Fujian Kuncai Material Technology Valuation

Q: What is the Fair Price of 603826 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

603826 (CN¥22.21) is trading below our estimate of [[fair value]] (CN¥61.29)

Is 603826 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-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 603826 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603826 (CN¥22.21) is trading below our estimate of fair value (CN¥61.29)

Significantly Below Fair Value: 603826 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603826?

Key metric: As 603826 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 603826. This is calculated by dividing 603826's market cap by their current revenue.
What is 603826's PS Ratio?
PS Ratio	15x
Sales	CN¥971.18m
Market Cap	CN¥14.55b

603826 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	17.1x
Enterprise Value/EBITDA	57.6x
PEG Ratio	1.7x

Price to Sales Ratio vs Peers

How does 603826's PS Ratio compare to its peers?

The above table shows the PS ratio for 603826 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	10.1x
300576 Shenzhen RongDa Photosensitive Science & Technology	15.8x	n/a	CN¥14.3b
600884 Ningbo ShanshanLtd	1.1x	18.8%	CN¥19.7b
688116 Jiangsu Cnano Technology	10.7x	37.8%	CN¥14.8b
300346 Jiangsu Nata Opto-electronic Material	12.9x	21.8%	CN¥20.7b
603826 Fujian Kuncai Material Technology	15x	38.0%	CN¥14.6b

Price-To-Sales vs Peers: 603826 is expensive based on its Price-To-Sales Ratio (15x) compared to the peer average (10.1x).

Price to Sales Ratio vs Industry

How does 603826's PS Ratio compare vs other companies in the CN Chemicals Industry?

16 Companies	Price / Sales	Estimated Growth	Market Cap
002493 Rongsheng Petrochemical	0.3x	9.3%	US$12.47b
000301 Jiangsu Eastern ShenghongLtd	0.4x	6.8%	US$8.00b
601233 Tongkun Group	0.3x	4.6%	US$3.80b
000703 Hengyi Petrochemical	0.2x	5.1%	US$2.87b

16 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 603826 is expensive based on its Price-To-Sales Ratio (15x) compared to the CN Chemicals industry average (2.4x).

Price to Sales Ratio vs Fair Ratio

What is 603826'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.

603826 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	15x
Fair PS Ratio	6.2x

Price-To-Sales vs Fair Ratio: 603826 is expensive based on its Price-To-Sales Ratio (15x) compared to the estimated Fair Price-To-Sales Ratio (6.2x).

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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