North Huajin Chemical IndustriesLtd Valuation

Q: What is the Fair Price of 000059 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

000059 (CN¥5.22) is trading above our estimate of [[fair value]] (CN¥0.7)

Is 000059 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-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 000059 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 000059 (CN¥5.22) is trading above our estimate of fair value (CN¥0.7)

Significantly Below Fair Value: 000059 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 000059?

Key metric: As 000059 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 000059. This is calculated by dividing 000059's market cap by their current revenue.
What is 000059's PS Ratio?
PS Ratio	0.2x
Sales	CN¥37.67b
Market Cap	CN¥8.35b

000059 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	0.4x
Enterprise Value/EBITDA	39.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 000059's PS Ratio compare to its peers?

The above table shows the PS ratio for 000059 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	2.6x
603299 Jiang Su Suyan JingshenLtd	1.5x	n/a	CN¥8.4b
600618 Shanghai Chlor-Alkali Chemical	1.4x	n/a	CN¥8.8b
300848 Miracll ChemicalsLtd	4.8x	59.3%	CN¥7.7b
000420 Jilin Chemical Fibre StockLtd	2.7x	15.8%	CN¥9.1b
000059 North Huajin Chemical IndustriesLtd	0.2x	15.1%	CN¥8.3b

Price-To-Sales vs Peers: 000059 is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (2.6x).

Price to Sales Ratio vs Industry

How does 000059's PS Ratio compare vs other companies in the CN Chemicals Industry?

24 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	2.4x	16.2%
000059 North Huajin Chemical IndustriesLtd	0.2x	15.1%	US$1.15b
600346 Hengli PetrochemicalLtd	0.4x	4.3%	US$13.80b
002493 Rongsheng Petrochemical	0.3x	8.5%	US$12.60b

24 Companies		Estimated Growth	Market Cap
Industry Avg.	2.4x	39.6%
000059 North Huajin Chemical IndustriesLtd	0.2x	125.7%	US$1.15b

No more companies

Price-To-Sales vs Industry: 000059 is good value based on its Price-To-Sales Ratio (0.2x) compared to the CN Chemicals industry average (2.4x).

Price to Sales Ratio vs Fair Ratio

What is 000059'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.

000059 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.2x
Fair PS Ratio	1.2x

Price-To-Sales vs Fair Ratio: 000059 is good value based on its Price-To-Sales Ratio (0.2x) 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?

Analyst Forecast: Insufficient data to show price forecast.

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