Zhejiang Taihua New Material Co.,Ltd

SHSE:603055 Stock Report

Mkt Cap: CN¥10.2b

We’ve recently updated our valuation analysis.

Zhejiang Taihua New MaterialLtd Valuation

Is 603055 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603055?

Other financial metrics that can be useful for relative valuation.

603055 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/Revenue2.7x
Enterprise Value/EBITDA16.1x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does 603055's PE Ratio compare to its peers?

The above table shows the PE ratio for 603055 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average26.7x
603306 HMT (Xiamen) New Technical Materials
74.7xn/aCN¥12.3b
600987 Zhejiang HangminLtd
10.9x4.2%CN¥7.6b
002293 Luolai Lifestyle Technology
16x16.5%CN¥9.8b
601339 Bros Eastern.Ltd
5.1x-2.8%CN¥8.3b
603055 Zhejiang Taihua New MaterialLtd
26.5x39.0%CN¥10.2b

Price-To-Earnings vs Peers: 603055 is good value based on its Price-To-Earnings Ratio (26.5x) compared to the peer average (26.7x).


Price to Earnings Ratio vs Industry

How does 603055's PE Ratio compare vs other companies in the CN Luxury Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a28.8%
n/an/an/a

Price-To-Earnings vs Industry: 603055 is good value based on its Price-To-Earnings Ratio (26.5x) compared to the CN Luxury industry average (28x)


Price to Earnings Ratio vs Fair Ratio

What is 603055'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.

603055 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.5x
Fair PE Ratio26.2x

Price-To-Earnings vs Fair Ratio: 603055 is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the estimated Fair Price-To-Earnings Ratio (26.2x).


Share Price vs Fair Value

What is the Fair Price of 603055 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603055 (CN¥12.2) is trading above our estimate of fair value (CN¥3.04)

Significantly Below Fair Value: 603055 is trading above our estimate of fair value.


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 603055 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥12.20
CN¥14.73
+20.7%
4.2%CN¥15.35CN¥14.11n/a2
Jan ’24CN¥10.10
CN¥14.73
+45.8%
4.2%CN¥15.35CN¥14.11n/a2
Dec ’23CN¥10.32
CN¥13.91
+34.7%
10.4%CN¥15.35CN¥12.46n/a2
Nov ’23CN¥8.44
CN¥13.91
+64.8%
10.4%CN¥15.35CN¥12.46n/a2
Oct ’23CN¥10.30
CN¥15.68
+52.2%
10.0%CN¥17.25CN¥14.11n/a2
Sep ’23CN¥10.53
CN¥15.68
+48.9%
10.0%CN¥17.25CN¥14.11n/a2
Aug ’23CN¥15.43
CN¥14.11
-8.6%
0%CN¥14.11CN¥14.11n/a1
Jul ’23CN¥12.66
CN¥14.11
+11.5%
0%CN¥14.11CN¥14.11n/a1
Jun ’23CN¥11.05
CN¥14.11
+27.7%
0%CN¥14.11CN¥14.11n/a1
May ’23CN¥9.20
CN¥14.11
+53.4%
0%CN¥14.11CN¥14.11n/a1
Apr ’23CN¥11.55
CN¥17.95
+55.4%
0%CN¥17.95CN¥17.95n/a1
Mar ’23CN¥14.61
CN¥19.90
+36.2%
9.8%CN¥21.85CN¥17.95n/a2

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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