Linzhou Heavy Machinery Group Co.,Ltd

SZSE:002535 Stock Report

Market Cap: CN¥3.1b

Linzhou Heavy Machinery GroupLtd Valuation

Is 002535 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 002535 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002535 (CN¥3.91) is trading below our estimate of fair value (CN¥14.92)

Significantly Below Fair Value: 002535 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 002535?

Key metric: As 002535 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 002535. This is calculated by dividing 002535's market cap by their current earnings.
What is 002535's PE Ratio?
PE Ratio18.7x
EarningsCN¥167.44m
Market CapCN¥3.13b

Price to Earnings Ratio vs Peers

How does 002535's PE Ratio compare to its peers?

The above table shows the PE ratio for 002535 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average55.7x
002843 Bichamp Cutting Technology (Hunan)
46.6x28.7%CN¥4.5b
000530 Bingshan Refrigeration & Heat Transfer Technologies
59.9x81.6%CN¥3.4b
002943 Hunan Yujing MachineryLtd
77.4xn/aCN¥4.0b
002630 China Western Power Industrial
38.9xn/aCN¥3.7b
002535 Linzhou Heavy Machinery GroupLtd
18.7xn/aCN¥3.1b

Price-To-Earnings vs Peers: 002535 is good value based on its Price-To-Earnings Ratio (18.7x) compared to the peer average (55.7x).


Price to Earnings Ratio vs Industry

How does 002535's PE Ratio compare vs other companies in the CN Machinery Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
002021 Zoje Resources Investment
4.6xn/aUS$398.30m
No more companies available in this PE range
002535 18.7xIndustry Avg. 34.4xNo. of Companies56PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 002535 is good value based on its Price-To-Earnings Ratio (18.7x) compared to the CN Machinery industry average (34.4x).


Price to Earnings Ratio vs Fair Ratio

What is 002535'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.

002535 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 002535'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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