Shanghai Newtouch Software Co., Ltd.

SHSE:688590 Stock Report

Market Cap: CN¥5.8b

Shanghai Newtouch Software Valuation

Is 688590 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 688590 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
CN¥1.26
Fair Value
1.7k% overvalued intrinsic discount
1
Number of Analysts

Below Fair Value: 688590 (CN¥22.56) is trading above our estimate of fair value (CN¥1.26)

Significantly Below Fair Value: 688590 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 688590?

Key metric: As 688590 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 688590. This is calculated by dividing 688590's market cap by their current revenue.
What is 688590's PS Ratio?
PS Ratio2.8x
SalesCN¥2.09b
Market CapCN¥5.81b

Price to Sales Ratio vs Peers

How does 688590's PS Ratio compare to its peers?

The above table shows the PS ratio for 688590 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3x
300542 Brilliance Technology
3.8xn/aCN¥6.0b
301179 Jiangsu Zeyu Intelligent PowerLtd
5.3x22.0%CN¥6.4b
000948 Yunnan Nantian Electronics InformationLtd
0.8xn/aCN¥7.8b
002184 Shanghai Hi-Tech Control System
1.8xn/aCN¥5.0b
688590 Shanghai Newtouch Software
2.8x23.3%CN¥5.8b

Price-To-Sales vs Peers: 688590 is good value based on its Price-To-Sales Ratio (2.8x) compared to the peer average (3x).


Price to Sales Ratio vs Industry

How does 688590's PS Ratio compare vs other companies in the CN IT Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
000034 Digital China Group
0.3x5.8%US$4.41b
000555 Digital China Information Service Group
1x9.7%US$1.71b
002649 Beyondsoft
1.3x12.4%US$1.20b
000948 Yunnan Nantian Electronics InformationLtd
0.8xn/aUS$1.07b
688590 2.8xIndustry Avg. 6.3xNo. of Companies19PS0612182430+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 688590 is good value based on its Price-To-Sales Ratio (2.8x) compared to the CN IT industry average (6.3x).


Price to Sales Ratio vs Fair Ratio

What is 688590'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.

688590 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.8x
Fair PS Ratio2.7x

Price-To-Sales vs Fair Ratio: 688590 is expensive based on its Price-To-Sales Ratio (2.8x) compared to the estimated Fair Price-To-Sales Ratio (2.7x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Price Target
Consensus Narrative from 1 Analyst
CN¥27.72
Fair Value
18.6% undervalued intrinsic discount
1
Number of Analysts

Analyst Forecast: Insufficient data to show price forecast.


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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/03/16 05:05
End of Day Share Price 2025/03/14 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Shanghai Newtouch Software Co., Ltd. is covered by 1 analysts. 1 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Lin YangHaitong International Research Limited