Huadian Liaoning Energy DevelopmentLtd Valuation

Q: What is the Fair Price of 600396 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

600396 (CN¥2.62) is trading below our estimate of [[fair value]] (CN¥25.29)

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 Ratio	0.9x
Sales	CN¥4.45b
Market Cap	CN¥3.86b

600396 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	3.5x
Enterprise Value/EBITDA	13.6x
PEG Ratio	n/a

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.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	4.1x
000037 Shenzhen Nanshan Power	11x	n/a	CN¥3.6b
600644 Leshan Electric PowerLtd	1.2x	n/a	CN¥3.6b
600505 Sichuan Xichang Electric PowerLtd	2.8x	n/a	CN¥3.9b
600310 Guangxi Energy	1.4x	8.9%	CN¥6.8b
600396 Huadian Liaoning Energy DevelopmentLtd	0.9x	n/a	CN¥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 Companies	Price / Sales	Estimated Growth	Market Cap

17 Companies		Estimated Growth	Market 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 Ratio	0.9x
Fair PS Ratio	n/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.

Discover undervalued companies

ENN Natural GasLtd

CN¥57.7b

Engages in natural gas distribution, trading, storage, transportation, production, and engineering in China.

600803

CN¥18.77

-1.4%

16.4%

Shenzhen Gas

CN¥21.1b

Provides urban gas, natural gas, and LPG energy.

601139

CN¥7.34

-1.1%

9.2%

Beijing Jingneng Power

CN¥24.2b

Produces and sells electric power and heat products in China.

600578

CN¥3.61

-2.2%

21.5%