Huadian Liaoning Energy Development Co.,Ltd

SHSE:600396 Stock Report

Market Cap: CN¥3.9b

Huadian Liaoning Energy DevelopmentLtd Valuation

Is 600396 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 600396 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600396 (CN¥2.62) is trading below our estimate of fair value (CN¥25.29)

Significantly Below Fair Value: 600396 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600396?

Key metric: As 600396 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 600396. This is calculated by dividing 600396's market cap by their current revenue.
What is 600396's PS Ratio?
PS Ratio0.9x
SalesCN¥4.45b
Market CapCN¥3.86b

Price to Sales Ratio vs Peers

How does 600396's PS Ratio compare to its peers?

The above table shows the PS ratio for 600396 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.1x
000037 Shenzhen Nanshan Power
11xn/aCN¥3.6b
600644 Leshan Electric PowerLtd
1.2xn/aCN¥3.6b
600505 Sichuan Xichang Electric PowerLtd
2.8xn/aCN¥3.9b
600310 Guangxi Energy
1.4x8.9%CN¥6.8b
600396 Huadian Liaoning Energy DevelopmentLtd
0.9xn/aCN¥3.9b

Price-To-Sales vs Peers: 600396 is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (4.1x).

Price to Sales Ratio vs Industry

How does 600396's PS Ratio compare vs other companies in the Asian Electric Utilities Industry?

17 CompaniesPrice / SalesEstimated GrowthMarket Cap
600396 0.9xIndustry Avg. 1.1xNo. of Companies17PS01.22.43.64.86+
17 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 600396 is good value based on its Price-To-Sales Ratio (0.9x) compared to the Asian Electric Utilities industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is 600396'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.

600396 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 600396's Price-To-Sales Fair Ratio for valuation analysis.

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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