Hongfa Technology Co., Ltd.

XSSC:600885 Stock Report

Market Cap: CN¥32.5b

Hongfa Technology Valuation

Is 600885 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 600885 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600885 (CN¥31.19) is trading below our estimate of fair value (CN¥51.3)

Significantly Below Fair Value: 600885 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600885?

Key metric: As 600885 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600885. This is calculated by dividing 600885's market cap by their current earnings.
What is 600885's PE Ratio?
PE Ratio20.9x
EarningsCN¥1.56b
Market CapCN¥32.52b

Price to Earnings Ratio vs Peers

How does 600885's PE Ratio compare to its peers?

The above table shows the PE ratio for 600885 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average44.9x
600517 State Grid YingdaLtd
18.8xn/aCN¥31.3b
002340 GEM
27.2x37.2%CN¥35.1b
300207 Sunwoda ElectronicLtd
27.9x24.1%CN¥41.4b
300748 JL Mag Rare-Earth
105.9x33.6%CN¥25.7b
600885 Hongfa Technology
20.9x14.7%CN¥32.5b

Price-To-Earnings vs Peers: 600885 is good value based on its Price-To-Earnings Ratio (20.9x) compared to the peer average (44.9x).

Price to Earnings Ratio vs Industry

How does 600885'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
600885 20.9xIndustry Avg. 35.7xNo. of Companies36PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 600885 is good value based on its Price-To-Earnings Ratio (20.9x) compared to the CN Electrical industry average (35.7x).

Price to Earnings Ratio vs Fair Ratio

What is 600885'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.

600885 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.9x
Fair PE Ratio22x

Price-To-Earnings vs Fair Ratio: 600885 is good value based on its Price-To-Earnings Ratio (20.9x) compared to the estimated Fair Price-To-Earnings Ratio (22x).

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 600885 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥31.19
CN¥38.15
+22.3%
16.0%CN¥48.10CN¥27.00n/a11
Nov ’25CN¥30.88
CN¥37.83
+22.5%
15.1%CN¥48.10CN¥27.00n/a12
Oct ’25CN¥32.55
CN¥37.27
+14.5%
17.4%CN¥48.10CN¥25.00n/a12
Sep ’25CN¥26.44
CN¥37.27
+41.0%
17.4%CN¥48.10CN¥25.00n/a12
Aug ’25CN¥26.48
CN¥36.18
+36.6%
19.4%CN¥47.30CN¥23.00n/a12
Jul ’25CN¥26.86
CN¥36.09
+34.3%
19.4%CN¥47.30CN¥23.00n/a12
Jun ’25CN¥29.00
CN¥36.56
+26.1%
18.7%CN¥47.30CN¥23.00n/a13
May ’25CN¥28.60
CN¥36.32
+27.0%
19.1%CN¥47.30CN¥23.00n/a13
Apr ’25CN¥26.15
CN¥37.20
+42.3%
19.5%CN¥48.30CN¥23.00n/a13
Mar ’25CN¥25.36
CN¥38.89
+53.3%
17.1%CN¥50.00CN¥25.00n/a14
Feb ’25CN¥22.71
CN¥38.96
+71.5%
16.8%CN¥50.00CN¥25.00n/a14
Jan ’25CN¥27.64
CN¥40.56
+46.7%
12.8%CN¥50.00CN¥29.00n/a14
Dec ’24CN¥28.92
CN¥40.56
+40.2%
12.8%CN¥50.00CN¥29.00n/a14
Nov ’24CN¥27.91
CN¥41.64
+49.2%
13.1%CN¥50.00CN¥29.00CN¥30.8814
Oct ’24CN¥33.55
CN¥44.26
+31.9%
19.0%CN¥65.50CN¥30.00CN¥32.5514
Sep ’24CN¥34.85
CN¥44.54
+27.8%
18.7%CN¥65.50CN¥30.00CN¥26.4415
Aug ’24CN¥35.04
CN¥44.54
+27.1%
18.7%CN¥65.50CN¥30.00CN¥26.4815
Jul ’24CN¥31.85
CN¥44.59
+40.0%
19.6%CN¥65.50CN¥30.00CN¥26.8613
Jun ’24CN¥29.96
CN¥44.59
+48.8%
19.6%CN¥65.50CN¥30.00CN¥29.0013
May ’24CN¥31.25
CN¥44.59
+42.7%
19.6%CN¥65.50CN¥30.00CN¥28.6013
Apr ’24CN¥32.59
CN¥47.38
+45.4%
18.2%CN¥67.86CN¥32.00CN¥26.1512
Mar ’24CN¥35.28
CN¥48.77
+38.2%
18.1%CN¥67.86CN¥32.00CN¥25.3612
Feb ’24CN¥37.70
CN¥48.77
+29.4%
18.1%CN¥67.86CN¥32.00CN¥22.7112
Jan ’24CN¥33.41
CN¥50.44
+51.0%
14.3%CN¥67.86CN¥39.00CN¥27.6412
Dec ’23CN¥34.15
CN¥51.13
+49.7%
13.9%CN¥67.86CN¥39.00CN¥28.9212
Nov ’23CN¥36.80
CN¥51.04
+38.7%
13.9%CN¥67.86CN¥39.00CN¥27.9112

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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