HUAYU Automotive Systems Company Limited

SHSE:600741 Stock Report

Market Cap: CN¥51.4b

HUAYU Automotive Systems Valuation

Is 600741 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 600741 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600741 (CN¥16.31) is trading below our estimate of fair value (CN¥33.13)

Significantly Below Fair Value: 600741 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600741?

Key metric: As 600741 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600741. This is calculated by dividing 600741's market cap by their current earnings.
What is 600741's PE Ratio?
PE Ratio7.4x
EarningsCN¥6.95b
Market CapCN¥51.42b

Price to Earnings Ratio vs Peers

How does 600741's PE Ratio compare to its peers?

The above table shows the PE ratio for 600741 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.2x
002085 Zhejiang Wanfeng Auto Wheel
55.8x21.4%CN¥42.1b
601799 Changzhou Xingyu Automotive Lighting SystemsLtd
29.6x26.3%CN¥38.4b
688819 Tianneng Battery Group
13.5x18.9%CN¥27.7b
600699 Ningbo Joyson Electronic
17.9x18.0%CN¥22.3b
600741 HUAYU Automotive Systems
7.4x-2.8%CN¥51.4b

Price-To-Earnings vs Peers: 600741 is good value based on its Price-To-Earnings Ratio (7.4x) compared to the peer average (29.2x).

Price to Earnings Ratio vs Industry

How does 600741's PE Ratio compare vs other companies in the CN Auto Components Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
002684 Dynavolt Renewable Energy Technology (Henan)
0.6xn/aUS$58.50m
No more companies available in this PE range
600741 7.4xIndustry Avg. 31.3xNo. of Companies26PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 600741 is good value based on its Price-To-Earnings Ratio (7.4x) compared to the CN Auto Components industry average (31.3x).

Price to Earnings Ratio vs Fair Ratio

What is 600741's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

600741 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.4x
Fair PE Ratio12x

Price-To-Earnings vs Fair Ratio: 600741 is good value based on its Price-To-Earnings Ratio (7.4x) compared to the estimated Fair Price-To-Earnings Ratio (12x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 600741 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥16.31
CN¥18.81
+15.3%
17.8%CN¥24.11CN¥13.40n/a12
Nov ’25CN¥15.20
CN¥18.84
+23.9%
17.9%CN¥24.11CN¥13.40n/a12
Oct ’25CN¥17.93
CN¥19.01
+6.0%
15.1%CN¥23.00CN¥13.40n/a11
Sep ’25CN¥14.75
CN¥19.01
+28.9%
15.1%CN¥23.00CN¥13.40n/a11
Aug ’25CN¥15.28
CN¥20.86
+36.5%
18.6%CN¥27.17CN¥15.00n/a11
Jul ’25CN¥16.08
CN¥20.86
+29.7%
18.6%CN¥27.17CN¥15.00n/a11
Jun ’25CN¥16.07
CN¥20.86
+29.8%
18.6%CN¥27.17CN¥15.00n/a11
May ’25CN¥16.48
CN¥21.17
+28.5%
17.5%CN¥27.17CN¥16.00n/a11
Apr ’25CN¥17.64
CN¥20.97
+18.9%
15.6%CN¥26.50CN¥16.20n/a11
Mar ’25CN¥17.50
CN¥21.33
+21.9%
15.7%CN¥26.50CN¥17.00n/a10
Feb ’25CN¥16.16
CN¥21.41
+32.5%
15.0%CN¥26.50CN¥17.00n/a10
Jan ’25CN¥16.28
CN¥22.00
+35.1%
15.1%CN¥26.50CN¥16.40n/a10
Dec ’24CN¥17.27
CN¥22.00
+27.4%
15.1%CN¥26.50CN¥16.40n/a10
Nov ’24CN¥17.58
CN¥22.00
+25.1%
15.1%CN¥26.50CN¥16.40CN¥15.2010
Oct ’24CN¥18.77
CN¥22.31
+18.9%
16.6%CN¥27.39CN¥16.40CN¥17.9310
Sep ’24CN¥19.19
CN¥22.37
+16.6%
15.9%CN¥27.39CN¥16.40CN¥14.7511
Aug ’24CN¥19.27
CN¥21.67
+12.5%
14.3%CN¥25.30CN¥15.60CN¥15.2811
Jul ’24CN¥18.46
CN¥22.41
+21.4%
11.0%CN¥25.30CN¥18.00CN¥16.0811
Jun ’24CN¥17.21
CN¥22.55
+31.0%
10.2%CN¥25.30CN¥18.00CN¥16.0711
May ’24CN¥16.38
CN¥22.34
+36.4%
11.0%CN¥25.30CN¥18.00CN¥16.4810
Apr ’24CN¥16.74
CN¥23.34
+39.5%
15.0%CN¥29.40CN¥18.00CN¥17.6410
Mar ’24CN¥19.06
CN¥23.38
+22.7%
15.3%CN¥29.80CN¥18.00CN¥17.5010
Feb ’24CN¥18.60
CN¥23.10
+24.2%
15.9%CN¥29.80CN¥18.00CN¥16.169
Jan ’24CN¥17.33
CN¥23.31
+34.5%
16.1%CN¥29.80CN¥18.00CN¥16.289
Dec ’23CN¥18.61
CN¥24.50
+31.7%
19.2%CN¥33.03CN¥18.00CN¥17.2710
Nov ’23CN¥17.35
CN¥24.50
+41.2%
19.2%CN¥33.03CN¥18.00CN¥17.5810

Analyst Forecast: Target price is less than 20% higher than the current share price.

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