Shandong Weigao Group Medical Polymer Valuation

Q: What is the Fair Price of 1066 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

1066 (HK$4.32) is trading below our estimate of [[fair value]] (HK$11.09)

Is 1066 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

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 1066 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1066 (HK$4.32) is trading below our estimate of fair value (HK$11.09)

Significantly Below Fair Value: 1066 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1066?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1066. This is calculated by dividing 1066's market cap by their current preferred multiple.
What is 1066's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	CN¥18.01b

1066 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	1.2x
Enterprise Value/EBITDA	5.4x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

How does 1066's PE Ratio compare to its peers?

The above table shows the PE ratio for 1066 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	14.8x
2276 Shanghai Conant Optical	14.4x	15.9%	HK$5.8b
9997 Kangji Medical Holdings	10.3x	14.3%	HK$6.2b
1501 Shanghai INT Medical Instruments	26.1x	27.2%	HK$4.9b
6929 OrbusNeich Medical Group Holdings	8.5x	-3.0%	HK$2.6b
1066 Shandong Weigao Group Medical Polymer	9.4x	11.3%	HK$19.7b

Price-To-Earnings vs Peers: 1066 is good value based on its Price-To-Earnings Ratio (9.4x) compared to the peer average (14.8x).

Price to Earnings Ratio vs Industry

How does 1066's PE Ratio compare vs other companies in the HK Medical Equipment Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	35.6%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	35.6%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: 1066 is good value based on its Price-To-Earnings Ratio (9.4x) compared to the Hong Kong Medical Equipment industry average (12.4x).

Price to Earnings Ratio vs Fair Ratio

What is 1066'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.

1066 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.4x
Fair PE Ratio	13.6x

Price-To-Earnings vs Fair Ratio: 1066 is good value based on its Price-To-Earnings Ratio (9.4x) compared to the estimated Fair Price-To-Earnings Ratio (13.6x).

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 1066 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	HK$4.32	HK$6.74 +55.9%	13.5%	HK$8.13	HK$5.12	n/a	7
Sep ’25	HK$4.41	HK$6.74 +52.7%	13.5%	HK$8.13	HK$5.12	n/a	7
Aug ’25	HK$3.93	HK$6.99 +77.9%	12.5%	HK$7.94	HK$5.49	n/a	7
Jul ’25	HK$3.72	HK$7.62 +104.7%	10.5%	HK$8.69	HK$6.40	n/a	7
Jun ’25	HK$4.56	HK$7.62 +67.0%	10.5%	HK$8.69	HK$6.40	n/a	7
May ’25	HK$5.34	HK$7.62 +42.6%	10.5%	HK$8.69	HK$6.40	n/a	7
Apr ’25	HK$4.88	HK$9.46 +93.9%	33.8%	HK$17.10	HK$6.61	n/a	8
Mar ’25	HK$5.06	HK$11.44 +126.1%	27.9%	HK$17.23	HK$7.49	n/a	8
Feb ’25	HK$5.33	HK$11.76 +120.5%	24.4%	HK$17.18	HK$7.50	n/a	8
Jan ’25	HK$7.61	HK$12.69 +66.7%	17.0%	HK$17.15	HK$10.00	n/a	8
Dec ’24	HK$7.22	HK$12.69 +75.7%	17.0%	HK$17.15	HK$10.00	n/a	8
Nov ’24	HK$7.35	HK$12.62 +71.6%	16.6%	HK$16.87	HK$9.83	n/a	8
Oct ’24	HK$6.88	HK$12.62 +83.4%	16.6%	HK$16.87	HK$9.83	n/a	8
Sep ’24	HK$7.80	HK$13.45 +72.5%	14.3%	HK$17.05	HK$9.94	HK$4.41	9
Aug ’24	HK$9.42	HK$14.90 +58.2%	7.2%	HK$16.87	HK$13.19	HK$3.93	8
Jul ’24	HK$10.24	HK$15.16 +48.1%	5.8%	HK$17.09	HK$14.16	HK$3.72	7
Jun ’24	HK$11.84	HK$15.08 +27.4%	6.5%	HK$17.07	HK$13.82	HK$4.56	7
May ’24	HK$13.34	HK$15.15 +13.6%	4.2%	HK$16.00	HK$14.20	HK$5.34	7
Apr ’24	HK$12.54	HK$15.03 +19.8%	3.8%	HK$15.81	HK$14.20	HK$4.88	6
Mar ’24	HK$12.84	HK$16.05 +25.0%	15.7%	HK$21.49	HK$13.99	HK$5.06	6
Feb ’24	HK$13.04	HK$14.91 +14.3%	23.2%	HK$21.96	HK$10.60	HK$5.33	6
Jan ’24	HK$12.82	HK$13.87 +8.2%	23.3%	HK$20.97	HK$10.43	HK$7.61	7
Dec ’23	HK$11.58	HK$13.87 +19.8%	23.3%	HK$20.97	HK$10.43	HK$7.22	7
Nov ’23	HK$10.98	HK$13.13 +19.6%	24.5%	HK$20.53	HK$9.78	HK$7.35	8
Oct ’23	HK$10.56	HK$12.99 +23.0%	25.5%	HK$20.73	HK$9.37	HK$6.88	8
Sep ’23	HK$10.88	HK$13.24 +21.7%	27.3%	HK$21.60	HK$9.58	HK$7.80	8

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.