| The past one year has seen a dramatic decline in Chinese stock market. Companies with strong competitiveness and promising growth have become attractive to investors. This article applies fundamental analysis, DCF and multiple valuations and arrives at a price target based on systematic analysis.The company on which this article is focused is ZC International Engineering Co., Ltd., a global leader in cement production line design. The company's competitive strength and outlook are identified by applying key factors evaluation matrix and SWOT analysis upon the company's internal and external factors. The company's financial statements are closely observed and assumptions of revenue, gross margin, capital expenditure, working capital investment are made for the future 5 years. The company's target is based on DDM, FCFE, FCFF, and multiple valuations.The target price has a premium of over 5% by DDM and over 200% by FCFE, FCFF. As a global leader in cement sector with strong competitiveness and high growth in future, a strong buy is recommended on ZC International. |
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