Shandong Molong Petroleum Machinery Valuation

Q: What is the Fair Price of 568 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

568 (HK$1.27) is trading above our estimate of [[fair value]] (HK$0.58)

Is 568 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: 568 (HK$1.27) is trading above our estimate of fair value (HK$0.58)

Significantly Below Fair Value: 568 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 568?

Key metric: As 568 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 568. This is calculated by dividing 568's market cap by their current revenue.
What is 568's PS Ratio?
PS Ratio	0.7x
Sales	CN¥1.32b
Market Cap	CN¥1.68b

568 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	2.4x
Enterprise Value/EBITDA	34.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 568's PS Ratio compare to its peers?

The above table shows the PS ratio for 568 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	0.4x
3303 Jutal Offshore Oil Services	0.4x	n/a	HK$1.4b
3337 Anton Oilfield Services Group	0.3x	13.1%	HK$1.7b
2236 Wison Engineering Services	0.2x	n/a	HK$696.6m
1586 China Leon Inspection Holding	0.8x	n/a	HK$1.1b
568 Shandong Molong Petroleum Machinery	0.7x	n/a	HK$1.8b

Price-To-Sales vs Peers: 568 is expensive based on its Price-To-Sales Ratio (0.7x) compared to the peer average (0.4x).

Price to Sales Ratio vs Industry

How does 568's PS Ratio compare vs other companies in the Asian Energy Services Industry?

27 Companies	Price / Sales	Estimated Growth	Market Cap

27 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 568 is good value based on its Price-To-Sales Ratio (0.7x) compared to the Asian Energy Services industry average (1.2x).

Price to Sales Ratio vs Fair Ratio

What is 568'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.

568 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.7x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 568'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.

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