The Discounted Cash Flow (DCF) valuation of Sanquan Food Co Ltd (002216.SZ) is 6.86 CNY. With the latest stock price at 11.15 CNY, the upside of Sanquan Food Co Ltd based on DCF is -38.5%.

Is 002216.SZ a buy or a sell?

Based on the latest price of 11.15 CNY and our DCF valuation, Sanquan Food Co Ltd (002216.SZ) is a sell. Selling 002216.SZ stocks now will result in a potential gain of 38.5%.

	Range	Selected
WACC / Discount Rate	8.3% - 10.6%	9.4%
Long-term Growth Rate	1.0% - 3.0%	2.0%
Fair Price	5.42 - 9.46	6.86
Upside	-51.4% - -15.1%	-38.5%

11.15 CNY

Stock Price

6.86 CNY

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

002216.SZ DCF Valuation: Revenue & Expenses Forecast

(CNY in millions)		Projections

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

Revenue	6,632	6,835	7,129	7,430	7,578	7,730
% Growth	6%	3%	4%	4%	2%	2%

Cost of goods sold	(5,048)	(5,202)	(5,426)	(5,655)	(5,768)	(5,883)
% of Revenue	76%	76%	76%	76%	76%	76%

Selling, G&A expenses	(1,031)	(1,062)	(1,108)	(1,155)	(1,178)	(1,201)
% of Revenue	16%	16%	16%	16%	16%	16%

Research & Development	(35)	(36)	(37)	(39)	(40)	(40)
% of Revenue	1%	1%	1%	1%	1%	1%

Net interest & other expenses	165	170	178	185	189	193
% of Revenue	2%	2%	2%	2%	2%	2%

Tax expense	(142)	(150)	(157)	(163)	(167)	(170)
Tax rate	21%	21%	21%	21%	21%	21%

Net profit	542	555	579	604	616	628
% Margin	8%	8%	8%	8%	8%	8%