Hongfa Technology Co., Ltd.

SHSE:600885 Stock Report

Market Cap: CN¥51.0b

Hongfa Technology Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow 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.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: 600885 (CN¥32.96) is trading above our estimate of future cash flow value (CN¥21.02)

Significantly Below Future Cash Flow Value: 600885 is trading above our estimate of future cash flow value.

Key Valuation Metric

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

Key metric: As 600885 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600885. This is calculated by dividing 600885's market cap by their current earnings.
What is 600885's PE Ratio?
PE Ratio27.9x
EarningsCN¥1.83b
Market CapCN¥51.01b

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 Average39x
002340 GEM
40x38.27%CN¥49.1b
300919 CNGR Advanced Material
46.7x32.53%CN¥56.1b
300207 Sunwoda ElectronicLtd
28x37.07%CN¥46.5b
603606 Ningbo Orient Wires & CablesLtd
41.2x35.52%CN¥40.8b
600885 Hongfa Technology
27.9x14.46%CN¥51.0b

Price-To-Earnings vs Peers: 600885 is good value based on its Price-To-Earnings Ratio (27.9x) compared to the peer average (39x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
300023 Bode Energy Equipment
3.6xn/aUS$51.42m
No more companies available in this PE range
600885 27.9xIndustry Avg. 59.8xNo. of Companies26PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 600885 is good value based on its Price-To-Earnings Ratio (27.9x) compared to the CN Electrical industry average (58.9x).

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 Ratio27.9x
Fair PE Ratio27x

Price-To-Earnings vs Fair Ratio: 600885 is expensive based on its Price-To-Earnings Ratio (27.9x) compared to the estimated Fair Price-To-Earnings Ratio (27x).

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¥32.96
CN¥35.87
+8.83%
19.15%CN¥45.00CN¥24.00n/a11
Jan ’27CN¥30.40
CN¥35.00
+15.13%
20.48%CN¥45.00CN¥24.00n/a11
Dec ’26CN¥28.53
CN¥35.00
+22.67%
20.48%CN¥45.00CN¥24.00n/a11
Nov ’26CN¥30.47
CN¥33.83
+11.04%
18.13%CN¥44.68CN¥24.00n/a11
Oct ’26CN¥26.36
CN¥30.93
+17.34%
14.92%CN¥39.10CN¥21.00n/a11
Sep ’26CN¥26.08
CN¥30.57
+17.20%
14.77%CN¥39.10CN¥21.00n/a11
Aug ’26CN¥24.44
CN¥30.33
+24.10%
13.29%CN¥36.50CN¥21.00n/a11
Jul ’26CN¥22.36
CN¥29.91
+33.78%
13.14%CN¥35.85CN¥20.00n/a11
Jun ’26CN¥23.40
CN¥29.73
+27.05%
12.83%CN¥35.86CN¥20.00n/a12
May ’26CN¥23.46
CN¥29.51
+25.82%
13.15%CN¥35.86CN¥20.00n/a12
Apr ’26CN¥25.76
CN¥29.48
+14.46%
12.65%CN¥34.36CN¥20.00n/a12
Mar ’26CN¥24.01
CN¥27.35
+13.89%
15.34%CN¥34.36CN¥19.29n/a12
Feb ’26CN¥24.57
CN¥27.35
+11.31%
15.34%CN¥34.36CN¥19.29n/a12
Jan ’26CN¥22.73
CN¥27.35
+20.33%
15.34%CN¥34.36CN¥19.29CN¥30.4012
Dec ’25CN¥23.54
CN¥27.38
+16.30%
15.32%CN¥34.36CN¥19.29CN¥28.5312
Nov ’25CN¥22.06
CN¥27.02
+22.50%
15.10%CN¥34.36CN¥19.29CN¥30.4712
Oct ’25CN¥23.25
CN¥26.62
+14.50%
17.42%CN¥34.36CN¥17.86CN¥26.3612
Sep ’25CN¥18.89
CN¥26.62
+40.95%
17.42%CN¥34.36CN¥17.86CN¥26.0812
Aug ’25CN¥18.91
CN¥25.84
+36.62%
19.38%CN¥33.79CN¥16.43CN¥24.4412
Jul ’25CN¥19.19
CN¥25.78
+34.34%
19.42%CN¥33.79CN¥16.43CN¥22.3612
Jun ’25CN¥20.71
CN¥26.12
+26.08%
18.75%CN¥33.79CN¥16.43CN¥23.4013
May ’25CN¥20.43
CN¥25.95
+27.01%
19.06%CN¥33.79CN¥16.43CN¥23.4613
Apr ’25CN¥18.68
CN¥26.57
+42.26%
19.46%CN¥34.50CN¥16.43CN¥25.7613
Mar ’25CN¥18.11
CN¥27.78
+53.33%
17.06%CN¥35.71CN¥17.86CN¥24.0114
Feb ’25CN¥16.22
CN¥27.83
+71.54%
16.79%CN¥35.71CN¥17.86CN¥24.5714
Jan ’25CN¥19.74
CN¥28.97
+46.73%
12.82%CN¥35.71CN¥20.71CN¥22.7314
CN¥35.87
Fair Value
8.1% undervalued intrinsic discount
11
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/01/23 16:31
End of Day Share Price 2026/01/23 00:00
Earnings2025/09/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Hongfa Technology Co., Ltd. is covered by 27 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Fuyin LiangBofA Global Research
Fuyin LiangBofA Global Research
Tao ZengChina Galaxy Securities Co., Ltd.