Shenzhen Kingdom Sci-Tech Valuation

Q: What is the Fair Price of 600446 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

600446 (CN¥15.3) is trading below our estimate of [[fair value]] (CN¥28.02)

Is 600446 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-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 600446 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600446 (CN¥15.3) is trading below our estimate of fair value (CN¥28.02)

Significantly Below Fair Value: 600446 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600446?

Key metric: As 600446 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600446. This is calculated by dividing 600446's market cap by their current earnings.
What is 600446's PE Ratio?
PE Ratio	67.2x
Earnings	CN¥212.81m
Market Cap	CN¥14.29b

600446 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	2.4x
Enterprise Value/EBITDA	66x
PEG Ratio	2.1x

Price to Earnings Ratio vs Peers

How does 600446's PE Ratio compare to its peers?

The above table shows the PE ratio for 600446 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	64.7x
300682 Longshine Technology Group	25.8x	18.3%	CN¥14.4b
688088 ArcSoft	144.1x	40.7%	CN¥13.9b
688232 Guo Tai Epoint SoftwareLtd	37.8x	21.2%	CN¥10.2b
603039 Weaver Network Technology	51.1x	8.4%	CN¥12.9b
600446 Shenzhen Kingdom Sci-Tech	67.2x	31.3%	CN¥14.3b

Price-To-Earnings vs Peers: 600446 is expensive based on its Price-To-Earnings Ratio (67.2x) compared to the peer average (64.7x).

Price to Earnings Ratio vs Industry

How does 600446's PE Ratio compare vs other companies in the CN Software Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
000606 Shunliban Information ServiceLtd	2.7x	n/a	US$29.57m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 600446 is good value based on its Price-To-Earnings Ratio (67.2x) compared to the CN Software industry average (92.7x).

Price to Earnings Ratio vs Fair Ratio

What is 600446'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.

600446 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	67.2x
Fair PE Ratio	46.2x

Price-To-Earnings vs Fair Ratio: 600446 is expensive based on its Price-To-Earnings Ratio (67.2x) compared to the estimated Fair Price-To-Earnings Ratio (46.2x).

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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