Inner Mongolia MengDian HuaNeng Thermal Power Corporation Limited

SHSE:600863 Stock Report

Market Cap: CN¥27.9b

Inner Mongolia MengDian HuaNeng Thermal Power Valuation

Is 600863 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 600863 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600863 (CN¥4.28) is trading below our estimate of fair value (CN¥18.41)

Significantly Below Fair Value: 600863 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600863?

Key metric: As 600863 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600863. This is calculated by dividing 600863's market cap by their current earnings.
What is 600863's PE Ratio?
PE Ratio13.3x
EarningsCN¥2.10b
Market CapCN¥27.94b

Price to Earnings Ratio vs Peers

How does 600863's PE Ratio compare to its peers?

The above table shows the PE ratio for 600863 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.2x
600483 Fujian Funeng
9.4x8.6%CN¥25.9b
000027 Shenzhen Energy Group
78.4xn/aCN¥31.0b
600157 Wintime Energy GroupLtd
16.5x18.3%CN¥34.8b
001286 Shaanxi Energy Investment
12.4x11.0%CN¥35.5b
600863 Inner Mongolia MengDian HuaNeng Thermal Power
13.3x15.0%CN¥27.9b

Price-To-Earnings vs Peers: 600863 is good value based on its Price-To-Earnings Ratio (13.3x) compared to the peer average (29.2x).

Price to Earnings Ratio vs Industry

How does 600863's PE Ratio compare vs other companies in the CN Renewable Energy Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
600863 13.3xIndustry Avg. 17.4xNo. of Companies8PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 600863 is good value based on its Price-To-Earnings Ratio (13.3x) compared to the CN Renewable Energy industry average (17.4x).

Price to Earnings Ratio vs Fair Ratio

What is 600863'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.

600863 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.3x
Fair PE Ratio16.4x

Price-To-Earnings vs Fair Ratio: 600863 is good value based on its Price-To-Earnings Ratio (13.3x) compared to the estimated Fair Price-To-Earnings Ratio (16.4x).

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 600863 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥4.28
CN¥5.15
+20.4%
10.0%CN¥5.76CN¥4.50n/a3
Nov ’25CN¥4.50
CN¥5.15
+14.5%
10.0%CN¥5.76CN¥4.50n/a3
Oct ’25CN¥4.80
CN¥5.38
+12.2%
15.0%CN¥6.45CN¥4.50n/a3
Sep ’25CN¥4.27
CN¥5.38
+26.1%
15.0%CN¥6.45CN¥4.50n/a3
Aug ’25CN¥4.26
CN¥4.99
+17.1%
7.0%CN¥5.27CN¥4.50n/a3
Jul ’25CN¥4.74
CN¥4.99
+5.3%
7.0%CN¥5.27CN¥4.50n/a3
Jun ’25CN¥4.54
CN¥4.87
+7.4%
7.4%CN¥5.27CN¥4.50n/a4
May ’25CN¥4.37
CN¥4.87
+11.5%
7.4%CN¥5.27CN¥4.50n/a4
Apr ’25CN¥4.65
CN¥4.41
-5.1%
4.1%CN¥4.53CN¥4.10n/a4
Mar ’25CN¥4.39
CN¥4.41
+0.5%
4.1%CN¥4.53CN¥4.10n/a4
Feb ’25CN¥3.99
CN¥4.41
+10.6%
4.1%CN¥4.53CN¥4.10n/a4
Jan ’25CN¥3.90
CN¥4.41
+13.1%
4.1%CN¥4.53CN¥4.10n/a4
Dec ’24CN¥3.88
CN¥4.26
+9.7%
6.2%CN¥4.53CN¥3.90n/a4
Nov ’24CN¥3.59
CN¥4.26
+18.6%
6.2%CN¥4.53CN¥3.90CN¥4.504
Oct ’24CN¥3.52
CN¥4.41
+25.4%
8.8%CN¥4.84CN¥3.90CN¥4.803
Sep ’24CN¥3.38
CN¥4.41
+30.6%
8.8%CN¥4.84CN¥3.90CN¥4.273
Aug ’24CN¥3.57
CN¥5.16
+44.5%
7.7%CN¥5.67CN¥4.70CN¥4.263
Jul ’24CN¥4.15
CN¥5.16
+24.3%
7.7%CN¥5.67CN¥4.70CN¥4.743
Jun ’24CN¥4.09
CN¥5.01
+22.5%
9.3%CN¥5.67CN¥4.66CN¥4.543
May ’24CN¥4.03
CN¥4.96
+23.0%
10.2%CN¥5.67CN¥4.54CN¥4.373
Apr ’24CN¥3.32
CN¥4.53
+36.5%
2.3%CN¥4.66CN¥4.40CN¥4.653
Mar ’24CN¥3.53
CN¥4.53
+28.4%
2.3%CN¥4.66CN¥4.40CN¥4.393
Feb ’24CN¥3.56
CN¥4.53
+27.3%
2.3%CN¥4.66CN¥4.40CN¥3.993
Jan ’24CN¥3.49
CN¥4.53
+29.8%
2.3%CN¥4.66CN¥4.40CN¥3.903
Dec ’23CN¥3.86
CN¥4.53
+17.4%
2.3%CN¥4.66CN¥4.40CN¥3.883
Nov ’23CN¥3.65
CN¥4.47
+22.5%
1.6%CN¥4.54CN¥4.40CN¥3.592

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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