Tianneng Power International Limited

SZSC:819 Stock Report

Market Cap: HK$7.3b

Tianneng Power International Valuation

Is 819 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-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 819 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 819 (HK$6.44) is trading below our estimate of fair value (HK$6.53)

Significantly Below Fair Value: 819 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 819?

Key metric: As 819 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 819. This is calculated by dividing 819's market cap by their current earnings.
What is 819's PE Ratio?
PE Ratio3.7x
EarningsCN¥1.83b
Market CapCN¥6.75b

Price to Earnings Ratio vs Peers

How does 819's PE Ratio compare to its peers?

The above table shows the PE ratio for 819 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.4x
1316 Nexteer Automotive Group
51.4x38.2%HK$7.4b
179 Johnson Electric Holdings
5.4x-1.7%HK$10.0b
1057 Zhejiang Shibao
15.7xn/aHK$8.9b
1571 Xin Point Holdings
5.2x6.0%HK$3.7b
819 Tianneng Power International
3.7x10.8%HK$7.3b

Price-To-Earnings vs Peers: 819 is good value based on its Price-To-Earnings Ratio (3.7x) compared to the peer average (19.4x).

Price to Earnings Ratio vs Industry

How does 819's PE Ratio compare vs other companies in the HK Auto Components Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
48 China Automotive Interior Decoration Holdings
2.1xn/aUS$4.34m
No more companies available in this PE range
819 3.7xIndustry Avg. 7.4xNo. of Companies8PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 819 is good value based on its Price-To-Earnings Ratio (3.7x) compared to the Hong Kong Auto Components industry average (7.4x).

Price to Earnings Ratio vs Fair Ratio

What is 819'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.

819 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.7x
Fair PE Ratio8.2x

Price-To-Earnings vs Fair Ratio: 819 is good value based on its Price-To-Earnings Ratio (3.7x) compared to the estimated Fair Price-To-Earnings Ratio (8.2x).

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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