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    Is Jia Yao Holdings (SEHK:1626) Fully Valued After Its Return To Half Year Profit?

    Simply Wall St·09/09/2026 07:19:04
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    Earnings jolt puts Jia Yao Holdings in focus

    Jia Yao Holdings (SEHK:1626) just reported half year results that flipped the story. Sales reached CNY 340.35 million, and net income came in at CNY 6 million after a loss a year earlier.

    The earnings swing has arrived alongside sharp price action, with Jia Yao Holdings’ share price jumping 9.4% on the day and 9.5% over the past week, even though the 1 month share price return is down 13.2%. That pullback sits against a 3 month share price return of 25.3% and a very large year to date share price gain that lines up with a 1 year total shareholder return above 6x. This suggests that momentum has cooled in the short term but remains very strong over a longer horizon.

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    After a half year profit and a share price that has already multiplied over 6x in 12 months, the real puzzle on Jia Yao Holdings is simple: Is most of the upside already spent, or is valuation still playing catch up?

    Preferred Price-to-Sales of 16x: Is it justified?

    Jia Yao Holdings now trades on a P/S ratio of 16x, which is high compared with peers in the region and raises questions about what investors are paying for.

    The price to sales multiple looks at how much investors are willing to pay for each unit of revenue that the business generates. For Jia Yao Holdings, annual revenue of CNY 724.83 million sits behind a market value of about HK$13.54b. This 16x P/S suggests buyers are attaching a rich tag to its existing top line in the context of the tobacco and electronic cigarette space.

    That valuation level indicates the market is building in strong expectations for the electronic cigarette operations, despite limited forward estimates in the public data. When weighed against the Asian tobacco industry average P/S of 1.8x and an average of 2.6x for closer peers, the current 16x multiple looks very demanding by comparison.

    To see what the numbers say about this price, read the fuller valuation breakdown in our See what the numbers say about this price — find out in our valuation breakdown..

    Result: Price-to-Sales of 16x (OVERVALUED)

    Still, Jia Yao Holdings faces clear pressure points, including concentrated exposure to electronic cigarette demand and any regulatory changes that could affect volumes or pricing.

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

    Next Steps

    Market sentiment on Jia Yao Holdings is clearly split, with sharp gains on the chart and pointed questions on valuation and risk. Consider reviewing the numbers for yourself and pressure testing both sides of the story with the 1 key reward and 1 important warning sign.

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    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.