	-9.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 871's PS Ratio compare to its peers?

The above table shows the PS ratio for 871 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	1.8x
8502 Ocean Line Port Development	1.3x	n/a	HK$240.0m
6119 Tian Yuan Group Holdings	0.8x	n/a	HK$246.0m
1719 China Infrastructure & Logistics Group	4x	n/a	HK$1.3b
6117 Rizhao Port Jurong	1.2x	n/a	HK$1.1b
871 China Dredging Environment Protection Holdings	0.7x	n/a	HK$237.6m

Price-To-Sales vs Peers: 871 is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (1.8x).

Price to Sales Ratio vs Industry

How does 871'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: 871 is good value based on its Price-To-Sales Ratio (0.7x) compared to the Hong Kong Infrastructure industry average (1.4x).

Price to Sales Ratio vs Fair Ratio

What is 871'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.

871 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.7x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 871'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.