Zhuzhou Huarui Precision Cutting ToolsLtd Valuation

Q: What is the Fair Price of 688059 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

688059 (CN¥46.94) is trading above our estimate of [[fair value]] (CN¥19.75)

Is 688059 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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 688059 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 688059 (CN¥46.94) is trading above our estimate of fair value (CN¥19.75)

Significantly Below Fair Value: 688059 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 688059?

Key metric: As 688059 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 688059. This is calculated by dividing 688059's market cap by their current earnings.
What is 688059's PE Ratio?
PE Ratio	22.4x
Earnings	CN¥129.32m
Market Cap	CN¥2.90b

688059 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.5x
Enterprise Value/EBITDA	11.7x
PEG Ratio	0.6x

Price to Earnings Ratio vs Peers

How does 688059's PE Ratio compare to its peers?

The above table shows the PE ratio for 688059 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	22.5x
688257 Shareate Tools	17.1x	n/a	CN¥2.9b
688646 Wuhan Yifi Laser	31.1x	n/a	CN¥3.3b
301459 Zhejiang Fengmao Technology	22.4x	29.4%	CN¥3.1b
300092 Sichuan Kexin Mechanical and Electrical EquipmentLtd	19.2x	21.8%	CN¥3.2b
688059 Zhuzhou Huarui Precision Cutting ToolsLtd	22.4x	34.8%	CN¥2.9b

Price-To-Earnings vs Peers: 688059 is good value based on its Price-To-Earnings Ratio (22.4x) compared to the peer average (22.5x).

Price to Earnings Ratio vs Industry

How does 688059's PE Ratio compare vs other companies in the CN Machinery Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
002021 Zoje Resources Investment	4.6x	n/a	US$398.65m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 688059 is good value based on its Price-To-Earnings Ratio (22.4x) compared to the CN Machinery industry average (34.7x).

Price to Earnings Ratio vs Fair Ratio

What is 688059'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.

688059 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	22.4x
Fair PE Ratio	26.9x

Price-To-Earnings vs Fair Ratio: 688059 is good value based on its Price-To-Earnings Ratio (22.4x) compared to the estimated Fair Price-To-Earnings Ratio (26.9x).

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 688059 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CN¥46.94	CN¥62.25 +32.6%	10.0%	CN¥68.50	CN¥56.00	n/a	2
Nov ’25	CN¥46.48	CN¥62.25 +33.9%	10.0%	CN¥68.50	CN¥56.00	n/a	2
Oct ’25	CN¥59.78	CN¥69.63 +16.5%	19.6%	CN¥83.25	CN¥56.00	n/a	2
Sep ’25	CN¥42.76	CN¥69.63 +62.8%	19.6%	CN¥83.25	CN¥56.00	n/a	2
Jun ’25	CN¥58.05	CN¥90.50 +55.9%	19.3%	CN¥108.00	CN¥73.00	n/a	2
May ’25	CN¥59.36	CN¥90.50 +52.5%	19.3%	CN¥108.00	CN¥73.00	n/a	2
Apr ’25	CN¥64.77	CN¥90.50 +39.7%	19.3%	CN¥108.00	CN¥73.00	n/a	2
Mar ’25	CN¥64.14	CN¥90.50 +41.1%	19.3%	CN¥108.00	CN¥73.00	n/a	2
Oct ’24	CN¥91.75	CN¥123.44 +34.5%	6.8%	CN¥131.88	CN¥115.00	CN¥59.78	2
Sep ’24	CN¥90.02	CN¥123.44 +37.1%	6.8%	CN¥131.88	CN¥115.00	CN¥42.76	2
Aug ’24	CN¥95.01	CN¥114.76 +20.8%	0.2%	CN¥115.00	CN¥114.51	CN¥43.20	2
Jul ’24	CN¥83.75	CN¥109.73 +31.0%	4.4%	CN¥114.51	CN¥104.94	CN¥45.86	2
Jun ’24	CN¥73.38	CN¥109.04 +48.6%	5.0%	CN¥114.51	CN¥103.57	CN¥58.05	2
May ’24	CN¥82.68	CN¥109.04 +31.9%	5.0%	CN¥114.51	CN¥103.57	CN¥59.36	2
Apr ’24	CN¥107.14	CN¥123.70 +15.5%	4.1%	CN¥128.83	CN¥118.57	CN¥64.77	2

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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