Hengtong Optic-Electric Co., Ltd.

SHSE:600487 Stock Report

Market Cap: CN¥42.7b

Hengtong Optic-Electric Valuation

Is 600487 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 600487 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600487 (CN¥17.53) is trading above our estimate of fair value (CN¥5.01)

Significantly Below Fair Value: 600487 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600487?

Key metric: As 600487 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600487. This is calculated by dividing 600487's market cap by their current earnings.
What is 600487's PE Ratio?
PE Ratio15.9x
EarningsCN¥2.66b
Market CapCN¥42.66b

Price to Earnings Ratio vs Peers

How does 600487's PE Ratio compare to its peers?

The above table shows the PE ratio for 600487 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average46x
300628 Yealink Network Technology
20.1x17.3%CN¥49.1b
301165 Ruijie Networks
55.4x21.5%CN¥29.3b
002465 Guangzhou Haige Communications Group
59.5x37.1%CN¥30.9b
300136 Shenzhen Sunway Communication
49.2x31.9%CN¥25.9b
600487 Hengtong Optic-Electric
15.9x17.4%CN¥42.7b

Price-To-Earnings vs Peers: 600487 is good value based on its Price-To-Earnings Ratio (15.9x) compared to the peer average (46x).

Price to Earnings Ratio vs Industry

How does 600487's PE Ratio compare vs other companies in the CN Communications Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
600487 15.9xIndustry Avg. 67.1xNo. of Companies5PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 600487 is good value based on its Price-To-Earnings Ratio (15.9x) compared to the CN Communications industry average (67.1x).

Price to Earnings Ratio vs Fair Ratio

What is 600487'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.

600487 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.9x
Fair PE Ratio29.1x

Price-To-Earnings vs Fair Ratio: 600487 is good value based on its Price-To-Earnings Ratio (15.9x) compared to the estimated Fair Price-To-Earnings Ratio (29.1x).

Analyst Price Targets

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

The above table shows the analyst 600487 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥17.53
CN¥19.08
+8.9%
24.7%CN¥24.43CN¥11.50n/a4
Nov ’25CN¥17.03
CN¥18.87
+10.8%
23.7%CN¥23.58CN¥11.50n/a4
Oct ’25CN¥16.91
CN¥18.05
+6.8%
24.5%CN¥23.58CN¥11.50n/a4
Sep ’25CN¥14.14
CN¥17.35
+22.7%
21.7%CN¥21.78CN¥11.50n/a4
Aug ’25CN¥15.73
CN¥17.48
+11.1%
20.4%CN¥21.78CN¥12.00n/a4
Jul ’25CN¥15.91
CN¥17.48
+9.9%
20.4%CN¥21.78CN¥12.00n/a4
Jun ’25CN¥14.96
CN¥17.48
+16.8%
20.4%CN¥21.78CN¥12.00n/a4
May ’25CN¥14.16
CN¥13.97
-1.4%
22.7%CN¥17.13CN¥10.80n/a2
Apr ’25CN¥12.80
CN¥16.47
+28.7%
26.6%CN¥21.49CN¥10.80n/a3
Mar ’25CN¥12.52
CN¥16.47
+31.6%
26.6%CN¥21.49CN¥10.80n/a3
Feb ’25CN¥11.09
CN¥16.47
+48.5%
26.6%CN¥21.49CN¥10.80n/a3
Jan ’25CN¥11.94
CN¥17.04
+42.7%
21.5%CN¥21.49CN¥12.50n/a3
Dec ’24CN¥12.56
CN¥17.04
+35.7%
21.5%CN¥21.49CN¥12.50n/a3
Nov ’24CN¥13.09
CN¥17.24
+31.7%
19.9%CN¥21.49CN¥13.10CN¥17.033
Oct ’24CN¥14.12
CN¥18.18
+28.8%
18.6%CN¥21.49CN¥13.10CN¥16.914
Sep ’24CN¥14.12
CN¥18.53
+31.2%
17.6%CN¥22.50CN¥13.10CN¥14.145
Aug ’24CN¥15.30
CN¥18.79
+22.8%
15.2%CN¥22.50CN¥14.40CN¥15.735
Jul ’24CN¥14.66
CN¥18.49
+26.1%
18.0%CN¥22.50CN¥12.90CN¥15.915
Jun ’24CN¥14.59
CN¥18.49
+26.7%
18.0%CN¥22.50CN¥12.90CN¥14.965
May ’24CN¥14.56
CN¥18.23
+25.2%
16.7%CN¥21.20CN¥12.90CN¥14.165
Apr ’24CN¥15.10
CN¥18.80
+24.5%
19.4%CN¥21.20CN¥11.70CN¥12.805
Mar ’24CN¥14.85
CN¥18.78
+26.4%
25.8%CN¥24.00CN¥11.00CN¥12.524
Feb ’24CN¥15.74
CN¥18.80
+19.4%
25.5%CN¥24.00CN¥11.10CN¥11.094
Jan ’24CN¥15.06
CN¥18.83
+25.0%
25.3%CN¥24.00CN¥11.20CN¥11.944
Dec ’23CN¥16.71
CN¥18.83
+12.7%
25.3%CN¥24.00CN¥11.20CN¥12.564
Nov ’23CN¥18.60
CN¥18.00
-3.3%
22.3%CN¥21.20CN¥11.20CN¥13.094

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

Foxconn Industrial Internet

CN¥471.3b

Designs and manufactures communication network and cloud computing equipment, precision tools, and industrial solutions.

601138

CN¥23.72

7D

-7.8%

1Y

48.6%

Yealink Network Technology

CN¥49.1b

Provides voice conferencing, voice communications, and collaboration solutions worldwide.

300628

CN¥38.86

7D

-5.8%

1Y

14.5%

Luxshare Precision Industry

CN¥278.3b

Designs, manufactures, and sells cable assembly and connector system solutions worldwide.

2475

CN¥38.53

7D

-7.2%

1Y

25.5%