Shanghai Huafon Aluminium Valuation

Is 601702 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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 601702 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 601702 (CN¥16.27) is trading below our estimate of fair value (CN¥17.95)

Significantly Below Fair Value: 601702 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 601702?

Key metric: As 601702 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 601702. This is calculated by dividing 601702's market cap by their current earnings.
What is 601702's PE Ratio?
PE Ratio	14.7x
Earnings	CN¥1.10b
Market Cap	CN¥15.70b

601702 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	1.6x
Enterprise Value/EBITDA	11.2x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

How does 601702's PE Ratio compare to its peers?

The above table shows the PE ratio for 601702 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	39.9x
300337 Yinbang Clad MaterialLtd	119.5x	n/a	CN¥12.5b
600595 Henan Zhongfu IndustrialLtd	11.6x	24.4%	CN¥12.3b
601677 Henan Mingtai Al.IndustrialLtd	11x	12.7%	CN¥15.8b
300428 Lizhong Sitong Light Alloys Group	17.5x	21.8%	CN¥11.9b
601702 Shanghai Huafon Aluminium	14.7x	19.1%	CN¥15.7b

Price-To-Earnings vs Peers: 601702 is good value based on its Price-To-Earnings Ratio (14.7x) compared to the peer average (39.9x).

Price to Earnings Ratio vs Industry

How does 601702's PE Ratio compare vs other companies in the CN Metals and Mining Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
600117 Xining Special Steel.Co.Ltd	3.6x	n/a	US$1.20b

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 601702 is good value based on its Price-To-Earnings Ratio (14.7x) compared to the CN Metals and Mining industry average (28.4x).

Price to Earnings Ratio vs Fair Ratio

What is 601702'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.

601702 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.7x
Fair PE Ratio	20.6x

Price-To-Earnings vs Fair Ratio: 601702 is good value based on its Price-To-Earnings Ratio (14.7x) compared to the estimated Fair Price-To-Earnings Ratio (20.6x).

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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