Zhengzhou Coal Mining Machinery Group Company Limited

SHSE:601717 Stock Report

Market Cap: CN¥21.0b

Zhengzhou Coal Mining Machinery Group Valuation

Is 601717 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 601717 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 601717 (CN¥12.25) is trading below our estimate of fair value (CN¥38.15)

Significantly Below Fair Value: 601717 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 601717?

Key metric: As 601717 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 601717. This is calculated by dividing 601717's market cap by their current earnings.
What is 601717's PE Ratio?
PE Ratio5.7x
EarningsCN¥3.87b
Market CapCN¥21.03b

Price to Earnings Ratio vs Peers

How does 601717's PE Ratio compare to its peers?

The above table shows the PE ratio for 601717 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.7x
603298 Hangcha Group
11.1x12.2%CN¥22.0b
000528 Guangxi Liugong Machinery
16.3x31.4%CN¥23.0b
600320 Shanghai Zhenhua Heavy Industries
32.9x36.5%CN¥16.5b
603338 Zhejiang Dingli MachineryLtd
14.4x16.8%CN¥28.4b
601717 Zhengzhou Coal Mining Machinery Group
5.7x11.6%CN¥21.1b

Price-To-Earnings vs Peers: 601717 is good value based on its Price-To-Earnings Ratio (5.7x) compared to the peer average (18.7x).

Price to Earnings Ratio vs Industry

How does 601717's PE Ratio compare vs other companies in the CN Machinery Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
002021 Zoje Resources Investment
4.6xn/aUS$396.87m
No more companies available in this PE range
601717 5.7xIndustry Avg. 35.0xNo. of Companies54PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 601717 is good value based on its Price-To-Earnings Ratio (5.7x) compared to the CN Machinery industry average (35x).

Price to Earnings Ratio vs Fair Ratio

What is 601717'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.

601717 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.7x
Fair PE Ratio19.1x

Price-To-Earnings vs Fair Ratio: 601717 is good value based on its Price-To-Earnings Ratio (5.7x) compared to the estimated Fair Price-To-Earnings Ratio (19.2x).

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 601717 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥12.25
CN¥18.63
+52.1%
10.8%CN¥20.90CN¥16.00n/a3
Nov ’25CN¥13.19
CN¥18.63
+41.3%
10.8%CN¥20.90CN¥16.00n/a3
Oct ’25CN¥14.09
CN¥18.63
+32.2%
10.8%CN¥20.90CN¥16.00n/a3
Sep ’25CN¥11.76
CN¥20.10
+70.9%
4.0%CN¥20.90CN¥19.00n/a3
Aug ’25CN¥12.14
CN¥20.10
+65.6%
4.0%CN¥20.90CN¥19.00n/a3
Jul ’25CN¥15.10
CN¥20.10
+33.1%
4.0%CN¥20.90CN¥19.00n/a3
Jun ’25CN¥16.29
CN¥20.10
+23.4%
4.0%CN¥20.90CN¥19.00n/a3
May ’25CN¥17.45
CN¥20.69
+18.5%
7.3%CN¥22.65CN¥19.00n/a3
Apr ’25CN¥15.39
CN¥19.50
+26.7%
12.3%CN¥22.65CN¥16.85n/a3
Mar ’25CN¥14.70
CN¥19.50
+32.7%
12.3%CN¥22.65CN¥16.85n/a3
Feb ’25CN¥12.80
CN¥19.50
+52.3%
12.3%CN¥22.65CN¥16.85n/a3
Jan ’25CN¥12.65
CN¥19.50
+54.2%
12.3%CN¥22.65CN¥16.85n/a3
Dec ’24CN¥12.01
CN¥19.50
+62.4%
12.3%CN¥22.65CN¥16.85n/a3
Nov ’24CN¥12.32
CN¥19.49
+58.2%
12.2%CN¥22.62CN¥16.85CN¥13.193
Oct ’24CN¥13.08
CN¥18.77
+43.5%
17.3%CN¥22.62CN¥14.68CN¥14.093
Sep ’24CN¥12.71
CN¥19.40
+52.6%
20.7%CN¥24.51CN¥14.68CN¥11.763
Aug ’24CN¥12.28
CN¥20.99
+70.9%
11.9%CN¥24.51CN¥19.00CN¥12.143
Jul ’24CN¥12.45
CN¥20.99
+68.6%
11.9%CN¥24.51CN¥19.00CN¥15.103
Jun ’24CN¥12.39
CN¥20.99
+69.4%
11.9%CN¥24.51CN¥19.00CN¥16.293
Dec ’23CN¥13.18
CN¥20.28
+53.8%
4.0%CN¥21.09CN¥19.46CN¥12.012
Nov ’23CN¥12.95
CN¥20.28
+56.6%
4.0%CN¥21.09CN¥19.46CN¥12.322

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

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