Shanghai Haohai Biological Technology Co., Ltd.

SEHK:6826 Stock Report

Market Cap: HK$14.4b

Shanghai Haohai Biological Technology Valuation

Is 6826 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 6826 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6826 (HK$27.9) is trading below our estimate of fair value (HK$128.57)

Significantly Below Fair Value: 6826 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6826?

Key metric: As 6826 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6826. This is calculated by dividing 6826's market cap by their current earnings.
What is 6826's PE Ratio?
PE Ratio14x
EarningsCN¥430.21m
Market CapCN¥13.43b

Price to Earnings Ratio vs Peers

How does 6826's PE Ratio compare to its peers?

The above table shows the PE ratio for 6826 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.8x
1530 3SBio
7.7x15.3%HK$13.6b
2696 Shanghai Henlius Biotech
15.8x7.3%HK$11.7b
6955 Shandong Boan Biotechnology
69.4xn/aHK$4.2b
1061 Essex Bio-Technology
6.3xn/aHK$1.7b
6826 Shanghai Haohai Biological Technology
14x16.8%HK$14.5b

Price-To-Earnings vs Peers: 6826 is good value based on its Price-To-Earnings Ratio (14x) compared to the peer average (24.8x).


Price to Earnings Ratio vs Industry

How does 6826's PE Ratio compare vs other companies in the Asian Biotechs Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
6826 14.0xIndustry Avg. 32.0xNo. of Companies11PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6826 is good value based on its Price-To-Earnings Ratio (14x) compared to the Asian Biotechs industry average (32x).


Price to Earnings Ratio vs Fair Ratio

What is 6826'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.

6826 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14x
Fair PE Ratio12.7x

Price-To-Earnings vs Fair Ratio: 6826 is expensive based on its Price-To-Earnings Ratio (14x) compared to the estimated Fair Price-To-Earnings Ratio (12.7x).


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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