Heilongjiang Agriculture Company Limited

SHSE:600598 Stock Report

Market Cap: CN¥26.0b

Heilongjiang Agriculture Valuation

Is 600598 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 600598 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600598 (CN¥14.64) is trading above our estimate of fair value (CN¥14.49)

Significantly Below Fair Value: 600598 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600598?

Key metric: As 600598 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600598. This is calculated by dividing 600598's market cap by their current earnings.
What is 600598's PE Ratio?
PE Ratio23.3x
EarningsCN¥1.12b
Market CapCN¥26.03b

Price to Earnings Ratio vs Peers

How does 600598's PE Ratio compare to its peers?

The above table shows the PE ratio for 600598 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.6x
000876 New Hope LiuheLtd
10.4x8.3%CN¥44.3b
601952 Jiangsu Provincial Agricultural Reclamation and DevelopmentLtd
18.8x17.4%CN¥13.9b
002041 ShanDongDenghai SeedsLtd
40.5x28.3%CN¥8.9b
000998 Yuan Long Ping High-Tech Agriculture
48.6x52.8%CN¥14.7b
600598 Heilongjiang Agriculture
23.3x6.8%CN¥26.0b

Price-To-Earnings vs Peers: 600598 is good value based on its Price-To-Earnings Ratio (23.3x) compared to the peer average (29.6x).

Price to Earnings Ratio vs Industry

How does 600598's PE Ratio compare vs other companies in the CN Food Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
002157 Jiangxi Zhengbang TechnologyLtd
2.5xn/aUS$4.07b
600872 Jonjee Hi-Tech Industrial and Commercial HoldingLtd
4.8x-46.9%US$2.36b
002086 Shandong Oriental Ocean Sci-Tech
3.6xn/aUS$852.14m
No more companies available in this PE range
600598 23.3xIndustry Avg. 29.5xNo. of Companies19PE020406080100+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 600598 is good value based on its Price-To-Earnings Ratio (23.3x) compared to the CN Food industry average (29.5x).

Price to Earnings Ratio vs Fair Ratio

What is 600598'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.

600598 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.3x
Fair PE Ratio20.2x

Price-To-Earnings vs Fair Ratio: 600598 is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the estimated Fair Price-To-Earnings Ratio (20.2x).

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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