The Discounted Cash Flow (DCF) valuation of Friend Co Ltd (605050.SS) is 48.08 CNY. With the latest stock price at 15.03 CNY, the upside of Friend Co Ltd based on DCF is 219.9%.
Based on the latest price of 15.03 CNY and our DCF valuation, Friend Co Ltd (605050.SS) is a buy. Buying 605050.SS stocks now will result in a potential gain of 219.9%.
Range | Selected | |
WACC / Discount Rate | 6.3% - 7.8% | 7.0% |
Long-term Growth Rate | 2.5% - 4.5% | 3.5% |
Fair Price | 30.18 - 101.57 | 48.08 |
Upside | 100.8% - 575.8% | 219.9% |
(CNY in millions) | Projections | |||||
12-2024 | 12-2025 | 12-2026 | 12-2027 | 12-2028 | 12-2029 | |
Revenue | 11,278 | 16,773 | 18,683 | 22,657 | 26,796 | 31,128 |
% Growth | 16% | 49% | 11% | 21% | 18% | 16% |
Cost of goods sold | (10,708) | (15,606) | (17,036) | (20,247) | (23,466) | (26,715) |
% of Revenue | 95% | 93% | 91% | 89% | 88% | 86% |
Selling, G&A expenses | (136) | (202) | (225) | (273) | (323) | (375) |
% of Revenue | 1% | 1% | 1% | 1% | 1% | 1% |
Research & Development | (5) | (7) | (8) | (9) | (11) | (13) |
% of Revenue | 0% | 0% | 0% | 0% | 0% | 0% |
Net interest & other expenses | 5 | 7 | 8 | 9 | 11 | 13 |
% of Revenue | 0% | 0% | 0% | 0% | 0% | 0% |
Tax expense | (107) | (240) | (354) | (532) | (748) | (1,005) |
Tax rate | 25% | 25% | 25% | 25% | 25% | 25% |
Net profit | 327 | 725 | 1,068 | 1,606 | 2,259 | 3,034 |
% Margin | 3% | 4% | 6% | 7% | 8% | 10% |