Nancal Technology Co.,Ltd

XSSC:603859 Stock Report

Market Cap: CN¥6.8b

Nancal TechnologyLtd Valuation

Is 603859 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 603859 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603859 (CN¥27.79) is trading below our estimate of fair value (CN¥77.63)

Significantly Below Fair Value: 603859 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603859?

Key metric: As 603859 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 603859. This is calculated by dividing 603859's market cap by their current earnings.
What is 603859's PE Ratio?
PE Ratio39.6x
EarningsCN¥171.76m
Market CapCN¥6.80b

Price to Earnings Ratio vs Peers

How does 603859's PE Ratio compare to its peers?

The above table shows the PE ratio for 603859 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.9x
300470 Sinoseal Holding
19.6x14.8%CN¥7.1b
002833 Guangzhou KDT MachineryLtd
13.4x18.8%CN¥7.5b
603169 Lanzhou LS Heavy Equipment
66x46.3%CN¥7.4b
301377 Guangdong Dtech Technology
36.4xn/aCN¥8.0b
603859 Nancal TechnologyLtd
39.6x36.6%CN¥6.8b

Price-To-Earnings vs Peers: 603859 is expensive based on its Price-To-Earnings Ratio (39.6x) compared to the peer average (33.5x).

Price to Earnings Ratio vs Industry

How does 603859's PE Ratio compare vs other companies in the CN Machinery Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
002021 Zoje Resources Investment
4.6xn/aUS$397.65m
No more companies available in this PE range
603859 39.6xIndustry Avg. 34.7xNo. of Companies53PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 603859 is expensive based on its Price-To-Earnings Ratio (39.6x) compared to the CN Machinery industry average (35x).

Price to Earnings Ratio vs Fair Ratio

What is 603859'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.

603859 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39.6x
Fair PE Ratio31x

Price-To-Earnings vs Fair Ratio: 603859 is expensive based on its Price-To-Earnings Ratio (39.6x) compared to the estimated Fair Price-To-Earnings Ratio (31x).

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 603859 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥27.79
CN¥32.18
+15.8%
24.1%CN¥41.16CN¥22.27n/a3
Nov ’25CN¥22.64
CN¥27.73
+22.5%
16.0%CN¥33.11CN¥22.27n/a3
Oct ’25CN¥18.49
CN¥27.73
+50.0%
16.0%CN¥33.11CN¥22.27n/a3
Sep ’25CN¥15.07
CN¥27.73
+84.0%
16.0%CN¥33.11CN¥22.27n/a3
Aug ’25CN¥18.48
CN¥31.74
+71.8%
8.9%CN¥34.30CN¥27.81n/a3
Jul ’25CN¥20.89
CN¥31.74
+51.9%
8.9%CN¥34.30CN¥27.81n/a3
Jun ’25CN¥23.10
CN¥31.74
+37.4%
8.9%CN¥34.30CN¥27.81n/a3
May ’25CN¥24.18
CN¥31.74
+31.3%
8.9%CN¥34.30CN¥27.81n/a3
Apr ’25CN¥28.16
CN¥37.35
+32.6%
4.8%CN¥39.86CN¥36.01n/a3
Mar ’25CN¥25.22
CN¥37.35
+48.1%
4.8%CN¥39.86CN¥36.01n/a3
Feb ’25CN¥20.43
CN¥37.35
+82.8%
4.8%CN¥39.86CN¥36.01n/a3
Jan ’25CN¥25.49
CN¥37.35
+46.5%
4.8%CN¥39.86CN¥36.01n/a3
Dec ’24CN¥26.20
CN¥37.35
+42.6%
4.8%CN¥39.86CN¥36.01n/a3
Nov ’24CN¥26.86
CN¥37.35
+39.1%
4.8%CN¥39.86CN¥36.01CN¥22.643
Oct ’24CN¥28.79
CN¥37.87
+31.5%
5.1%CN¥40.54CN¥36.16CN¥18.493
Sep ’24CN¥28.09
CN¥37.87
+34.8%
5.1%CN¥40.54CN¥36.16CN¥15.073
Aug ’24CN¥29.36
CN¥41.28
+40.6%
6.9%CN¥43.45CN¥36.49CN¥18.484
Jul ’24CN¥34.55
CN¥41.28
+19.5%
6.9%CN¥43.45CN¥36.49CN¥20.894
Jun ’24n/a
CN¥41.28
0%
6.9%CN¥43.45CN¥36.49CN¥23.104
May ’24n/a
CN¥42.88
0%
1.6%CN¥43.45CN¥41.89CN¥24.183
Apr ’24n/a
CN¥32.05
0%
26.6%CN¥43.45CN¥22.96CN¥28.163
Mar ’24n/a
CN¥32.05
0%
26.6%CN¥43.45CN¥22.96CN¥25.223
Feb ’24n/a
CN¥30.02
0%
31.7%CN¥43.45CN¥22.96CN¥20.433
Jan ’24n/a
CN¥23.30
0%
1.5%CN¥23.65CN¥22.96CN¥25.492
Dec ’23n/a
CN¥23.30
0%
1.5%CN¥23.65CN¥22.96CN¥26.202
Nov ’23n/a
CN¥27.16
0%
20.1%CN¥34.86CN¥22.96CN¥26.863

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

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