Sobute New Materials Co., Ltd

SHSE:603916 Stock Report

Market Cap: CN¥3.5b

Sobute New Materials Valuation

Is 603916 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 603916 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603916 (CN¥8.07) is trading above our estimate of fair value (CN¥4.57)

Significantly Below Fair Value: 603916 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603916?

Key metric: As 603916 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 603916. This is calculated by dividing 603916's market cap by their current earnings.
What is 603916's PE Ratio?
PE Ratio35.8x
EarningsCN¥97.59m
Market CapCN¥3.49b

Price to Earnings Ratio vs Peers

How does 603916's PE Ratio compare to its peers?

The above table shows the PE ratio for 603916 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average70.3x
603065 Suqian UnitechLtd
120.3xn/aCN¥3.4b
300225 Shanghai Kinlita Chemical
114.5xn/aCN¥3.3b
603062 MEGA P&C Advanced Materials (Shanghai)
25.6x28.6%CN¥3.9b
603285 Shandong Jianbang New Material
20.9xn/aCN¥3.6b
603916 Sobute New Materials
35.8x30.8%CN¥3.5b

Price-To-Earnings vs Peers: 603916 is good value based on its Price-To-Earnings Ratio (35.8x) compared to the peer average (70.3x).

Price to Earnings Ratio vs Industry

How does 603916's PE Ratio compare vs other companies in the CN Chemicals Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
603916 35.8xIndustry Avg. 35.2xNo. of Companies42PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 603916 is good value based on its Price-To-Earnings Ratio (35.8x) compared to the CN Chemicals industry average (36.4x).

Price to Earnings Ratio vs Fair Ratio

What is 603916'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.

603916 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.8x
Fair PE Ratio22.2x

Price-To-Earnings vs Fair Ratio: 603916 is expensive based on its Price-To-Earnings Ratio (35.8x) compared to the estimated Fair Price-To-Earnings Ratio (22.2x).

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 603916 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥8.07
CN¥9.25
+14.6%
7.5%CN¥10.00CN¥8.50n/a4
Nov ’25CN¥8.21
CN¥9.25
+12.6%
7.5%CN¥10.00CN¥8.50n/a4
Oct ’25CN¥8.22
CN¥8.91
+8.4%
7.6%CN¥10.00CN¥8.22n/a4
Sep ’25CN¥7.36
CN¥8.91
+21.1%
7.6%CN¥10.00CN¥8.22n/a4
Aug ’25CN¥6.55
CN¥9.86
+50.5%
2.2%CN¥10.10CN¥9.55n/a4
Jul ’25CN¥6.87
CN¥9.86
+43.5%
2.2%CN¥10.10CN¥9.55n/a4
Jun ’25CN¥8.24
CN¥9.86
+19.6%
2.2%CN¥10.10CN¥9.55n/a4
May ’25CN¥8.10
CN¥9.81
+21.1%
2.3%CN¥10.10CN¥9.55n/a3
Apr ’25CN¥8.61
CN¥14.13
+64.1%
8.4%CN¥15.00CN¥12.44n/a3
Mar ’25CN¥8.59
CN¥14.60
+69.9%
9.0%CN¥16.00CN¥12.44n/a4
Feb ’25CN¥8.38
CN¥14.60
+74.2%
9.0%CN¥16.00CN¥12.44n/a4
Jan ’25CN¥10.19
CN¥14.60
+43.2%
9.0%CN¥16.00CN¥12.44n/a4
Dec ’24CN¥11.84
CN¥14.60
+23.3%
9.0%CN¥16.00CN¥12.44n/a4
Nov ’24CN¥11.92
CN¥15.16
+27.2%
10.8%CN¥17.43CN¥12.44CN¥8.215
Oct ’24CN¥12.01
CN¥16.58
+38.0%
12.0%CN¥20.00CN¥14.46CN¥8.225
Sep ’24CN¥12.46
CN¥16.58
+33.0%
12.0%CN¥20.00CN¥14.46CN¥7.365
Aug ’24CN¥14.29
CN¥18.87
+32.1%
7.3%CN¥21.00CN¥17.43CN¥6.555
Jul ’24CN¥13.24
CN¥18.87
+42.6%
7.3%CN¥21.00CN¥17.43CN¥6.875
Jun ’24CN¥13.27
CN¥18.87
+42.2%
7.3%CN¥21.00CN¥17.43CN¥8.245
May ’24CN¥14.69
CN¥19.09
+30.0%
7.7%CN¥21.00CN¥17.43CN¥8.104
Apr ’24CN¥16.31
CN¥21.44
+31.5%
9.5%CN¥24.13CN¥19.20CN¥8.613
Mar ’24CN¥18.83
CN¥21.44
+13.9%
9.5%CN¥24.13CN¥19.20CN¥8.593
Feb ’24CN¥16.92
CN¥21.44
+26.7%
9.5%CN¥24.13CN¥19.20CN¥8.383
Jan ’24CN¥16.08
CN¥21.44
+33.4%
9.5%CN¥24.13CN¥19.20CN¥10.193
Dec ’23CN¥17.27
CN¥21.44
+24.2%
9.5%CN¥24.13CN¥19.20CN¥11.843
Nov ’23CN¥15.22
CN¥21.44
+40.9%
9.5%CN¥24.13CN¥19.20CN¥11.923

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

Discover undervalued companies

Yunnan Yuntianhua

CN¥40.3b

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

600096

CN¥22.08

7D

-1.3%

1Y

37.5%

Western MiningLtd

CN¥40.4b

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

601168

CN¥16.95

7D

-2.2%

1Y

32.2%

Wanhua Chemical Group

CN¥232.0b

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

600309

CN¥73.89

7D

-4.0%

1Y

-9.2%