Risk factor
Strong & resilient to price shocks
Profitability factor
Favourable analyst view
About
Founded in 1999 and headquartered in Beijing, China, Beijing Zhong Ke San Huan High-Tech Co., Ltd. is a global leader in the research, development, manufacturing, and marketing of advanced magnetic materials and their related devices. The company offers a wide array of products, including sintered neodymium-iron-boron (Nd-Fe-B) permanent magnets, which are critical for applications in transportation, energy, communications, home appliances, machinery, and medical equipment. It also produces other Nd-Fe-B magnets utilized in energy-saving household electronics, consumer gadgets, control systems, and the information technology industry. Its portfolio extends to soft ferrite cores, encompassing deflection yokes, power ferrites, and electromagnetic interference (EMI) materials, essential for a vast range of uses such as mobile communications, internet infrastructure, power supplies, display technologies (CRT, LCD, PDP), office automation, industrial and medical instrumentation, and automotive and aerospace electronics. Moreover, the firm supplies amorphous and nanocrystalline soft magnetic materials, such as current transformers and various inductor cores, vital for information communication and power electronics. Complementing these offerings, the company also provides raw rare-earth materials.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EB
Target Price
The average target price of 000970.SZ is 15.6 and suggests 42.4% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to