Kangxin New Materials Valuation

Q: What is the Fair Price of 600076 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

600076 (CN¥2.2) is trading below our estimate of [[fair value]] (CN¥2.99)

Is 600076 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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 600076 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600076 (CN¥2.2) is trading below our estimate of fair value (CN¥2.99)

Significantly Below Fair Value: 600076 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600076?

Key metric: As 600076 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 600076. This is calculated by dividing 600076's market cap by their current revenue.
What is 600076's PS Ratio?
PS Ratio	4.6x
Sales	CN¥640.49m
Market Cap	CN¥2.95b

600076 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	8.3x
Enterprise Value/EBITDA	-70.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 600076's PS Ratio compare to its peers?

The above table shows the PS ratio for 600076 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	6.1x
301429 Anhui Sentai WPC Group Share	2.4x	n/a	CN¥2.0b
002679 Fujian Jinsen ForestryLtd	12.8x	n/a	CN¥2.2b
600189 Jilin Quanyangquan	4.8x	n/a	CN¥5.1b
000663 Fujian Yongan Forestry(Group)Ltd	4.2x	n/a	CN¥2.1b
600076 Kangxin New Materials	4.6x	n/a	CN¥3.0b

Price-To-Sales vs Peers: 600076 is good value based on its Price-To-Sales Ratio (4.6x) compared to the peer average (6.1x).

Price to Sales Ratio vs Industry

How does 600076's PS Ratio compare vs other companies in the CN Forestry Industry?

3 Companies	Price / Sales	Estimated Growth	Market Cap
600567 Shanying International HoldingsLtd	0.3x	12.3%	US$1.37b
600966 Shandong Bohui Paper IndustryLtd	0.4x	10.1%	US$957.63m
000488 Shandong Chenming Paper Holdings	0.3x	7.6%	US$898.95m

No more companies available in this PS range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 600076 is expensive based on its Price-To-Sales Ratio (4.6x) compared to the CN Forestry industry average (1.5x).

Price to Sales Ratio vs Fair Ratio

What is 600076'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.

600076 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	4.6x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 600076'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.

Discover undervalued companies

ValiantLtd

CN¥9.8b

Produces and sells chemical materials worldwide.

2643

CN¥10.51

-2.7%

-34.7%

Yunnan Yuntianhua

CN¥40.3b

Engages in the phosphate ore mining, chemical fertilizers, engineering materials, agriculture, and trade and logistics businesses in China.

600096

CN¥22.08

-1.3%

37.5%

MeiHua Holdings GroupLtd

CN¥30.1b

A synthetic biology company, provides amino acid nutrition and health solutions in China and internationally.

600873

CN¥10.55

4.6%

12.2%