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    Jia Yao Holdings (SEHK:1626) Turns To Profit On Guidance, But Does Valuation Still Fit

    Simply Wall St·07/25/2026 22:21:58
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    Jia Yao Holdings (SEHK:1626) issued earnings guidance indicating a shift from a net loss to a projected net profit of RMB 11.0 million to RMB 15.0 million for the six months ended 30 June 2026.

    See our latest analysis for Jia Yao Holdings.

    The earnings guidance appears to sit alongside very strong recent momentum in Jia Yao Holdings, with a 1 day share price return of 6.01%, a 30 day share price return of 43.27%, and a 1 year total shareholder return that is more than 7x.

    If this turnaround story has caught your attention, it could be a good moment to see what else is moving and broaden your search through 108 top founder-led companies

    Jia Yao Holdings has already delivered a very sharp move. However, the fresh earnings guidance suggests the story has changed materially in a short space of time, raising the question of how much of that shift is really reflected in the current share price.

    Preferred Price to Sales Multiple of 19x: Is it justified?

    With Jia Yao Holdings now guiding to a net profit and its share price already very strong over the past year, the current valuation is front and center for anyone considering the stock.

    The key reference point available is the P/S ratio. For Jia Yao Holdings, the P/S multiple stands at 19x, which is high for a company generating CN¥644.9m of revenue and CN¥1.8m of net income from its electronic cigarette business in China and overseas markets.

    P/S compares the company’s market value to its annual revenue and is often watched closely when profit history is limited or earnings are affected by one off items. Here, profit margins of 0.3% are currently lower than last year’s 2.8%, and recent results include a large one off gain of CN¥5.1m, so relying on earnings based ratios alone is less straightforward.

    Relative to peers, the gap is wide. The same P/S ratio of 19x is described as expensive compared to the Asian Packaging industry average of 0.7x, and also expensive versus the peer group average of 2.2x. That kind of premium suggests the market is already pricing in a very different future revenue or margin profile for Jia Yao Holdings than what the sector as a whole currently delivers.

    See what the numbers say about this price — find out in our valuation breakdown.

    Result: Price-to-sales ratio of 19x (OVERVALUED)

    However, Jia Yao Holdings still faces risks if electronic cigarette demand weakens in key regions or if margins remain close to current low levels.

    Find out about the key risks to this Jia Yao Holdings narrative.

    Next Steps

    If this mix of sharp gains and higher risks around Jia Yao Holdings leaves you unsure, take a closer look at the details now and shape your own view by checking the 3 important warning signs.

    Looking for more Jia Yao Holdings sized opportunities?

    If Jia Yao Holdings has sharpened your focus on what is possible, do not stop here. The broader market still holds plenty of compelling ideas worth your attention.

    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.