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Zhongshan Public Utilities Group (000685) Fair Value & Analysis

Utilities · CN · Market cap 16.4B CNY

ZP Zhongshan Public Utilities Group 000685 · SHE
Price¥11.04
Fair Value¥21.77
Upside+97.2%
Quality42/100
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Expensive Growth
Highly profitable · 46.5% net margin
Low debt · negative free cash flow
3.51% dividend yield
Mixed vs. peers (7/13)
Moderate moat 55/100
Evidence: High Range ¥16.33 – ¥25.65 Share as image

Fair value as of: Jul 24, 2026

From 13 valuation models · updated 17 days ago

Share price +0.3% over the past month.

Below-average quality, screening 97% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (42/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (¥16.33). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

¥14.42 ¥5.83 Fair Value ¥21.77 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 ¥5.83 – ¥14.42 · fair‑value band ¥16.33 – ¥25.65 · the ¥11.04 price screens below the ¥21.77 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

Zhongshan Public Utilities Group (000685) currently trades at ¥11.04, while our model-based Fair Value estimate is ¥21.77, implying the stock looks roughly 97.2% undervalued today. The Quality Score stands at 42/100 (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: high), always confirm before acting.

Over the trailing twelve months, Zhongshan Public Utilities Group generated revenue of 4.6B CNY at a net margin of 46.5%. Revenue grew 2.9% year over year. It earns a return on equity of 11.5%. Net debt stands at 6.8B CNY. Fundamentals as of Jul 24, 2026

Our scenario range runs from ¥16.33 (bear case) to ¥25.65 (bull case); at ¥11.04, the current price sits below 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 25% below its 52-week high and 31% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at -10% fair-value upside, at 97%, 000685 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 ¥11.21 ¥12.48 ¥20.54 76
Growth-Adj P/E ¥21.62 ¥30.88 ¥40.15 68
P/E Multiple ¥17.29 ¥23.05 ¥28.81 63
All 13 models by family
DCF Models
Owner Earnings ¥11.06 ¥28.44 ¥63.58 31
Earnings-Based
Graham-Dodd ¥8.71 ¥56.49 ¥79.03 54
Lynch FV ¥16.41 ¥23.45 ¥30.48 50
PEG = 1.0 ¥16.41 ¥23.45 ¥30.48 46
Multiples
P/E Multiple ¥17.29 ¥23.05 ¥28.81 63
P/S Multiple ¥5.89 ¥7.86 ¥9.82 58
P/B Multiple ¥16.33 ¥21.77 ¥27.21 55
EV/EBIT ¥0.2500 ¥1.27 53
EV/EBITDA ¥1.60 ¥3.40 ¥5.19 54
EV/Revenue ¥0.7700 43
Asset-Based
NCAV (Graham) ¥6.37 ¥8.53 ¥12.73 50
Economic Profit
Residual Income ¥11.21 ¥12.48 ¥20.54 76
Growth Earnings
Growth-Adj P/E ¥21.62 ¥30.88 ¥40.15 68

Widest divergence: Growth Earnings (¥30.88) versus Multiples (¥7.86). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 4.6B CNY
Revenue growth (YoY) +2.9%
Net margin 46.5%
Return on equity 11.5%
Free cash flow −794M CNY FY2025
P/E ratio 7.6
More key figures
Operating margin 13.2%
EPS (TTM) ¥1.47
Dividend yield 3.5%
EPS growth (YoY) +90.5%
Net debt 6.8B CNY FY2025

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

Quality Score breakdown

Overall quality 42/100

Of which business quality 39 · Market factors (momentum, volatility) 55

Profitability 39
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 8
Earnings quality: real cash, not paper profit
Fin. Strength 36
Balance sheet, leverage, solvency risk
Investment 35
Disciplined investing over empire-building
Low Volatility 72
Calm price path (market factor)
Momentum 47
Price trend over the last 3–12 months (market factor)
52W Momentum 51
Distance to the 52-week high (market factor)
Net Issuance 76
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

Zhongshan Public Utilities Group Co.,Ltd., together with its subsidiaries, engages in the environmental water, solid waste, new energy, engineering construction, and auxiliary businesses in China and internationally.

Full company description

Zhongshan Public Utilities Group Co.,Ltd., together with its subsidiaries, engages in the environmental water, solid waste, new energy, engineering construction, and auxiliary businesses in China and internationally. The company is involved in the urban water supply comprising water quality monitoring, engineering design, construction installation, information technology, and water treatment technology research and development and other related businesses, sewage treatment and reuse, drainage facility operation, flood control management, municipal and power industry, and new energy power generation and grid franchise projects; and financial investment, market operation, port passenger transportation, and other, as well as photovoltaic power generation, and electrochemical energy storage businesses. It also engages in market leasing management; sale of materials; agency sale of tickets; municipal engineering, building construction engineering, power engineering, water conservancy and hydropower engineering, water supply and drainage network construction, water treatment, and gas engineering, and construction of water management; and garbage disposal and sanitation services. The company was formerly known as Zhongshan Public Utilities Science and Technology Company Limited and changed its name to Zhongshan Public Utilities Group Co.,Ltd. in August 2008. Zhongshan Public Utilities Group Co.,Ltd. was founded in 1992 and is headquartered in Zhongshan, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhongshan Public Utilities Group reported revenue of ¥4.6B in FY2025 versus ¥2.4B in FY2021, a compound +18.1%/yr. Reported net income was ¥1.9B in FY2025, compounding +6.4%/yr from FY2021.

Growth Quality 51/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
4.6B CNY
Latest YoY
−18.8%
Avg. growth/yr (3Y)
+8.4%
Avg. growth/yr (5Y)
+16.1%
Avg. growth/yr (32Y)
+5.7%
Revenue +18.1%/yr
FY21 ¥2.4B
FY22 ¥3.6B
FY23 ¥5.2B
FY24 ¥5.7B
FY25 ¥4.6B
Net income +6.4%/yr
FY21 ¥1.5B
FY22 ¥1.1B
FY23 ¥967M
FY24 ¥1.2B
FY25 ¥1.9B

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Cite: Fair Value Calculator (2026). "Zhongshan Public Utilities Group Fair Value". https://www.fairvalue-calculator.com/stock/000685

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 42 · Below median
Fair Value upside +97% · Top 25%
Return on equity (TTM) 12% · Top 25%
Return on assets 1% · Bottom 25%
Net margin (TTM) 47% · Top 25%
Operating margin (TTM) 13% · Below median
Revenue growth 3% · Below median
Dividend yield (TTM) 3.5% · Top 25%
Debt / equity 0.39× · Lower than median

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

P/E (TTM) 7.6× · Cheaper than 75% of peers
P/B 0.88× · Cheaper than 75% of peers
P/S (TTM) 3.53× · Pricier than median
EV/EBITDA 20.5× · Pricier 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 15 · sector 28
PAST 46 · sector 29
HEALTH 81 · sector 66
DIVIDEND 70 · 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 24, 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%
Chengdu Xingrong Environment Co 000598 ¥6.97 ¥10.74 +54%
California Water Service Group CWT $49.73 $33.56 -33%
Chongqing Water Group 601158 ¥4.12 ¥2.77 -33%

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Frequently asked questions

Is Zhongshan Public Utilities Group (000685) overvalued or undervalued?
As of Jul 24, 2026, our model estimates a fair value of ¥21.77 versus a price of ¥11.04, about +97% (undervalued).
What is the fair value of 000685?
Our model-based fair value for Zhongshan Public Utilities Group is ¥21.77 (as of Jul 24, 2026), built from audited fundamentals. The current price is ¥11.04.
What is the quality score of 000685?
Zhongshan Public Utilities Group has a Quality Score of 42/100. 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 Zhongshan Public Utilities Group (000685)?
Zhongshan Public Utilities Group reported trailing-twelve-month revenue of about 4.6B CNY (latest available figure, as of Jul 24, 2026).
What is the net profit margin of 000685?
The net profit margin of Zhongshan Public Utilities Group is about 46.5%, meaning it keeps roughly 46.5% of revenue as net income. Based on the latest reported figures.
Does Zhongshan Public Utilities Group pay a dividend?
Zhongshan Public Utilities Group currently shows a dividend yield of about 3.51% relative to its recent price (as of Jul 24, 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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