The analyst posted the video on his YouTube channel, 9 Financial Analysis, outlining his investment view that Shining Star's stock price is undervalued. In the video, he reviewed the company's business performance and predicted its future prospects, expecting Shining Star's stock price to be between $44.25 and $70.8 by 2024.
The analyst report shows that China's e-commerce retail scale will reach $3.5 trillion in 2024, and Yaoshi Xinghui, as a leader in PGC live-streaming e-commerce, has a sound financial situation and rapid revenue growth. If Yaoshi Xinghui continues to maintain this growth rate, its Enjoy Mall service revenue is expected to reach $40 million by 2024. This is attributed to the company's strategic focus on live-streaming e-commerce, while the compound annual growth rate of advertising revenue will be relatively lower to 35%. Therefore, it can be calculated that advertising revenue in 2024 will be $350 million. If the net profit margin remains at 30%, then it can be calculated that the net profit in 2024 will be $117 million. Assuming that Yaoshi Xinghui's total share capital remains at 66 million shares in 2024, EPS will be approximately $1.77.
Based on the above financial analysis, he also gave a reasonable PE ratio of 25 to 40 for Yaoshi Xinghui's business model and industry growth rate, thus concluding that Yaoshi Xinghui's stock price is expected to reach between $44.25 and $70.80 by 2024. The analyst also mentioned that Yaoshi Xinghui's current PE (TTM) is around 8, PS (TTM) is around 2, and PB (TTM) is around 2.3, indicating that its value is underestimated.
A summary of the report is as follows:
Source: https://www.youtube.com/watch? v = sxQEH - - KOo4
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