Zhejiang Huatong Meat Products Co., Ltd.

SZSE:002840 Stock Report

Market Cap: CN¥8.1b

Zhejiang Huatong Meat Products Valuation

Is 002840 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-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 002840 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002840 (CN¥13.01) is trading below our estimate of fair value (CN¥96.09)

Significantly Below Fair Value: 002840 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 002840?

Key metric: As 002840 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 002840. This is calculated by dividing 002840's market cap by their current revenue.
What is 002840's PS Ratio?
PS Ratio0.9x
SalesCN¥8.90b
Market CapCN¥8.07b

Price to Sales Ratio vs Peers

How does 002840's PS Ratio compare to its peers?

The above table shows the PS ratio for 002840 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.4x
605339 Namchow Food Group (Shanghai)
2.4xn/aCN¥7.4b
603057 Shanghai Ziyan Foods
2.2x9.8%CN¥7.5b
002567 Tangrenshen Group
0.3x17.0%CN¥7.7b
002124 Tech-Bank Food
0.7x-18.1%CN¥7.3b
002840 Zhejiang Huatong Meat Products
0.9x25.6%CN¥8.1b

Price-To-Sales vs Peers: 002840 is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (1.4x).

Price to Sales Ratio vs Industry

How does 002840's PS Ratio compare vs other companies in the CN Food Industry?

5 CompaniesPrice / SalesEstimated GrowthMarket Cap
603609 Wellhope Foods
0.2x9.6%US$1.05b
600073 Shanghai Bright Meat Group
0.3xn/aUS$910.36m
301116 Jiangsu Yike Food GroupLtd
0.3x20.1%US$743.99m
603363 Fujian Aonong Biological Technology Group Incorporation
0.3xn/aUS$442.26m
002840 0.9xIndustry Avg. 1.7xNo. of Companies22PS01.22.43.64.86+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 002840 is good value based on its Price-To-Sales Ratio (0.9x) compared to the CN Food industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

What is 002840'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.

002840 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ratio1.1x

Price-To-Sales vs Fair Ratio: 002840 is good value based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

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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