Ningxia Baofeng Energy Group Co., Ltd.

SHSE:600989 Stock Report

Market Cap: CN¥115.6b

Ningxia Baofeng Energy Group Valuation

Is 600989 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 600989 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600989 (CN¥15.76) is trading below our estimate of fair value (CN¥25.73)

Significantly Below Fair Value: 600989 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600989?

Key metric: As 600989 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600989. This is calculated by dividing 600989's market cap by their current earnings.
What is 600989's PE Ratio?
PE Ratio18.4x
EarningsCN¥6.30b
Market CapCN¥115.57b

Price to Earnings Ratio vs Peers

How does 600989's PE Ratio compare to its peers?

The above table shows the PE ratio for 600989 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average42.6x
002597 Anhui Jinhe IndustrialLtd
25.2x39.2%CN¥13.9b
600596 Zhejiang Xinan Chemical Industrial GroupLtd
110.2x51.1%CN¥11.1b
600346 Hengli PetrochemicalLtd
16.7x29.1%CN¥105.1b
000792 Qinghai Salt Lake IndustryLtd
18.1x10.6%CN¥98.9b
600989 Ningxia Baofeng Energy Group
18.4x37.6%CN¥115.6b

Price-To-Earnings vs Peers: 600989 is good value based on its Price-To-Earnings Ratio (18.4x) compared to the peer average (42.6x).

Price to Earnings Ratio vs Industry

How does 600989's PE Ratio compare vs other companies in the CN Chemicals Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
600989 18.4xIndustry Avg. 35.7xNo. of Companies40PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 600989 is good value based on its Price-To-Earnings Ratio (18.4x) compared to the CN Chemicals industry average (35.7x).

Price to Earnings Ratio vs Fair Ratio

What is 600989'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.

600989 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.4x
Fair PE Ratio33.9x

Price-To-Earnings vs Fair Ratio: 600989 is good value based on its Price-To-Earnings Ratio (18.4x) compared to the estimated Fair Price-To-Earnings Ratio (33.9x).

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 600989 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥15.76
CN¥21.74
+37.9%
5.5%CN¥23.50CN¥20.30n/a4
Nov ’25CN¥16.11
CN¥21.74
+34.9%
5.5%CN¥23.50CN¥20.30n/a4
Oct ’25CN¥17.35
CN¥21.69
+25.0%
6.4%CN¥24.00CN¥20.30n/a4
Sep ’25CN¥15.23
CN¥21.69
+42.4%
6.4%CN¥24.00CN¥20.30n/a4
Aug ’25CN¥14.91
CN¥22.73
+52.5%
7.8%CN¥24.50CN¥20.30n/a3
Jul ’25CN¥17.57
CN¥22.73
+29.4%
7.8%CN¥24.50CN¥20.30n/a3
Apr ’25CN¥16.84
CN¥18.00
+6.9%
8.8%CN¥19.89CN¥16.02n/a3
Mar ’25CN¥15.26
CN¥17.17
+12.5%
5.0%CN¥18.08CN¥16.02n/a3
Feb ’25CN¥13.37
CN¥17.17
+28.4%
5.0%CN¥18.08CN¥16.02n/a3
Jan ’25CN¥14.77
CN¥17.17
+16.2%
5.0%CN¥18.08CN¥16.02n/a3
Dec ’24CN¥14.18
CN¥16.71
+17.8%
4.1%CN¥17.40CN¥16.02n/a2
Nov ’24CN¥14.37
CN¥20.14
+40.2%
24.2%CN¥27.00CN¥16.02CN¥16.113
Oct ’24CN¥14.30
CN¥20.08
+40.4%
24.5%CN¥27.00CN¥16.02CN¥17.353
Sep ’24CN¥14.15
CN¥20.74
+46.6%
21.4%CN¥27.00CN¥17.21CN¥15.233
Aug ’24CN¥14.09
CN¥21.16
+50.2%
19.5%CN¥27.00CN¥18.02CN¥14.913
Jul ’24CN¥12.61
CN¥21.16
+67.8%
19.5%CN¥27.00CN¥18.02CN¥17.573
Jun ’24CN¥12.05
CN¥21.16
+75.6%
19.5%CN¥27.00CN¥18.02CN¥16.423
May ’24CN¥13.18
CN¥21.16
+60.5%
19.5%CN¥27.00CN¥18.02CN¥16.593
Apr ’24CN¥14.75
CN¥21.38
+44.9%
16.8%CN¥27.00CN¥18.02CN¥16.844
Mar ’24CN¥16.24
CN¥22.73
+39.9%
18.8%CN¥27.00CN¥18.45CN¥15.262

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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