SYoung Group (SZSE:300740) - Share price, News & Analysis

Q: What is the Fair Price of 300740 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

300740 (CN¥13.47) is trading below our estimate of [[fair value]] (CN¥89.66)

300740 fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	6/6
Past Performance	4/6
Financial Health	5/6
Dividends	0/6

300740 Stock Overview

SYoung Group Co., Ltd. engages in the research and development, manufacture, and sale of cosmetics products in China.

Rewards

Trading at 85% below our estimate of its fair value

Earnings are forecast to grow 37.47% per year

Earnings grew by 68.5% over the past year

Risk Analysis

High level of non-cash earnings

SYoung Group Competitors

Sirio Pharma

SZSE:300791

CN¥5.9b

Chongqing Baiya Sanitary Products

SZSE:003006

CN¥5.2b

Mingchen HealthLtd

SZSE:002919

CN¥3.2b

Zhejiang Shouxiangu Pharmaceutical

SHSE:603896

CN¥7.8b

Price History & Performance

Summary of all time highs, changes and price drops for SYoung Group
Historical stock prices
Current Share Price	CN¥13.47
52 Week High	CN¥21.34
52 Week Low	CN¥10.47
Beta	0.71
1 Month Change	8.81%
3 Month Change	-2.74%
1 Year Change	-35.61%
3 Year Change	66.09%
5 Year Change	n/a
Change since IPO	12.36%

Shareholder Returns

	300740	CN Personal Products	CN Market
7D	7.0%	2.3%	1.3%
1Y	-35.6%	-15.0%	-6.8%

Return vs Industry: 300740 underperformed the CN Personal Products industry which returned -15% over the past year.

Return vs Market: 300740 underperformed the CN Market which returned -6.8% over the past year.

Price Volatility

Is 300740's price volatile compared to industry and market?
300740 volatility
300740 Average Weekly Movement	6.4%
Personal Products Industry Average Movement	6.5%
Market Average Movement	7.2%
10% most volatile stocks in CN Market	10.2%
10% least volatile stocks in CN Market	5.1%

Stable Share Price: 300740 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 300740's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2006	1,856	n/a	https://www.syounggroup.com

SYoung Group Co., Ltd. engages in the research and development, manufacture, and sale of cosmetics products in China. The company provides cover masks, water cream, color cosmetics, personal care cleaning, and other products. It offers its products under the Yu Nifang, Xiao Mifu, Yu MEN, Big Water Drop, Huayao Flower, HPH, etc. brands.

SYoung Group Fundamentals Summary

How do SYoung Group's earnings and revenue compare to its market cap?
300740 fundamental statistics
Market Cap	CN¥5.22b
Earnings (TTM)	CN¥236.42m
Revenue (TTM)	CN¥5.01b

22.1x

P/E Ratio

1.0x

P/S Ratio

Is 300740 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
300740 income statement (TTM)
Revenue	CN¥5.01b
Cost of Revenue	CN¥2.40b
Gross Profit	CN¥2.61b
Other Expenses	CN¥2.37b
Earnings	CN¥236.42m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.61
Gross Margin	52.07%
Net Profit Margin	4.72%
Debt/Equity Ratio	41.6%

How did 300740 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 300740 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 300740?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 300740. This is calculated by dividing 300740's market cap by their current preferred multiple.
What is 300740's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥5.22b

300740 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	1.1x
Enterprise Value/EBITDA	17x
PEG Ratio	0.6x

Price to Earnings Ratio vs Peers

How does 300740's PE Ratio compare to its peers?

300740 PE Ratio vs Peers

The above table shows the PE ratio for 300740 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	34.1x
300791 Sirio Pharma	31.4x	21.3%	CN¥5.9b
003006 Chongqing Baiya Sanitary Products	25.7x	21.5%	CN¥5.2b
002919 Mingchen HealthLtd	43.9x	n/a	CN¥3.2b
603896 Zhejiang Shouxiangu Pharmaceutical	35.5x	26.6%	CN¥7.8b
300740 SYoung Group	22.1x	37.5%	CN¥5.2b

Forward PE

Price-To-Earnings vs Peers: 300740 is good value based on its Price-To-Earnings Ratio (22.1x) compared to the peer average (34.1x).

Price to Earnings Ratio vs Industry

How does 300740's PE Ratio compare vs other companies in the CN Personal Products Industry?

Price-To-Earnings vs Industry: 300740 is good value based on its Price-To-Earnings Ratio (22.1x) compared to the CN Personal Products industry average (42.1x)

Price to Earnings Ratio vs Fair Ratio

What is 300740'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.

300740 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	22.1x
Fair PE Ratio	32.6x

Price-To-Earnings vs Fair Ratio: 300740 is good value based on its Price-To-Earnings Ratio (22.1x) compared to the estimated Fair Price-To-Earnings Ratio (32.6x).

Share Price vs Fair Value

What is the Fair Price of 300740 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 300740 (CN¥13.47) is trading below our estimate of fair value (CN¥89.66)

Significantly Below Fair Value: 300740 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 300740 is good value based on its PEG Ratio (0.6x)

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Future Growth

How is SYoung Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

37.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 300740's forecast earnings growth (37.5% per year) is above the savings rate (3.2%).

Earnings vs Market: 300740's earnings (37.5% per year) are forecast to grow faster than the CN market (23.9% per year).

High Growth Earnings: 300740's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 300740's revenue (22.6% per year) is forecast to grow faster than the CN market (17.5% per year).

High Growth Revenue: 300740's revenue (22.6% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 300740's Return on Equity is forecast to be high in 3 years time (24%)

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Past Performance

How has SYoung Group performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

10.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 300740 has a high level of non-cash earnings.

Growing Profit Margin: 300740's current net profit margins (4.7%) are higher than last year (3.8%).

Past Earnings Growth Analysis

Earnings Trend: 300740's earnings have grown by 10.2% per year over the past 5 years.

Accelerating Growth: 300740's earnings growth over the past year (68.5%) exceeds its 5-year average (10.2% per year).

Earnings vs Industry: 300740 earnings growth over the past year (68.5%) exceeded the Personal Products industry -2.4%.

Return on Equity

High ROE: 300740's Return on Equity (14.8%) is considered low.

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Financial Health

How is SYoung Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 300740's short term assets (CN¥1.7B) exceed its short term liabilities (CN¥1.0B).

Long Term Liabilities: 300740's short term assets (CN¥1.7B) exceed its long term liabilities (CN¥143.9M).

Debt to Equity History and Analysis

Debt Level: 300740's net debt to equity ratio (11.5%) is considered satisfactory.

Reducing Debt: 300740's debt to equity ratio has increased from 16.3% to 41.6% over the past 5 years.

Debt Coverage: 300740's debt is well covered by operating cash flow (30.1%).

Interest Coverage: 300740 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is SYoung Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.67%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 300740's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 300740's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 300740's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 300740's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 300740 is not paying a notable dividend for the CN market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 300740 has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

CEO

SYoung Group has no CEO, or we have no data on them.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/02 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31