000559.SZ
Wanxiang Qianchao Co Ltd
Price:  
8.02 
CNY
Volume:  
66,994,710
China | Auto Components

000559.SZ DCF Valuation - Growth Exit 5Y

-11.2 %
Upside

What is the DCF valuation of 000559.SZ?

The Discounted Cash Flow (DCF) valuation of Wanxiang Qianchao Co Ltd (000559.SZ) is 7.12 CNY. With the latest stock price at 8.02 CNY, the upside of Wanxiang Qianchao Co Ltd based on DCF is -11.2%.

Is 000559.SZ a buy or a sell?

Based on the latest price of 8.02 CNY and our DCF valuation, Wanxiang Qianchao Co Ltd (000559.SZ) is a sell. Selling 000559.SZ stocks now will result in a potential gain of 11.2%.

Range Selected
WACC / Discount Rate8.8% - 11.2%10.0%
Long-term Growth Rate 2.5% - 4.5%3.5%
Fair Price5.4 - 10.617.12
Upside-32.6% - 32.3%-11.2%
8.02 CNY
Stock Price
7.12 CNY
Fair Price
REVENUE & EXPENSES
CAPEX
D&A
WORKING CAPITAL
TERMINAL VALUE

000559.SZ DCF Valuation: Revenue & Expenses Forecast

(CNY in millions)Projections
12-202412-202512-202612-202712-202812-2029
Revenue12,86812,66112,91413,43013,87514,626
% Growth
11%-2%2%4%3%5%
Cost of goods sold(10,729)(10,344)(10,340)(10,538)(10,670)(11,022)
% of Revenue83%82%80%78%77%75%
Selling, G&A expenses(650)(639)(652)(678)(701)(739)
% of Revenue5%5%5%5%5%5%
Research & Development(520)(512)(522)(543)(561)(591)
% of Revenue4%4%4%4%4%4%
Net interest & other expenses706970737680
% of Revenue1%1%1%1%1%1%
Tax expense(83)(98)(117)(139)(161)(187)
Tax rate8%8%8%8%8%8%
Net profit9571,1361,3531,6051,8592,167
% Margin7%9%10%12%13%15%