Sichuan Road & Bridge Group Co.,Ltd

SHSE:600039 Stock Report

Market Cap: CN¥53.8b

Sichuan Road & Bridge GroupLtd Valuation

Is 600039 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 600039 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600039 (CN¥6.2) is trading below our estimate of fair value (CN¥8.91)

Significantly Below Fair Value: 600039 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600039?

Other financial metrics that can be useful for relative valuation.

600039 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA7.7x
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

How does 600039's PE Ratio compare to its peers?

The above table shows the PE ratio for 600039 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.3x
601117 China National Chemical Engineering
8x10.6%CN¥43.4b
601669 Power Construction Corporation of China
7.3x13.1%CN¥93.0b
600970 Sinoma International EngineeringLtd
9.1x13.5%CN¥26.9b
601186 China Railway Construction
4.7x10.0%CN¥103.4b
600039 Sichuan Road & Bridge GroupLtd
6.7x13.7%CN¥53.8b

Price-To-Earnings vs Peers: 600039 is good value based on its Price-To-Earnings Ratio (6.7x) compared to the peer average (7.3x).


Price to Earnings Ratio vs Industry

How does 600039's PE Ratio compare vs other companies in the CN Construction Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 600039 is good value based on its Price-To-Earnings Ratio (6.7x) compared to the CN Construction industry average (18.2x).


Price to Earnings Ratio vs Fair Ratio

What is 600039'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.

600039 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.7x
Fair PE Ratio18.8x

Price-To-Earnings vs Fair Ratio: 600039 is good value based on its Price-To-Earnings Ratio (6.7x) compared to the estimated Fair Price-To-Earnings Ratio (18.8x).


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 600039 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥6.20
CN¥10.01
+61.4%
15.9%CN¥11.60CN¥8.41n/a2
Aug ’25CN¥6.26
CN¥10.01
+59.8%
15.9%CN¥11.60CN¥8.41n/a2
Jul ’25CN¥8.06
CN¥9.93
+23.2%
13.2%CN¥11.60CN¥8.41n/a3
Jun ’25CN¥7.86
CN¥10.01
+27.3%
15.9%CN¥11.60CN¥8.41n/a2
Oct ’24CN¥8.67
CN¥11.89
+37.1%
8.7%CN¥12.93CN¥10.85n/a2
Sep ’24CN¥8.88
CN¥11.89
+33.9%
8.7%CN¥12.93CN¥10.85n/a2
Aug ’24CN¥9.72
CN¥12.66
+30.2%
2.1%CN¥12.92CN¥12.40CN¥6.262
Jul ’24CN¥9.81
CN¥14.53
+48.1%
10.7%CN¥16.09CN¥12.97CN¥8.062
Jun ’24CN¥10.31
CN¥14.53
+40.9%
10.7%CN¥16.09CN¥12.97CN¥7.862
May ’24CN¥11.32
CN¥14.53
+28.3%
10.7%CN¥16.09CN¥12.97CN¥7.252
Apr ’24CN¥9.86
CN¥12.92
+31.1%
0.4%CN¥12.97CN¥12.87CN¥7.772
Mar ’24CN¥9.42
CN¥11.09
+17.7%
6.0%CN¥12.04CN¥10.58CN¥8.073
Feb ’24CN¥8.70
CN¥11.09
+27.4%
6.0%CN¥12.04CN¥10.58CN¥7.973
Jan ’24CN¥7.94
CN¥10.51
+32.4%
0.6%CN¥10.58CN¥10.45CN¥7.492
Dec ’23CN¥8.16
CN¥10.51
+28.9%
0.6%CN¥10.58CN¥10.45CN¥7.712
Nov ’23CN¥8.12
CN¥10.51
+29.5%
0.6%CN¥10.58CN¥10.45CN¥7.702
Oct ’23CN¥7.30
CN¥10.51
+44.0%
0.6%CN¥10.58CN¥10.45CN¥8.672
Sep ’23CN¥7.74
CN¥10.51
+35.9%
0.6%CN¥10.58CN¥10.45CN¥8.882
Aug ’23CN¥7.35
CN¥10.55
+43.5%
0.9%CN¥10.65CN¥10.45CN¥9.722

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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