Sinomach Precision Industry Group (002046) Fair Value & Analysis
Industrials · CN · Market cap 33.6B CNY
Fair value as of: Jul 21, 2026
From 14 valuation models · updated 20 days ago
Fair value updated Jul 21, 2026, revised from ¥10.31 to ¥10.20 (−1.1%) since Jun 25, 2026. Share price −29.9% over the past month.
Below-average quality, and screening another 78% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case (¥12.75). The favourable scenario is already priced in.
- Weak quality (39/100) and above fair value at the same time, the margin of safety is missing on both counts.
- A fairly wide model range (¥7.06 to ¥12.75) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
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 ¥6.74 – ¥75.41 · fair‑value band ¥7.06 – ¥12.75 · the ¥47.35 price screens above the ¥10.20 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 21, 2026.
Analysis
Sinomach Precision Industry Group (002046) currently trades at ¥47.35, while our model-based Fair Value estimate is ¥10.20, implying the stock looks roughly 78.5% overvalued today. The Quality Score stands at 39/100 (below-average quality), in the Industrials 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, Sinomach Precision Industry Group generated revenue of 3.0B CNY at a net margin of 5.5%. Revenue declined 8.7% year over year. It earns a return on equity of 4.3%. The balance sheet holds a net cash position of 407M CNY. Fundamentals as of Jul 21, 2026
Our scenario range runs from ¥7.06 (bear case) to ¥12.75 (bull case); at ¥47.35, 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 29% below its 52-week high and 207% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -78%, 002046 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.
All 14 models by family
Widest divergence: Multiples (¥10.20) versus Asset-Based (¥5.46). Highest evidence: Residual Income (76).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 42 · Market factors (momentum, volatility) 61
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
Sinomach Precision Industry Group Co., Ltd. engages in the research, development, manufacture, and sale of bearings, abrasives, and grinding tools in China. The company operates through Bearings Business Segment, Abrasives & Grinding Tools Business Segment, Supply Chain Business Segment, and Other Management Business Segment.
Full company description
Sinomach Precision Industry Group Co., Ltd. engages in the research, development, manufacture, and sale of bearings, abrasives, and grinding tools in China. The company operates through Bearings Business Segment, Abrasives & Grinding Tools Business Segment, Supply Chain Business Segment, and Other Management Business Segment. It offers bearing products, bearing manufacturing equipment, electric spindle and spindle units, and bearing inspection, testing and analysis, industry standard formulation and revision, bearing industry training, bearing trade, and other services. The company also provides super hard materials and products, such as V-CBN grinding wheels for crankshafts/camshafts, ultra-thin cutting wheels and dicing blades for semiconductor packaging, dicing blades for wafer dicing, grinding wheels for polycrystalline and monocrystalline silicon, grinding wheels for LEDs, grinding wheels for CNC tool grinders, ceramic carriers for CMP, diamond polishing slurries, etc.; and bonded and coated abrasives. In addition, it offers precision cutting tools, including cemented carbide oil pipe threading, CNC, superhard, hole-making, bearing, and automotive tools; gear measuring instruments, laser interferometers, active and stationary measuring instruments, PVD, CVD, and PCVD coating technologies and services, and QPQ salt bath composite treatment technology and equipment. Further, the company provides industry, technical consulting, and trade services. It serves automotive, electronics, LED, photovoltaic, tools, refrigeration, aerospace, high-speed rail, electronics, bearing, metal, sheet metal, and jewelry industries. The company was formerly known as Sinomach Precision Industry Co., Ltd. and changed its name to Sinomach Precision Industry Group Co., Ltd. in October 2023. Sinomach Precision Industry Group Co., Ltd. was founded in 2001 and is based in Zhengzhou, China.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Sinomach Precision Industry Group reported revenue of ¥3.0B in FY2025 versus ¥3.3B in FY2021, a compound −2.4%/yr. Reported net income was ¥260M in FY2025, compounding +19.6%/yr from FY2021.
002046 screens 78% overvalued. Compare with GE Vernova Inc →
Peer Group
Specialty Industrial Machinery · 809 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 Specialty Industrial Machinery 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.
VALUE 0: the price sits above our fair-value range.
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.
Similar stocks
10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| GE Vernova Inc 1GEV | €887.60 | €186.93 | -79% |
| 1SIE 1SIE | €273.20 | €91.93 | -66% |
| SMNS SMNS | C$31.76 | C$22.68 | -29% |
| Eaton Corporation ETN | $407.28 | $171.92 | -58% |
| Atlas Copco AB ATCOA | kr 195.15 | kr 112.59 | -42% |
| Sandvik AB SAND | kr 384.10 | kr 193.01 | -50% |
| Doosan Enerbility Co 034020 | 76,400 KRW | 7,938 KRW | -90% |
| Vestas Wind Systems A/S VWS | kr 178.10 | kr 124.54 | -30% |
| Zhejiang Sanhua Intelligent Controls Co 002050 | ¥43.20 | ¥22.68 | -48% |
| NARI Technology Co 600406 | ¥22.19 | ¥18.71 | -16% |
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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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