Hengong Precision Equipment Valuation

Q: What is the Fair Price of 301261 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

301261 (CN¥40.66) is trading above our estimate of [[fair value]] (CN¥7.09)

Is 301261 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 301261 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 301261 (CN¥40.66) is trading above our estimate of fair value (CN¥7.09)

Significantly Below Fair Value: 301261 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 301261?

Key metric: As 301261 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 301261. This is calculated by dividing 301261's market cap by their current earnings.
What is 301261's PE Ratio?
PE Ratio	25.3x
Earnings	CN¥141.40m
Market Cap	CN¥3.57b

301261 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	3.8x
Enterprise Value/EBITDA	22x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does 301261's PE Ratio compare to its peers?

The above table shows the PE ratio for 301261 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	32x
600784 Luyin Investment GroupLtd	15x	n/a	CN¥4.0b
600980 BGRIMM Technology	30.1x	n/a	CN¥3.0b
603315 Liaoning Fu-An Heavy IndustryLtd	33.8x	n/a	CN¥3.3b
002290 Suzhou Hesheng Special Material	49.3x	n/a	CN¥4.1b
301261 Hengong Precision Equipment	25.3x	23.7%	CN¥3.6b

Price-To-Earnings vs Peers: 301261 is good value based on its Price-To-Earnings Ratio (25.3x) compared to the peer average (32x).

Price to Earnings Ratio vs Industry

How does 301261's PE Ratio compare vs other companies in the CN Metals and Mining Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
600117 Xining Special Steel.Co.Ltd	3.4x	n/a	US$1.15b

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 301261 is good value based on its Price-To-Earnings Ratio (25.3x) compared to the CN Metals and Mining industry average (27.7x).

Price to Earnings Ratio vs Fair Ratio

What is 301261'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.

301261 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	25.3x
Fair PE Ratio	22.9x

Price-To-Earnings vs Fair Ratio: 301261 is expensive based on its Price-To-Earnings Ratio (25.3x) 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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