Tongyu Heavy Industry Co., Ltd.

SZSE:300185 Stock Report

Market Cap: CN¥10.7b

Tongyu Heavy Industry Valuation

Is 300185 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-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 300185 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 300185 (CN¥2.74) is trading below our estimate of fair value (CN¥16.67)

Significantly Below Fair Value: 300185 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 300185?

Key metric: As 300185 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 300185. This is calculated by dividing 300185's market cap by their current revenue.
What is 300185's PS Ratio?
PS Ratio1.9x
SalesCN¥5.70b
Market CapCN¥10.68b

Price to Sales Ratio vs Peers

How does 300185's PS Ratio compare to its peers?

The above table shows the PS ratio for 300185 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average13.2x
600894 Guangzhou Guangri StockLtd
1.6x6.1%CN¥11.2b
603277 Yindu Kitchen Equipment
3.8x17.9%CN¥10.1b
000595 Baota Industry
35xn/aCN¥9.1b
688700 Kunshan Dongwei TechnologyLtd
12.2x44.6%CN¥9.3b
300185 Tongyu Heavy Industry
1.9x23.0%CN¥10.7b

Price-To-Sales vs Peers: 300185 is good value based on its Price-To-Sales Ratio (1.9x) compared to the peer average (13.2x).

Price to Sales Ratio vs Industry

How does 300185's PS Ratio compare vs other companies in the CN Machinery Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
000039 China International Marine Containers (Group)
0.3x5.0%US$4.84b
000951 Sinotruk Jinan TruckLtd
0.4x14.6%US$2.66b
600686 Xiamen King Long Motor Group
0.4xn/aUS$1.19b
000404 Changhong Huayi Compressor
0.4x4.8%US$683.70m
300185 1.9xIndustry Avg. 3.1xNo. of Companies55PS0246810+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 300185 is good value based on its Price-To-Sales Ratio (1.9x) compared to the CN Machinery industry average (3.2x).

Price to Sales Ratio vs Fair Ratio

What is 300185'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.

300185 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.9x
Fair PS Ratio1.6x

Price-To-Sales vs Fair Ratio: 300185 is expensive based on its Price-To-Sales Ratio (1.9x) compared to the estimated Fair Price-To-Sales Ratio (1.6x).

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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