Guangdong Haomei New Materials Co.,Ltd

SZSE:002988 Stock Report

Market Cap: CN¥4.7b

Guangdong Haomei New MaterialsLtd Valuation

Is 002988 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 002988 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002988 (CN¥19.65) is trading above our estimate of fair value (CN¥7.88)

Significantly Below Fair Value: 002988 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 002988?

Key metric: As 002988 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 002988. This is calculated by dividing 002988's market cap by their current earnings.
What is 002988's PE Ratio?
PE Ratio20.5x
EarningsCN¥228.85m
Market CapCN¥4.70b

Price to Earnings Ratio vs Peers

How does 002988's PE Ratio compare to its peers?

The above table shows the PE ratio for 002988 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average56.4x
603211 Jintuo Technology
91.6xn/aCN¥5.1b
002824 Guangdong Hoshion Industrial Aluminium
67.7x20.4%CN¥6.3b
002160 Jiangsu Alcha Aluminium Group
44.5xn/aCN¥4.0b
002996 Chongqing Shunbo AluminumLtd
21.9xn/aCN¥4.5b
002988 Guangdong Haomei New MaterialsLtd
20.5x27.3%CN¥4.7b

Price-To-Earnings vs Peers: 002988 is good value based on its Price-To-Earnings Ratio (20.5x) compared to the peer average (56.4x).

Price to Earnings Ratio vs Industry

How does 002988's PE Ratio compare vs other companies in the CN Metals and Mining Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
600117 Xining Special Steel.Co.Ltd
3.5xn/aUS$1.20b
No more companies available in this PE range
002988 20.5xIndustry Avg. 28.4xNo. of Companies24PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 002988 is good value based on its Price-To-Earnings Ratio (20.5x) compared to the CN Metals and Mining industry average (28x).

Price to Earnings Ratio vs Fair Ratio

What is 002988'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.

002988 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.5x
Fair PE Ratio22.9x

Price-To-Earnings vs Fair Ratio: 002988 is good value based on its Price-To-Earnings Ratio (20.5x) compared to the estimated Fair Price-To-Earnings Ratio (22.9x).

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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