Hangcha Group Co., Ltd

SHSE:603298 Stock Report

Market Cap: CN¥26.1b

Hangcha Group Valuation

Is 603298 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 603298 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603298 (CN¥19.74) is trading below our estimate of fair value (CN¥28.38)

Significantly Below Fair Value: 603298 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603298?

Other financial metrics that can be useful for relative valuation.

603298 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/Revenue1.4x
Enterprise Value/EBITDA11.5x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does 603298's PE Ratio compare to its peers?

The above table shows the PE ratio for 603298 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.7x
601717 Zhengzhou Coal Mining Machinery Group
7.8x13.1%CN¥26.1b
688425 China Railway Construction Heavy Industry
12.9x12.8%CN¥20.0b
000528 Guangxi Liugong Machinery
21.5x29.7%CN¥22.6b
600761 Anhui HeliLtd
12.6x17.1%CN¥17.7b
603298 Hangcha Group
14.3x15.8%CN¥26.1b

Price-To-Earnings vs Peers: 603298 is expensive based on its Price-To-Earnings Ratio (14.3x) compared to the peer average (13.5x).


Price to Earnings Ratio vs Industry

How does 603298's PE Ratio compare vs other companies in the CN Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a26.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a26.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 603298 is good value based on its Price-To-Earnings Ratio (14.3x) compared to the CN Machinery industry average (28.2x).


Price to Earnings Ratio vs Fair Ratio

What is 603298'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.

603298 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.3x
Fair PE Ratio20.8x

Price-To-Earnings vs Fair Ratio: 603298 is good value based on its Price-To-Earnings Ratio (14.3x) compared to the estimated Fair Price-To-Earnings Ratio (20.8x).


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 603298 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥19.74
CN¥25.47
+29.0%
15.3%CN¥29.70CN¥20.29n/a3
Jun ’25CN¥20.01
CN¥25.47
+27.3%
15.3%CN¥29.70CN¥20.29n/a3
May ’25CN¥21.40
CN¥25.47
+19.0%
15.3%CN¥29.70CN¥20.29n/a3
Apr ’25CN¥20.34
CN¥24.60
+20.9%
8.0%CN¥26.43CN¥21.86n/a3
Mar ’25CN¥20.76
CN¥24.60
+18.5%
8.0%CN¥26.43CN¥21.86n/a3
Feb ’25CN¥16.49
CN¥24.60
+49.1%
8.0%CN¥26.43CN¥21.86n/a3
Jan ’25CN¥17.77
CN¥22.00
+23.8%
7.7%CN¥24.29CN¥20.21n/a3
Dec ’24CN¥15.75
CN¥22.00
+39.7%
7.7%CN¥24.29CN¥20.21n/a3
Nov ’24CN¥15.31
CN¥22.00
+43.6%
7.7%CN¥24.29CN¥20.21n/a3
Oct ’24CN¥18.26
CN¥21.90
+19.9%
10.9%CN¥24.29CN¥18.64n/a3
Sep ’24CN¥16.64
CN¥20.80
+25.0%
7.4%CN¥22.14CN¥18.64n/a3
Aug ’24CN¥17.82
CN¥19.16
+7.5%
11.1%CN¥22.14CN¥17.00n/a4
Jul ’24CN¥16.82
CN¥16.93
+0.7%
2.4%CN¥17.33CN¥16.27n/a4
Jun ’24CN¥14.43
CN¥16.93
+17.4%
2.4%CN¥17.33CN¥16.27CN¥20.014
May ’24CN¥15.24
CN¥16.93
+11.2%
2.4%CN¥17.33CN¥16.27CN¥21.404
Mar ’24CN¥15.25
CN¥15.79
+3.5%
6.3%CN¥16.79CN¥14.79CN¥20.762
Feb ’24CN¥13.69
CN¥15.07
+10.1%
1.9%CN¥15.36CN¥14.79CN¥16.492
Jan ’24CN¥12.01
CN¥15.07
+25.5%
1.9%CN¥15.36CN¥14.79CN¥17.772
Dec ’23CN¥13.18
CN¥15.07
+14.4%
1.9%CN¥15.36CN¥14.79CN¥15.752
Nov ’23CN¥11.98
CN¥15.07
+25.8%
1.9%CN¥15.36CN¥14.79CN¥15.312
Oct ’23CN¥8.86
CN¥15.07
+70.0%
1.9%CN¥15.36CN¥14.79CN¥18.262
Sep ’23CN¥9.81
CN¥15.07
+53.7%
1.9%CN¥15.36CN¥14.79CN¥16.642
Aug ’23CN¥10.69
CN¥15.13
+41.4%
10.0%CN¥16.64CN¥13.61CN¥17.822
Jul ’23CN¥11.36
CN¥15.13
+33.1%
10.0%CN¥16.64CN¥13.61CN¥16.822
Jun ’23CN¥10.18
CN¥15.13
+48.6%
10.0%CN¥16.64CN¥13.61CN¥14.432

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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