Chongqing Lummy Pharmaceutical Valuation

Q: What is the Fair Price of 300006 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

300006 (CN¥4.85) is trading below our estimate of [[fair value]] (CN¥17.02)

Is 300006 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 300006 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 300006 (CN¥4.85) is trading below our estimate of fair value (CN¥17.02)

Significantly Below Fair Value: 300006 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 300006?

Key metric: As 300006 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 300006. This is calculated by dividing 300006's market cap by their current revenue.
What is 300006's PS Ratio?
PS Ratio	6x
Sales	CN¥856.48m
Market Cap	CN¥5.12b

300006 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	5.2x
Enterprise Value/EBITDA	-1224x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 300006's PS Ratio compare to its peers?

The above table shows the PS ratio for 300006 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	11.6x
300158 Shanxi Zhendong PharmaceuticalLtd	1.6x	n/a	CN¥4.9b
000908 Hunan Jingfeng PharmaceuticalLtd	11.7x	n/a	CN¥4.7b
600851 Shanghai Haixin Group	8.5x	n/a	CN¥5.4b
603718 Shanghai Hile Bio-Technology	24.7x	n/a	CN¥5.5b
300006 Chongqing Lummy Pharmaceutical	6x	n/a	CN¥5.1b

Price-To-Sales vs Peers: 300006 is good value based on its Price-To-Sales Ratio (6x) compared to the peer average (11.6x).

Price to Sales Ratio vs Industry

How does 300006's PS Ratio compare vs other companies in the CN Pharmaceuticals Industry?

6 Companies	Price / Sales	Estimated Growth	Market Cap
600664 Harbin Pharmaceutical Group	0.6x	n/a	US$1.30b
000411 Zhejiang Int'l GroupLtd	0.2x	n/a	US$790.12m
000153 Anhui Fengyuan Pharmaceutical	0.7x	n/a	US$413.04m
600781 FUREN Group PharmaceuticalLtd	0.3x	n/a	US$66.91m

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 300006 is expensive based on its Price-To-Sales Ratio (6x) compared to the CN Pharmaceuticals industry average (3.6x).

Price to Sales Ratio vs Fair Ratio

What is 300006'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.

300006 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	6x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 300006's Price-To-Sales Fair Ratio for valuation analysis.

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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