Fuyao Glass Industry Group Valuation

Is 3606 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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 3606 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3606 (HK$52.75) is trading below our estimate of fair value (HK$85.4)

Significantly Below Fair Value: 3606 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3606?

Key metric: As 3606 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 3606. This is calculated by dividing 3606's market cap by their current earnings.
What is 3606's PE Ratio?
PE Ratio	20.9x
Earnings	CN¥6.98b
Market Cap	CN¥141.98b

3606 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	3.7x
Enterprise Value/EBITDA	13.8x
PEG Ratio	1.3x

Price to Earnings Ratio vs Peers

How does 3606's PE Ratio compare to its peers?

The above table shows the PE ratio for 3606 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	19.7x
425 Minth Group	6.8x	15.3%	HK$15.6b
3931 CALB Group	50.6x	35.4%	HK$21.4b
179 Johnson Electric Holdings	5.4x	-1.7%	HK$10.0b
1057 Zhejiang Shibao	15.9x	n/a	HK$8.9b
3606 Fuyao Glass Industry Group	20.9x	15.6%	HK$142.0b

Price-To-Earnings vs Peers: 3606 is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the peer average (19.6x).

Price to Earnings Ratio vs Industry

How does 3606's PE Ratio compare vs other companies in the HK Auto Components Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap
1809 Prinx Chengshan Holdings	3x	4.5%	US$632.23m
48 China Automotive Interior Decoration Holdings	2.1x	n/a	US$4.34m

No more companies available in this PE range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 3606 is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the Hong Kong Auto Components industry average (7.2x).

Price to Earnings Ratio vs Fair Ratio

What is 3606'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.

3606 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	20.9x
Fair PE Ratio	10.7x

Price-To-Earnings vs Fair Ratio: 3606 is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the estimated Fair Price-To-Earnings Ratio (10.7x).

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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