Jinhong Fashion GroupLtd Valuation

Q: What is the Fair Price of 603518 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

603518 (CN¥7.75) is trading below our estimate of [[fair value]] (CN¥26.16)

Is 603518 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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 603518 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603518 (CN¥7.75) is trading below our estimate of fair value (CN¥26.16)

Significantly Below Fair Value: 603518 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603518?

Key metric: As 603518 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 603518. This is calculated by dividing 603518's market cap by their current earnings.
What is 603518's PE Ratio?
PE Ratio	10x
Earnings	CN¥268.74m
Market Cap	CN¥2.69b

603518 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	0.8x
Enterprise Value/EBITDA	8.5x
PEG Ratio	0.6x

Price to Earnings Ratio vs Peers

How does 603518's PE Ratio compare to its peers?

The above table shows the PE ratio for 603518 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	26.9x
002763 Shenzhen Huijie Group	29.7x	n/a	CN¥2.8b
002098 Fujian SBS Zipper Science&Technology	16x	n/a	CN¥3.1b
002574 Zhejiang Ming Jewelry	45.3x	n/a	CN¥2.6b
002687 Zhejiang Giuseppe Garment	16.7x	1.0%	CN¥2.2b
603518 Jinhong Fashion GroupLtd	10x	16.0%	CN¥2.7b

Price-To-Earnings vs Peers: 603518 is good value based on its Price-To-Earnings Ratio (10x) compared to the peer average (26.9x).

Price to Earnings Ratio vs Industry

How does 603518's PE Ratio compare vs other companies in the CN Luxury 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: 603518 is good value based on its Price-To-Earnings Ratio (10x) compared to the CN Luxury industry average (22.2x).

Price to Earnings Ratio vs Fair Ratio

What is 603518'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.

603518 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10x
Fair PE Ratio	15.7x

Price-To-Earnings vs Fair Ratio: 603518 is good value based on its Price-To-Earnings Ratio (10x) compared to the estimated Fair Price-To-Earnings Ratio (15.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.