Sichuan Kelun-Biotech Biopharmaceutical Co., Ltd.

SEHK:6990 Stock Report

Market Cap: HK$34.3b

Sichuan Kelun-Biotech Biopharmaceutical Valuation

Is 6990 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 6990 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6990 (HK$158.4) is trading below our estimate of fair value (HK$504.28)

Significantly Below Fair Value: 6990 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6990?

Key metric: As 6990 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 6990. This is calculated by dividing 6990's market cap by their current revenue.
What is 6990's PS Ratio?
PS Ratio17.5x
SalesCN¥1.88b
Market CapCN¥31.91b

Price to Sales Ratio vs Peers

How does 6990's PS Ratio compare to its peers?

The above table shows the PS ratio for 6990 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average11.9x
1877 Shanghai Junshi Biosciences
6.4x29.6%HK$27.2b
1801 Innovent Biologics
7.3x22.0%HK$58.9b
9926 Akeso
28.5x33.4%HK$57.4b
9995 RemeGen
5.4x25.9%HK$15.1b
6990 Sichuan Kelun-Biotech Biopharmaceutical
17.5x24.2%HK$34.3b

Price-To-Sales vs Peers: 6990 is expensive based on its Price-To-Sales Ratio (17.5x) compared to the peer average (11.9x).

Price to Sales Ratio vs Industry

How does 6990's PS Ratio compare vs other companies in the HK Biotechs Industry?

14 CompaniesPrice / SalesEstimated GrowthMarket Cap
6826 Shanghai Haohai Biological Technology
2.2x11.8%US$1.86b
1530 3SBio
1.5x9.2%US$1.72b
2696 Shanghai Henlius Biotech
1.8x10.4%US$1.42b
775 CK Life Sciences Int'l. (Holdings)
0.8xn/aUS$555.67m
6990 17.5xIndustry Avg. 11.7xNo. of Companies14PS01632486480+
14 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 6990 is expensive based on its Price-To-Sales Ratio (17.5x) compared to the Hong Kong Biotechs industry average (11.7x).

Price to Sales Ratio vs Fair Ratio

What is 6990'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.

6990 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio17.5x
Fair PS Ratio6.5x

Price-To-Sales vs Fair Ratio: 6990 is expensive based on its Price-To-Sales Ratio (17.5x) compared to the estimated Fair Price-To-Sales Ratio (6.5x).

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 6990 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$158.40
HK$216.36
+36.6%
7.3%HK$243.38HK$187.10n/a14
Nov ’25HK$177.00
HK$214.92
+21.4%
7.2%HK$243.38HK$187.10n/a13
Oct ’25HK$183.90
HK$212.83
+15.7%
6.6%HK$243.38HK$187.10n/a12
Sep ’25HK$164.00
HK$206.20
+25.7%
12.9%HK$243.38HK$126.55n/a13
Aug ’25HK$158.30
HK$200.03
+26.4%
13.9%HK$246.13HK$126.55n/a12
Jul ’25HK$165.80
HK$201.36
+21.4%
14.3%HK$246.13HK$126.55n/a11
Jun ’25HK$172.20
HK$194.69
+13.1%
12.8%HK$221.00HK$126.55n/a10
May ’25HK$168.30
HK$182.81
+8.6%
18.5%HK$210.00HK$108.61n/a10
Apr ’25HK$155.00
HK$182.81
+17.9%
18.5%HK$210.00HK$108.61n/a10
Mar ’25HK$103.70
HK$122.30
+17.9%
6.0%HK$135.10HK$108.61n/a8
Feb ’25HK$82.45
HK$121.69
+47.6%
6.3%HK$135.10HK$108.61n/a7
Jan ’25HK$102.90
HK$120.79
+17.4%
6.5%HK$135.10HK$108.61n/a7
Dec ’24HK$95.75
HK$120.79
+26.2%
6.5%HK$135.10HK$108.61n/a7
Nov ’24HK$83.00
HK$120.41
+45.1%
6.9%HK$135.10HK$108.61HK$177.006
Oct ’24HK$76.60
HK$124.47
+62.5%
5.6%HK$135.10HK$116.77HK$183.904
Sep ’24HK$76.50
HK$124.47
+62.7%
5.6%HK$135.10HK$116.77HK$164.004

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

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