Shanghai Zhezhong Construction Co Ltd (002346) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Shanghai Zhezhong Construction Co Ltd stock ¥10.24, price ¥14.07, that is 27.2% below the price, quality 68 out of 100. Rating: overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range ¥6.45 – ¥26.30 · fair‑value band ¥7.72 – ¥12.76 · the ¥14.07 price screens above the ¥10.24 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.
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Shanghai Zhezhong Group Co.,Ltd manufactures and sells sets of switchgears in China. It provides medium voltage switchgears, low voltage switch boxs, cabinet terminals, outdoor box substations, and components.
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The company was formerly known as Shanghai Zhezhong Construction Co., Ltd. and changed its name to Shanghai Zhezhong Group Co., Ltd. in March 2015. Shanghai Zhezhong Group Co.,Ltd was founded in 2002 and is based in Shanghai, China.
Stock analysis
Shanghai Zhezhong Construction Co Ltd (002346) currently trades at ¥14.07, while our model-based Fair Value estimate is ¥10.24, 27% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ¥18.17 per share, and 6 of the 26 models we run sit above the ¥14.07 price.
Bear case: the Growth DCF group reads lowest at ¥3.99, and 20 of the 26 models stay below the price. Data coverage for this calculation is medium.
Scenario range: ¥7.72 (bear) to ¥12.76 (bull), the price of ¥14.07 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 68/100 (solid quality), in the Industrials sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Shanghai Zhezhong Construction Co Ltd reported revenue of 848M CNY in FY2025 versus 689M CNY in FY2021, a compound +5.3%/yr. Reported net income was 425M CNY in FY2025, compounding −1.3%/yr from FY2021.
Key figures
Market cap 6.2B CNY (≈ $932M) Small · P/E ratio 10.1 · P/S ratio 5.08 · EPS (TTM) ¥1.39 · Dividend yield 3.6% · Net margin 50.2% · Return on equity 12.7% · Return on assets (EBIT) 7.6% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 61 out of 100 (low confidence).
What moves the price
The share trades about 47% below its 52-week high and 6% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −36% fair-value upside, at −27%, 002346 screens cheaper than that median.
Fair Value models
Bear¥7.72Fair Value ¥10.24Bull¥12.76
Price ¥14.07 · Downside -27.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (¥0.7608 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
FCF DCF¥2.89¥4.04¥5.5781
Growth DCF¥2.90¥3.89¥5.1280
Owner Earnings¥11.77¥16.91¥23.7577
All 26 models by family
DCF Models
FCF DCF¥2.89¥4.04¥5.5781
Owner Earnings¥11.77¥16.91¥23.7577
5Y Revenue Exit¥2.73¥4.06¥5.7573
5Y EBITDA Exit¥3.34¥5.20¥7.3875
5Y P/E Exit¥9.36¥16.54¥24.1970
10Y Revenue Exit¥2.71¥3.86¥5.3967
10Y EBITDA Exit¥3.12¥4.57¥6.5268
10Y P/E Exit¥6.59¥11.70¥18.1662
Earnings-Based
Graham-Dodd¥6.55¥21.19¥28.2964
Lynch FV¥4.72¥6.74¥8.7761
PEG = 1.0¥4.72¥6.74¥8.7757
EPV¥2.64¥2.95¥3.2174
Dividend Discount
Gordon GGM¥3.78¥6.69¥9.0968
DDM Multi-Stage¥3.78¥5.93¥7.1667
Multiples
P/E Multiple¥15.17¥20.23¥25.2963
P/S Multiple¥2.88¥3.84¥4.8058
P/B Multiple¥12.87¥17.16¥21.4555
EV/EBIT¥4.29¥5.69¥7.0966
EV/EBITDA¥3.83¥5.08¥6.3267
EV/Revenue¥2.51¥3.55¥4.5954
Asset-Based
NCAV (Graham)¥3.23¥4.32¥6.4554
Growth DCF
Growth DCF¥2.90¥3.89¥5.1280
Rev-Margin DCF¥2.73¥4.08¥5.6473
Economic Profit
Residual Income¥6.09¥7.19¥9.5076
ROIC Compounder¥2.64¥2.95¥3.2172
Growth Earnings
Growth-Adj P/E¥12.72¥18.17¥23.6267
The fair value above starts from this blend and is adjusted for a year distorted by one-off effects.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+16.5%
Revenue growth 18 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.8%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+25.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+21.8%
Dividend (yield on the price)3.6%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.21.8% vs 17.6%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.30% → 17%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+33.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (China: IMF forecast 1.7% a year to 2030, 1.4% from 2016 to 2025) that is about +31.3% a year for the price.
Compare Shanghai Zhezhong Construction Co Ltd with another stock
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Electrical Equipment & Parts · 564 stocks
Beats the industry median on 11/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score68 · Top 25%
Fair Value upside−27.2% · Above median
Profitability
Return on equity (12 months)12.7% · Above median
Return on assets10.3% · Top 25%
Net margin (12 months)36.2% · Top 25%
Operating margin (12 months)14.1% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)64.1% · Top 25%
Dividend yield (12 months)3.6% · Top 25%
Balance sheet
Debt / equity0.05× · Below median
Valuation Multiplesvs Electrical Equipment & Parts median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Shanghai Zhezhong Construction Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/002346
Frequently asked questions
Is Shanghai Zhezhong Construction Co Ltd (002346) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of ¥10.24 versus a price of ¥14.07, about 27% lower (overvalued).
What is the fair value of 002346?
Our model-based fair value for Shanghai Zhezhong Construction Co Ltd is ¥10.24 (as of Nov 5, 2026), built from audited fundamentals. The current price: ¥14.07.
What is the quality score of 002346?
Shanghai Zhezhong Construction Co Ltd has a Quality Score of 68/100. 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 price target for Shanghai Zhezhong Construction Co Ltd (002346)?
Our model-based price target is the fair value of ¥10.24 (as of Nov 5, 2026) from 26 valuation models. Cautious scenario ¥7.72, optimistic scenario ¥12.76. It is a calculation from audited fundamentals, not an analyst target.
What is the Shanghai Zhezhong Construction Co Ltd stock forecast for 2026?
Our models put fair value at ¥10.24, about 27% lower versus a price of ¥14.07 (overvalued). Cautious scenario ¥7.72, optimistic scenario ¥12.76. The calculation is refreshed regularly with new filings.
What is the revenue of Shanghai Zhezhong Construction Co Ltd (002346)?
Shanghai Zhezhong Construction Co Ltd reported trailing-twelve-month revenue of about 1.0B CNY (latest available figure, as of Nov 5, 2026).
Does Shanghai Zhezhong Construction Co Ltd pay a dividend?
Shanghai Zhezhong Construction Co Ltd currently shows a dividend yield of 3.55% relative to its recent price (as of Nov 5, 2026).
How much is the dividend of Shanghai Zhezhong Construction Co Ltd (002346) and when is the ex-dividend date?
Shanghai Zhezhong Construction Co Ltd pays a dividend of ¥0.5 per share a year, a dividend yield of 3.6%. The last ex-dividend date was Jul 7, 2026. A dividend has been paid every year since 2015. The payout ratio is 36.0% of earnings. Free cash flow covers the dividend 0.52 times. Our assessment: Watch coverage. The dividend isn’t fully covered by free cash flow or earnings, part of it is funded from reserves or debt. Fine for now, but worth watching: if it stays uncovered, the dividend could be cut.
What growth is priced into Shanghai Zhezhong Construction Co Ltd (002346)?
For today's price to be fair in a discounted-cash-flow model, Shanghai Zhezhong Construction Co Ltd would have to grow free cash flow by +33.6 % per year for five years (discount rate 11.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +7.0 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of 002346 use?
Our models discount Shanghai Zhezhong Construction Co Ltd at 11.3 %: a base by market capitalisation (small), damped by beta 0.79, country premium for China. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Shanghai Zhezhong Construction Co Ltd that is +33.6 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (11.3 %) and the same formula as our fair value.
How much growth has Shanghai Zhezhong Construction Co Ltd (002346) delivered so far?
Over the past 5 years revenue at Shanghai Zhezhong Construction Co Ltd grew +7.0 % a year. The price currently implies free-cash-flow growth of +33.6 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Shanghai Zhezhong Construction Co Ltd (002346) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Shanghai Zhezhong Construction Co Ltd (+33.6 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Shanghai Zhezhong Construction Co Ltd (002346)?
The free-cash-flow yield on the price is 1.84 %: that much free cash flow Shanghai Zhezhong Construction Co Ltd produces per unit of market value. When it exceeds the discount rate of our models (11.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Shanghai Zhezhong Construction Co Ltd (002346)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Shanghai Zhezhong Construction Co Ltd it is ¥10.24 per share (as of Nov 5, 2026), against a price of ¥14.07. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Shanghai Zhezhong Construction Co Ltd stock overvalued or undervalued in 2026?
As of Nov 5, 2026, 002346 trades above its calculated fair value: price ¥14.07, fair value ¥10.24, a gap of about −27% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 002346?
No. The price is what the market pays today (¥14.07); the fair value is what the company's own numbers justify (¥10.24). For Shanghai Zhezhong Construction Co Ltd the two are ¥3.83 per share apart. That gap is exactly why we show both numbers side by side.
How much is Shanghai Zhezhong Construction Co Ltd worth?
The market values Shanghai Zhezhong Construction Co Ltd at about 6.2B CNY (market capitalisation, as of Nov 5, 2026). Per share that is ¥14.07; our models calculate a fair value of ¥10.24 per share.
What do the bullish and bearish scenarios say about 002346?
Our models span a range for Shanghai Zhezhong Construction Co Ltd: cautious scenario ¥7.72, base ¥10.24, optimistic ¥12.76 per share (as of Nov 5, 2026, price ¥14.07). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 002346?
Shanghai Zhezhong Construction Co Ltd trades at a price-to-earnings ratio of 10.1 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ¥10.24 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings: 28.8. Other multiples: P/B 2.2, P/S 6.0, EV/EBITDA 36.0.
How solid is the balance sheet of Shanghai Zhezhong Construction Co Ltd (002346)?
Balance-sheet figures for Shanghai Zhezhong Construction Co Ltd (as of Nov 5, 2026): return on equity 12.7%, debt of 0.05 per unit of equity. They feed the Quality Score of 68/100, which measures business quality independently of the share price.
How far is 002346 from its 52-week high?
Shanghai Zhezhong Construction Co Ltd trades at ¥14.07, about 47% below its 52-week high of ¥26.30 and 6% above the low of ¥13.22 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of ¥10.24 is for.
Which stocks are comparable to Shanghai Zhezhong Construction Co Ltd?
From the same area (Industrials) we also value Contemporary Amperex Technology Co, ABB Ltd, Vertiv Holdings, Delta Electronics (Thailand) Public Company, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Shanghai Zhezhong Construction Co Ltd stock attractive at the current price?
The data as of Nov 5, 2026: price ¥14.07, calculated fair value ¥10.24 (−27%), Quality Score 68/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 002346 calculated?
We run Shanghai Zhezhong Construction Co Ltd through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of ¥10.24 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Shanghai Zhezhong Construction Co Ltd itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Shanghai Zhezhong Construction Co Ltd (002346)?
The closing price on Nov 6, 2026 was ¥14.07. Our model-based fair value is ¥10.24, about 27% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Shanghai Zhezhong Construction Co Ltd right now?
The price sits above even our optimistic bull case (¥12.76). The favourable scenario is already priced in. Solid but not exceptional quality (68/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Shanghai Zhezhong Construction Co Ltd (002346) come from?
Earnings per share at Shanghai Zhezhong Construction Co Ltd grew +14.1 % a year from 2013 to 2024. Broken into its drivers: revenue per share +8.1 %, EBIT margin +10.9 %, tax rate −0.8 %, residual (interest, one-offs) −4.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Shanghai Zhezhong Construction Co Ltd
How large is the market capitalisation of Shanghai Zhezhong Construction Co Ltd (002346)?
The market capitalisation of Shanghai Zhezhong Construction Co Ltd is 6.2B CNY (≈ $932M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Shanghai Zhezhong Construction Co Ltd (002346)?
The price-to-sales ratio of Shanghai Zhezhong Construction Co Ltd is 5.08 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Shanghai Zhezhong Construction Co Ltd (002346)?
Earnings per share at Shanghai Zhezhong Construction Co Ltd are ¥1.39 (price ÷ EPS = P/E 10.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Shanghai Zhezhong Construction Co Ltd (002346)?
The dividend yield of Shanghai Zhezhong Construction Co Ltd is 3.6% (payout 36.0%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Shanghai Zhezhong Construction Co Ltd (002346)?
The net margin of Shanghai Zhezhong Construction Co Ltd is 50.2% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Shanghai Zhezhong Construction Co Ltd (002346)?
The return on equity (ROE) of Shanghai Zhezhong Construction Co Ltd is 12.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Shanghai Zhezhong Construction Co Ltd (002346)?
On an EBIT basis the return on assets of Shanghai Zhezhong Construction Co Ltd is 7.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Shanghai Zhezhong Construction Co Ltd (002346)?
The operating margin of Shanghai Zhezhong Construction Co Ltd is 14.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Shanghai Zhezhong Construction Co Ltd (002346)?
Revenue at Shanghai Zhezhong Construction Co Ltd is growing +64.1% versus a year earlier (3y avg +5.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How much net cash does Shanghai Zhezhong Construction Co Ltd (002346) hold?
Shanghai Zhezhong Construction Co Ltd holds more cash than debt, 42.1M CNY net (fiscal year 2024). The company holds more cash than debt, a safety cushion.
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Nov 5, 2026