Shanghai Shyndec Pharmaceutical Valuation

Q: What is the Fair Price of 600420 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

600420 (CN¥12.1) is trading below our estimate of [[fair value]] (CN¥36.06)

Is 600420 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 600420 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600420 (CN¥12.1) is trading below our estimate of fair value (CN¥36.06)

Significantly Below Fair Value: 600420 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600420?

Key metric: As 600420 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600420. This is calculated by dividing 600420's market cap by their current earnings.
What is 600420's PE Ratio?
PE Ratio	15x
Earnings	CN¥1.08b
Market Cap	CN¥16.23b

600420 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	1.2x
Enterprise Value/EBITDA	6x
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

How does 600420's PE Ratio compare to its peers?

The above table shows the PE ratio for 600420 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	24.3x
600867 Tonghua Dongbao Pharmaceutical	47.6x	69.7%	CN¥16.3b
600216 Zhejiang Medicine	15.7x	15.2%	CN¥15.3b
002773 Chengdu Kanghong Pharmaceutical Group	14.7x	13.4%	CN¥17.5b
002332 Zhejiang Xianju PharmaceuticalLtd	19.1x	22.0%	CN¥11.9b
600420 Shanghai Shyndec Pharmaceutical	15x	16.0%	CN¥16.2b

Price-To-Earnings vs Peers: 600420 is good value based on its Price-To-Earnings Ratio (15x) compared to the peer average (24.3x).

Price to Earnings Ratio vs Industry

How does 600420'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: 600420 is good value based on its Price-To-Earnings Ratio (15x) compared to the CN Pharmaceuticals industry average (29.6x).

Price to Earnings Ratio vs Fair Ratio

What is 600420'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.

600420 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15x
Fair PE Ratio	25.9x

Price-To-Earnings vs Fair Ratio: 600420 is good value based on its Price-To-Earnings Ratio (15x) compared to the estimated Fair Price-To-Earnings Ratio (25.9x).

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.

Discover undervalued companies

Jiangsu Kanion PharmaceuticalLtd

CN¥8.1b

Researches and develops, produces, and sells Chinese medicines.

600557

CN¥14.29

-4.2%

-23.6%

China Resources Double-Crane PharmaceuticalLtd

CN¥21.4b

China Resources Double-Crane Pharmaceutical Co.,Ltd.

600062

CN¥20.80

-3.9%

12.1%

Hunan Jiudian Pharmaceutical

CN¥11.5b

Researches, develops, produces, and sells pharmaceutical products in China and internationally.

300705

CN¥23.19

-2.6%

13.6%