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Zhongyuan Environmental Protection Co (000544) Fair Value & Analysis

Industrials · CN · Market cap 7.7B CNY

ZE Zhongyuan Environmental Protection Co 000544 · SHE
Price¥7.36
Fair Value¥8.50
Upside+15.5%
Quality35/100
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Expensive Growth
Solidly profitable · 19.4% net margin
High debt · negative free cash flow
Ranks above peers (9/12)
Moderate moat 51/100
Evidence: High Range ¥5.62 – ¥12.89 Share as image

Fair value as of: Jul 24, 2026

From 15 valuation models · updated 17 days ago

Fair value updated Jul 24, 2026, revised from ¥15.46 to ¥8.50 (−45.0%) since Jun 25, 2026. Share price +2.9% over the past month.

Below-average quality, screening 16% undervalued on our models.

What matters now

  • A fairly wide model range (¥5.62 to ¥12.89) leaves room in how you read the outcome.
  • Our model range runs from ¥5.62 (bear) to ¥12.89 (bull), base ¥8.50. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 35/100 (below-average quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥9.39 ¥4.88 Fair Value ¥8.50 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 24, 2026.

How to read this chart

60‑month range ¥4.88 – ¥9.39 · fair‑value band ¥5.62 – ¥12.89 · the ¥7.36 price screens below the ¥8.50 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 24, 2026.

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Analysis

Zhongyuan Environmental Protection Co (000544) currently trades at ¥7.36, while our model-based Fair Value estimate is ¥8.50, implying the stock looks roughly 15.5% undervalued today. The Quality Score stands at 35/100 (below-average quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Zhongyuan Environmental Protection Co generated revenue of 5.5B CNY at a net margin of 19.4%. Revenue grew 21.0% year over year. It earns a return on equity of 9.6%. Net debt stands at 21.1B CNY. Fundamentals as of Jul 24, 2026

Our scenario range runs from ¥5.62 (bear case) to ¥12.89 (bull case); at ¥7.36, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 23% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at 16%, 000544 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income ¥9.87 ¥10.83 ¥13.91 76
ROIC Compounder ¥1.62 72
Gordon GGM ¥9.21 ¥18.35 ¥27.79 70
All 15 models by family
Earnings-Based
Graham-Dodd ¥7.50 ¥40.01 ¥55.43 54
Lynch FV ¥11.04 ¥15.77 ¥20.51 50
PEG = 1.0 ¥11.04 ¥15.77 ¥20.51 46
EPV ¥1.62 59
Dividend Discount
Gordon GGM ¥9.21 ¥18.35 ¥27.79 70
DDM Multi-Stage ¥9.21 ¥15.86 ¥19.37 61
Multiples
P/E Multiple ¥17.37 ¥23.16 ¥28.96 63
P/S Multiple ¥8.53 ¥11.37 ¥14.21 58
P/B Multiple ¥14.06 ¥18.75 ¥23.44 55
EV/EBIT ¥6.34 ¥15.63 ¥24.91 53
EV/EBITDA ¥4.79 ¥13.56 ¥22.32 54
Asset-Based
NCAV (Graham) ¥5.70 ¥7.63 ¥11.39 50
Economic Profit
Residual Income ¥9.87 ¥10.83 ¥13.91 76
ROIC Compounder ¥1.62 72
Growth Earnings
Growth-Adj P/E ¥16.29 ¥23.27 ¥30.26 68

Widest divergence: Growth Earnings (¥23.27) versus Asset-Based (¥7.63). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 5.5B CNY
Revenue growth (YoY) +21.0%
Net margin 19.4%
Return on equity 9.6%
Free cash flow −1.9B CNY FY2025
P/E ratio 7.5
More key figures
Operating margin 17.0%
EPS (TTM) ¥1.05
EPS growth (YoY) +497%
Net debt 21.1B CNY FY2025

Figures from reported company fundamentals · as of Jul 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 35/100

Of which business quality 32 · Market factors (momentum, volatility) 42

Profitability 33
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 11
Earnings quality: real cash, not paper profit
Fin. Strength 13
Balance sheet, leverage, solvency risk
Investment 4
Disciplined investing over empire-building
Low Volatility 92
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 10
Distance to the 52-week high (market factor)
Net Issuance 92
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Zhongyuan Environmental Protection Co., Ltd. constructs, operates, and manages environmental and public utility projects in the People's Republic of China.

Full company description

Zhongyuan Environmental Protection Co., Ltd. constructs, operates, and manages environmental and public utility projects in the People's Republic of China. It is also engaged in the urban water supply and drainage, comprehensive sewage treatment, reclaimed water utilization, and sludge treatment; heat production and supply; waste, wind, and photovoltaic power generation; resource utilization; technical research and technological development; equipment manufacturing and sales; engineering design and general contracting construction; project management, engineering consulting, and technical services; municipal infrastructure construction; ecological engineering and restoration; seedling planting; garden design; and landscaping engineering and garden activities. The company was formerly known as Central Plains Environment Protection Co.,Ltd. The company was founded in 1996 and is headquartered in Zhengzhou, the People's Republic of China. Zhongyuan Environmental Protection Co., Ltd. operates as a subsidiary of Zhengzhou Public Utilities Investment and Development Group Co., Ltd.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhongyuan Environmental Protection Co reported revenue of ¥5.5B in FY2025 versus ¥6.1B in FY2021, a compound −2.5%/yr. Reported net income was ¥1.1B in FY2025, compounding +20.6%/yr from FY2021.

Growth Quality 57/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
5.5B CNY
Latest YoY
+1.8%
Avg. growth/yr (3Y)
−11.0%
Avg. growth/yr (5Y)
+20.8%
Avg. growth/yr (32Y)
+9.4%
Revenue −2.5%/yr
FY21 ¥6.1B
FY22 ¥7.9B
FY23 ¥7.8B
FY24 ¥5.4B
FY25 ¥5.5B
Net income +20.6%/yr
FY21 ¥509M
FY22 ¥714M
FY23 ¥860M
FY24 ¥1.0B
FY25 ¥1.1B

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Cite: Fair Value Calculator (2026). "Zhongyuan Environmental Protection Co Fair Value". https://www.fairvalue-calculator.com/stock/000544

Peer Group

Pollution & Treatment Controls · 91 stocks

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.

Quality Score 35 · Bottom 25%
Fair Value upside +16% · Top 25%
Return on equity (TTM) 10% · Top 25%
Return on assets 3% · Above median
Net margin (TTM) 19% · Top 25%
Operating margin (TTM) 17% · Top 25%
Revenue growth 21% · Top 25%
Debt / equity 2.11× · Higher than 75% of peers

Valuation Multiples vs Pollution & Treatment Controls median · lower = cheaper

P/E (TTM) 7.5× · Cheaper than 75% of peers
P/B 0.69× · Cheaper than median
P/S (TTM) 1.38× · Pricier than median
EV/EBITDA 12.0× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 54 · sector 0
FUTURE 100 · sector 14
PAST 39 · sector 10
HEALTH 0 · sector 95
DIVIDEND 0 · sector 37

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Pollution & Treatment Controls stocks, each showing price versus our Fair Value estimate (as of Jul 24, 2026).

Stock Price Fair Value vs Fair Value
Veralto Corporation VLTO $94.21 $69.11 -27%
Zurn Elkay Water Solutions Corporation ZWS $47.63 $24.92 -48%
Canmax Technologies Co 300390 ¥57.02 ¥10.41 -82%
CECO Environmental Corp CECO $83.63 $15.19 -82%
Fujian Longking Co 600388 ¥17.58 ¥15.59 -11%
Munters Group MTRS kr 166.60 kr 16.90 -90%
China Conch Venture Holdings 0586 HK$8.83 HK$14.14 +60%
Mega Union Technology Inc 6944 1,005 TWD 539.58 TWD -46%
MayAir Technology (China) Co 688376 ¥96.57 ¥18.80 -81%
Shanghai Emperor of Cleaning Hi-Tech Co 603200 ¥38.97 ¥5.73 -85%

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Frequently asked questions

Is Zhongyuan Environmental Protection Co (000544) overvalued or undervalued?
As of Jul 24, 2026, our model estimates a fair value of ¥8.50 versus a price of ¥7.36, about +16% (undervalued).
What is the fair value of 000544?
Our model-based fair value for Zhongyuan Environmental Protection Co is ¥8.50 (as of Jul 24, 2026), built from audited fundamentals. The current price is ¥7.36.
What is the quality score of 000544?
Zhongyuan Environmental Protection Co has a Quality Score of 35/100. 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 revenue of Zhongyuan Environmental Protection Co (000544)?
Zhongyuan Environmental Protection Co reported trailing-twelve-month revenue of about 5.5B CNY (latest available figure, as of Jul 24, 2026).
What is the net profit margin of 000544?
The net profit margin of Zhongyuan Environmental Protection Co is about 19.4%, meaning it keeps roughly 19.4% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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