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Guizhou Tyre Co (000589) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 7.1B CNY

GT Guizhou Tyre Co 000589 · SHE
Price¥4.31
Fair Value¥3.90
Upside-9.5%
Quality39/100
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Expensive Growth
Thin margins · 6.6% net margin
Low debt · negative free cash flow
2.93% dividend yield
Ranks above peers (10/13)
Narrow moat 39/100
Evidence: Medium Range ¥2.90 – ¥5.07 Share as image

Fair value as of: Jul 21, 2026

From 14 valuation models · updated 20 days ago

Fair value updated Jul 21, 2026, revised from ¥6.45 to ¥3.90 (−39.6%) since Jun 25, 2026. Share price −0.5% over the past month.

Below-average quality, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from ¥2.90 (bear) to ¥5.07 (bull), base ¥3.90. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 39/100 (below-average quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

¥6.80 ¥3.15 Fair Value ¥3.90 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

60‑month range ¥3.15 – ¥6.80 · fair‑value band ¥2.90 – ¥5.07 · the ¥4.31 price screens above the ¥3.90 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Guizhou Tyre Co (000589) currently trades at ¥4.31, while our model-based Fair Value estimate is ¥3.90, implying the stock looks roughly 9.5% fairly valued today. The Quality Score stands at 39/100 (below-average quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Guizhou Tyre Co generated revenue of 11.1B CNY at a net margin of 6.6%. Revenue grew 6.3% year over year. It earns a return on equity of 8.1%. Net debt stands at 1.4B CNY. Fundamentals as of Jul 21, 2026

Our scenario range runs from ¥2.90 (bear case) to ¥5.07 (bull case); at ¥4.31, 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 17% below its 52-week high and 2% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -44% fair-value upside, at -10%, 000589 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 ¥4.63 ¥4.83 ¥5.03 76
ROIC Compounder ¥4.51 ¥5.20 ¥5.80 72
Growth-Adj P/E ¥4.51 ¥6.45 ¥8.38 68
All 14 models by family
Earnings-Based
Graham-Dodd ¥2.71 ¥9.73 ¥13.11 54
Lynch FV ¥2.30 ¥3.28 ¥4.26 50
PEG = 1.0 ¥2.30 ¥3.28 ¥4.26 46
EPV ¥4.51 ¥5.20 ¥5.80 59
Multiples
P/E Multiple ¥6.58 ¥8.78 ¥10.97 63
P/S Multiple ¥5.09 ¥6.78 ¥8.48 58
P/B Multiple ¥5.09 ¥6.78 ¥8.48 55
EV/EBIT ¥7.35 ¥9.75 ¥12.16 53
EV/EBITDA ¥8.02 ¥10.64 ¥13.27 54
EV/Revenue ¥5.00 ¥7.08 ¥9.17 43
Asset-Based
NCAV (Graham) ¥2.91 ¥3.91 ¥5.83 50
Economic Profit
Residual Income ¥4.63 ¥4.83 ¥5.03 76
ROIC Compounder ¥4.51 ¥5.20 ¥5.80 72
Growth Earnings
Growth-Adj P/E ¥4.51 ¥6.45 ¥8.38 68

Widest divergence: Multiples (¥7.08) versus Earnings-Based (¥3.28). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 11.1B CNY
Revenue growth (YoY) +6.3%
Net margin 6.6%
Return on equity 8.1%
Free cash flow −685M CNY FY2025
P/E ratio 9.7
More key figures
Operating margin 8.7%
EPS (TTM) ¥0.4700
Dividend yield 2.9%
EPS growth (YoY) +175%
Net debt 1.4B CNY FY2025

Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 39/100

Of which business quality 39 · Market factors (momentum, volatility) 46

Profitability 32
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 22
Earnings quality: real cash, not paper profit
Fin. Strength 51
Balance sheet, leverage, solvency risk
Investment 49
Disciplined investing over empire-building
Low Volatility 89
Calm price path (market factor)
Momentum 32
Price trend over the last 3–12 months (market factor)
52W Momentum 20
Distance to the 52-week high (market factor)
Net Issuance 44
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

Guizhou Tyre Co.,Ltd. engages in the research, development, production, and sale of tires in China. The company offers tires for truck/passenger cars, OTRs, agricultural and forestry machineries, industrial vehicles, trailers, and mining machineries, as well as solid and special tires under the Advance, Samson, Tornado, Chinhoo, and Jingang brands.

Full company description

Guizhou Tyre Co.,Ltd. engages in the research, development, production, and sale of tires in China. The company offers tires for truck/passenger cars, OTRs, agricultural and forestry machineries, industrial vehicles, trailers, and mining machineries, as well as solid and special tires under the Advance, Samson, Tornado, Chinhoo, and Jingang brands. It also provides loader, bulldozer, roller, sand, and downhole mining tires. The company also exports its products to approximately 120 countries and regions, such as Britain, Italy, South Africa, and South America. Guizhou Tyre Co.,Ltd. was founded in 1958 and is based in Guiyang, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Guizhou Tyre Co reported revenue of ¥10.9B in FY2025 versus ¥7.3B in FY2021, a compound +10.5%/yr. Reported net income was ¥620M in FY2025, compounding +13.8%/yr from FY2021.

Growth Quality 49/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
10.9B CNY
Latest YoY
+2.4%
Avg. growth/yr (3Y)
+9.1%
Avg. growth/yr (5Y)
+10.0%
Avg. growth/yr (32Y)
+10.1%
Revenue +10.5%/yr
FY21 ¥7.3B
FY22 ¥8.4B
FY23 ¥9.6B
FY24 ¥10.7B
FY25 ¥10.9B
Net income +13.8%/yr
FY21 ¥370M
FY22 ¥429M
FY23 ¥833M
FY24 ¥615M
FY25 ¥620M

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Cite: Fair Value Calculator (2026). "Guizhou Tyre Co Fair Value". https://www.fairvalue-calculator.com/stock/000589

Peer Group

Auto Parts · 642 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 39 · Bottom 25%
Fair Value upside −10% · Above median
Return on equity (TTM) 8% · Above median
Return on assets 3% · Below median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 9% · Above median
Revenue growth 6% · Above median
Dividend yield (TTM) 2.9% · Above median
Debt / equity 0.24× · Higher than median

Valuation Multiples vs Auto Parts median · lower = cheaper

P/E (TTM) 9.7× · Cheaper than 75% of peers
P/B 0.78× · Cheaper than 75% of peers
P/S (TTM) 0.64× · Cheaper than median
EV/EBITDA 4.7× · Cheaper than 75% of peers

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 21 · sector 17
FUTURE 32 · sector 23
PAST 33 · sector 26
HEALTH 88 · sector 95
DIVIDEND 59 · sector 30

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 Auto Parts stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

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Magna International Inc MGAN 1,122 MXN 1,172 MXN +4%
Samvardhana Motherson International Limited MOTHERSON ₹144.17 ₹80.63 -44%
Bosch Limited BOSCHLTD ₹41,110 ₹14,004 -66%
Bharat Forge Limited BHARATFORG ₹2,117 ₹441.74 -79%
Uno Minda Limited UNOMINDA ₹1,158 ₹426.57 -63%
Schaeffler India Limited SCHAEFFLER ₹4,135 ₹1,412 -66%
Hankook Tire & Technology Co 161390 73,600 KRW 196,479 KRW +167%
MRF Limited MRF ₹131,025 ₹125,849 -4%
Sona BLW Precision Forgings Limited SONACOMS ₹792.00 ₹207.06 -74%

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Frequently asked questions

Is Guizhou Tyre Co (000589) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of ¥3.90 versus a price of ¥4.31, about −10% (fairly valued).
What is the fair value of 000589?
Our model-based fair value for Guizhou Tyre Co is ¥3.90 (as of Jul 21, 2026), built from audited fundamentals. The current price is ¥4.31.
What is the quality score of 000589?
Guizhou Tyre Co has a Quality Score of 39/100. 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 Guizhou Tyre Co (000589)?
Guizhou Tyre Co reported trailing-twelve-month revenue of about 11.1B CNY (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 000589?
The net profit margin of Guizhou Tyre Co is about 6.6%, meaning it keeps roughly 6.6% of revenue as net income. Based on the latest reported figures.
Does Guizhou Tyre Co pay a dividend?
Guizhou Tyre Co currently shows a dividend yield of about 2.93% relative to its recent price (as of Jul 21, 2026).

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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