Shanghai Yongguan Adhesive Products Valuation

Q: What is the Fair Price of 603681 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

603681 (CN¥13.17) is trading above our estimate of [[fair value]] (CN¥3.27)

Is 603681 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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 603681 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603681 (CN¥13.17) is trading above our estimate of fair value (CN¥3.27)

Significantly Below Fair Value: 603681 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603681?

Key metric: As 603681 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 603681. This is calculated by dividing 603681's market cap by their current earnings.
What is 603681's PE Ratio?
PE Ratio	15x
Earnings	CN¥160.88m
Market Cap	CN¥2.42b

603681 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	0.7x
Enterprise Value/EBITDA	10.4x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does 603681's PE Ratio compare to its peers?

The above table shows the PE ratio for 603681 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	27.9x
688386 Pan Asian Microvent Tech (Jiangsu)	24.4x	n/a	CN¥2.3b
300644 Nanjing Julong Science & TechnologyLTD	32.5x	n/a	CN¥2.5b
301283 Focus Hotmelt	22.7x	36.8%	CN¥2.2b
603683 Shanghai Smith Adhesive New MaterialLtd	32x	n/a	CN¥2.7b
603681 Shanghai Yongguan Adhesive Products	15x	21.7%	CN¥2.4b

Price-To-Earnings vs Peers: 603681 is good value based on its Price-To-Earnings Ratio (15x) compared to the peer average (27.9x).

Price to Earnings Ratio vs Industry

How does 603681's PE Ratio compare vs other companies in the CN Chemicals Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 603681 is good value based on its Price-To-Earnings Ratio (15x) compared to the CN Chemicals industry average (35.6x).

Price to Earnings Ratio vs Fair Ratio

What is 603681'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.

603681 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15x
Fair PE Ratio	18.1x

Price-To-Earnings vs Fair Ratio: 603681 is good value based on its Price-To-Earnings Ratio (15x) compared to the estimated Fair Price-To-Earnings Ratio (18.1x).

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 603681 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CN¥13.17	CN¥18.34 +39.3%	1.9%	CN¥18.68	CN¥18.00	n/a	2
Nov ’25	CN¥12.44	CN¥18.34 +47.4%	1.9%	CN¥18.68	CN¥18.00	n/a	2
May ’24	CN¥17.39	CN¥32.02 +84.1%	8.6%	CN¥34.77	CN¥29.26	CN¥14.04	2
Apr ’24	CN¥21.71	CN¥32.02 +47.5%	8.6%	CN¥34.77	CN¥29.26	CN¥12.87	2
Mar ’24	CN¥24.05	CN¥32.02 +33.1%	8.6%	CN¥34.77	CN¥29.26	CN¥11.95	2
Feb ’24	CN¥25.29	CN¥32.02 +26.6%	8.6%	CN¥34.77	CN¥29.26	CN¥11.87	2
Jan ’24	CN¥21.38	CN¥32.02 +49.7%	8.6%	CN¥34.77	CN¥29.26	CN¥15.10	2
Dec ’23	CN¥23.51	CN¥32.02 +36.2%	8.6%	CN¥34.77	CN¥29.26	CN¥14.99	2

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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