Hunan New WellfulLtd Valuation

Q: What is the Fair Price of 600975 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

600975 (CN¥6.43) is trading below our estimate of [[fair value]] (CN¥22.35)

Is 600975 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 600975 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600975 (CN¥6.43) is trading below our estimate of fair value (CN¥22.35)

Significantly Below Fair Value: 600975 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600975?

Key metric: As 600975 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 600975. This is calculated by dividing 600975's market cap by their current revenue.
What is 600975's PS Ratio?
PS Ratio	1.2x
Sales	CN¥7.03b
Market Cap	CN¥8.11b

600975 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	2.1x
Enterprise Value/EBITDA	39.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 600975's PS Ratio compare to its peers?

The above table shows the PS ratio for 600975 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	2.1x
000735 Luoniushan	1.9x	n/a	CN¥7.7b
600866 Star Lake BioscienceZhaoqing Guangdong	0.6x	3.1%	CN¥10.8b
003000 Jinzai Food GroupLtd	2.4x	20.7%	CN¥5.8b
002991 Ganyuan Foods	3.4x	16.4%	CN¥7.2b
600975 Hunan New WellfulLtd	1.2x	30.0%	CN¥8.1b

Price-To-Sales vs Peers: 600975 is good value based on its Price-To-Sales Ratio (1.2x) compared to the peer average (2.1x).

Price to Sales Ratio vs Industry

How does 600975's PS Ratio compare vs other companies in the CN Food Industry?

4 Companies	Price / Sales	Estimated Growth	Market Cap
603609 Wellhope Foods	0.2x	9.6%	US$1.07b
301116 Jiangsu Yike Food GroupLtd	0.3x	20.1%	US$791.77m
603363 Fujian Aonong Biological Technology Group Incorporation	0.3x	n/a	US$448.03m
002505 Pengdu Agriculture & Animal HusbandryLtd	0.1x	n/a	US$323.60m

No more companies available in this PS range

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 600975 is good value based on its Price-To-Sales Ratio (1.2x) compared to the CN Food industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

What is 600975'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.

600975 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.2x
Fair PS Ratio	1.2x

Price-To-Sales vs Fair Ratio: 600975 is good value based on its Price-To-Sales Ratio (1.2x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).

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 600975 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¥6.47	CN¥9.86 +52.4%	18.3%	CN¥12.00	CN¥7.58	n/a	3
Nov ’25	CN¥6.29	CN¥9.86 +56.8%	18.3%	CN¥12.00	CN¥7.58	n/a	3
Oct ’25	CN¥6.62	CN¥9.86 +48.9%	18.3%	CN¥12.00	CN¥7.58	n/a	3
Sep ’25	CN¥5.55	CN¥9.86 +77.7%	18.3%	CN¥12.00	CN¥7.58	n/a	3
Aug ’25	CN¥6.08	CN¥10.53 +73.2%	10.0%	CN¥12.00	CN¥9.59	n/a	3
Jul ’25	CN¥7.49	CN¥10.53 +40.6%	10.0%	CN¥12.00	CN¥9.59	n/a	3
Jun ’25	CN¥9.44	CN¥10.53 +11.5%	10.0%	CN¥12.00	CN¥9.59	n/a	3
May ’25	CN¥8.79	CN¥10.53 +19.8%	10.0%	CN¥12.00	CN¥9.59	n/a	3
Apr ’25	CN¥9.90	CN¥13.50 +36.4%	3.7%	CN¥14.00	CN¥13.00	n/a	2
Mar ’25	CN¥9.29	CN¥13.50 +45.3%	3.7%	CN¥14.00	CN¥13.00	n/a	2
Feb ’25	CN¥9.69	CN¥13.50 +39.3%	3.7%	CN¥14.00	CN¥13.00	n/a	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.

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