China Design Group Valuation

Is 603018 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 603018 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603018 (CN¥9.52) is trading above our estimate of fair value (CN¥3.6)

Significantly Below Fair Value: 603018 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603018?

Key metric: As 603018 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 603018. This is calculated by dividing 603018's market cap by their current earnings.
What is 603018's PE Ratio?
PE Ratio	11.1x
Earnings	CN¥579.46m
Market Cap	CN¥6.04b

603018 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	1.1x
Enterprise Value/EBITDA	7.8x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does 603018's PE Ratio compare to its peers?

The above table shows the PE ratio for 603018 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	46.6x
603060 China Testing & Certification International GroupLtd	24.4x	13.1%	CN¥5.6b
000779 Gansu Engineering Consulting Group	16.1x	14.8%	CN¥3.9b
300215 Suzhou Electrical Apparatus Science Academy	115.1x	n/a	CN¥4.7b
688334 Xi'an High Voltage Apparatus Research Institute	30.6x	n/a	CN¥5.4b
603018 China Design Group	11.1x	11.5%	CN¥6.0b

Price-To-Earnings vs Peers: 603018 is good value based on its Price-To-Earnings Ratio (11.1x) compared to the peer average (46.6x).

Price to Earnings Ratio vs Industry

How does 603018's PE Ratio compare vs other companies in the CN Professional Services Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 603018 is good value based on its Price-To-Earnings Ratio (11.1x) compared to the CN Professional Services industry average (46.1x).

Price to Earnings Ratio vs Fair Ratio

What is 603018'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.

603018 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.1x
Fair PE Ratio	18x

Price-To-Earnings vs Fair Ratio: 603018 is good value based on its Price-To-Earnings Ratio (11.1x) compared to the estimated Fair Price-To-Earnings Ratio (18x).

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 603018 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¥9.52	CN¥10.02 +5.3%	8.9%	CN¥11.05	CN¥8.90	n/a	4
Nov ’25	CN¥8.78	CN¥10.43 +18.7%	17.7%	CN¥13.56	CN¥8.90	n/a	4
Oct ’25	CN¥7.72	CN¥10.43 +35.0%	17.7%	CN¥13.56	CN¥8.90	n/a	4
Sep ’25	CN¥6.95	CN¥10.43 +50.0%	17.7%	CN¥13.56	CN¥8.90	n/a	4
Aug ’25	CN¥9.01	CN¥11.24 +24.7%	18.7%	CN¥13.56	CN¥8.90	n/a	4
Jul ’25	CN¥9.13	CN¥11.24 +23.1%	18.7%	CN¥13.56	CN¥8.90	n/a	4
Jun ’25	CN¥9.22	CN¥11.24 +21.9%	18.7%	CN¥13.56	CN¥8.90	n/a	4
May ’25	CN¥9.80	CN¥11.24 +14.7%	18.7%	CN¥13.56	CN¥8.90	n/a	4
Apr ’25	CN¥8.67	CN¥10.40 +19.9%	17.5%	CN¥13.08	CN¥8.20	n/a	4
Mar ’25	CN¥7.14	CN¥10.58 +48.2%	15.8%	CN¥13.08	CN¥8.20	n/a	5
Feb ’25	CN¥6.74	CN¥10.58 +57.0%	15.8%	CN¥13.08	CN¥8.20	n/a	5
Jan ’25	CN¥7.60	CN¥10.58 +39.2%	15.8%	CN¥13.08	CN¥8.20	n/a	5
Dec ’24	CN¥8.25	CN¥10.58 +28.3%	15.8%	CN¥13.08	CN¥8.20	n/a	5
Nov ’24	CN¥7.65	CN¥10.58 +38.3%	15.8%	CN¥13.08	CN¥8.20	CN¥8.78	5
Oct ’24	CN¥8.31	CN¥10.76 +29.5%	13.4%	CN¥13.08	CN¥9.10	CN¥7.72	5
Sep ’24	CN¥8.37	CN¥10.18 +21.7%	9.4%	CN¥11.38	CN¥9.10	CN¥6.95	4
Aug ’24	CN¥9.17	CN¥11.09 +20.9%	11.7%	CN¥12.56	CN¥9.40	CN¥9.01	3
Jul ’24	CN¥8.75	CN¥11.09 +26.7%	11.7%	CN¥12.56	CN¥9.40	CN¥9.13	3
Jun ’24	CN¥9.57	CN¥11.38 +18.9%	10.8%	CN¥12.56	CN¥9.40	CN¥9.22	4
May ’24	CN¥9.53	CN¥11.38 +19.4%	10.8%	CN¥12.56	CN¥9.40	CN¥9.80	4
Apr ’24	CN¥9.18	CN¥10.91 +18.9%	10.7%	CN¥12.24	CN¥9.40	CN¥8.67	3
Mar ’24	CN¥8.47	CN¥11.23 +32.6%	10.2%	CN¥12.24	CN¥9.40	CN¥7.14	4
Feb ’24	CN¥7.94	CN¥11.23 +41.4%	10.2%	CN¥12.24	CN¥9.40	CN¥6.74	4
Jan ’24	CN¥7.58	CN¥11.23 +48.1%	10.2%	CN¥12.24	CN¥9.40	CN¥7.60	4
Dec ’23	CN¥8.23	CN¥11.23 +36.4%	10.2%	CN¥12.24	CN¥9.40	CN¥8.25	4
Nov ’23	CN¥7.84	CN¥11.81 +50.6%	15.8%	CN¥14.56	CN¥9.40	CN¥7.65	4

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