Guangzhou Lushan New Materials Co., Ltd.

SHSE:603051 Stock Report

Market Cap: CN¥2.8b

Guangzhou Lushan New Materials Valuation

Is 603051 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-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 603051 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603051 (CN¥28.81) is trading below our estimate of fair value (CN¥301.88)

Significantly Below Fair Value: 603051 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603051?

Key metric: As 603051 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 603051. This is calculated by dividing 603051's market cap by their current revenue.
What is 603051's PS Ratio?
PS Ratio1.2x
SalesCN¥2.28b
Market CapCN¥2.78b

Price to Sales Ratio vs Peers

How does 603051's PS Ratio compare to its peers?

The above table shows the PS ratio for 603051 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.6x
301076 Sino-High (China)
6.6x30.3%CN¥2.7b
603683 Shanghai Smith Adhesive New MaterialLtd
1.5xn/aCN¥2.7b
605488 Zhejiang Fulai New MaterialLtd
1.3xn/aCN¥3.0b
300644 Nanjing Julong Science & TechnologyLTD
1.2xn/aCN¥2.6b
603051 Guangzhou Lushan New Materials
1.2xn/aCN¥2.8b

Price-To-Sales vs Peers: 603051 is good value based on its Price-To-Sales Ratio (1.2x) compared to the peer average (2.6x).

Price to Sales Ratio vs Industry

How does 603051's PS Ratio compare vs other companies in the CN Chemicals Industry?

24 CompaniesPrice / SalesEstimated GrowthMarket Cap
600346 Hengli PetrochemicalLtd
0.4x4.3%US$13.96b
002493 Rongsheng Petrochemical
0.3x8.5%US$12.61b
000301 Jiangsu Eastern ShenghongLtd
0.4x6.8%US$8.71b
601233 Tongkun Group
0.3x4.6%US$3.81b
603051 1.2xIndustry Avg. 2.5xNo. of Companies73PS0246810+
24 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 603051 is good value based on its Price-To-Sales Ratio (1.2x) compared to the CN Chemicals industry average (2.5x).

Price to Sales Ratio vs Fair Ratio

What is 603051'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.

603051 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.2x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 603051'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

Western MiningLtd

CN¥40.1b

Engages in the mining, smelting, and trading of metals in Mainland China and internationally.

601168

CN¥16.84

7D

-0.6%

1Y

30.7%

Yunnan Yuntianhua

CN¥40.0b

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

600096

CN¥21.96

7D

-0.5%

1Y

39.8%

Wanhua Chemical Group

CN¥233.3b

Provides polyurethane, petrochemical, and performance chemicals and materials worldwide.

600309

CN¥74.29

7D

0.5%

1Y

-5.8%