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Jilin Province Chuncheng Heating Co Ltd (1853) Fair Value & Analysis

Utilities · HK · Market cap HK$588M

JP Jilin Province Chuncheng Heating Co Ltd 1853 · HK
PriceHK$1.36
Fair ValueHK$3.67
Upside+169.9%
Quality44/100
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Weak Growth
Thin margins · 4.8% net margin
Low debt · generates free cash flow
2.59% dividend yield
Mixed vs. peers (7/13)
Narrow moat 22/100
Evidence: High Range HK$2.75 – HK$4.58 Share as image

Fair value as of: Aug 13, 2026

From 23 valuation models · updated 3 days ago

Fair value updated Aug 13, 2026, revised from HK$3.66 to HK$3.67 (+0.3%) since Aug 5, 2026. Share price +28.3% over the past month.

Below-average quality, screening 170% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (44/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (HK$2.75). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

HK$2.16 HK$1.02 Fair Value HK$3.67 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$1.02 – HK$2.16 · fair‑value band HK$2.75 – HK$4.58 · the HK$1.36 price screens below the HK$3.67 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Jilin Province Chuncheng Heating Co Ltd (1853) currently trades at HK$1.36, while our model-based Fair Value estimate is HK$3.67, implying the stock looks roughly 169.9% undervalued today. The Quality Score stands at 44/100 (below-average quality), in the Utilities sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Jilin Province Chuncheng Heating Co Ltd generated revenue of HK$1.7B at a net margin of 4.8%. Revenue declined 14.4% year over year. It earns a return on equity of 7.6%. The balance sheet holds a net cash position of HK$827M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$2.75 (bear case) to HK$4.58 (bull case); at HK$1.36, the current price sits below 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 38% below its 52-week high and 35% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at -55% fair-value upside, at 170%, 1853 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
Growth DCF HK$3.32 HK$3.80 HK$4.38 80
Residual Income HK$1.83 HK$1.91 HK$1.95 76
Rev-Margin DCF HK$3.51 HK$4.49 HK$5.51 74
All 23 models by family
DCF Models
FCF DCF HK$3.28 HK$3.81 HK$4.46 38
5Y Revenue Exit HK$3.51 HK$4.46 HK$5.62 39
5Y EBITDA Exit HK$4.34 HK$5.91 HK$7.65 41
5Y P/E Exit HK$3.50 HK$4.43 HK$5.35 38
10Y Revenue Exit HK$3.34 HK$4.11 HK$5.03 36
10Y EBITDA Exit HK$3.87 HK$5.00 HK$6.35 37
10Y P/E Exit HK$3.39 HK$4.09 HK$4.85 35
Earnings-Based
Graham-Dodd HK$1.19 HK$2.46 HK$3.10 54
EPV HK$2.91 HK$3.09 HK$3.24 59
Dividend Discount
Gordon GGM HK$0.7900 HK$1.09 HK$1.37 70
DDM Multi-Stage HK$0.7900 HK$1.06 HK$1.33 61
Multiples
P/E Multiple HK$2.36 HK$3.15 HK$3.94 63
P/S Multiple HK$2.23 HK$2.98 HK$3.72 58
P/B Multiple HK$2.23 HK$2.98 HK$3.72 55
EV/EBIT HK$4.37 HK$5.29 HK$6.21 53
EV/EBITDA HK$5.65 HK$7.00 HK$8.35 54
EV/Revenue HK$3.84 HK$4.80 HK$5.76 43
Asset-Based
NCAV (Graham) HK$1.17 HK$1.57 HK$2.35 50
Growth DCF
Growth DCF HK$3.32 HK$3.80 HK$4.38 80
Rev-Margin DCF HK$3.51 HK$4.49 HK$5.51 74
Economic Profit
Residual Income HK$1.83 HK$1.91 HK$1.95 76
ROIC Compounder HK$2.94 HK$3.17 HK$3.40 72
Growth Earnings
Growth-Adj P/E HK$1.74 HK$2.49 HK$3.24 68

Widest divergence: DCF Models (HK$4.43) versus Dividend Discount (HK$1.06). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$1.7B
Revenue growth (YoY) -14.4%
Net margin 4.8%
Return on equity 7.6%
Free cash flow HK$90.6M FY2025
P/E ratio 6.0 as of Jul 2, 2026
More key figures
Operating margin -3.8%
EPS (TTM) HK$0.2300
Dividend yield 2.6%
EPS growth (YoY) -27.8%
Net cash HK$827M FY2024

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

Quality Score breakdown

Overall quality 44/100

Of which business quality 44 · Market factors (momentum, volatility) 24

Profitability 27
Margins and returns on capital today
Quality Growth 30
Are margins and returns improving?
Cashflow 14
Earnings quality: real cash, not paper profit
Fin. Strength 63
Balance sheet, leverage, solvency risk
Investment 59
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 8
Price trend over the last 3–12 months (market factor)
52W Momentum 24
Distance to the 52-week high (market factor)
Net Issuance 88
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

Jilin Province Chuncheng Heating Company Limited provides heat supply services in the People's Republic of China. The company operates through two segments, Heat Supply; and Construction, Maintenance and Design Services. It is involved in the provision, production, supply, sale, and transmission of heat; and pipe network transmission services.

Full company description

Jilin Province Chuncheng Heating Company Limited provides heat supply services in the People's Republic of China. The company operates through two segments, Heat Supply; and Construction, Maintenance and Design Services. It is involved in the provision, production, supply, sale, and transmission of heat; and pipe network transmission services. The company also offers engineering construction, maintenance, and design; design, consulting, and feasibility studies related to heating projects; and applies biomass energy. In addition, it provides installation, repair, and maintenance services for heating facilities; and heat supply network transmission services. Further, the company undertakes heat construction and maintenance works; produces and supplies electricity; and manufacture and sells apparatus. It serves residential and non-residential users. The company was incorporated in 2017 and is headquartered in Changchun, China. Jilin Province Chuncheng Heating Company Limited is a subsidiary of Changchun Chuncheng Investment Development Group Company Limited.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Jilin Province Chuncheng Heating Co Ltd reported revenue of HK$1.7B in FY2025 versus HK$1.6B in FY2021, a compound +0.8%/yr. Reported net income was HK$81.7M in FY2025, compounding −9.7%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$1.7B
Latest YoY
−5.6%
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.
+1.0%
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.
−2.1%
Avg. growth/yr (9Y) 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.
+8.1%
Revenue +0.8%/yr
FY21 HK$1.6B
FY22 HK$1.7B
FY23 HK$1.7B
FY24 HK$1.8B
FY25 HK$1.7B
Net income −9.7%/yr
FY21 HK$123M
FY22 HK$115M
FY23 HK$121M
FY24 HK$99.9M
FY25 HK$81.7M

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Cite: Fair Value Calculator (2026). "Jilin Province Chuncheng Heating Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/1853

Peer Group

Utilities - Independent Power Producers · 77 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 44 · Below median
Fair Value upside +170% · Top 25%
Return on equity (TTM) 8% · Above median
Return on assets 2% · Below median
Net margin (TTM) 5% · Below median
Operating margin (TTM) -4% · Bottom 25%
Revenue growth -14% · Below median
Dividend yield (TTM) 2.6% · Below median
Debt / equity 0.27× · Lower than median

Valuation Multiples vs Utilities - Independent Power Producers median · lower = cheaper

P/E (TTM) 6.0× · Cheaper than 75% of peers
P/B 0.54× · Cheaper than 75% of peers
P/S (TTM) 0.35× · Cheaper than 75% of peers
P/FCF 0.8× · Cheaper 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 100 · sector 19
FUTURE 0 · sector 0
PAST 31 · sector 30
HEALTH 87 · sector 70
DIVIDEND 52 · sector 56

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 Utilities - Independent Power Producers stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Constellation Energy Corporation CEG $278.68 $88.09 -68%
Vistra Corp VST $146.68 $50.39 -66%
Adani Power Limited ADANIPOWER ₹206.10 ₹75.57 -63%
CGN Power Co 003816 ¥3.93 ¥2.79 -29%
NRG Energy, Inc NRG $120.66 $53.91 -55%
Gulf Development Public Company GULF 65.00 THB 39.25 THB -40%
Adani Energy Solutions Limited ADANIENSOL ₹1,583 ₹342.02 -78%
Talen Energy Corporation TLN $365.07 $43.55 -88%
Datang International Power Generation Co 601991 ¥6.29 ¥4.95 -21%
Power Assets Holdings 0006 HK$57.30 HK$30.76 -46%

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Frequently asked questions

Is Jilin Province Chuncheng Heating Co Ltd (1853) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$3.67 versus a price of HK$1.36, about +170% (undervalued).
What is the fair value of 1853?
Our model-based fair value for Jilin Province Chuncheng Heating Co Ltd is HK$3.67 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$1.36.
What is the quality score of 1853?
Jilin Province Chuncheng Heating Co Ltd has a Quality Score of 44/100. 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 Jilin Province Chuncheng Heating Co Ltd (1853)?
Jilin Province Chuncheng Heating Co Ltd reported trailing-twelve-month revenue of about HK$1.7B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1853?
The net profit margin of Jilin Province Chuncheng Heating Co Ltd is about 4.8%, meaning it keeps roughly 4.8% of revenue as net income. Based on the latest reported figures.
Does Jilin Province Chuncheng Heating Co Ltd pay a dividend?
Jilin Province Chuncheng Heating Co Ltd currently shows a dividend yield of about 2.59% relative to its recent price (as of Aug 13, 2026).

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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