Wuxi Huadong Heavy Machinery Co (002685) Fair Value & Analysis

Industrials · CN · Market cap 6.7B CNY

A solid business, but screening 79% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (¥1.37). The favourable scenario is already priced in.
• Solid but not exceptional quality (51/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

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 ¥2.14 – ¥10.27 · fair‑value band ¥1.04 – ¥1.37 · the ¥5.42 price screens above the ¥1.13 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 22, 2026.

Full chart & analysis →

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Analysis

Wuxi Huadong Heavy Machinery Co (002685) currently trades at ¥5.42, while our model-based Fair Value estimate is ¥1.13, implying the stock looks roughly 79.2% overvalued today. The Quality Score stands at 51/100 (solid 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, Wuxi Huadong Heavy Machinery Co generated revenue of 1.1B CNY at a net margin of 7.6%. Revenue grew 156.8% year over year. It earns a return on equity of 4.0%. The balance sheet holds a net cash position of 665M CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥1.04 (bear case) to ¥1.37 (bull case); at ¥5.42, 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 48% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at 12% fair-value upside, at -79%, 002685 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.

Widest divergence: Multiples (¥1.39) versus Dividend Discount (¥0.0300). Highest evidence: Residual Income (76).

Key figures & financial health

Quality Score breakdown

About the company

Wuxi Huadong Heavy Machinery Co., Ltd. manufactures and sells container handling equipment and intelligent CNC machine tools in the People's Republic of China. It provides quay cranes, rail cranes, tire cranes, etc.

Full company description

Wuxi Huadong Heavy Machinery Co., Ltd. manufactures and sells container handling equipment and intelligent CNC machine tools in the People's Republic of China. It provides quay cranes, rail cranes, tire cranes, etc. for use in the container ship loading and unloading operations in ports, railway container loading and unloading, container yard storage and trailer loading and unloading. The company offers high-end intelligent equipment that include medium and high-end CNC machine tools, etc. In addition, it engages in the research, development, manufacture, processing, sale and related services of photovoltaic equipment and components; sales, after-sales, technical research, development, and consultation of lifting machinery products; research and development, production, sales, and related services of CNC machine tools; and design, manufacture, installation, modification, and repair of special equipment; chip design and solution. Wuxi Huadong Heavy Machinery Co., Ltd. was founded in 2004 and is based in Wuxi, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Wuxi Huadong Heavy Machinery Co reported revenue of ¥804M in FY2025 versus ¥7.1B in FY2021, a compound −41.9%/yr. Reported net income was ¥66.7M in FY2025.

002685 screens 79% overvalued. Compare with Caterpillar Inc →

Peer Group

Farm & Heavy Construction Machinery · 148 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 Farm & Heavy Construction 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.

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Frequently asked questions

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.