A Look At SITC International Holdings (SEHK:1308) Valuation After New 2025 Earnings Guidance

SITC International Holdings (SEHK:1308) issued unaudited earnings guidance for 2025, projecting shareholder profit of about US$1,200 million to US$1,230 million, with higher container volumes and average freight rates supported by stable Asian market demand. See our latest analysis for SITC International Holdings. The new earnings guidance lands at a time when momentum in SITC International Holdings' share price has been building, with a 1-day share price return of 1.23%, a 7-day return of 9.26% and a 1-year total shareholder return of 83.14%, alongside a 5-year total shareholder return of 204.82% that shows how patient holders have been rewarded. If this earnings update has you thinking about where else growth stories might be taking shape, it could be worth widening your search with fast growing stocks with high insider ownership. With SITC now guiding for around US$1.2b in profit, trading at HK$29.72 and sitting close to its analyst price target, the key question is whether today’s price offers upside, or if the market is already pricing in that growth. Price-to-Earnings of 7.9x: Is it justified? On a P/E of 7.9x, SITC International Holdings screens cheaper than both its peer group and the broader Asian shipping industry, even after the recent share price strength. The P/E ratio compares the HK$29.72 share price with the company’s earnings per share, so you are effectively seeing how much the market is paying for each dollar of current profit. For a shipping and logistics business with established operations across Asia and a fleet of 114 vessels, earnings power is a key reference point for many investors. Relative to the Asian shipping industry average P/E of 10.3x and a peer average of 8.3x, the current 7.9x suggests the market is pricing SITC at a discount to sector earnings. At the same time, our fair P/E estimate of 7.3x indicates the current multiple sits slightly above the level our model points to as a possible equilibrium, a level the market could also move toward if sentiment changes. Explore the SWS fair ratio for SITC International Holdings Result: Price-to-Earnings of 7.9x (UNDERVALUED) However, recent annual revenue and net income declines, along with SITC trading close to its analyst price target, could temper how much rerating potential is left. Find out about the key risks to this SITC International Holdings narrative. Another View, our DCF model points to deeper undervaluation While the 7.9x P/E suggests SITC International Holdings looks inexpensive beside peers, our DCF model presents a different perspective. With the shares at HK$29.72 versus an estimated future cash flow value of HK$49.34, the model indicates a large gap between price and projected cash flows. The question is whether that gap reflects opportunity or risks the market is already wary of. Look into how the SWS DCF model arrives at its fair value. 1308 Discounted Cash Flow as at Jan 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out SITC International Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 880 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Build Your Own SITC International Holdings Narrative If you see the numbers differently or prefer to rely on your own work, it is quick to build a personal view using Do it your way. A great starting point for your SITC International Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision. Looking for more investment ideas? If SITC has your attention, do not stop here. Use the Simply Wall St Screener to spot other opportunities that fit the way you like to invest. Target potential hidden value by scanning these 880 undervalued stocks based on cash flows that may trade below what their cash flows imply. Ride major technology shifts by filtering for these 24 AI penny stocks at the center of artificial intelligence trends. Tap into income potential by focusing on these 14 dividend stocks with yields > 3% that could complement a long term portfolio. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.