NARI Technology Co., Ltd.

XSSC:600406 Stock Report

Market Cap: CN¥214.3b

NARI Technology Valuation

Is 600406 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 600406 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600406 (CN¥26.75) is trading above our estimate of fair value (CN¥10.26)

Significantly Below Fair Value: 600406 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600406?

Key metric: As 600406 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600406. This is calculated by dividing 600406's market cap by their current earnings.
What is 600406's PE Ratio?
PE Ratio28.6x
EarningsCN¥7.50b
Market CapCN¥214.33b

Price to Earnings Ratio vs Peers

How does 600406's PE Ratio compare to its peers?

The above table shows the PE ratio for 600406 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.5x
601179 China XD Electric
35x26.9%CN¥41.5b
002202 Goldwind Science&Technology
23.9x26.1%CN¥39.7b
688349 Sany Renewable EnergyLtd
21.4x29.0%CN¥37.0b
000400 XJ Electric
25.4x25.7%CN¥28.8b
600406 NARI Technology
28.6x13.7%CN¥214.3b

Price-To-Earnings vs Peers: 600406 is expensive based on its Price-To-Earnings Ratio (28.6x) compared to the peer average (27.6x).

Price to Earnings Ratio vs Industry

How does 600406'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
600406 28.6xIndustry Avg. 35.7xNo. of Companies36PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 600406 is good value based on its Price-To-Earnings Ratio (28.6x) compared to the CN Electrical industry average (36x).

Price to Earnings Ratio vs Fair Ratio

What is 600406'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.

600406 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.6x
Fair PE Ratio26x

Price-To-Earnings vs Fair Ratio: 600406 is expensive based on its Price-To-Earnings Ratio (28.6x) compared to the estimated Fair Price-To-Earnings Ratio (26x).

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 600406 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥25.81
CN¥29.34
+13.7%
7.4%CN¥32.50CN¥25.85n/a14
Nov ’25CN¥26.54
CN¥29.07
+9.5%
8.8%CN¥35.00CN¥25.85n/a14
Oct ’25CN¥27.67
CN¥28.42
+2.7%
7.9%CN¥35.00CN¥25.85n/a14
Sep ’25CN¥24.62
CN¥27.84
+13.1%
4.7%CN¥30.50CN¥25.85n/a14
Aug ’25CN¥23.80
CN¥28.02
+17.7%
4.1%CN¥30.50CN¥26.00n/a13
Jul ’25CN¥24.85
CN¥27.57
+10.9%
6.5%CN¥29.20CN¥22.00n/a13
Jun ’25CN¥22.51
CN¥27.19
+20.8%
8.5%CN¥29.20CN¥22.00n/a13
May ’25CN¥23.54
CN¥27.30
+16.0%
9.2%CN¥29.79CN¥22.00n/a12
Apr ’25CN¥24.43
CN¥27.27
+11.6%
6.9%CN¥29.79CN¥22.00n/a13
Mar ’25CN¥23.30
CN¥27.23
+16.9%
6.9%CN¥29.79CN¥22.00n/a13
Feb ’25CN¥20.88
CN¥27.23
+30.4%
6.9%CN¥29.79CN¥22.00n/a13
Jan ’25CN¥22.32
CN¥27.51
+23.2%
7.1%CN¥29.79CN¥22.00n/a14
Dec ’24CN¥21.98
CN¥28.22
+28.4%
5.7%CN¥32.00CN¥25.00n/a14
Nov ’24CN¥22.66
CN¥28.22
+24.5%
5.7%CN¥32.00CN¥25.00CN¥26.5414
Oct ’24CN¥22.19
CN¥28.80
+29.8%
9.4%CN¥35.00CN¥24.17CN¥27.6715
Sep ’24CN¥23.24
CN¥28.20
+21.3%
7.2%CN¥32.00CN¥24.17CN¥24.6215
Aug ’24CN¥23.99
CN¥28.18
+17.5%
8.8%CN¥35.00CN¥24.17CN¥23.8015
Jul ’24CN¥23.10
CN¥27.87
+20.6%
7.6%CN¥32.00CN¥24.17CN¥24.8514
Jun ’24CN¥22.48
CN¥27.40
+21.9%
7.0%CN¥31.42CN¥24.17CN¥22.5114
May ’24CN¥21.77
CN¥28.19
+29.5%
10.9%CN¥36.67CN¥24.17CN¥23.5414
Apr ’24CN¥22.59
CN¥28.63
+26.7%
10.4%CN¥36.67CN¥24.67CN¥24.4313
Mar ’24CN¥21.88
CN¥28.79
+31.6%
9.8%CN¥36.67CN¥24.67CN¥23.3014
Feb ’24CN¥22.08
CN¥28.81
+30.5%
10.2%CN¥36.67CN¥24.67CN¥20.8813
Jan ’24CN¥20.33
CN¥28.81
+41.7%
7.1%CN¥32.50CN¥24.67CN¥22.3213
Dec ’23CN¥21.74
CN¥29.08
+33.8%
5.5%CN¥32.50CN¥27.29CN¥21.9812
Nov ’23CN¥21.72
CN¥29.19
+34.4%
5.1%CN¥31.39CN¥27.29CN¥22.6612

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

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