Shanghai Hugong Electric Group Co.,Ltd.

SHSE:603131 Stock Report

Market Cap: CN¥6.1b

Shanghai Hugong Electric GroupLtd Valuation

Is 603131 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 603131 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603131 (CN¥19.33) is trading below our estimate of fair value (CN¥31.75)

Significantly Below Fair Value: 603131 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603131?

Key metric: As 603131 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 603131. This is calculated by dividing 603131's market cap by their current revenue.
What is 603131's PS Ratio?
PS Ratio5.5x
SalesCN¥1.12b
Market CapCN¥6.15b

Price to Sales Ratio vs Peers

How does 603131's PS Ratio compare to its peers?

The above table shows the PS ratio for 603131 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5x
002046 Sinomach Precision Industry Group
2.6xn/aCN¥6.6b
300411 Zhejiang Jindun Fans
12.6xn/aCN¥6.0b
600468 Tianjin Benefo Tejing Electric
2.8xn/aCN¥5.4b
002009 Miracle Automation EngineeringLtd
1.8x47.3%CN¥5.3b
603131 Shanghai Hugong Electric GroupLtd
5.5xn/aCN¥6.1b

Price-To-Sales vs Peers: 603131 is expensive based on its Price-To-Sales Ratio (5.5x) compared to the peer average (5x).


Price to Sales Ratio vs Industry

How does 603131's PS Ratio compare vs other companies in the CN Machinery Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
000039 China International Marine Containers (Group)
0.3x5.0%US$4.79b
000951 Sinotruk Jinan TruckLtd
0.4x14.6%US$2.62b
600686 Xiamen King Long Motor Group
0.4xn/aUS$1.15b
000404 Changhong Huayi Compressor
0.4x4.8%US$673.00m
603131 5.5xIndustry Avg. 3.0xNo. of Companies57PS0246810+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 603131 is expensive based on its Price-To-Sales Ratio (5.5x) compared to the CN Machinery industry average (3x).


Price to Sales Ratio vs Fair Ratio

What is 603131's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

603131 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio5.5x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 603131's Price-To-Sales Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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