Qinghai Salt Lake Industry Co Ltd
SZSE:000792

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Qinghai Salt Lake Industry Co Ltd
SZSE:000792
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Price: 39.29 CNY -0.53% Market Closed
Market Cap: ¥207.9B

EV/GP

17.4
Current
68%
More Expensive
vs 3-y average of 10.3

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
17.4
=
Enterprise Value
¥182.3B
/
Gross Profit
¥10.5B

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
17.4
=
Enterprise Value
¥182.3B
/
Gross Profit
¥10.5B

Valuation Scenarios

Qinghai Salt Lake Industry Co Ltd is trading above its 3-year average

If EV/GP returns to its 3-Year Average (10.3), the stock would be worth ¥23.39 (40% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-40%
Maximum Upside
No Upside Scenarios
Average Downside
26%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 17.4 ¥39.29
0%
3-Year Average 10.3 ¥23.39
-40%
5-Year Average 10.5 ¥23.69
-40%
Industry Average 17.3 ¥39.22
0%
Country Average 13.6 ¥30.72
-22%

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
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Market Distribution

In line with most companies in China
Percentile
59th
Based on 6 967 companies
59th percentile
17.4
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

Qinghai Salt Lake Industry Co Ltd
Glance View

Nestled in the heart of China’s expansive Qinghai Province, Qinghai Salt Lake Industry Co., Ltd. thrives as a significant player in the chemical industry, drawing its life force from the abundant mineral-rich Qinghai Salt Lake, often referred to as the "China’s potash city". This vast body of saltwater is a treasure trove of natural resources, particularly potash—an essential ingredient for producing agricultural fertilizers. Endowed with this strategic advantage, the company taps into these deposits to extract and manufacture potash fertilizers, ranging from potassium chloride to potassium sulfate. These fertilizers are crucial for boosting crop yields and supporting China’s agricultural demands. By leveraging advanced extraction techniques and proprietary technologies, the company ensures efficient production processes, transforming natural bounty into valuable chemical products. Yet, Qinghai Salt Lake Industry Co., Ltd. isn’t just content with resting on its abundant natural resources. The company has expanded its scope by diversifying into other chemical products, including lithium salts and magnesium materials. With the global surge in electric vehicle production, lithium has gained immense strategic importance. Recognizing this, the company captures synergies between its existing operations and the burgeoning lithium market, aiming to cement its position in this high-growth sector. Through strategic investments in research and development, they enhance their competitive edge, contributing to the broader narrative of China’s shift towards sustainable industries. In essence, Qinghai Salt Lake Industry Co., Ltd. not only capitalizes on its geographical and natural advantages but also aligns itself with evolving market demands, thereby ensuring its profitability and influence in the landscape of essential materials.

Intrinsic Value
33.2 CNY
Overvaluation 15%
Intrinsic Value
Price ¥39.29
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