Befar GroupLtd (SHSE:601678) - Share price, News & Analysis

Q: What is the Fair Price of 601678 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

601678 (CN¥5.95) is trading above our estimate of [[fair value]] (CN¥2.36)

601678 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	5/6
Financial Health	5/6
Dividends	4/6

601678 Stock Overview

Befar Group Co.,Ltd primarily produces and sells caustic soda and propylene oxide in China.

Rewards

Price-To-Earnings ratio (8.1x) is below the CN market (34.2x)

Earnings grew by 55.7% over the past year

Risk Analysis

Dividend of 2.52% is not well covered by earnings

Shareholders have been diluted in the past year

Befar GroupLtd Competitors

China Kings Resources GroupLtd

SHSE:603505

CN¥12.7b

Shandong Head GroupLtd

SZSE:002810

CN¥12.4b

Tangshan Sunfar Silicon IndustriesLtd

SHSE:603938

CN¥13.7b

Anhui Wanwei Updated High-Tech Material IndustryLtd

SHSE:600063

CN¥15.1b

Price History & Performance

Summary of all time highs, changes and price drops for Befar GroupLtd
Historical stock prices
Current Share Price	CN¥5.95
52 Week High	CN¥14.20
52 Week Low	CN¥4.89
Beta	0.97
1 Month Change	3.66%
3 Month Change	-8.74%
1 Year Change	-21.50%
3 Year Change	-11.19%
5 Year Change	5.96%
Change since IPO	-5.67%

Shareholder Returns

	601678	CN Chemicals	CN Market
7D	-3.1%	1.2%	1.3%
1Y	-21.5%	9.2%	-6.8%

Return vs Industry: 601678 underperformed the CN Chemicals industry which returned 9.2% over the past year.

Return vs Market: 601678 underperformed the CN Market which returned -6.8% over the past year.

Price Volatility

Is 601678's price volatile compared to industry and market?
601678 volatility
601678 Average Weekly Movement	5.8%
Chemicals Industry Average Movement	7.4%
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: 601678 is less volatile than 75% of CN stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 601678's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1968	3,281	Shu Wang	https://www.befar.com

Befar Group Co.,Ltd primarily produces and sells caustic soda and propylene oxide in China. The company offers propylene oxide; hydrochloric acid; hydrogen peroxide; trichloroethylene; epichlorohydrin; di-chloropropane solvents; propylene chloride; fluorochemicals; auxiliary products, such as water-soluble and oil-soluble demulsifiers, desalting demulsifiers for refinery, polyoxyethylene non-ionic surfactants, surfactants, drainage acids, acidizing corrosion inhibitors, heavy oil viscosity reducers, and inverse demulsifiers; polyether products; sodium hypochlorite solution, and sodium sulfate decahydrate. Befar Group Co.,Ltd also exports its products to 100 countries and regions worldwide.

Befar GroupLtd Fundamentals Summary

How do Befar GroupLtd's earnings and revenue compare to its market cap?
601678 fundamental statistics
Market Cap	CN¥12.22b
Earnings (TTM)	CN¥1.50b
Revenue (TTM)	CN¥9.39b

8.1x

P/E Ratio

1.3x

P/S Ratio

Is 601678 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
601678 income statement (TTM)
Revenue	CN¥9.39b
Cost of Revenue	CN¥6.07b
Gross Profit	CN¥3.32b
Other Expenses	CN¥1.82b
Earnings	CN¥1.50b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.73
Gross Margin	35.37%
Net Profit Margin	15.99%
Debt/Equity Ratio	41.5%

How did 601678 perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

17%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 601678 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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 601678?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 601678. This is calculated by dividing 601678's market cap by their current preferred multiple.
What is 601678's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥12.22b

601678 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	1.4x
Enterprise Value/EBITDA	4.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 601678's PE Ratio compare to its peers?

601678 PE Ratio vs Peers

The above table shows the PE ratio for 601678 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	33.3x
603505 China Kings Resources GroupLtd	54.1x	35.5%	CN¥12.7b
002810 Shandong Head GroupLtd	35.7x	32.6%	CN¥12.4b
603938 Tangshan Sunfar Silicon IndustriesLtd	31.7x	26.0%	CN¥13.7b
600063 Anhui Wanwei Updated High-Tech Material IndustryLtd	11.9x	9.4%	CN¥15.1b
601678 Befar GroupLtd	8.1x	n/a	CN¥12.2b

Forward PE

Price-To-Earnings vs Peers: 601678 is good value based on its Price-To-Earnings Ratio (8.1x) compared to the peer average (33.3x).

Price to Earnings Ratio vs Industry

How does 601678's PE Ratio compare vs other companies in the CN Chemicals Industry?

Price-To-Earnings vs Industry: 601678 is good value based on its Price-To-Earnings Ratio (8.1x) compared to the CN Chemicals industry average (28.1x)

Price to Earnings Ratio vs Fair Ratio

What is 601678'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.

601678 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 601678's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 601678 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 601678 (CN¥5.95) is trading above our estimate of fair value (CN¥2.36)

Significantly Below Fair Value: 601678 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 601678's PEG Ratio to determine if it is good value.

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Future Growth

How is Befar GroupLtd forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

22.3%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Befar GroupLtd has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Check out Befar GroupLtd's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.

Past Performance

How has Befar GroupLtd performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

15.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 601678 has high quality earnings.

Growing Profit Margin: 601678's current net profit margins (16%) are higher than last year (13.5%).

Past Earnings Growth Analysis

Earnings Trend: 601678's earnings have grown by 15.8% per year over the past 5 years.

Accelerating Growth: 601678's earnings growth over the past year (55.7%) exceeds its 5-year average (15.8% per year).

Earnings vs Industry: 601678 earnings growth over the past year (55.7%) exceeded the Chemicals industry 22.2%.

Return on Equity

High ROE: 601678's Return on Equity (13.9%) is considered low.

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Financial Health

How is Befar GroupLtd'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: 601678's short term assets (CN¥6.1B) exceed its short term liabilities (CN¥4.9B).

Long Term Liabilities: 601678's short term assets (CN¥6.1B) exceed its long term liabilities (CN¥2.3B).

Debt to Equity History and Analysis

Debt Level: 601678's net debt to equity ratio (7.1%) is considered satisfactory.

Reducing Debt: 601678's debt to equity ratio has increased from 30.1% to 41.5% over the past 5 years.

Debt Coverage: 601678's debt is well covered by operating cash flow (34.2%).

Interest Coverage: 601678's interest payments on its debt are well covered by EBIT (24.2x coverage).

Balance Sheet

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Dividend

What is Befar GroupLtd current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

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

2.52%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 601678's dividend (2.52%) is higher than the bottom 25% of dividend payers in the CN market (0.48%).

High Dividend: 601678's dividend (2.52%) is in the top 25% of dividend payers in the CN market (1.92%)

Stability and Growth of Payments

Stable Dividend: 601678's dividend payments have been volatile in the past 10 years.

Growing Dividend: 601678's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (16.8%), 601678's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 601678 is paying a dividend but the company has no free cash flows.

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Management

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

CEO

Shu Wang (58 yo)

7.33yrs

Tenure

Mr. Shu hua Wang serves as Vice Chairman at Befar Group Co., Ltd., and has been its General Manager since March 12, 2015.

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 been diluted in the past year, with total shares outstanding growing by 8.7%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/02 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31