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Loongson Technology Corp Ltd
SSE:688047

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Loongson Technology Corp Ltd
SSE:688047
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Price: 166.23 CNY 6.61% Market Closed
Market Cap: ¥66.7B

EV/GP

314.1
Current
20%
More Expensive
vs 3-y average of 261.8

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
314.1
=
Enterprise Value
¥62.7B
/
Gross Profit
¥210.5m

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
314.1
=
Enterprise Value
¥62.7B
/
Gross Profit
¥210.5m

Valuation Scenarios

Loongson Technology Corp Ltd is trading above its 3-year average

If EV/GP returns to its 3-Year Average (261.8), the stock would be worth ¥138.55 (17% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-96%
Maximum Upside
No Upside Scenarios
Average Downside
55%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 314.1 ¥166.23
0%
3-Year Average 261.8 ¥138.55
-17%
5-Year Average 254.1 ¥134.47
-19%
Industry Average 34.4 ¥18.22
-89%
Country Average 13.6 ¥7.18
-96%

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
Loongson Technology Corp Ltd
SSE:688047
66.6B CNY 314.1 -98.4
US
NVIDIA Corp
NASDAQ:NVDA
4.8T USD 31 40.2
US
Broadcom Inc
NASDAQ:AVGO
2T USD 44.1 79.9
TW
Taiwan Semiconductor Manufacturing Co Ltd
TWSE:2330
55.4T TWD 20.8 29.3
US
Micron Technology Inc
NASDAQ:MU
611.6B USD 17.9 25.4
US
Advanced Micro Devices Inc
NASDAQ:AMD
587.7B USD 33.8 135.6
KR
SK Hynix Inc
KRX:000660
701.7T KRW 11.7 16.1
US
Intel Corp
NASDAQ:INTC
500.4B USD 26.8 -157.7
US
Texas Instruments Inc
NASDAQ:TXN
254.9B USD 24.9 47.8
UK
Arm Holdings PLC
NASDAQ:ARM
224.3B USD 48.6 280
US
Analog Devices Inc
NASDAQ:ADI
194.2B USD 26.8 71.7

Market Distribution

Higher than 99% of companies in China
Percentile
99th
Based on 6 967 companies
99th percentile
314.1
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

Loongson Technology Corp Ltd
Glance View

Market Cap
66.7B CNY
Industry
Semiconductors

Loongson Technology Corp Ltd., a noteworthy player in China's growing tech landscape, emerged as a strategic response to the nation's desire to cultivate a domestic semiconductor industry. Established in 2002, Loongson has been intricately weaving its narrative around the development of homegrown processors. As the drumbeat of technology advancement intensified globally, Loongson positioned itself to challenge the status quo dominated by international giants like Intel and AMD. The company centers its operations on designing and manufacturing microprocessors that power computers, servers, and other devices, with a keen focus on delivering solutions tailored to the unique needs of the Chinese market. Leveraging its expertise in RISC architecture, Loongson's processors are designed to provide robust performance while offering energy efficiency—key attributes that ensure competitiveness in sectors ranging from consumer electronics to governmental systems. Loongson's financial engine is driven by its ability to capitalize on China's strategic policy support for domestically produced technology. The company generates revenue through the sale of its processors and associated products, while also offering licensing opportunities for its proprietary technology. This approach not only assures a steady stream of revenue but also fosters a broader ecosystem of compatibility and adoption within the Chinese industry. Furthermore, Loongson's collaborations with local universities and research institutes fuel its innovation pipeline, ensuring that it remains at the cutting edge of processor technology. This combination of strategic partnerships, government support, and a focus on R&D allows Loongson not only to thrive financially but also to play a pivotal role in strengthening China's technological sovereignty.

Intrinsic Value
11.37 CNY
Overvaluation 93%
Intrinsic Value
Price ¥166.23
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