Hongfa Technology Co., Ltd.

SHSE:600885 Stock Report

Market Cap: CN¥34.3b

Hongfa Technology Valuation

Is 600885 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 600885 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600885 (CN¥33.25) is trading below our estimate of fair value (CN¥33.54)

Significantly Below Fair Value: 600885 is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600885?

Other financial metrics that can be useful for relative valuation.

600885 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/Revenue2.8x
Enterprise Value/EBITDA12.1x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

How does 600885's PE Ratio compare to its peers?

The above table shows the PE ratio for 600885 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.2x
300207 Sunwoda ElectronicLtd
28.1x20.7%CN¥40.7b
600517 State Grid YingdaLtd
20.4xn/aCN¥31.4b
600312 Henan Pinggao ElectricLtd
27.6x17.7%CN¥28.1b
300763 Ginlong Technologies
60.7x35.4%CN¥30.9b
600885 Hongfa Technology
23x15.2%CN¥34.3b

Price-To-Earnings vs Peers: 600885 is good value based on its Price-To-Earnings Ratio (23x) compared to the peer average (34.2x).


Price to Earnings Ratio vs Industry

How does 600885's PE Ratio compare vs other companies in the CN Electrical Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a23.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a23.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 600885 is good value based on its Price-To-Earnings Ratio (23x) compared to the CN Electrical industry average (32.5x).


Price to Earnings Ratio vs Fair Ratio

What is 600885'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.

600885 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23x
Fair PE Ratio23x

Price-To-Earnings vs Fair Ratio: 600885 is expensive based on its Price-To-Earnings Ratio (23x) compared to the estimated Fair Price-To-Earnings Ratio (23x).


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 600885 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥33.25
CN¥37.27
+12.1%
17.4%CN¥48.10CN¥25.00n/a12
Oct ’25CN¥32.55
CN¥37.27
+14.5%
17.4%CN¥48.10CN¥25.00n/a12
Sep ’25CN¥26.44
CN¥37.27
+41.0%
17.4%CN¥48.10CN¥25.00n/a12
Aug ’25CN¥26.48
CN¥36.18
+36.6%
19.4%CN¥47.30CN¥23.00n/a12
Jul ’25CN¥26.86
CN¥36.09
+34.3%
19.4%CN¥47.30CN¥23.00n/a12
Jun ’25CN¥29.00
CN¥36.56
+26.1%
18.7%CN¥47.30CN¥23.00n/a13
May ’25CN¥28.60
CN¥36.32
+27.0%
19.1%CN¥47.30CN¥23.00n/a13
Apr ’25CN¥26.15
CN¥37.20
+42.3%
19.5%CN¥48.30CN¥23.00n/a13
Mar ’25CN¥25.36
CN¥38.89
+53.3%
17.1%CN¥50.00CN¥25.00n/a14
Feb ’25CN¥22.71
CN¥38.96
+71.5%
16.8%CN¥50.00CN¥25.00n/a14
Jan ’25CN¥27.64
CN¥40.56
+46.7%
12.8%CN¥50.00CN¥29.00n/a14
Dec ’24CN¥28.92
CN¥40.56
+40.2%
12.8%CN¥50.00CN¥29.00n/a14
Nov ’24CN¥27.91
CN¥41.64
+49.2%
13.1%CN¥50.00CN¥29.00n/a14
Oct ’24CN¥33.55
CN¥44.26
+31.9%
19.0%CN¥65.50CN¥30.00CN¥32.5514
Sep ’24CN¥34.85
CN¥44.54
+27.8%
18.7%CN¥65.50CN¥30.00CN¥26.4415
Aug ’24CN¥35.04
CN¥44.54
+27.1%
18.7%CN¥65.50CN¥30.00CN¥26.4815
Jul ’24CN¥31.85
CN¥44.59
+40.0%
19.6%CN¥65.50CN¥30.00CN¥26.8613
Jun ’24CN¥29.96
CN¥44.59
+48.8%
19.6%CN¥65.50CN¥30.00CN¥29.0013
May ’24CN¥31.25
CN¥44.59
+42.7%
19.6%CN¥65.50CN¥30.00CN¥28.6013
Apr ’24CN¥32.59
CN¥47.38
+45.4%
18.2%CN¥67.86CN¥32.00CN¥26.1512
Mar ’24CN¥35.28
CN¥48.77
+38.2%
18.1%CN¥67.86CN¥32.00CN¥25.3612
Feb ’24CN¥37.70
CN¥48.77
+29.4%
18.1%CN¥67.86CN¥32.00CN¥22.7112
Jan ’24CN¥33.41
CN¥50.44
+51.0%
14.3%CN¥67.86CN¥39.00CN¥27.6412
Dec ’23CN¥34.15
CN¥51.13
+49.7%
13.9%CN¥67.86CN¥39.00CN¥28.9212
Nov ’23CN¥36.80
CN¥51.04
+38.7%
13.9%CN¥67.86CN¥39.00CN¥27.9112
Oct ’23CN¥34.83
CN¥53.62
+54.0%
13.5%CN¥67.86CN¥39.00CN¥33.5512

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


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