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Jiangsu Zhongsheng Gaoke Environmental Co (002778) Fair Value & Analysis

Energy · CN · Market cap 2.2B CNY

JZ Jiangsu Zhongsheng Gaoke Environmental Co 002778 · SHE
Price¥15.45
Fair Value¥7.85
Upside-49.2%
Quality68/100
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Weak Growth
Thin margins · 7.4% net margin
Low debt · generates free cash flow
Trails peers (4/13)
Narrow moat 34/100
Evidence: Medium Range ¥5.89 – ¥9.82 Share as image

Fair value as of: Jul 22, 2026

From 20 valuation models · updated 19 days ago

Share price +2.5% over the past month.

A solid business, but screening 49% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥9.82). 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.
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Price vs Fair Value (5 years)

¥24.09 ¥8.18 Fair Value ¥7.85 Jan 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 ¥8.18 – ¥24.09 · fair‑value band ¥5.89 – ¥9.82 · the ¥15.45 price screens above the ¥7.85 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

Jiangsu Zhongsheng Gaoke Environmental Co (002778) currently trades at ¥15.45, while our model-based Fair Value estimate is ¥7.85, implying the stock looks roughly 49.2% overvalued today. The Quality Score stands at 68/100 (solid quality), in the Energy 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, Jiangsu Zhongsheng Gaoke Environmental Co generated revenue of 198M CNY at a net margin of 7.4%. Revenue grew 12.3% year over year. It earns a return on equity of 8.0%. Net debt stands at 351M CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥5.89 (bear case) to ¥9.82 (bull case); at ¥15.45, 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 36% below its 52-week high, currently below its 200-day average. For context, the median of 10 Energy peers we cover trades at -48% fair-value upside, at -49%, 002778 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 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. Evidence
Highest evidence
Growth DCF ¥15.45 ¥19.51 ¥26.23 80
Residual Income ¥3.82 ¥5.35 ¥29.01 76
Gordon GGM ¥0.6700 ¥0.7300 ¥0.8200 70
All 20 models by family
DCF Models
FCF DCF ¥14.96 ¥19.17 ¥26.73 38
Owner Earnings ¥5.47 ¥6.21 ¥7.54 31
5Y Revenue Exit ¥8.94 ¥9.91 ¥11.30 39
5Y EBITDA Exit ¥8.06 ¥8.39 ¥8.84 41
5Y P/E Exit ¥11.92 ¥15.06 ¥18.85 38
10Y Revenue Exit ¥11.26 ¥12.19 ¥13.05 36
10Y EBITDA Exit ¥10.78 ¥11.28 ¥11.64 37
10Y P/E Exit ¥13.07 ¥15.31 ¥17.38 35
Earnings-Based
Graham-Dodd ¥4.02 ¥4.91 ¥5.53 54
Dividend Discount
Gordon GGM ¥0.6700 ¥0.7300 ¥0.8200 70
DDM Multi-Stage ¥0.6700 ¥0.8300 ¥1.04 61
Multiples
P/E Multiple ¥7.54 ¥10.05 ¥12.56 63
P/S Multiple ¥1.75 ¥2.33 ¥2.92 58
P/B Multiple ¥5.89 ¥7.85 ¥9.82 55
EV/EBITDA ¥3.49 ¥3.50 ¥3.52 54
EV/Revenue ¥5.08 ¥5.78 ¥6.48 43
Asset-Based
NCAV (Graham) ¥1.31 ¥1.75 ¥2.62 50
Growth DCF
Growth DCF ¥15.45 ¥19.51 ¥26.23 80
Economic Profit
Residual Income ¥3.82 ¥5.35 ¥29.01 76
Growth Earnings
Growth-Adj P/E ¥5.37 ¥7.67 ¥9.97 68

Widest divergence: Growth DCF (¥19.51) versus Dividend Discount (¥0.7300). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 198M CNY
Revenue growth (YoY) +12.3%
Net margin 7.4%
Return on equity 8.0%
Free cash flow 155M CNY FY2025
P/E ratio 157.8
More key figures
Operating margin -15.7%
EPS (TTM) ¥0.1100
Net debt 351M CNY FY2024

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

Quality Score breakdown

Overall quality 68/100

Of which business quality 72 · Market factors (momentum, volatility) 29

Profitability 51
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 91
Earnings quality: real cash, not paper profit
Fin. Strength 87
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 70
Calm price path (market factor)
Momentum 15
Price trend over the last 3–12 months (market factor)
52W Momentum 7
Distance to the 52-week high (market factor)
Net Issuance 86
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

Jiangsu Zhongsheng Gaoke Environmental Co.,Ltd. engages in the research, development, production, and sales of lubricants and greases in China. The company offers engine oil, diesel engine oil, gear oil, grease, automatic transmission fluid, and brake fluid, as well as construction machinery products.

Full company description

Jiangsu Zhongsheng Gaoke Environmental Co.,Ltd. engages in the research, development, production, and sales of lubricants and greases in China. The company offers engine oil, diesel engine oil, gear oil, grease, automatic transmission fluid, and brake fluid, as well as construction machinery products. Its products are used in the metallurgical, engineering machinery, trucks, transformer oil, metal processing, mining, and special solvent industries. The company was formerly known as Jiangsu Gaoke Petrochemical Co., Ltd and changed its name to Jiangsu Zhongsheng Gaoke Environmental Co.,Ltd. in June 2021. The company was founded in 1992 and is based in Yixing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Jiangsu Zhongsheng Gaoke Environmental Co reported revenue of ¥194M in FY2025 versus ¥1.0B in FY2021, a compound −34.1%/yr. Reported net income was ¥73.7M in FY2025, compounding −3.6%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
194M CNY
Latest YoY
−60.6%
Avg. growth/yr (3Y) 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.
−35.5%
Avg. growth/yr (5Y) 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.
−27.7%
Avg. growth/yr (17Y) 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.
−5.3%
Revenue −34.1%/yr
FY21 ¥1.0B
FY22 ¥722M
FY23 ¥617M
FY24 ¥493M
FY25 ¥194M
Net income −3.6%/yr
FY21 ¥85.4M
FY22 −¥35.4M
FY23 −¥155M
FY24 −¥170M
FY25 ¥73.7M

002778 screens 49% overvalued. Compare with Reliance Industries Limited →

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Cite: Fair Value Calculator (2026). "Jiangsu Zhongsheng Gaoke Environmental Co Fair Value". https://www.fairvalue-calculator.com/stock/002778

Peer Group

Oil & Gas Refining & Marketing · 114 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 68 · Top 25%
Fair Value upside −49% · Below median
Return on equity (TTM) 8% · Below median
Return on assets 3% · Below median
Net margin (TTM) 7% · Top 25%
Operating margin (TTM) -16% · Bottom 25%
Revenue growth 12% · Above median

Valuation Multiples vs Oil & Gas Refining & Marketing median · lower = cheaper

P/E (TTM) 157.8× · Pricier than 75% of peers
P/B 6.63× · Pricier than 75% of peers
P/S (TTM) 10.95× · Pricier than 75% of peers
P/FCF 2.1× · Pricier than median
EV/EBITDA 44.7× · 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 15
FUTURE 62 · sector 15
PAST 32 · sector 32
HEALTH 100 · sector 80
DIVIDEND 0 · sector 50

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.

Oil & gas

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Oil & Gas Refining & Marketing stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

Stock Price Fair Value vs Fair Value
Reliance Industries Limited RELIANCE ₹1,293 ₹835.66 -35%
Valero Energy Corporation VLO $309.65 $127.32 -59%
Marathon Petroleum Corporation MPC $283.74 $135.80 -52%
Phillips 66 PSX $196.16 $101.04 -48%
Neste Oyj NESTE €31.10 €4.07 -87%
Formosa Petrochemical Corporation 6505 81.30 TWD 16.68 TWD -79%
Indian Oil Corporation IOC ₹138.96 ₹417.35 +200%
HF Sinclair Corporation DINO $88.59 $48.90 -45%
Bharat Petroleum Corporation BPCL ₹315.55 ₹846.81 +168%
SK Innovation Co 096770 121,400 KRW 58,865 KRW -52%

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Frequently asked questions

Is Jiangsu Zhongsheng Gaoke Environmental Co (002778) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of ¥7.85 versus a price of ¥15.45, about −49% (overvalued).
What is the fair value of 002778?
Our model-based fair value for Jiangsu Zhongsheng Gaoke Environmental Co is ¥7.85 (as of Jul 22, 2026), built from audited fundamentals. The current price is ¥15.45.
What is the quality score of 002778?
Jiangsu Zhongsheng Gaoke Environmental Co 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 revenue of Jiangsu Zhongsheng Gaoke Environmental Co (002778)?
Jiangsu Zhongsheng Gaoke Environmental Co reported trailing-twelve-month revenue of about 198M CNY (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 002778?
The net profit margin of Jiangsu Zhongsheng Gaoke Environmental Co is about 7.4%, meaning it keeps roughly 7.4% 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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