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Data-driven stock valuation

China Zhonghua Geotechnical Engineering Co Ltd (002542) fair value: what the stock is really worth

As of Nov 6, 2026: fair value (intrinsic value) of China Zhonghua Geotechnical Engineering Co Ltd stock ¥0.63, price ¥1.35, that is 53.3% below the price, quality 34 out of 100. Rating: strongly overvalued. Calculated from audited financials with 2 of our 26 valuation models and 37 quality factors, updated daily.

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Industrials CN · ISIN CNE100000ZV8

CZ China Zhonghua Geotechnical Engineering Co Ltd logo Thin data Nov 8, 2026

China Zhonghua Geotechnical Engineering Co Ltd

002542 · SHE
Very expensive, weak quality

Our calculation puts a fair price 53% below what the stock costs today.

Negative equity (buybacks among others)
Revenue last quarter 67% below a year ago.
Fair value ¥0.6300 · Strongly overvalued
Quality 34/100
Weak Growth (revenue 5y −29.2 %/yr in CNY)
Loss-making · -123.1% net margin (TTM)
Negative free cash flow
Trails peers (1/8)
Narrow moat 6/100 · thin data
Thin data
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Price vs Fair Value

¥6.82 ¥1.13 Fair Value ¥0.6300 May 2021 Nov 2026

White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.

How to read this chart

60‑month range ¥1.13 – ¥6.82 · fair‑value band ¥0.3700 – ¥0.8400 · the ¥1.35 price screens above the ¥0.6300 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.

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Company profile

China Zhonghua Geotechnical Engineering Group Co., Ltd. engages in the engineering, general aviation, cultural tourism, investment, and other businesses in China and internationally.

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The company offers engineering services comprising planning, consulting, surveying, design, construction, supervision, testing, and monitoring services for municipal infrastructure, airports, subways, oil and gas, petrochemicals, and ports construction applications, as well as geotechnical engineering services; municipal engineering services for roads, bridges, and underground pipe networks; airport runway engineering services, which includes airport maintenance; underground engineering services, such as foundation pit support, underground continuous wall, shield tunnel, and engineering machinery manufacturing; and diaphragm wall, underground space development, and foundation treatment services.

It also provides civil aviation airport engineering consulting, planning and design, project investment and management, engineering construction, operation, and maintenance; and business charter flights, aerial sightseeing and photography, aerial surveying, aerial patrols, agricultural and forestry operations, pilot training, emergency rescue, aircraft management and leasing, sales, exhibition, and maintenance services, as well as owns and operates general aviation companies and airports.

In addition, the company engages in the planning, design, investment, development, and construction of cultural and tourism characteristic towns, theme parks, general aviation towns, and other projects; and investments in emerging industries.

Further, it is involved in project construction; culture and art; equipment leasing; professional and technical services; technology promotion and application services; and geotechnical design studies activities.

China Zhonghua Geotechnical Engineering Group Co., Ltd. was founded in 2001 and is headquartered in Beijing, China.

Stock analysis

China Zhonghua Geotechnical Engineering Co Ltd (002542) currently trades at ¥1.35, while our model-based Fair Value estimate is ¥0.6300, 53% below the price, so the stock looks overvalued today.

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Valuation

How firm this estimate is: it rests on 2 models at a data quality of 95/100, which puts the data coverage at low.

Scenario range: ¥0.3700 (bear) to ¥0.8400 (bull), the price of ¥1.35 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 34/100 (below-average quality), in the Industrials sector.

Weak Growth: Revenue is shrinking: the last year, the last three and the last five years are all negative.

China Zhonghua Geotechnical Engineering Co Ltd reported revenue of 1.0B CNY in FY2025 versus 5.2B CNY in FY2021, a compound −33.6%/yr. Reported net income was −951M CNY in FY2025.

Key figures

Market cap 2.4B CNY (≈ $365M) Small · P/S ratio 3.39 · EPS (TTM) ¥−0.5400 · Dividend yield 3.4% · Net margin −123% · Return on equity −493% · Return on assets (EBIT) −11.0% (5-year average) · Operating margin −136%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 6 out of 100 (low confidence).

What moves the price

The share trades about 65% below its 52-week high and 19% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Industrials peers we cover trades at −42% fair-value upside, at −53%, 002542 screens richer than that median.

Fair Value models

Bear ¥0.3700 Fair Value ¥0.6300 Bull ¥0.8400
Price ¥1.35 · Downside -53.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
Gordon GGM ¥0.3700 ¥0.6300 ¥0.8400 68
DDM Multi-Stage ¥0.3700 ¥0.5900 ¥0.6800 67
All 2 models by family
Dividend Discount
Gordon GGM ¥0.3700 ¥0.6300 ¥0.8400 68
DDM Multi-Stage ¥0.3700 ¥0.5900 ¥0.6800 67

Open the full fair value analysis →

Quality Score breakdown

Overall quality 34/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 1
How much profit the company makes from its sales and capital
Quality Growth 62
Are margins and returns getting better?
Cashflow 6
Do the profits arrive as real cash?
Financial strength 10
Debt, balance sheet and risk of trouble
Investment 100
Does it invest with discipline instead of growing at any price?
Low Volatility 57
How calm the share price moves, does not count
Price momentum 9
Price momentum of the last 3 to 12 months, does not count
Near the 52-week high 3
Distance to the 52-week high, does not count
New shares 80
Buys back shares or issues new ones?

Open the full quality analysis →

Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 0/100
Revenue is shrinking: the last year, the last three and the last five years are all negative.
Revenue growth 1 year
−34.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−22.7%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−29.2%
Start year 2020 (pandemic). Over 10 years: −6.3% a year
Revenue growth 18 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.7%
Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
3.8% (2020) → −36.5% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed

002542 screens overvalued: fair value 53% below the price. Compare with Quanta Services, Inc →

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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Engineering & Construction · 791 stocks

Beats the industry median on 1/8 measures
Overall it trails its industry peers.
Valuation
Quality Score 34 · Bottom 25%
Fair Value upside −53.3% · Bottom 25%
Profitability
Return on equity (12 months) Negative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
Return on assets −20.0% · Bottom 25%
Net margin (12 months) −123.1% · Bottom 25%
Operating margin (12 months) −136.3% · Bottom 25%
Growth and dividend
Revenue growth (quarter YoY) −66.6% · Bottom 25%
Dividend yield (12 months) 3.4% · Above median
Balance sheet
Debt / equity Negative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.

Valuation Multiplesvs Engineering & Construction median · lower = cheaper

P/B Negative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
P/S (12 months) 3.11× · Priciest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 34
FUTURE (revenue growth)0 · sector 20
PAST (return on equity)0 · sector 28
HEALTH (low debt)0 · sector 94
DIVIDEND (yield)69 · sector 44

VALUE 0: the price sits above our fair-value range.

PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value Compare
Vinci SA DG €111.60 €186.68 +67% vs 002542
Comfort Systems USA, Inc FIX $1,018 $1,119 +10% vs 002542
EMCOR Group EME $608.45 $524.14 −14% vs 002542
ACS, Actividades de Construcción y Servicios, S.A ACS €87.00 €62.21 −28% vs 002542
Samsung C&T Corporation 028260 273,500 KRW 159,702 KRW −42% vs 002542
Larsen & Toubro Limited LT ₹4,118 ₹2,302 −44% vs 002542
HOCHTIEF Aktiengesellschaft HOT €365.60 €203.86 −44% vs 002542
APi Group APG $40.87 $19.20 −53% vs 002542
Ferrovial N.V FER $58.71 $23.06 −61% vs 002542
Quanta Services, Inc PWR $540.90 $162.41 −70% vs 002542

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China Zhonghua Geotechnical Engineering Co Ltd: fair value per Fair Value Calculator

Cite: Fair Value Calculator (2026). "China Zhonghua Geotechnical Engineering Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/002542

Frequently asked questions

Is China Zhonghua Geotechnical Engineering Co Ltd (002542) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of ¥0.6300 versus a price of ¥1.35, about 53% lower (overvalued).
What is the fair value of 002542?
Our model-based fair value for China Zhonghua Geotechnical Engineering Co Ltd is ¥0.6300 (as of Nov 8, 2026), built from audited fundamentals. The current price: ¥1.35.
What is the quality score of 002542?
China Zhonghua Geotechnical Engineering Co Ltd has a Quality Score of 34/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for China Zhonghua Geotechnical Engineering Co Ltd (002542)?
Our model-based price target is the fair value of ¥0.6300 (as of Nov 8, 2026) from 2 valuation models. Cautious scenario ¥0.3700, optimistic scenario ¥0.8400. It is a calculation from audited fundamentals, not an analyst target.
What is the China Zhonghua Geotechnical Engineering Co Ltd stock forecast for 2026?
Our models put fair value at ¥0.6300, about 53% lower versus a price of ¥1.35 (overvalued). Cautious scenario ¥0.3700, optimistic scenario ¥0.8400. The calculation is refreshed regularly with new filings.
What is the revenue of China Zhonghua Geotechnical Engineering Co Ltd (002542)?
China Zhonghua Geotechnical Engineering Co Ltd reported trailing-twelve-month revenue of about 784M CNY (latest available figure, as of Nov 8, 2026).
Does China Zhonghua Geotechnical Engineering Co Ltd pay a dividend?
China Zhonghua Geotechnical Engineering Co Ltd currently shows a dividend yield of 3.44% relative to its recent price (as of Nov 8, 2026).
How much is the dividend of China Zhonghua Geotechnical Engineering Co Ltd (002542)?
China Zhonghua Geotechnical Engineering Co Ltd has a dividend yield of 3.4%.
What is the intrinsic value of China Zhonghua Geotechnical Engineering Co Ltd (002542)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For China Zhonghua Geotechnical Engineering Co Ltd it is ¥0.6300 per share (as of Nov 8, 2026), against a price of ¥1.35. It is the blended result of 2 valuation models in 1 family (Dividend Discount).
Is China Zhonghua Geotechnical Engineering Co Ltd stock overvalued or undervalued in 2026?
As of Nov 8, 2026, 002542 trades above its calculated fair value: price ¥1.35, fair value ¥0.6300, a gap of about −53% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 002542?
No. The price is what the market pays today (¥1.35); the fair value is what the company's own numbers justify (¥0.6300). For China Zhonghua Geotechnical Engineering Co Ltd the two are ¥0.7200 per share apart. That gap is exactly why we show both numbers side by side.
How much is China Zhonghua Geotechnical Engineering Co Ltd worth?
The market values China Zhonghua Geotechnical Engineering Co Ltd at about 2.4B CNY (market capitalisation, as of Nov 8, 2026). Per share that is ¥1.35; our models calculate a fair value of ¥0.6300 per share.
What do the bullish and bearish scenarios say about 002542?
Our models span a range for China Zhonghua Geotechnical Engineering Co Ltd: cautious scenario ¥0.3700, base ¥0.6300, optimistic ¥0.8400 per share (as of Nov 8, 2026, price ¥1.35). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of China Zhonghua Geotechnical Engineering Co Ltd (002542)?
Balance-sheet figures for China Zhonghua Geotechnical Engineering Co Ltd (as of Nov 8, 2026): negative equity, so no return on equity and no debt-to-equity ratio. They feed the Quality Score of 34/100, which measures business quality independently of the share price.
How far is 002542 from its 52-week high?
China Zhonghua Geotechnical Engineering Co Ltd trades at ¥1.35, about 65% below its 52-week high of ¥3.86 and 19% above the low of ¥1.13 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of ¥0.6300 is for.
Which stocks are comparable to China Zhonghua Geotechnical Engineering Co Ltd?
From the same area (Industrials) we also value Quanta Services, Inc, Vinci SA, Larsen & Toubro Limited, Comfort Systems USA, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is China Zhonghua Geotechnical Engineering Co Ltd stock attractive at the current price?
The data as of Nov 8, 2026: price ¥1.35, calculated fair value ¥0.6300 (−53%), Quality Score 34/100, from 2 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 002542 calculated?
We run China Zhonghua Geotechnical Engineering Co Ltd through 2 models from 1 family: Dividend Discount. Every model gets the same audited fundamentals; the fair value of ¥0.6300 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. China Zhonghua Geotechnical Engineering Co Ltd itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of China Zhonghua Geotechnical Engineering Co Ltd (002542)?
The closing price on Nov 6, 2026 was ¥1.35. Our model-based fair value is ¥0.6300, about 53% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with China Zhonghua Geotechnical Engineering Co Ltd right now?
The price sits above even our optimistic bull case (¥0.8400). The favourable scenario is already priced in. Weak quality (34/100) and above fair value at the same time, the margin of safety is missing on both counts. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. A fairly wide model range (¥0.3700 to ¥0.8400) leaves room in how you read the outcome.

Key figures of China Zhonghua Geotechnical Engineering Co Ltd

How large is the market capitalisation of China Zhonghua Geotechnical Engineering Co Ltd (002542)?
The market capitalisation of China Zhonghua Geotechnical Engineering Co Ltd is 2.4B CNY (≈ $365M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of China Zhonghua Geotechnical Engineering Co Ltd (002542)?
The price-to-sales ratio of China Zhonghua Geotechnical Engineering Co Ltd is 3.39 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of China Zhonghua Geotechnical Engineering Co Ltd (002542)?
Earnings per share at China Zhonghua Geotechnical Engineering Co Ltd are ¥−0.5400. Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of China Zhonghua Geotechnical Engineering Co Ltd (002542)?
The dividend yield of China Zhonghua Geotechnical Engineering Co Ltd is 3.4%. Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of China Zhonghua Geotechnical Engineering Co Ltd (002542)?
The net margin of China Zhonghua Geotechnical Engineering Co Ltd is −123% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of China Zhonghua Geotechnical Engineering Co Ltd (002542)?
The return on equity (ROE) of China Zhonghua Geotechnical Engineering Co Ltd is −493% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of China Zhonghua Geotechnical Engineering Co Ltd (002542)?
On an EBIT basis the return on assets of China Zhonghua Geotechnical Engineering Co Ltd is −11.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of China Zhonghua Geotechnical Engineering Co Ltd (002542)?
The operating margin of China Zhonghua Geotechnical Engineering Co Ltd is −136% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at China Zhonghua Geotechnical Engineering Co Ltd (002542)?
Revenue at China Zhonghua Geotechnical Engineering Co Ltd is growing −66.6% versus a year earlier (3y avg −22.7%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at China Zhonghua Geotechnical Engineering Co Ltd (002542)?
Earnings per share at China Zhonghua Geotechnical Engineering Co Ltd are growing −80.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does China Zhonghua Geotechnical Engineering Co Ltd (002542) generate?
The free cash flow of China Zhonghua Geotechnical Engineering Co Ltd is −21.4M CNY (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does China Zhonghua Geotechnical Engineering Co Ltd (002542) carry?
The net debt of China Zhonghua Geotechnical Engineering Co Ltd is 1.1B CNY (fiscal year 2025). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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