Sunstone Development Valuation

Q: What is the Fair Price of 603612 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

603612 (CN¥13.35) is trading below our estimate of [[fair value]] (CN¥29.34)

Is 603612 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 603612 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603612 (CN¥13.35) is trading below our estimate of fair value (CN¥29.34)

Significantly Below Fair Value: 603612 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603612?

Key metric: As 603612 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 603612. This is calculated by dividing 603612's market cap by their current revenue.
What is 603612's PS Ratio?
PS Ratio	0.5x
Sales	CN¥13.30b
Market Cap	CN¥7.22b

603612 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	1.1x
Enterprise Value/EBITDA	21.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 603612's PS Ratio compare to its peers?

The above table shows the PS ratio for 603612 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	4.5x
605183 Quechen Silicon Chemical	3.3x	13.2%	CN¥7.0b
601208 Sichuan Em Technology	1.7x	20.9%	CN¥7.2b
300109 Boai NKY Medical Holdings	4.9x	n/a	CN¥7.3b
603078 Jiangyin Jianghua Microelectronics Materials	8.2x	24.8%	CN¥8.8b
603612 Sunstone Development	0.5x	23.6%	CN¥7.2b

Price-To-Sales vs Peers: 603612 is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (4.5x).

Price to Sales Ratio vs Industry

How does 603612's PS Ratio compare vs other companies in the CN Chemicals Industry?

24 Companies	Price / Sales	Estimated Growth	Market Cap
600346 Hengli PetrochemicalLtd	0.4x	4.3%	US$13.80b
002493 Rongsheng Petrochemical	0.3x	8.5%	US$12.60b
000301 Jiangsu Eastern ShenghongLtd	0.4x	6.8%	US$8.54b
601233 Tongkun Group	0.3x	4.6%	US$3.76b

24 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 603612 is good value based on its Price-To-Sales Ratio (0.5x) compared to the CN Chemicals industry average (2.4x).

Price to Sales Ratio vs Fair Ratio

What is 603612'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.

603612 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.5x
Fair PS Ratio	1.3x

Price-To-Sales vs Fair Ratio: 603612 is good value based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).

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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