Shunfa Hengneng Corporation (000631) Fair Value & Analysis

Real Estate · CN · Market cap 7.5B CNY

Below-average quality, and screening another 16% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (¥2.58). The favourable scenario is already priced in.
• Weak quality (42/100) and above fair value at the same time, the margin of safety is missing on both counts.
• The models converge in a tight band (¥2.41 to ¥2.58), unusually little disagreement for a valuation.
• As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 25, 2026.

How to read this chart

60‑month range ¥2.18 – ¥5.46 · fair‑value band ¥2.41 – ¥2.58 · the ¥2.95 price screens above the ¥2.49 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 25, 2026.

Full chart & analysis →

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Analysis

Shunfa Hengneng Corporation (000631) currently trades at ¥2.95, while our model-based Fair Value estimate is ¥2.49, implying the stock looks roughly 15.6% overvalued today. The Quality Score stands at 42/100 (below-average quality), in the Real Estate 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, Shunfa Hengneng Corporation generated revenue of 459M CNY at a net margin of 10.1%. Revenue declined 24.8% year over year. It earns a return on equity of 1.2%. The balance sheet holds a net cash position of 5.1B CNY. Fundamentals as of Jul 25, 2026

Our scenario range runs from ¥2.41 (bear case) to ¥2.58 (bull case); at ¥2.95, the current price sits above 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 35% below its 52-week high and 4% above its 52-week low, currently below its 200-day average. For context, the median of 10 Real Estate peers we cover trades at 32% fair-value upside, at -16%, 000631 screens richer 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.

Widest divergence: Multiples (¥2.36) versus Economic Profit (¥1.58). Highest evidence: Residual Income (76).

Key figures & financial health

Quality Score breakdown

About the company

Shunfa Hengneng Corporation engages in the real estate development and operation business. The company primarily develops residential real estate projects.

Full company description

Shunfa Hengneng Corporation engages in the real estate development and operation business. The company primarily develops residential real estate projects. It also engages in the natural gas power generation and on-grid sales; supporting mechanical and electrical equipment production and sales; and sale of hot water produced by waste heat, as well as power grid auxiliary service project development, operation, maintenance, and technical services. In addition, the company offers development and sales of real estate; property management business; canteen catering services; wind power generation, such as wind power, solar energy and other clean energy power generation business; and comprehensive smart energy services. The company was formerly known as Shunfa Hengye Corporation and changed its name to Shunfa Hengneng Corporation in July 2024. The company was founded in 1993 and is based in Zhangzhou, China. Shunfa Hengneng Corporation is a subsidiary of Wanxiang Group Corporation.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shunfa Hengneng Corporation reported revenue of ¥493M in FY2025 versus ¥272M in FY2021, a compound +16.0%/yr. Reported net income was ¥59.0M in FY2025, compounding −11.4%/yr from FY2021.

000631 screens 16% overvalued. Compare with DLF Limited →

Peer Group

Real Estate - Development · 588 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.

Valuation Multiples vs Real Estate - Development median · lower = cheaper

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.

Values & ESG

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

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

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Frequently asked questions

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.