Sinoma International Engineering Co.,Ltd

SHSE:600970 Stock Report

Market Cap: CN¥28.2b

Sinoma International EngineeringLtd Valuation

Is 600970 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 600970 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600970 (CN¥10.71) is trading below our estimate of fair value (CN¥31.95)

Significantly Below Fair Value: 600970 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600970?

Key metric: As 600970 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600970. This is calculated by dividing 600970's market cap by their current earnings.
What is 600970's PE Ratio?
PE Ratio9.5x
EarningsCN¥2.97b
Market CapCN¥28.22b

Price to Earnings Ratio vs Peers

How does 600970's PE Ratio compare to its peers?

The above table shows the PE ratio for 600970 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.3x
601611 China Nuclear Engineering
13.2x15.0%CN¥27.8b
600170 Shanghai Construction Group
14.8x9.1%CN¥23.8b
600820 Shanghai Tunnel Engineering
7.4x8.0%CN¥21.7b
000032 Shenzhen SED Industry
46x22.2%CN¥21.7b
600970 Sinoma International EngineeringLtd
9.5x13.1%CN¥28.3b

Price-To-Earnings vs Peers: 600970 is good value based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (20.3x).

Price to Earnings Ratio vs Industry

How does 600970's PE Ratio compare vs other companies in the CN Construction Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
600248 Shaanxi Construction Engineering Group
4.5x12.6%US$2.41b
000498 Shandong Hi-Speed Road&Bridge Group
4.2x8.0%US$1.36b
002482 Shenzhen Grandland Group
2.6xn/aUS$989.36m
002564 SuZhou THVOW Technology
1.8xn/aUS$517.14m
No more companies available in this PE range
600970 9.5xIndustry Avg. 23.8xNo. of Companies14PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 600970 is good value based on its Price-To-Earnings Ratio (9.5x) compared to the CN Construction industry average (23.8x).

Price to Earnings Ratio vs Fair Ratio

What is 600970'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.

600970 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.5x
Fair PE Ratio20.6x

Price-To-Earnings vs Fair Ratio: 600970 is good value based on its Price-To-Earnings Ratio (9.5x) compared to the estimated Fair Price-To-Earnings Ratio (20.6x).

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 600970 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥10.71
CN¥13.85
+29.3%
3.7%CN¥14.70CN¥13.00n/a6
Nov ’25CN¥10.43
CN¥13.85
+32.8%
3.7%CN¥14.70CN¥13.00n/a6
Oct ’25CN¥11.50
CN¥14.25
+23.9%
5.0%CN¥15.04CN¥13.00n/a6
Sep ’25CN¥9.39
CN¥14.25
+51.7%
5.0%CN¥15.04CN¥13.00n/a6
Aug ’25CN¥10.27
CN¥14.63
+42.4%
5.8%CN¥16.30CN¥13.85n/a6
Jul ’25CN¥12.07
CN¥15.38
+27.4%
11.0%CN¥18.80CN¥13.85n/a6
Jun ’25CN¥12.72
CN¥15.24
+19.8%
10.5%CN¥18.80CN¥13.85n/a7
May ’25CN¥12.69
CN¥14.85
+17.0%
11.4%CN¥18.80CN¥13.30n/a7
Apr ’25CN¥11.70
CN¥14.49
+23.9%
6.1%CN¥16.29CN¥13.30n/a7
Mar ’25CN¥11.34
CN¥14.36
+26.7%
6.0%CN¥15.59CN¥13.20n/a6
Feb ’25CN¥10.46
CN¥14.70
+40.5%
7.8%CN¥16.68CN¥13.20n/a7
Jan ’25CN¥9.34
CN¥14.70
+57.3%
7.8%CN¥16.68CN¥13.20n/a7
Dec ’24CN¥9.45
CN¥14.70
+55.5%
7.8%CN¥16.68CN¥13.20n/a7
Nov ’24CN¥9.88
CN¥14.70
+48.7%
7.8%CN¥16.68CN¥13.20CN¥10.437
Oct ’24CN¥11.28
CN¥16.14
+43.1%
11.6%CN¥19.72CN¥13.30CN¥11.507
Sep ’24CN¥11.74
CN¥16.14
+37.5%
11.6%CN¥19.72CN¥13.30CN¥9.397
Aug ’24CN¥13.89
CN¥16.28
+17.2%
14.3%CN¥19.72CN¥13.30CN¥10.274
Jul ’24CN¥12.75
CN¥16.28
+27.6%
14.3%CN¥19.72CN¥13.30CN¥12.074
Jun ’24CN¥12.56
CN¥16.28
+29.6%
14.3%CN¥19.72CN¥13.30CN¥12.724
May ’24CN¥14.42
CN¥16.28
+12.9%
14.3%CN¥19.72CN¥13.30CN¥12.694
Apr ’24CN¥11.18
CN¥13.40
+19.9%
14.9%CN¥15.40CN¥11.40CN¥11.702
Mar ’24CN¥9.62
CN¥11.89
+23.6%
15.9%CN¥13.78CN¥10.00CN¥11.342
Feb ’24CN¥9.48
CN¥11.89
+25.4%
15.9%CN¥13.78CN¥10.00CN¥10.462
Jan ’24CN¥8.52
CN¥11.89
+39.6%
15.9%CN¥13.78CN¥10.00CN¥9.342
Dec ’23CN¥9.34
CN¥11.89
+27.3%
15.9%CN¥13.78CN¥10.00CN¥9.452
Nov ’23CN¥8.97
CN¥11.89
+32.6%
15.9%CN¥13.78CN¥10.00CN¥9.882

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

China National Chemical Engineering

CN¥51.7b

An industrial engineering company, engages in the general contracting of construction, infrastructure, and overseas projects in the fields of chemical, petrochemical, pharmaceutical, power, and coal industries in China.

601117

CN¥8.46

7D

-0.5%

1Y

22.1%

Zhejiang Dun'an Artificial Environment

CN¥12.0b

Engages in the research and development, production, and sale of refrigeration components, refrigeration and air-conditioning equipment, and automotive thermal management systems in China and internationally.

2011

CN¥11.40

7D

0%

1Y

-9.1%

Ningbo Haitian Precision MachineryLtd

CN¥11.9b

Ningbo Haitian Precision Machinery Co.,Ltd.

601882

CN¥22.77

7D

-3.6%

1Y

-12.1%