Ningbo Orient Wires & Cables Co.,Ltd.

SHSE:603606 Stock Report

Market Cap: CN¥37.3b

Ningbo Orient Wires & CablesLtd Valuation

Is 603606 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 603606 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603606 (CN¥54.33) is trading above our estimate of fair value (CN¥15.23)

Significantly Below Fair Value: 603606 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603606?

Key metric: As 603606 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 603606. This is calculated by dividing 603606's market cap by their current earnings.
What is 603606's PE Ratio?
PE Ratio33.6x
EarningsCN¥1.11b
Market CapCN¥37.30b

Price to Earnings Ratio vs Peers

How does 603606's PE Ratio compare to its peers?

The above table shows the PE ratio for 603606 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.7x
600517 State Grid YingdaLtd
18.8xn/aCN¥31.3b
300207 Sunwoda ElectronicLtd
28.1x24.1%CN¥41.8b
600522 Jiangsu Zhongtian Technology
19.2x24.0%CN¥53.1b
600885 Hongfa Technology
20.9x14.7%CN¥32.5b
603606 Ningbo Orient Wires & CablesLtd
33.6x31.6%CN¥37.3b

Price-To-Earnings vs Peers: 603606 is expensive based on its Price-To-Earnings Ratio (33.6x) compared to the peer average (21.7x).

Price to Earnings Ratio vs Industry

How does 603606's PE Ratio compare vs other companies in the CN Electrical Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
300023 Bode Energy Equipment
3.6xn/aUS$51.42m
No more companies available in this PE range
603606 33.6xIndustry Avg. 35.7xNo. of Companies36PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 603606 is good value based on its Price-To-Earnings Ratio (33.6x) compared to the CN Electrical industry average (35.7x).

Price to Earnings Ratio vs Fair Ratio

What is 603606'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.

603606 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio33.6x
Fair PE Ratio33.1x

Price-To-Earnings vs Fair Ratio: 603606 is expensive based on its Price-To-Earnings Ratio (33.6x) compared to the estimated Fair Price-To-Earnings Ratio (33.1x).

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 603606 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥54.33
CN¥63.94
+17.7%
3.5%CN¥66.47CN¥60.00n/a9
Nov ’25CN¥57.49
CN¥60.79
+5.7%
7.3%CN¥66.27CN¥52.00n/a9
Oct ’25CN¥55.17
CN¥55.76
+1.1%
10.3%CN¥66.27CN¥47.85n/a8
Sep ’25CN¥48.17
CN¥55.76
+15.7%
10.3%CN¥66.27CN¥47.85n/a8
Aug ’25CN¥50.14
CN¥55.16
+10.0%
15.0%CN¥71.07CN¥41.80n/a8
Jul ’25CN¥47.86
CN¥54.54
+14.0%
14.8%CN¥71.07CN¥41.80n/a8
Jun ’25CN¥48.12
CN¥54.54
+13.3%
14.8%CN¥71.07CN¥41.80n/a8
May ’25CN¥44.09
CN¥53.37
+21.0%
15.6%CN¥71.07CN¥41.80n/a9
Apr ’25CN¥45.95
CN¥54.00
+17.5%
14.1%CN¥71.07CN¥44.00n/a9
Mar ’25CN¥38.92
CN¥54.08
+38.9%
13.8%CN¥71.07CN¥44.00n/a9
Feb ’25CN¥36.17
CN¥54.08
+49.5%
13.8%CN¥71.07CN¥44.00n/a9
Jan ’25CN¥42.75
CN¥53.75
+25.7%
14.0%CN¥71.07CN¥44.00n/a9
Dec ’24CN¥41.01
CN¥53.75
+31.1%
14.0%CN¥71.07CN¥44.00n/a9
Nov ’24CN¥43.93
CN¥53.52
+21.8%
14.1%CN¥71.07CN¥44.00CN¥57.499
Oct ’24CN¥39.81
CN¥57.75
+45.1%
11.9%CN¥71.07CN¥48.60CN¥55.1710
Sep ’24CN¥36.95
CN¥67.04
+81.4%
22.6%CN¥95.00CN¥48.60CN¥48.1711
Aug ’24CN¥46.31
CN¥71.25
+53.9%
22.1%CN¥100.00CN¥45.36CN¥50.1410
Jul ’24CN¥49.03
CN¥71.25
+45.3%
22.1%CN¥100.00CN¥45.36CN¥47.8610
Jun ’24CN¥51.29
CN¥71.25
+38.9%
22.1%CN¥100.00CN¥45.36CN¥48.1210
May ’24CN¥46.85
CN¥71.25
+52.1%
22.1%CN¥100.00CN¥45.36CN¥44.0910
Apr ’24CN¥49.31
CN¥78.68
+59.6%
17.7%CN¥105.00CN¥58.00CN¥45.959
Mar ’24CN¥54.38
CN¥95.51
+75.6%
9.0%CN¥115.00CN¥88.00CN¥38.927
Feb ’24CN¥63.23
CN¥95.51
+51.0%
9.0%CN¥115.00CN¥88.00CN¥36.177
Jan ’24CN¥67.83
CN¥94.43
+39.2%
8.9%CN¥109.00CN¥85.00CN¥42.756
Dec ’23CN¥69.37
CN¥94.43
+36.1%
8.9%CN¥109.00CN¥85.00CN¥41.016
Nov ’23CN¥76.40
CN¥94.43
+23.6%
8.9%CN¥109.00CN¥85.00CN¥43.936

Analyst Forecast: Target price is less than 20% higher than the current share price.

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