Guizhou Zhenhua E-chem Inc.

SHSE:688707 Stock Report

Market Cap: CN¥6.2b

Guizhou Zhenhua E-chem Valuation

Is 688707 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 688707 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 688707's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 688707's fair value for valuation analysis.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 688707?

Key metric: As 688707 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 688707. This is calculated by dividing 688707's market cap by their current revenue.
What is 688707's PS Ratio?
PS Ratio2x
SalesCN¥3.05b
Market CapCN¥6.18b

Price to Sales Ratio vs Peers

How does 688707's PS Ratio compare to its peers?

The above table shows the PS ratio for 688707 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.5x
002882 Jinlongyu Group
2xn/aCN¥7.5b
300593 Beijing Relpow Technology
6x32.5%CN¥6.4b
300709 Jiangsu Gian Technology
3.4x30.2%CN¥7.3b
300376 East GroupLtd
2.5x34.2%CN¥8.3b
688707 Guizhou Zhenhua E-chem
2x17.5%CN¥6.2b

Price-To-Sales vs Peers: 688707 is good value based on its Price-To-Sales Ratio (2x) compared to the peer average (3.5x).


Price to Sales Ratio vs Industry

How does 688707's PS Ratio compare vs other companies in the CN Electrical Industry?

5 CompaniesPrice / SalesEstimated GrowthMarket Cap
605222 Shanghai QiFan Cable
0.3x10.2%US$920.73m
600973 Baosheng Science and Technology InnovationLtd
0.1x4.2%US$796.56m
603897 Zhejiang grandwall electric science&technologyltd
0.4xn/aUS$606.38m
002300 Fujian Nanping Sun Cable
0.3xn/aUS$556.10m
688707 2.0xIndustry Avg. 2.4xNo. of Companies41PS01.63.24.86.48+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 688707 is good value based on its Price-To-Sales Ratio (2x) compared to the CN Electrical industry average (2.4x).


Price to Sales Ratio vs Fair Ratio

What is 688707'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.

688707 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2x
Fair PS Ratio0.7x

Price-To-Sales vs Fair Ratio: 688707 is expensive based on its Price-To-Sales Ratio (2x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).


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 688707 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥12.15
CN¥22.60
+86.0%
72.0%CN¥45.00CN¥6.80n/a3
Nov ’25CN¥11.28
CN¥22.60
+100.4%
72.0%CN¥45.00CN¥6.80n/a3
Oct ’25CN¥11.72
CN¥22.60
+92.8%
72.0%CN¥45.00CN¥6.80n/a3
Sep ’25CN¥8.65
CN¥22.60
+161.3%
72.0%CN¥45.00CN¥6.80n/a3
Aug ’25CN¥9.24
CN¥22.93
+148.2%
69.6%CN¥45.00CN¥7.80n/a3
Jul ’25CN¥9.62
CN¥23.57
+145.0%
65.2%CN¥45.00CN¥9.70n/a3
Jun ’25CN¥11.91
CN¥23.57
+97.9%
65.2%CN¥45.00CN¥9.70n/a3
May ’25CN¥12.95
CN¥24.97
+92.8%
56.8%CN¥45.00CN¥13.90n/a3
Apr ’25CN¥13.73
CN¥27.93
+103.4%
44.5%CN¥45.00CN¥16.00n/a4
Mar ’25CN¥14.85
CN¥27.93
+88.1%
44.5%CN¥45.00CN¥16.00n/a4
Feb ’25CN¥14.01
CN¥30.18
+115.4%
35.7%CN¥45.00CN¥16.10n/a4
Jan ’25CN¥20.50
CN¥30.63
+49.4%
33.3%CN¥45.00CN¥17.90n/a4
Dec ’24CN¥21.55
CN¥30.63
+42.1%
33.3%CN¥45.00CN¥17.90n/a4
Nov ’24CN¥22.98
CN¥30.63
+33.3%
33.3%CN¥45.00CN¥17.90CN¥11.284
Oct ’24CN¥23.35
CN¥34.71
+48.7%
24.1%CN¥45.00CN¥24.50CN¥11.723
Sep ’24CN¥22.98
CN¥34.71
+51.0%
24.1%CN¥45.00CN¥24.50CN¥8.653
Aug ’24CN¥30.57
CN¥43.96
+43.8%
28.5%CN¥63.00CN¥28.40CN¥9.244
Jul ’24CN¥30.79
CN¥43.96
+42.8%
28.5%CN¥63.00CN¥28.40CN¥9.624
Jun ’24CN¥30.36
CN¥43.96
+44.8%
28.5%CN¥63.00CN¥28.40CN¥11.914
May ’24CN¥35.21
CN¥47.46
+34.8%
25.6%CN¥63.00CN¥32.40CN¥12.954
Apr ’24CN¥40.37
CN¥50.13
+24.2%
25.8%CN¥63.00CN¥32.40CN¥13.733
Mar ’24CN¥47.60
CN¥60.40
+26.9%
6.3%CN¥63.21CN¥55.00CN¥14.853
Feb ’24CN¥48.75
CN¥67.95
+39.4%
19.8%CN¥90.60CN¥55.00CN¥14.014
Jan ’24CN¥44.95
CN¥76.91
+71.1%
17.8%CN¥90.60CN¥63.21CN¥20.502
Dec ’23CN¥52.35
CN¥76.91
+46.9%
17.8%CN¥90.60CN¥63.21CN¥21.552
Nov ’23CN¥54.26
CN¥76.91
+41.7%
17.8%CN¥90.60CN¥63.21CN¥22.982

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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