Chengdu Xingrong Environment Valuation

Q: What is the Fair Price of 000598 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

000598 (CN¥7.17) is trading above our estimate of [[fair value]] (CN¥4.27)

Is 000598 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 000598 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 000598 (CN¥7.17) is trading above our estimate of fair value (CN¥4.27)

Significantly Below Fair Value: 000598 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 000598?

Key metric: As 000598 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 000598. This is calculated by dividing 000598's market cap by their current earnings.
What is 000598's PE Ratio?
PE Ratio	10.7x
Earnings	CN¥1.98b
Market Cap	CN¥21.07b

000598 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	4.3x
Enterprise Value/EBITDA	9.2x
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

How does 000598's PE Ratio compare to its peers?

The above table shows the PE ratio for 000598 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	25x
600323 Grandblue Environment	10.7x	7.8%	CN¥17.5b
601158 Chongqing Water GroupLtd	63.1x	24.1%	CN¥23.4b
600008 Beijing Capital Eco-Environment Protection Group	6.7x	-17.9%	CN¥23.6b
600167 Luenmei QuantumLtd	19.5x	15.0%	CN¥13.9b
000598 Chengdu Xingrong Environment	10.7x	11.6%	CN¥21.1b

Price-To-Earnings vs Peers: 000598 is good value based on its Price-To-Earnings Ratio (10.7x) compared to the peer average (25x).

Price to Earnings Ratio vs Industry

How does 000598's PE Ratio compare vs other companies in the CN Water Utilities Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
000692 Shenyang Huitian Thermal PowerLtd	1.9x	n/a	US$265.04m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 000598 is good value based on its Price-To-Earnings Ratio (10.7x) compared to the Asian Water Utilities industry average (15x).

Price to Earnings Ratio vs Fair Ratio

What is 000598'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.

000598 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.7x
Fair PE Ratio	16.3x

Price-To-Earnings vs Fair Ratio: 000598 is good value based on its Price-To-Earnings Ratio (10.7x) compared to the estimated Fair Price-To-Earnings Ratio (16.3x).

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 000598 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CN¥7.17	CN¥8.58 +19.7%	6.1%	CN¥9.10	CN¥8.06	n/a	2
Nov ’25	CN¥7.25	CN¥8.58 +18.3%	6.1%	CN¥9.10	CN¥8.06	n/a	2
Oct ’25	CN¥7.26	CN¥8.01 +10.3%	8.7%	CN¥8.70	CN¥7.31	n/a	2
May ’24	CN¥5.22	CN¥6.05 +15.9%	0.8%	CN¥6.10	CN¥6.00	CN¥7.13	2
Mar ’24	CN¥5.15	CN¥5.90 +14.6%	1.7%	CN¥6.00	CN¥5.80	CN¥6.11	2
Feb ’24	CN¥5.03	CN¥5.90 +17.3%	1.7%	CN¥6.00	CN¥5.80	CN¥5.68	2
Jan ’24	CN¥4.89	CN¥5.90 +20.7%	1.7%	CN¥6.00	CN¥5.80	CN¥5.69	2
Dec ’23	CN¥5.05	CN¥5.90 +16.8%	1.7%	CN¥6.00	CN¥5.80	CN¥5.55	2
Nov ’23	CN¥4.85	CN¥5.90 +21.6%	1.7%	CN¥6.00	CN¥5.80	CN¥5.71	2

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

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