Chengdu Kanghong Pharmaceutical Group Valuation

Q: What is the Fair Price of 002773 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

002773 (CN¥20.48) is trading below our estimate of [[fair value]] (CN¥54.07)

Is 002773 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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 002773 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002773 (CN¥20.48) is trading below our estimate of fair value (CN¥54.07)

Significantly Below Fair Value: 002773 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 002773?

Key metric: As 002773 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 002773. This is calculated by dividing 002773's market cap by their current earnings.
What is 002773's PE Ratio?
PE Ratio	15.8x
Earnings	CN¥1.19b
Market Cap	CN¥18.84b

002773 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	3x
Enterprise Value/EBITDA	8.7x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does 002773's PE Ratio compare to its peers?

The above table shows the PE ratio for 002773 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	27.8x
000739 Apeloa PharmaceuticalLtd	17.9x	16.6%	CN¥19.3b
300558 Betta Pharmaceuticals	50.4x	26.7%	CN¥23.2b
600329 Tianjin Pharmaceutical Da Ren Tang Group	26.6x	20.8%	CN¥21.6b
600062 China Resources Double-Crane PharmaceuticalLtd	16.2x	16.6%	CN¥21.9b
002773 Chengdu Kanghong Pharmaceutical Group	15.8x	13.4%	CN¥18.8b

Price-To-Earnings vs Peers: 002773 is good value based on its Price-To-Earnings Ratio (15.8x) compared to the peer average (27.8x).

Price to Earnings Ratio vs Industry

How does 002773's PE Ratio compare vs other companies in the CN Pharmaceuticals Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 002773 is good value based on its Price-To-Earnings Ratio (15.8x) compared to the CN Pharmaceuticals industry average (32x).

Price to Earnings Ratio vs Fair Ratio

What is 002773'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.

002773 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.8x
Fair PE Ratio	25.3x

Price-To-Earnings vs Fair Ratio: 002773 is good value based on its Price-To-Earnings Ratio (15.8x) compared to the estimated Fair Price-To-Earnings Ratio (25.3x).

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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