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Hongfa Technology Co Ltd
SSE:600885

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Hongfa Technology Co Ltd
SSE:600885
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Price: 31.14 CNY 7.38% Market Closed
Market Cap: ¥48.2B

EV/GP

7.7
Current
14%
Cheaper
vs 3-y average of 8.9

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
7.7
=
Enterprise Value
¥36.2B
/
Gross Profit
¥5.9B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
7.7
=
Enterprise Value
¥36.2B
/
Gross Profit
¥5.9B

Valuation Scenarios

Hongfa Technology Co Ltd is trading below its 3-year average

If EV/GP returns to its 3-Year Average (8.9), the stock would be worth ¥36.05 (16% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+137%
Average Upside
68%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 7.7 ¥31.14
0%
3-Year Average 8.9 ¥36.05
+16%
5-Year Average 10.9 ¥44.17
+42%
Industry Average 18.2 ¥73.74
+137%
Country Average 13.6 ¥55.08
+77%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close
Market Cap EV/GP P/E
CN
Hongfa Technology Co Ltd
SSE:600885
48.2B CNY 7.7 27.4
CN
Contemporary Amperex Technology Co Ltd
SZSE:300750
2T CNY 14.7 25.8
CH
Abb Ltd
SIX:ABBN
142.4B CHF 13.2 36.6
FR
Schneider Electric SE
PAR:SU
151B EUR 9.7 36.3
IE
Eaton Corporation PLC
NYSE:ETN
165.1B USD 16.8 40.4
US
Vertiv Holdings Co
NYSE:VRT
126.1B USD 31.4 80.9
US
Emerson Electric Co
NYSE:EMR
77.2B USD 8.7 33.4
KR
LG Energy Solution Ltd
KRX:373220
107.8T KRW 28.9 -100.4
JP
Fujikura Ltd
TSE:5803
9.6T JPY 31.6 66.8
US
AMETEK Inc
NYSE:AME
52.8B USD 19.2 34.6
FR
Legrand SA
PAR:LR
39.7B EUR 9 31.9
P/E Multiple
Earnings Growth PEG
CN
Hongfa Technology Co Ltd
SSE:600885
Average P/E: 41.4
27.4
18%
1.5
CN
Contemporary Amperex Technology Co Ltd
SZSE:300750
25.8
22%
1.2
CH
Abb Ltd
SIX:ABBN
36.6
13%
2.8
FR
Schneider Electric SE
PAR:SU
36.3
23%
1.6
IE
Eaton Corporation PLC
NYSE:ETN
40.4
19%
2.1
US
Vertiv Holdings Co
NYSE:VRT
80.9
43%
1.9
US
Emerson Electric Co
NYSE:EMR
33.4
25%
1.3
KR
LG Energy Solution Ltd
KRX:373220
Negative Multiple: -100.4 N/A N/A
JP
Fujikura Ltd
TSE:5803
66.8
44%
1.5
US
AMETEK Inc
NYSE:AME
34.6
14%
2.5
FR
Legrand SA
PAR:LR
31.9
14%
2.3

Market Distribution

Lower than 71% of companies in China
Percentile
29th
Based on 6 967 companies
29th percentile
7.7
Low
0 — 8
Typical Range
8 — 23.3
High
23.3 —
Distribution Statistics
China
Min 0
30th Percentile 8
Median 13.6
70th Percentile 23.3
Max 17 898 541.1

Hongfa Technology Co Ltd
Glance View

Market Cap
48.2B CNY
Industry
Electrical Equipment

In the bustling corridors of Shenzhen, a silent force in the electrical components industry has been quietly steering the course of innovation and connectivity: Hongfa Technology Co. Ltd. Founded in 1984, this company emerged as a crucial player in the design and manufacturing of relays, a fundamental component in electrical circuit systems. Hongfa's journey began with a focus on quality and efficiency, which propelled it to gradually expand its offerings into areas like switching equipment, precision parts, automatic production lines, and even new fields such as intelligent power grids and new energy vehicles. Through relentless dedication to research and development, Hongfa established itself as a top manufacturer, supporting an array of industries worldwide, from telecommunications to automotive, seamlessly linking technologies that drive modern economies. Revenue rivers flow through Hongfa's business model by leveraging its wide-reaching manufacturing prowess and comprehensive product lines. The company's value proposition lies in its ability to deliver high-performance, reliable products that cater to a diverse array of sectors—each seeking solutions to enhance their operational efficiency. With a global distribution network, Hongfa earns its keep by selling components that serve as the backbone for high-stakes operations, such as those in industrial automation and smart appliances. Its sustained commitment to innovation and quality underpins its competitive edge, allowing it to maintain significant market shares both domestically within China and across international territories, while consistently returning value to its shareholders through strategic business expansions and technological advancements.

Intrinsic Value
37.96 CNY
Undervaluation 18%
Intrinsic Value
Price ¥31.14
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