The Discounted Cash Flow (DCF) valuation of Shifang Holding Ltd (1831.HK) is (0.38) HKD. With the latest stock price at 0.12 HKD, the upside of Shifang Holding Ltd based on DCF is -412.8%.

Is 1831.HK a buy or a sell?

Based on the latest price of 0.12 HKD and our DCF valuation, Shifang Holding Ltd (1831.HK) is a sell. Selling 1831.HK stocks now will result in a potential gain of 412.8%.

Note: valuation result may not be accurate due to the company's negative earnings.

	Range	Selected
WACC / Discount Rate	5.2% - 7.4%	6.3%
Long-term Growth Rate	3.0% - 5.0%	4.0%
Fair Price	(3.29) - (0.21)	(0.38)
Upside	-2821.2% - -275.4%	-412.8%

0.12 HKD

Stock Price

(0.38) HKD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

1831.HK DCF Valuation: Revenue & Expenses Forecast

(CNY in millions)		Projections

	06-2024	06-2025	06-2026	06-2027	06-2028	06-2029

Revenue	25	26	27	27	28	29
% Growth	57%	6%	2%	3%	2%	4%

Cost of goods sold	(19)	(19)	(19)	(18)	(18)	(17)
% of Revenue	78%	74%	70%	67%	64%	60%

Selling, G&A expenses	(25)	(26)	(26)	(27)	(28)	(29)
% of Revenue	100%	100%	100%	100%	100%	100%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	1	1	1	1	1	1
% of Revenue	4%	4%	4%	4%	4%	4%

Tax expense	(0)	0	0	0	0	0
Tax rate	0%	0%	0%	0%	0%	0%

Net profit	(18)	(18)	(18)	(17)	(17)	(16)
% Margin	-74%	-70%	-66%	-63%	-59%	-56%