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%.
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% |
(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% |