China General Plastics Corporation

TWSE:1305 Stock Report

Market Cap: NT$8.7b

China General Plastics Valuation

Is 1305 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 1305 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1305 (NT$14.9) is trading below our estimate of fair value (NT$50.75)

Significantly Below Fair Value: 1305 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1305?

Key metric: As 1305 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1305. This is calculated by dividing 1305's market cap by their current revenue.
What is 1305's PS Ratio?
PS Ratio0.7x
SalesNT$11.76b
Market CapNT$8.66b

Price to Sales Ratio vs Peers

How does 1305's PS Ratio compare to its peers?

The above table shows the PS ratio for 1305 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5.7x
1308 Asia Polymer
1.6x8.0%NT$10.1b
1321 Ocean Plastics
1.6xn/aNT$7.4b
2107 Formosan Rubber Group
5.8xn/aNT$7.8b
1713 Cathay Chemical Works
13.9xn/aNT$7.2b
1305 China General Plastics
0.7x-0.1%NT$8.7b

Price-To-Sales vs Peers: 1305 is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (5.7x).

Price to Sales Ratio vs Industry

How does 1305's PS Ratio compare vs other companies in the TW Chemicals Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
1304 USI
0.3x3.6%US$443.55m
1313 UPC Technology
0.2xn/aUS$439.29m
1718 China Man-Made Fiber
0.3xn/aUS$328.86m
1309 Taita Chemical Company
0.4x2.6%US$204.20m
No more companies available in this PS range
1305 0.7xIndustry Avg. 1.8xNo. of Companies14PS01.63.24.86.48+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 1305 is good value based on its Price-To-Sales Ratio (0.7x) compared to the TW Chemicals industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

What is 1305'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.

1305 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio0.6x

Price-To-Sales vs Fair Ratio: 1305 is expensive based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).

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 1305 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNT$14.90
NT$19.00
+27.5%
4.3%NT$20.00NT$18.00n/a3
Nov ’25NT$16.25
NT$19.25
+18.5%
4.3%NT$20.00NT$18.00n/a4
Oct ’25NT$17.60
NT$19.93
+13.2%
3.0%NT$20.70NT$19.00n/a4
Sep ’25NT$16.95
NT$19.93
+17.6%
3.0%NT$20.70NT$19.00n/a4
Aug ’25NT$18.35
NT$20.18
+9.9%
1.5%NT$20.70NT$20.00n/a4
Jul ’25NT$16.60
NT$19.75
+19.0%
2.2%NT$20.00NT$19.00n/a4
Jun ’25NT$17.75
NT$19.75
+11.3%
2.2%NT$20.00NT$19.00n/a4
May ’25NT$18.30
NT$21.25
+16.1%
10.2%NT$25.00NT$20.00n/a4
Apr ’25NT$18.75
NT$21.25
+13.3%
10.2%NT$25.00NT$20.00n/a4
Mar ’25NT$20.10
NT$25.90
+28.9%
13.7%NT$31.00NT$20.00n/a5
Feb ’25NT$20.75
NT$25.90
+24.8%
13.7%NT$31.00NT$20.00n/a5
Jan ’25NT$22.30
NT$25.90
+16.1%
13.7%NT$31.00NT$20.00n/a5
Dec ’24NT$23.40
NT$25.90
+10.7%
13.7%NT$31.00NT$20.00n/a5
Nov ’24NT$21.50
NT$28.34
+31.8%
15.1%NT$32.00NT$20.00NT$16.255
Oct ’24NT$24.90
NT$29.74
+19.4%
5.7%NT$32.00NT$27.00NT$17.605
Sep ’24NT$24.30
NT$29.74
+22.4%
5.7%NT$32.00NT$27.00NT$16.955
Aug ’24NT$24.60
NT$29.00
+17.9%
11.0%NT$34.50NT$25.00NT$18.355
Jul ’24NT$23.40
NT$29.80
+27.4%
10.3%NT$34.50NT$25.00NT$16.605
Jun ’24NT$23.60
NT$29.80
+26.3%
10.3%NT$34.50NT$25.00NT$17.755
May ’24NT$25.05
NT$30.20
+20.6%
16.7%NT$35.00NT$21.00NT$18.305
Apr ’24NT$26.30
NT$30.20
+14.8%
16.7%NT$35.00NT$21.00NT$18.755
Mar ’24NT$27.70
NT$29.38
+6.0%
19.7%NT$35.00NT$21.00NT$20.104
Feb ’24NT$29.20
NT$29.38
+0.6%
19.7%NT$35.00NT$21.00NT$20.754
Jan ’24NT$26.40
NT$23.88
-9.6%
9.2%NT$27.00NT$21.00NT$22.304
Dec ’23NT$22.10
NT$21.38
-3.3%
13.2%NT$24.50NT$17.00NT$23.404
Nov ’23NT$20.10
NT$25.33
+26.0%
14.5%NT$30.00NT$21.00NT$21.503

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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