The Discounted Cash Flow (DCF) valuation of Channel Micron Holdings Company Ltd (2115.HK) is 0.44 HKD. With the latest stock price at 0.25 HKD, the upside of Channel Micron Holdings Company Ltd based on DCF is 75.5%.

Is 2115.HK a buy or a sell?

Based on the latest price of 0.25 HKD and our DCF valuation, Channel Micron Holdings Company Ltd (2115.HK) is a buy. Buying 2115.HK stocks now will result in a potential gain of 75.5%.

	Range	Selected
WACC / Discount Rate	7.0% - 10.2%	8.6%
Long-term Growth Rate	0.0% - 1.0%	0.5%
Fair Price	0.36 - 0.56	0.44
Upside	45.9% - 125.4%	75.5%

0.25 HKD

Stock Price

0.44 HKD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

2115.HK DCF Valuation: Revenue & Expenses Forecast

(CNY in millions)		Projections

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

Revenue	389	424	470	511	558	600
% Growth	9%	9%	11%	9%	9%	8%

Cost of goods sold	(282)	(307)	(340)	(370)	(404)	(435)
% of Revenue	72%	72%	72%	72%	72%	72%

Selling, G&A expenses	(43)	(47)	(52)	(57)	(62)	(67)
% of Revenue	11%	11%	11%	11%	11%	11%

Research & Development	(9)	(10)	(11)	(11)	(13)	(14)
% of Revenue	2%	2%	2%	2%	2%	2%

Net interest & other expenses	1	1	1	1	1	2
% of Revenue	0%	0%	0%	0%	0%	0%

Tax expense	(10)	(12)	(13)	(14)	(16)	(17)
Tax rate	18%	19%	19%	19%	19%	19%

Net profit	46	49	55	59	65	70
% Margin	12%	12%	12%	12%	12%	12%