Sany Heavy Equipment International Holdings Company Limited

SHSC:631 Stock Report

Market Cap: HK$15.6b

Sany Heavy Equipment International Holdings Valuation

Is 631 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 631 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 631 (HK$4.85) is trading above our estimate of fair value (HK$3.93)

Significantly Below Fair Value: 631 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 631?

Key metric: As 631 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 631. This is calculated by dividing 631's market cap by their current earnings.
What is 631's PE Ratio?
PE Ratio9.4x
EarningsCN¥1.55b
Market CapCN¥14.52b

Price to Earnings Ratio vs Peers

How does 631's PE Ratio compare to its peers?

The above table shows the PE ratio for 631 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.9x
317 CSSC Offshore & Marine Engineering (Group)
65.4xn/aHK$27.5b
3898 Zhuzhou CRRC Times Electric
10.2x13.3%HK$57.4b
3339 Lonking Holdings
7.1x6.5%HK$6.1b
3808 Sinotruk (Hong Kong)
8.8x12.2%HK$58.8b
631 Sany Heavy Equipment International Holdings
9.4x25.8%HK$15.6b

Price-To-Earnings vs Peers: 631 is good value based on its Price-To-Earnings Ratio (9.4x) compared to the peer average (22.4x).

Price to Earnings Ratio vs Industry

How does 631's PE Ratio compare vs other companies in the HK Machinery Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
2060 Pujiang International Group
1xn/aUS$19.99m
No more companies available in this PE range
631 9.4xIndustry Avg. 7.9xNo. of Companies8PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 631 is expensive based on its Price-To-Earnings Ratio (9.4x) compared to the Hong Kong Machinery industry average (7.7x).

Price to Earnings Ratio vs Fair Ratio

What is 631'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.

631 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.4x
Fair PE Ratio10.3x

Price-To-Earnings vs Fair Ratio: 631 is good value based on its Price-To-Earnings Ratio (9.4x) compared to the estimated Fair Price-To-Earnings Ratio (10.3x).

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 631 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$4.85
HK$7.52
+55.0%
16.9%HK$9.08HK$5.67n/a4
Nov ’25HK$5.11
HK$7.52
+47.1%
16.9%HK$9.08HK$5.67n/a4
Oct ’25HK$5.82
HK$7.60
+30.6%
17.1%HK$9.20HK$5.70n/a4
Sep ’25HK$4.51
HK$8.20
+81.8%
9.8%HK$9.16HK$7.20n/a3
Aug ’25HK$4.68
HK$8.78
+87.6%
7.4%HK$9.46HK$7.90n/a3
Jul ’25HK$4.86
HK$8.78
+80.6%
7.4%HK$9.46HK$7.90n/a3
Jun ’25HK$5.97
HK$8.78
+47.0%
7.4%HK$9.46HK$7.90n/a3
May ’25HK$5.51
HK$10.52
+90.9%
28.2%HK$15.57HK$7.99n/a4
Apr ’25HK$5.03
HK$12.31
+144.6%
29.3%HK$16.14HK$8.00n/a4
Mar ’25HK$6.05
HK$14.83
+145.1%
11.9%HK$16.20HK$11.81n/a4
Feb ’25HK$5.22
HK$15.17
+190.6%
5.6%HK$16.00HK$13.76n/a4
Jan ’25HK$7.55
HK$15.17
+100.9%
5.6%HK$16.00HK$13.76n/a4
Dec ’24HK$7.91
HK$15.17
+91.8%
5.6%HK$16.00HK$13.76n/a4
Nov ’24HK$10.10
HK$15.25
+51.0%
6.1%HK$16.03HK$13.70HK$5.114
Oct ’24HK$12.38
HK$15.26
+23.2%
7.5%HK$16.13HK$13.64HK$5.823
Sep ’24HK$12.24
HK$13.78
+12.6%
14.1%HK$16.21HK$11.44HK$4.513
Aug ’24HK$12.36
HK$13.18
+6.6%
16.2%HK$16.19HK$11.55HK$4.683
Jul ’24HK$10.26
HK$13.03
+27.0%
15.7%HK$15.92HK$11.46HK$4.863
Jun ’24HK$9.82
HK$11.55
+17.6%
8.3%HK$12.62HK$10.29HK$5.973
May ’24HK$10.40
HK$11.71
+12.6%
9.5%HK$12.90HK$10.22HK$5.513
Apr ’24HK$8.17
HK$11.64
+42.5%
11.6%HK$12.99HK$10.30HK$5.032
Mar ’24HK$7.91
HK$11.49
+45.3%
14.9%HK$13.20HK$9.78HK$6.052
Feb ’24HK$8.05
HK$11.61
+44.2%
13.9%HK$13.22HK$10.00HK$5.222
Jan ’24HK$8.02
HK$11.79
+47.0%
15.2%HK$13.58HK$10.00HK$7.552
Dec ’23HK$8.11
HK$11.79
+45.4%
15.2%HK$13.58HK$10.00HK$7.912
Nov ’23HK$6.70
HK$11.48
+71.4%
14.8%HK$13.87HK$10.04HK$10.103

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

Discover undervalued companies

CITIC

HK$250.2b

Operates in financial services, advanced intelligent manufacturing, advanced materials, consumption, urbanization, resources and energy, and engineering contracting businesses worldwide.

267

HK$8.60

7D

-4.6%

1Y

16.8%

Greentown Management Holdings

HK$5.9b

An investment holding company, provides project management services in the People’s Republic of China.

9979

HK$2.93

7D

-2.7%

1Y

-48.4%

Zhengzhou Coal Mining Machinery Group

CN¥21.0b

Manufactures and sells coal mining and excavating equipment in the People’s Republic of China.

564

CN¥9.48

7D

-5.1%

1Y

24.4%