Ningbo Dechang Electrical Machinery Made Co., Ltd.

SHSE:605555 Stock Report

Market Cap: CN¥8.1b

Ningbo Dechang Electrical Machinery Made Valuation

Is 605555 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 605555 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 605555 (CN¥21.73) is trading above our estimate of fair value (CN¥7.33)

Significantly Below Fair Value: 605555 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 605555?

Key metric: As 605555 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 605555. This is calculated by dividing 605555's market cap by their current earnings.
What is 605555's PE Ratio?
PE Ratio22.5x
EarningsCN¥360.37m
Market CapCN¥8.09b

Price to Earnings Ratio vs Peers

How does 605555's PE Ratio compare to its peers?

The above table shows the PE ratio for 605555 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.2x
603219 Ningbo Fujia Industrial
38.8x14.7%CN¥8.2b
002959 Bear Electric ApplianceLtd
24.2x16.3%CN¥7.5b
000521 Changhong Meiling
11x12.9%CN¥7.9b
603075 Hangzhou Heatwell Electric Heating Technology
26.8xn/aCN¥7.6b
605555 Ningbo Dechang Electrical Machinery Made
22.5x26.6%CN¥8.1b

Price-To-Earnings vs Peers: 605555 is good value based on its Price-To-Earnings Ratio (22.5x) compared to the peer average (25.2x).

Price to Earnings Ratio vs Industry

How does 605555's PE Ratio compare vs other companies in the CN Consumer Durables Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
002473 Ningbo Sunlight Electrical ApplianceLtd
3.5xn/aUS$18.86m
No more companies available in this PE range
605555 22.5xIndustry Avg. 23.7xNo. of Companies18PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 605555 is good value based on its Price-To-Earnings Ratio (22.5x) compared to the CN Consumer Durables industry average (24x).

Price to Earnings Ratio vs Fair Ratio

What is 605555'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.

605555 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.5x
Fair PE Ratio23.2x

Price-To-Earnings vs Fair Ratio: 605555 is good value based on its Price-To-Earnings Ratio (22.5x) compared to the estimated Fair Price-To-Earnings Ratio (23.2x).

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 605555 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥21.73
CN¥25.07
+15.4%
19.7%CN¥30.00CN¥20.14n/a2
Dec ’25CN¥20.57
CN¥25.05
+21.8%
16.1%CN¥30.00CN¥20.14n/a3
Nov ’25CN¥19.33
CN¥25.05
+29.6%
16.1%CN¥30.00CN¥20.14n/a3
Oct ’25CN¥19.77
CN¥25.05
+26.7%
16.1%CN¥30.00CN¥20.14n/a3
Sep ’25CN¥16.32
CN¥25.05
+53.5%
16.1%CN¥30.00CN¥20.14n/a3
Aug ’25CN¥16.95
CN¥26.95
+59.0%
8.1%CN¥30.00CN¥25.00n/a3
Jul ’25CN¥18.72
CN¥26.95
+44.0%
8.1%CN¥30.00CN¥25.00n/a3
Jun ’25CN¥20.97
CN¥26.95
+28.5%
8.1%CN¥30.00CN¥25.00n/a3
May ’25CN¥20.72
CN¥26.79
+29.3%
8.7%CN¥30.00CN¥24.50n/a3
Apr ’25CN¥19.32
CN¥26.79
+38.6%
8.7%CN¥30.00CN¥24.50n/a3
Mar ’25CN¥19.14
CN¥26.79
+40.0%
8.7%CN¥30.00CN¥24.50n/a3
Feb ’25CN¥16.07
CN¥26.79
+66.7%
8.7%CN¥30.00CN¥24.50n/a3
Jan ’25CN¥22.85
CN¥26.79
+17.2%
8.7%CN¥30.00CN¥24.50n/a3
Dec ’24CN¥23.59
CN¥26.79
+13.6%
8.7%CN¥30.00CN¥24.50CN¥20.573
Nov ’24CN¥21.36
CN¥26.04
+21.9%
12.2%CN¥30.00CN¥22.25CN¥19.333
Oct ’24CN¥18.29
CN¥23.50
+28.5%
6.4%CN¥25.00CN¥22.00CN¥19.772
Sep ’24CN¥19.30
CN¥23.50
+21.8%
6.4%CN¥25.00CN¥22.00CN¥16.322
Aug ’24CN¥18.22
CN¥20.97
+15.1%
19.2%CN¥25.00CN¥16.94CN¥16.952
May ’24CN¥14.51
CN¥22.04
+51.9%
23.2%CN¥27.14CN¥16.94CN¥20.722
Apr ’24CN¥15.59
CN¥22.89
+46.8%
18.6%CN¥27.14CN¥18.63CN¥19.322
Mar ’24CN¥16.24
CN¥22.89
+41.0%
18.6%CN¥27.14CN¥18.63CN¥19.142
Feb ’24CN¥16.74
CN¥22.89
+36.7%
18.6%CN¥27.14CN¥18.63CN¥16.072
Jan ’24CN¥14.50
CN¥22.89
+57.8%
18.6%CN¥27.14CN¥18.63CN¥22.852
Dec ’23CN¥15.69
CN¥22.89
+45.8%
18.6%CN¥27.14CN¥18.63CN¥23.592

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/25 06:01
End of Day Share Price 2024/12/25 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Ningbo Dechang Electrical Machinery Made Co., Ltd. is covered by 9 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Wei HeChina International Capital Corporation Limited
Jinxing ShiChina Merchants Securities Co. Ltd.
Haibo LiuCitic Securities Co., Ltd.