The Discounted Cash Flow (DCF) valuation of Sheng Yuan Holdings Ltd (851.HK) is 0.56 HKD. With the latest stock price at 0.25 HKD, the upside of Sheng Yuan Holdings Ltd based on DCF is 123.5%.

Is 851.HK a buy or a sell?

Based on the latest price of 0.25 HKD and our DCF valuation, Sheng Yuan Holdings Ltd (851.HK) is a buy. Buying 851.HK stocks now will result in a potential gain of 123.5%.

	Range	Selected
WACC / Discount Rate	7.5% - 10.6%	9.0%
Long-term Growth Rate	0.0% - 1.0%	0.5%
Fair Price	0.47 - 0.7	0.56
Upside	88.2% - 181.1%	123.5%

0.25 HKD

Stock Price

0.56 HKD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

851.HK DCF Valuation: Revenue & Expenses Forecast

(HKD in millions)		Projections

	12-2024	12-2025	12-2026	12-2027	12-2028	12-2029

Revenue	26	28	29	30	32	33
% Growth	246%	5%	7%	3%	6%	2%

Cost of goods sold	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Selling, G&A expenses	(8)	(8)	(9)	(9)	(10)	(10)
% of Revenue	30%	30%	30%	30%	30%	30%

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

Net interest & other expenses	17	18	19	20	21	22
% of Revenue	66%	66%	66%	66%	66%	66%

Tax expense	(4)	(6)	(7)	(7)	(7)	(8)
Tax rate	11%	17%	17%	17%	17%	17%

Net profit	32	31	33	34	36	37
% Margin	121%	113%	113%	113%	113%	113%