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Guangdong Construction Engineering Group (002060) Fair Value & Analysis

Industrials · CN · Market cap 12.3B CNY

GC Guangdong Construction Engineering Group 002060 · SHE
Price¥3.31
Fair Value¥6.20
Upside+87.3%
Quality21/100
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Expensive Growth
Thin margins · 1.6% net margin
High debt · negative free cash flow
4.29% dividend yield
Mixed vs. peers (7/13)
Narrow moat 24/100
Evidence: Medium Range ¥4.65 – ¥7.75 Share as image

Fair value as of: Jul 24, 2026

From 14 valuation models · updated 17 days ago

Share price +6.1% over the past month.

Below-average quality, screening 87% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (21/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (¥4.65). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

¥8.80 ¥2.37 Fair Value ¥6.20 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 ¥2.37 – ¥8.80 · fair‑value band ¥4.65 – ¥7.75 · the ¥3.31 price screens below the ¥6.20 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

Guangdong Construction Engineering Group (002060) currently trades at ¥3.31, while our model-based Fair Value estimate is ¥6.20, implying the stock looks roughly 87.3% undervalued today. The Quality Score stands at 21/100 (below-average quality), in the Industrials 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, Guangdong Construction Engineering Group generated revenue of 68.5B CNY at a net margin of 1.6%. Revenue declined 3.2% year over year. It earns a return on equity of 7.7%. Net debt stands at 13.8B CNY. Fundamentals as of Jul 24, 2026

Our scenario range runs from ¥4.65 (bear case) to ¥7.75 (bull case); at ¥3.31, 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 3% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -45% fair-value upside, at 87%, 002060 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 ¥3.17 ¥3.38 ¥3.76 76
ROIC Compounder ¥6.70 ¥10.02 ¥12.82 72
Growth-Adj P/E ¥6.88 ¥9.82 ¥12.77 68
All 14 models by family
Earnings-Based
Graham-Dodd ¥2.01 ¥14.01 ¥19.66 54
Lynch FV ¥5.42 ¥7.74 ¥10.07 50
PEG = 1.0 ¥5.42 ¥7.74 ¥10.07 46
EPV ¥5.25 ¥6.34 ¥7.29 59
Multiples
P/E Multiple ¥4.65 ¥6.20 ¥7.75 63
P/S Multiple ¥3.77 ¥5.02 ¥6.28 58
P/B Multiple ¥3.77 ¥5.02 ¥6.28 55
EV/EBIT ¥8.43 ¥11.67 ¥14.91 53
EV/EBITDA ¥10.04 ¥13.81 ¥17.58 54
EV/Revenue ¥5.65 ¥8.63 ¥11.60 43
Asset-Based
NCAV (Graham) ¥1.92 ¥2.57 ¥3.84 50
Economic Profit
Residual Income ¥3.17 ¥3.38 ¥3.76 76
ROIC Compounder ¥6.70 ¥10.02 ¥12.82 72
Growth Earnings
Growth-Adj P/E ¥6.88 ¥9.82 ¥12.77 68

Widest divergence: Growth Earnings (¥9.82) versus Asset-Based (¥2.57). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 68.5B CNY
Revenue growth (YoY) -3.2%
Net margin 1.6%
Return on equity 7.7%
Free cash flow −6.6B CNY FY2025
P/E ratio 11.3
More key figures
Operating margin 2.5%
EPS (TTM) ¥0.2900
Dividend yield 4.3%
EPS growth (YoY) -22.2%
Net debt 13.8B CNY FY2025

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

Quality Score breakdown

Overall quality 21/100

Of which business quality 22 · Market factors (momentum, volatility) 43

Profitability 23
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 12
Balance sheet, leverage, solvency risk
Investment 29
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 19
Distance to the 52-week high (market factor)
Net Issuance 40
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

Guangdong Construction Engineering Group Co., Ltd. operates in the civil engineering and construction industry in China. The company engages in the water conservancy and hydropower facilities, municipal public works, highway projects, mechanical and electrical installation projects, foundation projects, and housing projects.

Full company description

Guangdong Construction Engineering Group Co., Ltd. operates in the civil engineering and construction industry in China. The company engages in the water conservancy and hydropower facilities, municipal public works, highway projects, mechanical and electrical installation projects, foundation projects, and housing projects. It is also involved in the engineering construction business, such as construction projects, hydropower, wind power, solar energy, and other power generation businesses; steel structure fabrication and installation; architectural decoration and renovation; survey and design, construction, operation, and maintenance of supporting facilities; electricity and heat production and supply; and renewable energy. The company was formerly known as Guangdong No.2 Hydropower Engineering Company, Ltd. and changed its name to Guangdong Construction Engineering Group Co., Ltd. in February 2024. Guangdong Construction Engineering was incorporated in 2001 and is based in Guangzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Guangdong Construction Engineering Group reported revenue of ¥68.9B in FY2025 versus ¥14.4B in FY2021, a compound +48.0%/yr. Reported net income was ¥1.1B in FY2025, compounding +35.6%/yr from FY2021.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
68.9B CNY
Latest YoY
+0.9%
Avg. growth/yr (3Y)
−5.8%
Avg. growth/yr (5Y)
+40.5%
Avg. growth/yr (22Y)
+19.8%
Revenue +48.0%/yr
FY21 ¥14.4B
FY22 ¥82.6B
FY23 ¥80.9B
FY24 ¥68.3B
FY25 ¥68.9B
Net income +35.6%/yr
FY21 ¥328M
FY22 ¥1.7B
FY23 ¥1.5B
FY24 ¥1.2B
FY25 ¥1.1B

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Cite: Fair Value Calculator (2026). "Guangdong Construction Engineering Group Fair Value". https://www.fairvalue-calculator.com/stock/002060

Peer Group

Engineering & Construction · 837 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 21 · Bottom 25%
Fair Value upside +87% · Top 25%
Return on equity (TTM) 8% · Above median
Return on assets 1% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth -3% · Below median
Dividend yield (TTM) 4.3% · Top 25%
Debt / equity 1.58× · Higher than 75% of peers

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 11.3× · Cheaper than median
P/B 0.85× · Cheaper than median
P/S (TTM) 0.18× · Cheaper than 75% of peers
EV/EBITDA 4.7× · Cheaper than median

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 16
FUTURE 0 · sector 18
PAST 31 · sector 26
HEALTH 21 · sector 94
DIVIDEND 86 · sector 33

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 Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Jul 24, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹3,815 ₹1,994 -48%
Samsung C&T Corporation 028260 346,000 KRW 268,779 KRW -22%
Hyundai Engineering & Construction Co 000720 99,000 KRW 63,993 KRW -35%
United Integrated Services Co 2404 1,250 TWD 925.62 TWD -26%
Samsung E&A Co 028050 42,550 KRW 44,840 KRW +5%
Rail Vikas Nigam Limited RVNL ₹232.67 ₹61.46 -74%
Daewoo Engineering & Construction Co 047040 16,240 KRW 6,507 KRW -60%
NBCC (India) Limited NBCC ₹96.32 ₹48.22 -50%
Cemindia Projects Limited CEMPRO ₹1,330 ₹730.69 -45%
KEPCO Engineering & Construction Company 052690 92,700 KRW 20,172 KRW -78%

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Frequently asked questions

Is Guangdong Construction Engineering Group (002060) overvalued or undervalued?
As of Jul 24, 2026, our model estimates a fair value of ¥6.20 versus a price of ¥3.31, about +87% (undervalued).
What is the fair value of 002060?
Our model-based fair value for Guangdong Construction Engineering Group is ¥6.20 (as of Jul 24, 2026), built from audited fundamentals. The current price is ¥3.31.
What is the quality score of 002060?
Guangdong Construction Engineering Group has a Quality Score of 21/100. 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 Guangdong Construction Engineering Group (002060)?
Guangdong Construction Engineering Group reported trailing-twelve-month revenue of about 68.5B CNY (latest available figure, as of Jul 24, 2026).
What is the net profit margin of 002060?
The net profit margin of Guangdong Construction Engineering Group is about 1.6%, meaning it keeps roughly 1.6% of revenue as net income. Based on the latest reported figures.
Does Guangdong Construction Engineering Group pay a dividend?
Guangdong Construction Engineering Group currently shows a dividend yield of about 4.29% 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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