Yangmei Chemical Co.,Ltd

SHSE:600691 Stock Report

Market Cap: CN¥5.5b

Yangmei ChemicalLtd Valuation

Is 600691 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 600691 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600691 (CN¥2.31) is trading below our estimate of fair value (CN¥3.25)

Significantly Below Fair Value: 600691 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600691?

Key metric: As 600691 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 600691. This is calculated by dividing 600691's market cap by their current revenue.
What is 600691's PS Ratio?
PS Ratio0.6x
SalesCN¥9.01b
Market CapCN¥5.51b

Price to Sales Ratio vs Peers

How does 600691's PS Ratio compare to its peers?

The above table shows the PS ratio for 600691 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average6.1x
300082 Liaoning OxiranchemInc
1.4x12.0%CN¥5.4b
300261 ABA Chemicals
6.8xn/aCN¥7.5b
688371 Jiangsu Favored Nanotechnology
12.3x36.4%CN¥5.6b
688550 Xi'an Manareco New MaterialsLtd
4.1x23.9%CN¥5.5b
600691 Yangmei ChemicalLtd
0.6x21.2%CN¥5.5b

Price-To-Sales vs Peers: 600691 is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (6.1x).

Price to Sales Ratio vs Industry

How does 600691's PS Ratio compare vs other companies in the CN Chemicals Industry?

24 CompaniesPrice / SalesEstimated GrowthMarket Cap
600346 Hengli PetrochemicalLtd
0.4x4.3%US$13.70b
002493 Rongsheng Petrochemical
0.3x9.3%US$12.56b
000301 Jiangsu Eastern ShenghongLtd
0.4x6.8%US$8.20b
601233 Tongkun Group
0.3x4.6%US$3.72b
600691 0.6xIndustry Avg. 2.3xNo. of Companies71PS0246810+
24 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 600691 is good value based on its Price-To-Sales Ratio (0.6x) compared to the CN Chemicals industry average (2.3x).

Price to Sales Ratio vs Fair Ratio

What is 600691'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.

600691 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: 600691 is good value based on its Price-To-Sales Ratio (0.6x) 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?

Analyst Forecast: Insufficient data to show price forecast.

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