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Sinomach Precision Industry Group (002046) Fair Value & Analysis

Industrials · CN · Market cap 33.6B CNY

SP Sinomach Precision Industry Group 002046 · SHE
Price¥47.35
Fair Value¥10.20
Upside-78.5%
Quality39/100
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Expensive Growth
Thin margins · 5.5% net margin
Low debt · negative free cash flow
Trails peers (0/12)
Narrow moat 29/100
Evidence: Medium Range ¥7.06 – ¥12.75 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 ¥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.
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Price vs Fair Value (5 years)

¥75.41 ¥6.74 Fair Value ¥10.20 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 ¥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.

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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.

Model BearBaseBull Evidence
Highest evidence
Residual Income ¥6.42 ¥6.62 ¥6.69 76
ROIC Compounder ¥8.85 ¥11.53 ¥14.23 72
Growth-Adj P/E ¥7.06 ¥10.08 ¥13.10 68
All 14 models by family
Earnings-Based
Graham-Dodd ¥3.30 ¥17.25 ¥23.87 54
Lynch FV ¥4.73 ¥6.76 ¥8.79 50
PEG = 1.0 ¥4.73 ¥6.76 ¥8.79 46
EPV ¥8.59 ¥9.68 ¥10.64 59
Multiples
P/E Multiple ¥7.65 ¥10.20 ¥12.75 63
P/S Multiple ¥6.19 ¥8.25 ¥10.32 58
P/B Multiple ¥6.19 ¥8.25 ¥10.32 55
EV/EBIT ¥11.84 ¥15.11 ¥18.39 53
EV/EBITDA ¥13.06 ¥16.74 ¥20.43 54
EV/Revenue ¥9.02 ¥12.03 ¥15.04 43
Asset-Based
NCAV (Graham) ¥4.08 ¥5.46 ¥8.15 50
Economic Profit
Residual Income ¥6.42 ¥6.62 ¥6.69 76
ROIC Compounder ¥8.85 ¥11.53 ¥14.23 72
Growth Earnings
Growth-Adj P/E ¥7.06 ¥10.08 ¥13.10 68

Widest divergence: Multiples (¥10.20) versus Asset-Based (¥5.46). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 3.0B CNY
Revenue growth (YoY) -8.7%
Net margin 5.5%
Return on equity 4.3%
Free cash flow −849M CNY FY2025
P/E ratio 209.0
More key figures
Operating margin -2.0%
EPS (TTM) ¥0.3000
EPS growth (YoY) -30.9%
Net cash 407M CNY FY2024

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 42 · Market factors (momentum, volatility) 61

Profitability 30
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 88
Balance sheet, leverage, solvency risk
Investment 21
Disciplined investing over empire-building
Low Volatility 42
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 81
Distance to the 52-week high (market factor)
Net Issuance 68
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

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.

Growth Quality 31/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
3.0B CNY
Latest YoY
+13.6%
Avg. growth/yr (3Y)
−4.2%
Avg. growth/yr (5Y)
+5.1%
Avg. growth/yr (23Y)
+16.8%
Revenue −2.4%/yr
FY21 ¥3.3B
FY22 ¥3.4B
FY23 ¥2.8B
FY24 ¥2.7B
FY25 ¥3.0B
Net income +19.6%/yr
FY21 ¥127M
FY22 ¥233M
FY23 ¥259M
FY24 ¥280M
FY25 ¥260M

002046 screens 78% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Sinomach Precision Industry Group Fair Value". https://www.fairvalue-calculator.com/stock/002046

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.

Quality Score 39 · Bottom 25%
Fair Value upside −79% · Bottom 25%
Return on equity (TTM) 4% · Below median
Return on assets 2% · Below median
Net margin (TTM) 6% · Below median
Operating margin (TTM) -2% · Bottom 25%
Revenue growth -9% · Bottom 25%
Debt / equity 0.14× · Higher than median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 209.0× · Pricier than 75% of peers
P/B 7.69× · Pricier than 75% of peers
P/S (TTM) 11.37× · Pricier than 75% of peers
EV/EBITDA 79.2× · 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 0 · sector 0
FUTURE 0 · sector 23
PAST 17 · sector 28
HEALTH 93 · sector 96
DIVIDEND 0 · sector 24

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.

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 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%
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SMNS SMNS C$31.76 C$22.68 -29%
Eaton Corporation ETN $407.28 $171.92 -58%
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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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Frequently asked questions

Is Sinomach Precision Industry Group (002046) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of ¥10.20 versus a price of ¥47.35, about −78% (overvalued).
What is the fair value of 002046?
Our model-based fair value for Sinomach Precision Industry Group is ¥10.20 (as of Jul 21, 2026), built from audited fundamentals. The current price is ¥47.35.
What is the quality score of 002046?
Sinomach Precision Industry Group 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 Sinomach Precision Industry Group (002046)?
Sinomach Precision Industry Group reported trailing-twelve-month revenue of about 3.0B CNY (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 002046?
The net profit margin of Sinomach Precision Industry Group is about 5.5%, meaning it keeps roughly 5.5% of revenue as net income. Based on the latest reported figures.

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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