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Hebei Construction Group Corporation Limited (1727) Fair Value & Analysis

Industrials · HK · Market cap HK$437M

HC Hebei Construction Group Corporation Limited 1727 · HK
PriceHK$0.2300
Fair ValueHK$0.1703
Upside-26.0%
Quality40/100
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Mixed Growth
Loss-making · -3.8% net margin
Low debt · negative free cash flow
Trails peers (0/8)
Narrow moat 5/100
Evidence: Low Range HK$0.1267 – HK$0.2542 Share as image

Fair value as of: Aug 13, 2026

From 1 valuation models · updated 3 days ago

Fair value updated Aug 13, 2026, revised from HK$0.2039 to HK$0.1703 (−16.5%) since Aug 5, 2026. Share price −3.4% over the past month.

Below-average quality, and screening another 26% overvalued on our models.

What matters now

  • Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (HK$0.1267 to HK$0.2542) leaves room in how you read the outcome.
  • Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.
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Price vs Fair Value (5 years)

HK$2.96 HK$0.2250 Fair Value HK$0.1703 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$0.2250 – HK$2.96 · fair‑value band HK$0.1267 – HK$0.2542 · the HK$0.2300 price screens above the HK$0.1703 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Hebei Construction Group Corporation Limited (1727) currently trades at HK$0.2300, while our model-based Fair Value estimate is HK$0.1703, implying the stock looks roughly 26.0% overvalued today. The Quality Score stands at 40/100 (below-average 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: low).

Over the trailing twelve months, Hebei Construction Group Corporation Limited generated revenue of HK$15.5B at a net margin of -3.8%. Revenue declined 46.1% year over year. It earns a return on equity of -9.8%. Net debt stands at HK$3.0B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.1267 (bear case) to HK$0.2542 (bull case); at HK$0.2300, the current price sits within 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 65% below its 52-week high and 2% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -34% fair-value upside, at -26%, 1727 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 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
NCAV (Graham) HK$1.59 HK$2.13 HK$3.18 50
All 1 models by family
Asset-Based
NCAV (Graham) HK$1.59 HK$2.13 HK$3.18 50

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Key figures & financial health

Revenue (TTM) HK$15.5B
Revenue growth (YoY) -46.1%
Net margin -3.8%
Return on equity -9.8%
Free cash flow −HK$2.2B FY2025
Operating margin -2.5%
More key figures
EPS (TTM) HK$0.0600
EPS growth (YoY) -17.6%
Net debt HK$3.0B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 39 · Market factors (momentum, volatility) 22

Profitability 7
Margins and returns on capital today
Quality Growth 26
Are margins and returns improving?
Cashflow 33
Earnings quality: real cash, not paper profit
Fin. Strength 25
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 65
Calm price path (market factor)
Momentum 6
Price trend over the last 3–12 months (market factor)
52W Momentum 1
Distance to the 52-week high (market factor)
Net Issuance 82
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

Hebei Construction Group Corporation Limited, together with its subsidiaries, provides integrated solutions primarily for the construction contracting of buildings and infrastructure projects in the People's Republic of China. It operates through two segments, Construction Contracting and Others.

Full company description

Hebei Construction Group Corporation Limited, together with its subsidiaries, provides integrated solutions primarily for the construction contracting of buildings and infrastructure projects in the People's Republic of China. It operates through two segments, Construction Contracting and Others. The company provides construction contracting services for residential, public works, industrial, and commercial construction projects; and municipal and transportation infrastructure, including water supply and treatment, gas and heating, urban pipelines, roads, bridges, and airport runways facilities, as well as specialized and other construction works, including electrical and mechanical installation, and construction of steel structures. It develops and sells automobile technology; sells agricultural products; and operates water plants, as well as provides supply chain and hospital management; garden and curtain wall engineering; urban greening; and aviation services. In addition, the company engages in the ecological construction; investment advisory and consultation; environmental engineering; concrete production and sale; property development and operation; investment and management of new energy; lease of machinery equipment; park management; and construction software development and sale. Further it is involved in the technology promotion and application services; sewage treatment; and development of new energy technology, as well as comprehensive sales. The company was founded in 1952 and is headquartered in Baoding, the People's Republic of China. Hebei Construction Group Corporation Limited is a subsidiary of Zhongru Investment Co., Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hebei Construction Group Corporation Limited reported revenue of HK$15.5B in FY2025 versus HK$47.8B in FY2021, a compound −24.6%/yr. Reported net income was −HK$580M in FY2025.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$15.5B
Latest YoY
−38.2%
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.
−27.1%
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.
−17.4%
Avg. growth/yr (11Y) 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.
−4.2%
Revenue −24.6%/yr
FY21 HK$47.8B
FY22 HK$40.0B
FY23 HK$33.5B
FY24 HK$25.1B
FY25 HK$15.5B
Net income
FY21 −HK$346M
FY22 HK$327M
FY23 HK$171M
FY24 HK$171M
FY25 −HK$580M
Character of growth · EPS growth decomposed (2014-2025) −12.2 % p.a.
Revenue per share −0.6 pp

of which total revenue −0.4 pp · buybacks/dilution −0.2 pp

EBIT margin −17.1 pp
Tax rate +0.2 pp
Residual (interest, one-offs) +5.3 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

1727 screens 26% overvalued. Compare with Larsen & Toubro Limited →

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Cite: Fair Value Calculator (2026). "Hebei Construction Group Corporation Limited Fair Value". https://www.fairvalue-calculator.com/stock/1727

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 39 · Bottom 25%
Fair Value upside −26% · Below median
Return on assets 0% · Bottom 25%
Net margin (TTM) -4% · Bottom 25%
Operating margin (TTM) -2% · Bottom 25%
Revenue growth -46% · Bottom 25%
Debt / equity 0.20× · Higher 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 0 · sector 14
FUTURE 0 · sector 15
PAST 0 · sector 26
HEALTH 90 · sector 94
DIVIDEND 0 · sector 43

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

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 Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹4,020 ₹1,994 -50%
Samsung C&T Corporation 028260 357,500 KRW 261,411 KRW -27%
Hyundai Engineering & Construction Co 000720 113,700 KRW 61,453 KRW -46%
Samsung E&A Co 028050 49,300 KRW 43,624 KRW -12%
Rail Vikas Nigam Limited RVNL ₹230.00 ₹48.92 -79%
Daewoo Engineering & Construction Co 047040 18,400 KRW 6,507 KRW -65%
KEPCO Engineering & Construction Company 052690 99,800 KRW 19,346 KRW -81%
GS Engineering & Construction Corporation 006360 35,200 KRW 23,135 KRW -34%
DL E&C Co 375500 73,500 KRW 148,433 KRW +102%
KEPCO Plant Service & Engineering Co 051600 46,350 KRW 43,924 KRW -5%

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Frequently asked questions

Is Hebei Construction Group Corporation Limited (1727) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.1703 versus a price of HK$0.2300, about −26% (overvalued).
What is the fair value of 1727?
Our model-based fair value for Hebei Construction Group Corporation Limited is HK$0.1703 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.2300.
What is the quality score of 1727?
Hebei Construction Group Corporation Limited has a Quality Score of 40/100. 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 Hebei Construction Group Corporation Limited (1727)?
Hebei Construction Group Corporation Limited reported trailing-twelve-month revenue of about HK$15.5B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1727?
The net profit margin of Hebei Construction Group Corporation Limited is about -3.8%, meaning it is currently running at a net loss. 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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