Sinopec Shanghai Petrochemical Company Limited

SEHK:338 Stock Report

Market Cap: HK$23.9b

Sinopec Shanghai Petrochemical Valuation

Is 338 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: 338 (HK$1.03) is trading above our estimate of fair value (HK$0.86)

Significantly Below Fair Value: 338 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 338?

Other financial metrics that can be useful for relative valuation.

338 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/Revenue0.2x
Enterprise Value/EBITDA-389.7x
PEG Ration/a

Price to Sales Ratio vs Peers

How does 338's PS Ratio compare to its peers?

The above table shows the PS ratio for 338 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.4x
1907 China Risun Group
0.3x12.5%HK$13.2b
746 Lee & Man Chemical
0.7x21.0%HK$2.7b
2198 China Sanjiang Fine Chemicals
0.2xn/aHK$2.0b
2502 Henan Jinyuan Hydrogenated Chemicals
0.3xn/aHK$745.4m
338 Sinopec Shanghai Petrochemical
0.1x0.8%HK$23.9b

Price-To-Sales vs Peers: 338 is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.4x).


Price to Earnings Ratio vs Industry

How does 338's PE Ratio compare vs other companies in the HK Chemicals Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a49.8%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a49.8%
n/an/an/a
No more companies

Price-To-Sales vs Industry: 338 is good value based on its Price-To-Sales Ratio (0.1x) compared to the Hong Kong Chemicals industry average (0.3x).


Price to Sales Ratio vs Fair Ratio

What is 338'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.

338 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.1x
Fair PS Ratio0.3x

Price-To-Sales vs Fair Ratio: 338 is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).


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 338 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$1.03
HK$1.44
+39.8%
28.0%HK$2.19HK$1.09n/a7
Mar ’25HK$1.12
HK$1.52
+35.5%
28.5%HK$2.20HK$1.09n/a6
Feb ’25HK$1.05
HK$1.52
+44.9%
28.4%HK$2.20HK$1.09n/a6
Jan ’25HK$1.13
HK$1.52
+34.6%
28.4%HK$2.20HK$1.09n/a6
Dec ’24HK$1.12
HK$1.63
+45.6%
25.7%HK$2.21HK$1.22n/a5
Nov ’24HK$1.06
HK$1.59
+50.3%
25.8%HK$2.16HK$1.17n/a5
Oct ’24HK$1.11
HK$1.59
+43.5%
24.4%HK$2.17HK$1.18n/a6
Sep ’24HK$1.10
HK$1.54
+40.2%
25.1%HK$2.18HK$1.18n/a7
Aug ’24HK$1.19
HK$1.62
+36.2%
23.3%HK$2.20HK$1.19n/a7
Jul ’24HK$1.23
HK$1.64
+33.3%
20.0%HK$2.19HK$1.28n/a7
Jun ’24HK$1.26
HK$1.65
+31.3%
20.6%HK$2.22HK$1.30n/a7
May ’24HK$1.37
HK$1.63
+18.8%
26.6%HK$2.27HK$0.90n/a7
Apr ’24HK$1.37
HK$1.66
+20.9%
26.5%HK$2.30HK$0.92n/a7
Mar ’24HK$1.37
HK$1.66
+20.8%
24.0%HK$2.18HK$0.90HK$1.127
Feb ’24HK$1.46
HK$1.64
+12.1%
29.5%HK$2.23HK$0.91HK$1.057
Jan ’24HK$1.32
HK$1.59
+20.2%
29.7%HK$2.15HK$0.88HK$1.137
Dec ’23HK$1.25
HK$1.51
+20.8%
30.9%HK$2.10HK$0.86HK$1.127
Nov ’23HK$1.05
HK$1.51
+43.8%
30.9%HK$2.10HK$0.86HK$1.067
Oct ’23HK$1.03
HK$1.62
+57.7%
28.8%HK$2.22HK$1.02HK$1.117
Sep ’23HK$1.22
HK$1.61
+32.3%
28.3%HK$2.28HK$1.05HK$1.108
Aug ’23HK$1.29
HK$1.64
+27.3%
28.2%HK$2.27HK$1.05HK$1.198
Jul ’23HK$1.34
HK$1.75
+30.6%
26.6%HK$2.32HK$1.03HK$1.238
Jun ’23HK$1.54
HK$1.88
+21.9%
24.1%HK$2.36HK$1.04HK$1.268
May ’23HK$1.48
HK$1.88
+26.9%
24.1%HK$2.36HK$1.04HK$1.378
Apr ’23HK$1.64
HK$2.06
+25.5%
17.3%HK$2.44HK$1.40HK$1.379
Mar ’23HK$1.75
HK$2.27
+29.7%
14.4%HK$2.68HK$1.69HK$1.379

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.


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