The Discounted Cash Flow (DCF) valuation of Zhejiang Kan Specialities Material Co Ltd (002012.SZ) is 2.89 CNY. With the latest stock price at 5.44 CNY, the upside of Zhejiang Kan Specialities Material Co Ltd based on DCF is -46.8%.

Is 002012.SZ a buy or a sell?

Based on the latest price of 5.44 CNY and our DCF valuation, Zhejiang Kan Specialities Material Co Ltd (002012.SZ) is a sell. Selling 002012.SZ stocks now will result in a potential gain of 46.8%.

	Range	Selected
WACC / Discount Rate	7.7% - 10.4%	9.0%
Long-term Growth Rate	3.0% - 5.0%	4.0%
Fair Price	2.36 - 4.38	2.89
Upside	-56.7% - -19.4%	-46.8%

5.44 CNY

Stock Price

2.89 CNY

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

002012.SZ DCF Valuation: Revenue & Expenses Forecast

(CNY in millions)		Projections

	12-2024	12-2025	12-2026	12-2027	12-2028	12-2029

Revenue	591	591	603	615	647	664
% Growth	29%	0%	2%	2%	5%	3%

Cost of goods sold	(488)	(478)	(478)	(478)	(493)	(496)
% of Revenue	83%	81%	79%	78%	76%	75%

Selling, G&A expenses	(60)	(60)	(62)	(63)	(66)	(68)
% of Revenue	10%	10%	10%	10%	10%	10%

Research & Development	(26)	(26)	(26)	(27)	(28)	(29)
% of Revenue	4%	4%	4%	4%	4%	4%

Net interest & other expenses	9	9	9	9	9	10
% of Revenue	1%	1%	1%	1%	1%	1%

Tax expense	(3)	(5)	(6)	(7)	(9)	(11)
Tax rate	13%	13%	13%	13%	13%	13%

Net profit	22	30	39	49	60	70
% Margin	4%	5%	7%	8%	9%	11%