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Chengdu Xingrong Environment Co (000598) Fair Value & Analysis

Utilities · CN · Market cap 21.0B CNY

CX Chengdu Xingrong Environment Co 000598 · SHE
Price¥7.12
Fair Value¥10.74
Upside+50.8%
Quality46/100
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Expensive Growth
Highly profitable · 22.2% net margin
Moderate debt · generates free cash flow
3.40% dividend yield
Ranks above peers (13/15)
Moderate moat 58/100
Evidence: Medium Range ¥6.33 – ¥14.22 Share as image

Fair value as of: Jul 21, 2026

From 26 valuation models · updated 20 days ago

Share price +7.1% over the past month.

Below-average quality, screening 51% undervalued on our models.

What matters now

  • Solid quality (46/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (¥6.33 to ¥14.22) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥8.20 ¥4.21 Fair Value ¥10.74 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 ¥4.21 – ¥8.20 · fair‑value band ¥6.33 – ¥14.22 · the ¥7.12 price screens below the ¥10.74 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

Chengdu Xingrong Environment Co (000598) currently trades at ¥7.12, while our model-based Fair Value estimate is ¥10.74, implying the stock looks roughly 50.8% undervalued today. The Quality Score stands at 46/100 (below-average quality), in the Utilities 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: medium), always confirm before acting.

Over the trailing twelve months, Chengdu Xingrong Environment Co generated revenue of 9.1B CNY at a net margin of 22.2%. Revenue grew 3.2% year over year. It earns a return on equity of 9.9%. Net debt stands at 9.5B CNY. Fundamentals as of Jul 21, 2026

Our scenario range runs from ¥6.33 (bear case) to ¥14.22 (bull case); at ¥7.12, 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 7% below its 52-week high and 10% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at -33% fair-value upside, at 51%, 000598 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
Growth DCF ¥0.0900 ¥2.81 80
Residual Income ¥6.12 ¥6.74 ¥9.68 76
Rev-Margin DCF ¥1.14 ¥5.77 ¥12.35 74
All 26 models by family
DCF Models
FCF DCF ¥3.22 38
Owner Earnings ¥0.3900 ¥4.04 31
5Y Revenue Exit ¥1.14 ¥6.07 ¥13.37 39
5Y EBITDA Exit ¥4.34 ¥13.28 ¥25.53 41
5Y P/E Exit ¥3.41 ¥11.19 ¥20.94 38
10Y Revenue Exit ¥0.0900 ¥4.60 ¥12.47 36
10Y EBITDA Exit ¥2.49 ¥10.16 ¥23.86 37
10Y P/E Exit ¥1.85 ¥8.55 ¥19.66 35
Earnings-Based
Graham-Dodd ¥4.57 ¥27.86 ¥38.86 54
Lynch FV ¥7.97 ¥11.39 ¥14.81 50
PEG = 1.0 ¥7.97 ¥11.39 ¥14.81 46
EPV ¥3.18 ¥4.24 ¥5.17 59
Dividend Discount
Gordon GGM ¥3.31 ¥6.88 ¥10.91 70
DDM Multi-Stage ¥3.31 ¥5.80 ¥7.22 61
Multiples
P/E Multiple ¥9.07 ¥12.09 ¥15.11 63
P/S Multiple ¥5.70 ¥7.60 ¥9.50 58
P/B Multiple ¥8.56 ¥11.42 ¥14.27 55
EV/EBIT ¥6.02 ¥9.09 ¥12.16 53
EV/EBITDA ¥7.26 ¥10.74 ¥14.22 54
EV/Revenue ¥2.13 ¥4.41 ¥6.69 43
Asset-Based
NCAV (Graham) ¥3.50 ¥4.69 ¥7.01 50
Growth DCF
Growth DCF ¥0.0900 ¥2.81 80
Rev-Margin DCF ¥1.14 ¥5.77 ¥12.35 74
Economic Profit
Residual Income ¥6.12 ¥6.74 ¥9.68 76
ROIC Compounder ¥3.18 ¥4.24 ¥5.17 72
Growth Earnings
Growth-Adj P/E ¥10.75 ¥15.36 ¥19.97 68

Widest divergence: Growth Earnings (¥15.36) versus Growth DCF (¥0.0900). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 9.1B CNY
Revenue growth (YoY) +3.2%
Net margin 22.2%
Return on equity 9.9%
Free cash flow 334M CNY FY2025
P/E ratio 10.3
More key figures
Operating margin 33.8%
EPS (TTM) ¥0.6800
Dividend yield 3.4%
EPS growth (YoY) +3.9%
Net debt 9.5B CNY FY2025

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

Quality Score breakdown

Overall quality 46/100

Of which business quality 45 · Market factors (momentum, volatility) 56

Profitability 36
Margins and returns on capital today
Quality Growth 22
Are margins and returns improving?
Cashflow 55
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 30
Disciplined investing over empire-building
Low Volatility 95
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 42
Distance to the 52-week high (market factor)
Net Issuance 80
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

Chengdu Xingrong Environment Co., Ltd. engages in the tap water business in China. It is involved in the water extraction from water sources, water purification, water pipe transportation, and tap water sales and after-sales services. The company also engages in the sewage treatment business, such as urban and rural domestic sewage and industrial wastewater.

Full company description

Chengdu Xingrong Environment Co., Ltd. engages in the tap water business in China. It is involved in the water extraction from water sources, water purification, water pipe transportation, and tap water sales and after-sales services. The company also engages in the sewage treatment business, such as urban and rural domestic sewage and industrial wastewater. In addition, it is involved in the environmental protection business, including waste incineration power generation, landfill leachate treatment, sludge and food waste disposal, and engineering businesses. The company was formerly known as Chengdu Xingrong Investment Co., Ltd. and changed its name to Chengdu Xingrong Environment Co., Ltd. in June 2015. Chengdu Xingrong Environment Co., Ltd. was founded in 1995 and is based in Chengdu, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Chengdu Xingrong Environment Co reported revenue of ¥9.1B in FY2025 versus ¥6.8B in FY2021, a compound +7.7%/yr. Reported net income was ¥2.0B in FY2025, compounding +7.6%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
9.1B CNY
Latest YoY
+0.2%
Avg. growth/yr (3Y)
+5.9%
Avg. growth/yr (5Y)
+11.0%
Avg. growth/yr (32Y)
+21.0%
Revenue +7.7%/yr
FY21 ¥6.8B
FY22 ¥7.6B
FY23 ¥8.1B
FY24 ¥9.0B
FY25 ¥9.1B
Net income +7.6%/yr
FY21 ¥1.5B
FY22 ¥1.6B
FY23 ¥1.8B
FY24 ¥2.0B
FY25 ¥2.0B

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Cite: Fair Value Calculator (2026). "Chengdu Xingrong Environment Co Fair Value". https://www.fairvalue-calculator.com/stock/000598

Peer Group

Utilities - Regulated Water · 67 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 46 · Above median
Fair Value upside +51% · Top 25%
Return on equity (TTM) 10% · Above median
Return on assets 3% · Above median
Net margin (TTM) 22% · Top 25%
Operating margin (TTM) 34% · Top 25%
Revenue growth 3% · Below median
Dividend yield (TTM) 3.4% · Above median
Debt / equity 0.68× · Lower than median

Valuation Multiples vs Utilities - Regulated Water median · lower = cheaper

P/E (TTM) 10.3× · Cheaper than 75% of peers
P/B 1.00× · Cheaper than median
P/S (TTM) 2.30× · Cheaper than median
P/FCF 9.3× · Pricier than 75% of peers
EV/EBITDA 6.7× · Cheaper than 75% of peers
PEG 0.35× · 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 100 · sector 7
FUTURE 16 · sector 28
PAST 40 · sector 29
HEALTH 66 · sector 66
DIVIDEND 68 · sector 49

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 Utilities - Regulated Water stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

Stock Price Fair Value vs Fair Value
American Water Works Company AWK $134.33 $65.80 -51%
SBSP3 SBSP3 R$29.22 R$31.23 +7%
SBS SBS $5.79 $5.21 -10%
Essential Utilities, Inc WTRG $38.59 $21.81 -43%
CSMG3 CSMG3 R$66.10 R$60.17 -9%
Grandblue Environment Co 600323 ¥29.42 ¥33.29 +13%
American States Water Company AWR $85.01 $48.02 -44%
California Water Service Group CWT $49.73 $33.56 -33%
Chongqing Water Group 601158 ¥4.12 ¥2.77 -33%
H2O America, through its subsidiaries, HTO $62.47 $41.30 -34%

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Frequently asked questions

Is Chengdu Xingrong Environment Co (000598) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of ¥10.74 versus a price of ¥7.12, about +51% (undervalued).
What is the fair value of 000598?
Our model-based fair value for Chengdu Xingrong Environment Co is ¥10.74 (as of Jul 21, 2026), built from audited fundamentals. The current price is ¥7.12.
What is the quality score of 000598?
Chengdu Xingrong Environment Co has a Quality Score of 46/100. 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 Chengdu Xingrong Environment Co (000598)?
Chengdu Xingrong Environment Co reported trailing-twelve-month revenue of about 9.1B CNY (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 000598?
The net profit margin of Chengdu Xingrong Environment Co is about 22.2%, meaning it keeps roughly 22.2% of revenue as net income. Based on the latest reported figures.
Does Chengdu Xingrong Environment Co pay a dividend?
Chengdu Xingrong Environment Co currently shows a dividend yield of about 3.40% 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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