Jiangsu Asia-Pacific Light Alloy Technology Valuation

Q: What is the Fair Price of 002540 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

002540 (CN¥5.85) is trading above our estimate of [[fair value]] (CN¥3.2)

Is 002540 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 002540 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002540 (CN¥5.85) is trading above our estimate of fair value (CN¥3.2)

Significantly Below Fair Value: 002540 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 002540?

Key metric: As 002540 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 002540. This is calculated by dividing 002540's market cap by their current earnings.
What is 002540's PE Ratio?
PE Ratio	13.9x
Earnings	CN¥518.68m
Market Cap	CN¥7.22b

002540 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	0.9x
Enterprise Value/EBITDA	9x
PEG Ratio	0.6x

Price to Earnings Ratio vs Peers

How does 002540's PE Ratio compare to its peers?

The above table shows the PE ratio for 002540 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	45.2x
000612 JiaoZuo WanFang Aluminum Manufacturing	10.2x	n/a	CN¥7.8b
002824 Guangdong Hoshion Industrial Aluminium	61.5x	20.4%	CN¥5.7b
603876 Jiangsu Dingsheng New Materials Ltd	29x	30.9%	CN¥8.4b
603211 Jintuo Technology	80.2x	n/a	CN¥4.5b
002540 Jiangsu Asia-Pacific Light Alloy Technology	13.9x	22.0%	CN¥7.2b

Price-To-Earnings vs Peers: 002540 is good value based on its Price-To-Earnings Ratio (13.9x) compared to the peer average (45.2x).

Price to Earnings Ratio vs Industry

How does 002540'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: 002540 is good value based on its Price-To-Earnings Ratio (13.9x) compared to the CN Metals and Mining industry average (27.6x).

Price to Earnings Ratio vs Fair Ratio

What is 002540'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.

002540 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	13.9x
Fair PE Ratio	19.8x

Price-To-Earnings vs Fair Ratio: 002540 is good value based on its Price-To-Earnings Ratio (13.9x) compared to the estimated Fair Price-To-Earnings Ratio (19.8x).

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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