Ningbo Dechang Electrical Machinery Made Valuation

Q: What is the Fair Price of 605555 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

605555 (CN¥19.09) is trading above our estimate of [[fair value]] (CN¥4.52)

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¥19.09) is trading above our estimate of fair value (CN¥4.52)

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 Ratio	19.7x
Earnings	CN¥360.37m
Market Cap	CN¥6.99b

605555 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	1.6x
Enterprise Value/EBITDA	14.1x
PEG Ratio	0.8x

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	23.2x
002959 Bear Electric ApplianceLtd	21.2x	19.2%	CN¥6.5b
002035 Vatti	12.7x	16.1%	CN¥6.3b
603219 Ningbo Fujia Industrial	33.4x	14.7%	CN¥7.1b
300217 Zhenjiang Dongfang Electric Heating TechnologyLtd	25.5x	12.7%	CN¥7.8b
605555 Ningbo Dechang Electrical Machinery Made	19.7x	25.5%	CN¥7.0b

Price-To-Earnings vs Peers: 605555 is good value based on its Price-To-Earnings Ratio (19.7x) compared to the peer average (23.2x).

Price to Earnings Ratio vs Industry

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

1 Company	Price / Earnings	Estimated Growth	Market Cap
002473 Ningbo Sunlight Electrical ApplianceLtd	3.5x	n/a	US$18.86m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 605555 is good value based on its Price-To-Earnings Ratio (19.7x) compared to the CN Consumer Durables industry average (21.8x).

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 Ratio	19.7x
Fair PE Ratio	22.2x

Price-To-Earnings vs Fair Ratio: 605555 is good value based on its Price-To-Earnings Ratio (19.7x) compared to the estimated Fair Price-To-Earnings Ratio (22.2x).

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.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CN¥19.09	CN¥25.05 +31.2%	16.1%	CN¥30.00	CN¥20.14	n/a	3
Nov ’25	CN¥19.33	CN¥25.05 +29.6%	16.1%	CN¥30.00	CN¥20.14	n/a	3
Oct ’25	CN¥19.77	CN¥25.05 +26.7%	16.1%	CN¥30.00	CN¥20.14	n/a	3
Sep ’25	CN¥16.32	CN¥25.05 +53.5%	16.1%	CN¥30.00	CN¥20.14	n/a	3
Aug ’25	CN¥16.95	CN¥26.95 +59.0%	8.1%	CN¥30.00	CN¥25.00	n/a	3
Jul ’25	CN¥18.72	CN¥26.95 +44.0%	8.1%	CN¥30.00	CN¥25.00	n/a	3
Jun ’25	CN¥20.97	CN¥26.95 +28.5%	8.1%	CN¥30.00	CN¥25.00	n/a	3
May ’25	CN¥20.72	CN¥26.79 +29.3%	8.7%	CN¥30.00	CN¥24.50	n/a	3
Apr ’25	CN¥19.32	CN¥26.79 +38.6%	8.7%	CN¥30.00	CN¥24.50	n/a	3
Mar ’25	CN¥19.14	CN¥26.79 +40.0%	8.7%	CN¥30.00	CN¥24.50	n/a	3
Feb ’25	CN¥16.07	CN¥26.79 +66.7%	8.7%	CN¥30.00	CN¥24.50	n/a	3
Jan ’25	CN¥22.85	CN¥26.79 +17.2%	8.7%	CN¥30.00	CN¥24.50	n/a	3
Dec ’24	CN¥23.59	CN¥26.79 +13.6%	8.7%	CN¥30.00	CN¥24.50	n/a	3
Nov ’24	CN¥21.36	CN¥26.04 +21.9%	12.2%	CN¥30.00	CN¥22.25	CN¥19.33	3
Oct ’24	CN¥18.29	CN¥23.50 +28.5%	6.4%	CN¥25.00	CN¥22.00	CN¥19.77	2
Sep ’24	CN¥19.30	CN¥23.50 +21.8%	6.4%	CN¥25.00	CN¥22.00	CN¥16.32	2
Aug ’24	CN¥18.22	CN¥20.97 +15.1%	19.2%	CN¥25.00	CN¥16.94	CN¥16.95	2
May ’24	CN¥14.51	CN¥22.04 +51.9%	23.2%	CN¥27.14	CN¥16.94	CN¥20.72	2
Apr ’24	CN¥15.59	CN¥22.89 +46.8%	18.6%	CN¥27.14	CN¥18.63	CN¥19.32	2
Mar ’24	CN¥16.24	CN¥22.89 +41.0%	18.6%	CN¥27.14	CN¥18.63	CN¥19.14	2
Feb ’24	CN¥16.74	CN¥22.89 +36.7%	18.6%	CN¥27.14	CN¥18.63	CN¥16.07	2
Jan ’24	CN¥14.50	CN¥22.89 +57.8%	18.6%	CN¥27.14	CN¥18.63	CN¥22.85	2
Dec ’23	CN¥15.69	CN¥22.89 +45.8%	18.6%	CN¥27.14	CN¥18.63	CN¥23.59	2
Nov ’23	CN¥14.87	CN¥22.89 +53.9%	18.6%	CN¥27.14	CN¥18.63	CN¥21.36	2

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.