Anhui Hengyuan Coal Industry and Electricity Power Co.,Ltd

XSSC:600971 Stock Report

Market Cap: CN¥11.3b

Anhui Hengyuan Coal Industry and Electricity PowerLtd Valuation

Is 600971 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 600971 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600971 (CN¥9.38) is trading below our estimate of fair value (CN¥17.3)

Significantly Below Fair Value: 600971 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600971?

Key metric: As 600971 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600971. This is calculated by dividing 600971's market cap by their current earnings.
What is 600971's PE Ratio?
PE Ratio8.4x
EarningsCN¥1.35b
Market CapCN¥11.26b

Price to Earnings Ratio vs Peers

How does 600971's PE Ratio compare to its peers?

The above table shows the PE ratio for 600971 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18x
601101 Beijing Haohua Energy Resource
10.5x14.0%CN¥12.1b
600508 Shanghai Datun Energy Resources
36.6x33.9%CN¥9.7b
600123 Shanxi Lanhua Sci-Tech VentureLtd
12.7x21.1%CN¥12.8b
000552 Gansu Energy Chemical
12.1x19.1%CN¥14.7b
600971 Anhui Hengyuan Coal Industry and Electricity PowerLtd
8.4x5.8%CN¥11.3b

Price-To-Earnings vs Peers: 600971 is good value based on its Price-To-Earnings Ratio (8.4x) compared to the peer average (18x).

Price to Earnings Ratio vs Industry

How does 600971's PE Ratio compare vs other companies in the CN Oil and Gas Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
600971 8.4xIndustry Avg. 12.7xNo. of Companies11PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 600971 is good value based on its Price-To-Earnings Ratio (8.4x) compared to the CN Oil and Gas industry average (12.7x).

Price to Earnings Ratio vs Fair Ratio

What is 600971'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.

600971 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.4x
Fair PE Ratio10.9x

Price-To-Earnings vs Fair Ratio: 600971 is good value based on its Price-To-Earnings Ratio (8.4x) compared to the estimated Fair Price-To-Earnings Ratio (10.9x).

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.

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