Jiangsu Lopal Tech Valuation

Is 603906 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 603906 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603906 (CN¥10.1) is trading below our estimate of fair value (CN¥34.04)

Significantly Below Fair Value: 603906 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603906?

Key metric: As 603906 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 603906. This is calculated by dividing 603906's market cap by their current revenue.
What is 603906's PS Ratio?
PS Ratio	0.8x
Sales	CN¥7.90b
Market Cap	CN¥6.05b

603906 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	1.7x
Enterprise Value/EBITDA	-40.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 603906's PS Ratio compare to its peers?

The above table shows the PS ratio for 603906 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	3.4x
300596 Rianlon	1.1x	17.0%	CN¥6.3b
605020 Zhejiang Yonghe Refrigerant	1.5x	12.5%	CN¥6.6b
603067 Hubei Zhenhua ChemicalLtd	1.7x	12.2%	CN¥6.6b
301071 Henan Liliang Diamond	9.3x	25.2%	CN¥6.8b
603906 Jiangsu Lopal Tech	0.8x	25.7%	CN¥6.0b

Price-To-Sales vs Peers: 603906 is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (3.4x).

Price to Sales Ratio vs Industry

How does 603906's PS Ratio compare vs other companies in the CN Chemicals Industry?

16 Companies	Price / Sales	Estimated Growth	Market Cap
002493 Rongsheng Petrochemical	0.3x	9.3%	US$12.47b
000301 Jiangsu Eastern ShenghongLtd	0.4x	6.8%	US$8.00b
601233 Tongkun Group	0.3x	4.6%	US$3.80b
000703 Hengyi Petrochemical	0.2x	5.1%	US$2.87b

16 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 603906 is good value based on its Price-To-Sales Ratio (0.8x) compared to the CN Chemicals industry average (2.3x).

Price to Sales Ratio vs Fair Ratio

What is 603906'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.

603906 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.8x
Fair PS Ratio	1.2x

Price-To-Sales vs Fair Ratio: 603906 is good value based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).

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 603906 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¥10.10	CN¥10.82 +7.1%	1.7%	CN¥11.00	CN¥10.63	n/a	2
Nov ’25	CN¥9.37	CN¥10.82 +15.4%	1.7%	CN¥11.00	CN¥10.63	n/a	2
Oct ’25	CN¥9.04	CN¥9.75 +7.9%	12.8%	CN¥11.00	CN¥8.50	n/a	2
Sep ’25	CN¥6.87	CN¥9.75 +41.9%	12.8%	CN¥11.00	CN¥8.50	n/a	2
Aug ’25	CN¥7.22	CN¥11.55 +60.0%	4.8%	CN¥12.10	CN¥11.00	n/a	2
Jul ’25	CN¥7.94	CN¥11.55 +45.5%	4.8%	CN¥12.10	CN¥11.00	n/a	2
Dec ’24	CN¥12.06	CN¥24.50 +103.2%	6.1%	CN¥26.00	CN¥23.00	n/a	2
Nov ’24	CN¥12.53	CN¥24.50 +95.5%	6.1%	CN¥26.00	CN¥23.00	CN¥9.37	2
Oct ’24	CN¥12.20	CN¥24.50 +100.8%	6.1%	CN¥26.00	CN¥23.00	CN¥9.04	2
Sep ’24	CN¥12.76	CN¥24.50 +92.0%	6.1%	CN¥26.00	CN¥23.00	CN¥6.87	2
Aug ’24	CN¥15.85	CN¥24.50 +54.6%	6.1%	CN¥26.00	CN¥23.00	CN¥7.22	2
Jul ’24	CN¥18.15	CN¥24.50 +35.0%	6.1%	CN¥26.00	CN¥23.00	CN¥7.94	2
Jun ’24	CN¥19.31	CN¥24.50 +26.9%	6.1%	CN¥26.00	CN¥23.00	CN¥9.38	2

Analyst Forecast: Target price is less than 20% higher than the current share price.

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