GEM Co., Ltd.

SZSE:002340 Stock Report

Market Cap: CN¥36.5b

GEM Valuation

Is 002340 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 002340 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002340 (CN¥7.15) is trading below our estimate of fair value (CN¥33.19)

Significantly Below Fair Value: 002340 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 002340?

Key metric: As 002340 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 002340. This is calculated by dividing 002340's market cap by their current earnings.
What is 002340's PE Ratio?
PE Ratio28.3x
EarningsCN¥1.29b
Market CapCN¥36.50b

Price to Earnings Ratio vs Peers

How does 002340's PE Ratio compare to its peers?

The above table shows the PE ratio for 002340 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average38.8x
301358 Hunan Yuneng New Energy Battery MaterialLtd
73.5x59.9%CN¥38.9b
300919 CNGR Advanced MaterialLtd
20.4x24.7%CN¥38.5b
300763 Ginlong Technologies
40.3x33.6%CN¥28.1b
601567 Ningbo Sanxing Medical ElectricLtd
21x21.3%CN¥46.8b
002340 GEM
28.3x37.2%CN¥36.6b

Price-To-Earnings vs Peers: 002340 is good value based on its Price-To-Earnings Ratio (28.3x) compared to the peer average (38.8x).

Price to Earnings Ratio vs Industry

How does 002340'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
002340 28.3xIndustry Avg. 36.0xNo. of Companies36PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 002340 is good value based on its Price-To-Earnings Ratio (28.3x) compared to the CN Electrical industry average (36x).

Price to Earnings Ratio vs Fair Ratio

What is 002340'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.

002340 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.3x
Fair PE Ratio35.2x

Price-To-Earnings vs Fair Ratio: 002340 is good value based on its Price-To-Earnings Ratio (28.3x) compared to the estimated Fair Price-To-Earnings Ratio (36.9x).

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 002340 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥7.15
CN¥6.85
-4.2%
17.7%CN¥8.10CN¥5.00n/a8
Nov ’25CN¥7.14
CN¥6.72
-5.9%
18.4%CN¥8.10CN¥5.00n/a7
Oct ’25CN¥7.13
CN¥6.40
-10.2%
17.9%CN¥8.10CN¥5.00n/a7
Sep ’25CN¥5.97
CN¥6.53
+9.3%
22.4%CN¥8.50CN¥4.40n/a8
Aug ’25CN¥6.16
CN¥6.55
+6.3%
22.4%CN¥8.50CN¥4.40n/a8
Jul ’25CN¥6.44
CN¥6.55
+1.6%
22.4%CN¥8.50CN¥4.40n/a8
Jun ’25CN¥6.56
CN¥6.47
-1.4%
24.4%CN¥8.50CN¥4.40n/a8
May ’25CN¥6.96
CN¥5.94
-14.6%
25.1%CN¥8.50CN¥4.40n/a6
Apr ’25CN¥6.34
CN¥6.09
-3.9%
27.6%CN¥8.50CN¥4.20n/a7
Mar ’25CN¥5.38
CN¥6.09
+13.2%
27.6%CN¥8.50CN¥4.20n/a7
Feb ’25CN¥4.52
CN¥6.09
+34.7%
27.6%CN¥8.50CN¥4.20n/a7
Jan ’25CN¥5.46
CN¥6.78
+24.1%
26.0%CN¥9.50CN¥4.40n/a7
Dec ’24CN¥5.58
CN¥7.12
+27.5%
22.6%CN¥9.50CN¥4.40n/a8
Nov ’24CN¥5.91
CN¥7.63
+29.1%
24.5%CN¥10.30CN¥4.40CN¥7.148
Oct ’24CN¥6.09
CN¥7.67
+25.9%
25.8%CN¥10.30CN¥4.00CN¥7.138
Sep ’24CN¥6.31
CN¥8.10
+28.4%
21.5%CN¥10.30CN¥4.00CN¥5.979
Aug ’24CN¥7.05
CN¥8.19
+16.2%
20.8%CN¥10.30CN¥4.00CN¥6.169
Jul ’24CN¥6.91
CN¥8.19
+18.5%
20.8%CN¥10.30CN¥4.00CN¥6.449
Jun ’24CN¥6.76
CN¥8.21
+21.5%
21.1%CN¥10.30CN¥4.00CN¥6.5610
May ’24CN¥7.03
CN¥8.48
+20.6%
18.3%CN¥10.30CN¥5.10CN¥6.968
Apr ’24CN¥7.47
CN¥8.33
+11.5%
25.8%CN¥11.80CN¥5.10CN¥6.348
Mar ’24CN¥7.91
CN¥8.91
+12.7%
20.7%CN¥11.80CN¥5.10CN¥5.388
Feb ’24CN¥8.14
CN¥8.91
+9.5%
20.7%CN¥11.80CN¥5.10CN¥4.528
Jan ’24CN¥7.43
CN¥8.91
+20.0%
20.7%CN¥11.80CN¥5.10CN¥5.468
Dec ’23CN¥8.14
CN¥9.09
+11.6%
20.4%CN¥11.80CN¥5.10CN¥5.588
Nov ’23CN¥7.67
CN¥9.45
+23.2%
24.3%CN¥13.40CN¥5.10CN¥5.918

Analyst Forecast: Target price is lower than the current share price.

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