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East China Engineering Science and Technology Co (002140) Fair Value & Analysis

Industrials · CN · Market cap 7.2B CNY

EC East China Engineering Science and Technology Co 002140 · SHE
Price¥9.12
Fair Value¥15.80
Upside+73.3%
Quality42/100
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Expensive Growth
Thin margins · 5.6% net margin
Low debt · negative free cash flow
Trails peers (5/14)
Narrow moat 36/100
Evidence: Medium Range ¥11.85 – ¥19.32 Share as image

Fair value as of: Jul 22, 2026

From 16 valuation models · updated 19 days ago

Share price +2.1% over the past month.

Below-average quality, screening 73% 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 (¥11.85). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

¥14.68 ¥5.71 Fair Value ¥15.80 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 22, 2026.

How to read this chart

60‑month range ¥5.71 – ¥14.68 · fair‑value band ¥11.85 – ¥19.32 · the ¥9.12 price screens below the ¥15.80 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 22, 2026.

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Analysis

East China Engineering Science and Technology Co (002140) currently trades at ¥9.12, while our model-based Fair Value estimate is ¥15.80, implying the stock looks roughly 73.3% undervalued today. The Quality Score stands at 42/100 (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, East China Engineering Science and Technology Co generated revenue of 9.9B CNY at a net margin of 5.6%. Revenue declined 6.3% year over year. It earns a return on equity of 9.6%. The balance sheet holds a net cash position of 1.8B CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥11.85 (bear case) to ¥19.32 (bull case); at ¥9.12, 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 41% below its 52-week high and 5% 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 73%, 002140 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 ¥6.44 ¥7.14 ¥11.10 76
ROIC Compounder ¥10.95 ¥14.43 ¥18.93 72
Gordon GGM ¥1.72 ¥3.42 ¥5.17 70
All 16 models by family
Earnings-Based
Graham-Dodd ¥5.12 ¥28.95 ¥40.23 54
Lynch FV ¥8.12 ¥11.61 ¥15.09 50
PEG = 1.0 ¥8.12 ¥11.61 ¥15.09 46
EPV ¥9.79 ¥10.96 ¥11.96 59
Dividend Discount
Gordon GGM ¥1.72 ¥3.42 ¥5.17 70
DDM Multi-Stage ¥1.72 ¥2.95 ¥3.61 61
Multiples
P/E Multiple ¥11.85 ¥15.80 ¥19.76 63
P/S Multiple ¥9.60 ¥12.79 ¥15.99 58
P/B Multiple ¥9.60 ¥12.79 ¥15.99 55
EV/EBIT ¥14.28 ¥18.24 ¥22.21 53
EV/EBITDA ¥12.48 ¥15.84 ¥19.21 54
EV/Revenue ¥10.88 ¥14.51 ¥18.15 43
Asset-Based
NCAV (Graham) ¥3.71 ¥4.97 ¥7.41 50
Economic Profit
Residual Income ¥6.44 ¥7.14 ¥11.10 76
ROIC Compounder ¥10.95 ¥14.43 ¥18.93 72
Growth Earnings
Growth-Adj P/E ¥12.13 ¥17.32 ¥22.52 68

Widest divergence: Growth Earnings (¥17.32) versus Dividend Discount (¥2.95). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 9.9B CNY
Revenue growth (YoY) -6.3%
Net margin 5.6%
Return on equity 9.6%
Free cash flow −207M CNY FY2025
P/E ratio 13.0
More key figures
Operating margin 7.9%
EPS (TTM) ¥0.7800
EPS growth (YoY) +17.9%
Net cash 1.8B CNY FY2024

Figures from reported company fundamentals · as of Jul 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100

Of which business quality 43 · Market factors (momentum, volatility) 37

Profitability 32
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 17
Earnings quality: real cash, not paper profit
Fin. Strength 73
Balance sheet, leverage, solvency risk
Investment 52
Disciplined investing over empire-building
Low Volatility 74
Calm price path (market factor)
Momentum 24
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

East China Engineering Science and Technology Co., Ltd. operates as an engineering company in China and internationally.

Full company description

East China Engineering Science and Technology Co., Ltd. operates as an engineering company in China and internationally. The company engages in research and development, consulting, engineering design, procurement, construction management, start-up instruction, project supervision, PMC management, operation, general contracting, for domestic and foreign engineering projects. The company serves industries such as chemical, petrochemical, new materials, new energy, ecological environmental protection, infrastructure, biomedicine, and other fields. East China Engineering Science and Technology Co., Ltd. was founded in 1963 and is headquartered in Hefei, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

East China Engineering Science and Technology Co reported revenue of ¥10.0B in FY2025 versus ¥6.0B in FY2021, a compound +13.7%/yr. Reported net income was ¥533M in FY2025, compounding +21.0%/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)
10.0B CNY
Latest YoY
+13.1%
Avg. growth/yr (3Y)
+17.2%
Avg. growth/yr (5Y)
+14.0%
Avg. growth/yr (21Y)
+17.1%
Revenue +13.7%/yr
FY21 ¥6.0B
FY22 ¥6.2B
FY23 ¥7.6B
FY24 ¥8.9B
FY25 ¥10.0B
Net income +21.0%/yr
FY21 ¥249M
FY22 ¥289M
FY23 ¥344M
FY24 ¥410M
FY25 ¥533M

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Cite: Fair Value Calculator (2026). "East China Engineering Science and Technology Co Fair Value". https://www.fairvalue-calculator.com/stock/002140

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 42 · Below median
Fair Value upside +73% · Top 25%
Return on equity (TTM) 10% · Above median
Return on assets 2% · Below median
Net margin (TTM) 6% · Above median
Operating margin (TTM) 8% · Above median
Revenue growth -6% · Below median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.32× · Higher than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 13.0× · Cheaper than median
P/B 1.37× · Pricier than median
P/S (TTM) 0.72× · Pricier than median
EV/EBITDA 10.5× · Pricier than median
PEG 1.32× · Pricier 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 38 · sector 26
HEALTH 84 · sector 94
DIVIDEND 0 · 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 22, 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 East China Engineering Science and Technology Co (002140) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of ¥15.80 versus a price of ¥9.12, about +73% (undervalued).
What is the fair value of 002140?
Our model-based fair value for East China Engineering Science and Technology Co is ¥15.80 (as of Jul 22, 2026), built from audited fundamentals. The current price is ¥9.12.
What is the quality score of 002140?
East China Engineering Science and Technology Co 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 East China Engineering Science and Technology Co (002140)?
East China Engineering Science and Technology Co reported trailing-twelve-month revenue of about 9.9B CNY (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 002140?
The net profit margin of East China Engineering Science and Technology Co is about 5.6%, meaning it keeps roughly 5.6% 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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