Neway Valve (Suzhou) Co., Ltd.

XSSC:603699 Stock Report

Market Cap: CN¥17.7b

Neway Valve (Suzhou) Valuation

Is 603699 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 603699 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603699 (CN¥23.23) is trading above our estimate of fair value (CN¥11.49)

Significantly Below Fair Value: 603699 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603699?

Key metric: As 603699 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 603699. This is calculated by dividing 603699's market cap by their current earnings.
What is 603699's PE Ratio?
PE Ratio18.4x
EarningsCN¥961.21m
Market CapCN¥17.67b

Price to Earnings Ratio vs Peers

How does 603699's PE Ratio compare to its peers?

The above table shows the PE ratio for 603699 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.3x
300457 Shenzhen Yinghe Technology
26.6x30.6%CN¥14.3b
300475 Shannon Semiconductor TechnologyLtd
24.8x10.5%CN¥13.0b
002270 Huaming Power EquipmentLtd
26.3x19.8%CN¥15.2b
601608 CITIC Heavy Industries
47.3xn/aCN¥19.0b
603699 Neway Valve (Suzhou)
18.4x7.9%CN¥17.7b

Price-To-Earnings vs Peers: 603699 is good value based on its Price-To-Earnings Ratio (18.4x) compared to the peer average (31.3x).

Price to Earnings Ratio vs Industry

How does 603699's PE Ratio compare vs other companies in the CN Machinery Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
002021 Zoje Resources Investment
4.6xn/aUS$398.16m
No more companies available in this PE range
603699 18.4xIndustry Avg. 35.8xNo. of Companies56PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 603699 is good value based on its Price-To-Earnings Ratio (18.4x) compared to the CN Machinery industry average (35.8x).

Price to Earnings Ratio vs Fair Ratio

What is 603699'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.

603699 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.4x
Fair PE Ratio17.7x

Price-To-Earnings vs Fair Ratio: 603699 is expensive based on its Price-To-Earnings Ratio (18.4x) compared to the estimated Fair Price-To-Earnings Ratio (17.7x).

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 603699 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥23.23
CN¥24.38
+4.9%
5.1%CN¥26.00CN¥23.00n/a3
Nov ’25CN¥22.58
CN¥24.38
+8.0%
5.1%CN¥26.00CN¥23.00n/a3
Oct ’25CN¥21.49
CN¥21.86
+1.7%
5.2%CN¥23.00CN¥20.71n/a2
Sep ’25CN¥19.48
CN¥21.86
+12.2%
5.2%CN¥23.00CN¥20.71n/a2
Aug ’25CN¥18.15
CN¥21.86
+20.4%
5.2%CN¥23.00CN¥20.71n/a2
Jul ’25CN¥17.45
CN¥21.86
+25.2%
5.2%CN¥23.00CN¥20.71n/a2
Jun ’25CN¥19.83
CN¥21.86
+10.2%
5.2%CN¥23.00CN¥20.71n/a2
May ’25CN¥18.65
CN¥20.36
+9.1%
1.7%CN¥20.71CN¥20.00n/a2
Apr ’25CN¥17.12
CN¥17.64
+3.0%
13.4%CN¥20.00CN¥15.27n/a2
Mar ’25CN¥16.20
CN¥17.64
+8.9%
13.4%CN¥20.00CN¥15.27n/a2
Feb ’25CN¥12.50
CN¥17.64
+41.1%
13.4%CN¥20.00CN¥15.27n/a2
Jan ’25CN¥13.86
CN¥17.64
+27.2%
13.4%CN¥20.00CN¥15.27n/a2
Dec ’24CN¥13.66
CN¥17.64
+29.1%
13.4%CN¥20.00CN¥15.27n/a2
Nov ’24CN¥14.27
CN¥17.64
+23.6%
13.4%CN¥20.00CN¥15.27CN¥22.582

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

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