The Discounted Cash Flow (DCF) valuation of Xinjiang Torch Gas Co Ltd (603080.SS) is 19.93 CNY. With the latest stock price at 17.54 CNY, the upside of Xinjiang Torch Gas Co Ltd based on DCF is 13.6%.

Is 603080.SS a buy or a sell?

Based on the latest price of 17.54 CNY and our DCF valuation, Xinjiang Torch Gas Co Ltd (603080.SS) is a buy. Buying 603080.SS stocks now will result in a potential gain of 13.6%.

	Range	Selected
WACC / Discount Rate	6.9% - 8.8%	7.9%
Long-term Growth Rate	1.0% - 3.0%	2.0%
Fair Price	15.69 - 28.44	19.93
Upside	-10.5% - 62.1%	13.6%

17.54 CNY

Stock Price

19.93 CNY

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

603080.SS DCF Valuation: Revenue & Expenses Forecast

(CNY in millions)		Projections

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

Revenue	1,478	1,551	1,749	2,076	2,398	2,725
% Growth	35%	5%	13%	19%	15%	14%

Cost of goods sold	(1,106)	(1,161)	(1,309)	(1,555)	(1,795)	(2,040)
% of Revenue	75%	75%	75%	75%	75%	75%

Selling, G&A expenses	(146)	(153)	(173)	(205)	(237)	(269)
% of Revenue	10%	10%	10%	10%	10%	10%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(35)	(37)	(41)	(49)	(56)	(64)
% of Revenue	2%	2%	2%	2%	2%	2%

Tax expense	(21)	(18)	(20)	(24)	(28)	(32)
Tax rate	11%	9%	9%	9%	9%	9%

Net profit	170	182	205	243	281	319
% Margin	11%	12%	12%	12%	12%	12%