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Hubei Heyuan Gas Co Ltd (002971) Fair Value & Analysis

Basic Materials · CN · Market cap 12.5B CNY (≈ $1.9B) · ISIN CNE100003Q99

HH Hubei Heyuan Gas Co Ltd 002971 · SHE
Price¥47.08
Fair Value¥5.57
Upside-88.2%
Quality28/100

Structural break: The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.

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Risks

!Trades 745% ABOVE our fair value of ¥5.57
!Expensive Growth (revenue 5y +15.1 %/yr)
!Thin margins · 3.1% net margin
!Low debt · negative free cash flow
Expensive Growth (revenue 5y +15.1 %/yr)
Thin margins · 3.1% net margin
Low debt · negative free cash flow
Trails peers (2/13)
Narrow moat 31/100
Evidence: High Range ¥3.63 – ¥6.05 Share as image

Fair value as of: Aug 27, 2026

From 16 valuation models · updated 2 days ago

Share price +29.9% over the past month.

Below-average quality, and trading another 745% above our fair value.

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What matters now

  • The price sits above even our optimistic bull case (¥6.05). The favourable scenario is already priced in.
  • Weak quality (28/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

¥75.02 ¥12.40 Fair Value ¥5.57 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range ¥12.40 – ¥75.02 · fair‑value band ¥3.63 – ¥6.05 · the ¥47.08 price screens above the ¥5.57 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

Hubei Heyuan Gas Co Ltd (002971) currently trades at ¥47.08, while our model-based Fair Value estimate is ¥5.57, implying the stock looks roughly 88.2% overvalued today. The Quality Score stands at 28/100 (below-average quality), in the Basic Materials 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: high).

Over the trailing twelve months, Hubei Heyuan Gas Co Ltd generated revenue of 1.7B CNY at a net margin of 3.1%. Revenue grew 10.5% year over year. It earns a return on equity of 3.0%. Net debt stands at 1.1B CNY. Fundamentals as of Aug 27, 2026

Our scenario range runs from ¥3.63 (bear case) to ¥6.05 (bull case); at ¥47.08, 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 25% below its 52-week high and 130% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -48% fair-value upside, at -88%, 002971 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
Residual Income ¥5.62 ¥5.62 ¥5.09 76
ROIC Compounder ¥5.90 ¥6.95 ¥8.45 72
Gordon GGM ¥3.68 ¥7.66 ¥12.15 70
All 16 models by family
Earnings-Based
Graham-Dodd ¥1.94 ¥11.82 ¥16.48 54
Lynch FV ¥3.38 ¥4.83 ¥6.28 50
PEG = 1.0 ¥3.38 ¥4.83 ¥6.28 46
EPV ¥5.90 ¥6.95 ¥7.87 59
Dividend Discount
Gordon GGM ¥3.68 ¥7.66 ¥12.15 70
DDM Multi-Stage ¥3.68 ¥6.46 ¥8.04 61
Multiples
P/E Multiple ¥3.63 ¥4.84 ¥6.05 63
P/S Multiple ¥3.63 ¥4.84 ¥6.05 58
P/B Multiple ¥3.63 ¥4.84 ¥6.05 55
EV/EBIT ¥7.32 ¥9.90 ¥12.48 53
EV/EBITDA ¥10.98 ¥14.78 ¥18.58 54
EV/Revenue ¥6.29 ¥9.16 ¥12.03 43
Asset-Based
NCAV (Graham) ¥3.75 ¥5.03 ¥7.51 50
Economic Profit
Residual Income ¥5.62 ¥5.62 ¥5.09 76
ROIC Compounder ¥5.90 ¥6.95 ¥8.45 72
Growth Earnings
Growth-Adj P/E ¥4.45 ¥6.36 ¥8.27 68

Widest divergence: Dividend Discount (¥6.46) versus Earnings-Based (¥4.83). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 181.1
P/S ratio 6.57 P/E × margin
EPS (TTM) ¥0.2600 price ÷ EPS = P/E 181.1
Net margin 3.6% FY2025
Return on equity 3.0% TTM
Return on assets (EBIT) 2.7% avg 5y
More key figures
Profitability
Operating margin 9.5% TTM
Growth
Revenue (TTM) 1.7B CNY TTM
Revenue growth (YoY) +10.5% 3y avg +8.0%
EPS growth (YoY) -25.0%
Balance sheet & cash flow
Free cash flow −376M CNY FY2025
Net debt 1.1B CNY FY2025

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 28/100

Of which business quality 30 · Market factors (momentum, volatility) 73

Profitability 19
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 38
Earnings quality: real cash, not paper profit
Fin. Strength 30
Balance sheet, leverage, solvency risk
Investment 17
Disciplined investing over empire-building
Low Volatility 41
Calm price path (market factor)
Momentum 89
Price trend over the last 3–12 months (market factor)
52W Momentum 82
Distance to the 52-week high (market factor)
Net Issuance 34
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Hubei Heyuan Gas Co.,Ltd. engages in the research and development, production, and sale of gas products in China. The company is also involved in recovery and recycling of industrial exhaust gas. Further, it offers hydropower energy, metal silicon, hydrochloric acid, industrial exhaust gas, machinery and equipment, transport vehicles.

Full company description

Hubei Heyuan Gas Co.,Ltd. engages in the research and development, production, and sale of gas products in China. The company is also involved in recovery and recycling of industrial exhaust gas. Further, it offers hydropower energy, metal silicon, hydrochloric acid, industrial exhaust gas, machinery and equipment, transport vehicles. Its products include medical oxygen, industrial oxygen, food and industrial nitrogen, argon, helium, natural gas, carbon dioxide, acetylene, propane, and various mixed gas products. The company's products are used in chemical, iron and steel, food, home appliances and machinery, semiconductor, electronics, photovoltaics, new energy, and biomedicine industries. The company was incorporated in 2003 and is based in Yichang, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hubei Heyuan Gas Co Ltd reported revenue of ¥1.7B in FY2025 versus ¥992M in FY2021, a compound +13.8%/yr. Reported net income was ¥60.3M in FY2025, compounding −9.6%/yr from FY2021.

Growth Quality 52/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
1.7B CNY
Latest YoY
+8.5%
Avg. revenue 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.
+8.0%
Avg. revenue 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.
+15.1%
Avg. revenue growth/yr (10Y) 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.
+18.5%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−12.1% (-12.1 + 0.0)
Revenue +13.8%/yr
FY21 ¥992M
FY22 ¥1.3B
FY23 ¥1.7B
FY24 ¥1.5B
FY25 ¥1.7B
Net income −9.6%/yr
FY21 ¥90.2M
FY22 ¥74.5M
FY23 ¥83.8M
FY24 ¥73.2M
FY25 ¥60.3M

002971 screens 88% overvalued. Compare with Saudi Basic Industries Corporation →

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Cite: Fair Value Calculator (2026). "Hubei Heyuan Gas Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/002971

Peer Group

Chemicals · 347 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 28 · Bottom 25%
Fair Value upside −88% · Bottom 25%
Return on equity (TTM) 3% · Below median
Return on assets 1% · Below median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 10% · Above median
Revenue growth 11% · Above median
Dividend yield (TTM) 0.7% · Bottom 25%
Debt / equity 0.19× · Higher than median

Valuation Multiples vs Chemicals median · lower = cheaper

P/E (TTM) 181.1× · Pricier than 75% of peers
P/B 7.89× · Pricier than 75% of peers
P/S (TTM) 7.37× · Pricier than 75% of peers
EV/EBITDA 43.1× · 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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE53 · sector 20
PAST12 · sector 20
HEALTH91 · sector 94
DIVIDEND14 · sector 31

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.

None of the checked exposures detected

Similar stocks

10 more Chemicals stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

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A. Schulman, Inc SLMNP $849.00 $203.64 -76%
Ningxia Baofeng Energy Group 600989 ¥23.43 ¥20.17 -14%
Dow Inc DOW $30.33 $21.03 -31%
Zhejiang Juhua Co 600160 ¥41.32 ¥21.62 -48%
Rongsheng Petrochemical Co 002493 ¥13.76 ¥2.39 -83%
Zangge Mining Company 000408 ¥78.04 ¥20.99 -73%
PT Barito Pacific Tbk, BRPT 1,855 IDR 1,584 IDR -15%
Ganfeng Lithium Group 002460 ¥54.13 ¥16.17 -70%
Hengli Petrochemical Co 600346 ¥18.87 ¥17.09 -9%

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Frequently asked questions

Is Hubei Heyuan Gas Co Ltd (002971) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of ¥5.57 versus a price of ¥47.08, about −88% (overvalued).
What is the fair value of 002971?
Our model-based fair value for Hubei Heyuan Gas Co Ltd is ¥5.57 (as of Aug 27, 2026), built from audited fundamentals. The current price: ¥47.08.
What is the quality score of 002971?
Hubei Heyuan Gas Co Ltd has a Quality Score of 28/100. 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 Hubei Heyuan Gas Co Ltd (002971)?
Hubei Heyuan Gas Co Ltd reported trailing-twelve-month revenue of about 1.7B CNY (latest available figure, as of Aug 27, 2026).
What is the net profit margin of 002971?
The net profit margin of Hubei Heyuan Gas Co Ltd is about 3.1%, meaning it keeps roughly 3.1% 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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