Tongyi Carbon Neutral Technology (Xinjiang) Co., Ltd

SHSE:600506 Stock Report

Market Cap: CN¥3.3b

Tongyi Carbon Neutral Technology (Xinjiang) Valuation

Is 600506 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 600506 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600506 (CN¥17.25) is trading below our estimate of fair value (CN¥88.52)

Significantly Below Fair Value: 600506 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600506?

Key metric: As 600506 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 600506. This is calculated by dividing 600506's market cap by their current revenue.
What is 600506's PS Ratio?
PS Ratio1.4x
SalesCN¥2.29b
Market CapCN¥3.29b

Price to Sales Ratio vs Peers

How does 600506's PS Ratio compare to its peers?

The above table shows the PS ratio for 600506 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3x
600354 Gansu Dunhuang Seed GroupLtd
2.3xn/aCN¥3.0b
300505 Kunming Chuan Jin Nuo Chemical
1.5xn/aCN¥4.6b
600371 Wanxiang Doneed
7xn/aCN¥2.6b
600419 Xinjiang Tianrun Dairy
1.1x8.4%CN¥2.8b
600506 Tongyi Carbon Neutral Technology (Xinjiang)
1.4xn/aCN¥3.3b

Price-To-Sales vs Peers: 600506 is good value based on its Price-To-Sales Ratio (1.4x) compared to the peer average (3x).

Price to Sales Ratio vs Industry

How does 600506's PS Ratio compare vs other companies in the CN Food Industry?

5 CompaniesPrice / SalesEstimated GrowthMarket Cap
603609 Wellhope Foods
0.2x9.6%US$1.01b
600073 Shanghai Bright Meat Group
0.3xn/aUS$880.23m
301116 Jiangsu Yike Food GroupLtd
0.3x20.1%US$694.89m
603363 Fujian Aonong Biological Technology Group Incorporation
0.3xn/aUS$430.08m
600506 1.4xIndustry Avg. 1.7xNo. of Companies20PS01.22.43.64.86+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 600506 is good value based on its Price-To-Sales Ratio (1.4x) compared to the CN Food industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

What is 600506's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

600506 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.4x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 600506's Price-To-Sales Fair Ratio for valuation analysis.

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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