Zhejiang Liju Thermal Equipment Valuation

Q: What is the Fair Price of 603391 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

603391 (CN¥41.88) is trading below our estimate of [[fair value]] (CN¥78.06)

Is 603391 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 603391 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603391 (CN¥41.88) is trading below our estimate of fair value (CN¥78.06)

Significantly Below Fair Value: 603391 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603391?

Key metric: As 603391 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 603391. This is calculated by dividing 603391's market cap by their current earnings.
What is 603391's PE Ratio?
PE Ratio	11.4x
Earnings	CN¥334.98m
Market Cap	CN¥3.81b

603391 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/Revenue	2.4x
Enterprise Value/EBITDA	7.9x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 603391's PE Ratio compare to its peers?

The above table shows the PE ratio for 603391 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	37.7x
688678 Freewon ChinaLtd	35.5x	25.5%	CN¥3.7b
301199 MH Robot & Automation	57.4x	n/a	CN¥3.9b
301456 Qingdao Paguld Intelligent ManufacturingLtd	42.5x	n/a	CN¥3.8b
603173 Hangzhou Fortune Gas Cryogenic Group	15.4x	n/a	CN¥3.9b
603391 Zhejiang Liju Thermal Equipment	11.4x	n/a	CN¥3.8b

Price-To-Earnings vs Peers: 603391 is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (37.7x).

Price to Earnings Ratio vs Industry

How does 603391's PE Ratio compare vs other companies in the CN Machinery Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
002021 Zoje Resources Investment	5x	n/a	US$428.42m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 603391 is good value based on its Price-To-Earnings Ratio (11.4x) compared to the CN Machinery industry average (35.9x).

Price to Earnings Ratio vs Fair Ratio

What is 603391'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.

603391 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 603391's Price-To-Earnings 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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