Shandong Gold Mining Co., Ltd.

SEHK:1787 Stock Report

Market Cap: HK$110.0b

Shandong Gold Mining Valuation

Is 1787 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 1787 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1787 (HK$14.04) is trading below our estimate of fair value (HK$19.68)

Significantly Below Fair Value: 1787 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1787?

Key metric: As 1787 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1787. This is calculated by dividing 1787's market cap by their current earnings.
What is 1787's PE Ratio?
PE Ratio49.4x
EarningsCN¥2.28b
Market CapCN¥102.41b

Price to Earnings Ratio vs Peers

How does 1787's PE Ratio compare to its peers?

The above table shows the PE ratio for 1787 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15x
1818 Zhaojin Mining Industry
30.8x34.7%HK$39.8b
2899 Zijin Mining Group
12.7x16.4%HK$438.7b
3330 Lingbao Gold Group
10.6xn/aHK$3.8b
1378 China Hongqiao Group
5.6x5.4%HK$110.1b
1787 Shandong Gold Mining
49.4x36.7%HK$102.4b

Price-To-Earnings vs Peers: 1787 is expensive based on its Price-To-Earnings Ratio (49.4x) compared to the peer average (15x).

Price to Earnings Ratio vs Industry

How does 1787's PE Ratio compare vs other companies in the HK Metals and Mining Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
6890 KangLi International Holdings
1.6xn/aUS$29.20m
No more companies available in this PE range
1787 49.4xIndustry Avg. 9.9xNo. of Companies6PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1787 is expensive based on its Price-To-Earnings Ratio (49.4x) compared to the Hong Kong Metals and Mining industry average (9.9x).

Price to Earnings Ratio vs Fair Ratio

What is 1787'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.

1787 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio49.4x
Fair PE Ratio18.7x

Price-To-Earnings vs Fair Ratio: 1787 is expensive based on its Price-To-Earnings Ratio (49.4x) compared to the estimated Fair Price-To-Earnings Ratio (18.7x).

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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