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Shanghai Electric Group (2727) Fair Value & Analysis

Industrials · HK · Market cap HK$52.5B

SE Shanghai Electric Group 2727 · HK
PriceHK$3.29
Fair ValueHK$1.60
Upside-51.4%
Quality36/100
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Weak Growth
Thin margins · 1.0% net margin
Moderate debt · generates free cash flow
0.40% dividend yield
Trails peers (5/15)
Narrow moat 25/100
Evidence: Medium Range HK$1.20 – HK$2.06 Share as image

Fair value as of: Jul 7, 2026

From 24 valuation models · updated 34 days ago

Share price −1.5% over the past month.

Below-average quality, and screening another 51% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$2.06). The favourable scenario is already priced in.
  • Weak quality (36/100) 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)

HK$5.58 HK$1.37 Fair Value HK$1.60 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 7, 2026.

How to read this chart

60‑month range HK$1.37 – HK$5.58 · fair‑value band HK$1.20 – HK$2.06 · the HK$3.29 price screens above the HK$1.60 fair value. Dashed = 300-day average. As of Jul 7, 2026.

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Analysis

Shanghai Electric Group (2727) currently trades at HK$3.29, while our model-based Fair Value estimate is HK$1.60, implying the stock looks roughly 51.4% overvalued today. The Quality Score stands at 36/100 (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: medium).

Over the trailing twelve months, Shanghai Electric Group generated revenue of HK$129B at a net margin of 1.0%. Revenue grew 9.3% year over year. It earns a return on equity of 3.9%. Net debt stands at HK$3.4B. Fundamentals as of Jul 7, 2026

Our scenario range runs from HK$1.20 (bear case) to HK$2.06 (bull case); at HK$3.29, 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 42% below its 52-week high and 17% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -51%, 2727 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 BearBaseBull Evidence
Highest evidence
Growth DCF HK$4.40 HK$5.91 HK$7.96 80
Residual Income HK$2.51 HK$2.43 HK$1.97 76
Rev-Margin DCF HK$3.84 HK$5.48 HK$7.24 74
All 24 models by family
DCF Models
FCF DCF HK$4.28 HK$5.90 HK$8.18 38
5Y Revenue Exit HK$3.84 HK$5.44 HK$7.38 39
5Y EBITDA Exit HK$4.97 HK$7.43 HK$10.17 41
5Y P/E Exit HK$2.58 HK$3.22 HK$3.82 38
10Y Revenue Exit HK$3.88 HK$5.33 HK$7.10 36
10Y EBITDA Exit HK$4.67 HK$6.68 HK$9.11 37
10Y P/E Exit HK$3.19 HK$3.84 HK$4.52 35
Earnings-Based
Graham-Dodd HK$0.5300 HK$1.19 HK$1.52 54
PEG = 1.0 HK$0.2000 HK$0.2800 HK$0.3600 46
EPV HK$2.76 HK$3.13 HK$3.45 59
Dividend Discount
Gordon GGM HK$0.8500 HK$1.39 HK$2.02 70
DDM Multi-Stage HK$0.8500 HK$1.24 HK$1.68 61
Multiples
P/E Multiple HK$1.22 HK$1.63 HK$2.03 63
P/S Multiple HK$0.9900 HK$1.32 HK$1.65 58
P/B Multiple HK$0.9900 HK$1.32 HK$1.65 55
EV/EBIT HK$5.09 HK$6.61 HK$8.13 53
EV/EBITDA HK$6.05 HK$7.89 HK$9.73 54
EV/Revenue HK$3.79 HK$5.18 HK$6.58 43
Asset-Based
NCAV (Graham) HK$1.76 HK$2.35 HK$3.51 50
Growth DCF
Growth DCF HK$4.40 HK$5.91 HK$7.96 80
Rev-Margin DCF HK$3.84 HK$5.48 HK$7.24 74
Economic Profit
Residual Income HK$2.51 HK$2.43 HK$1.97 76
ROIC Compounder HK$2.76 HK$3.13 HK$3.45 72
Growth Earnings
Growth-Adj P/E HK$0.9100 HK$1.30 HK$1.70 68

Widest divergence: Growth DCF (HK$5.48) versus Earnings-Based (HK$1.19). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) HK$129B
Revenue growth (YoY) +9.3%
Net margin 1.0%
Return on equity 3.9%
Free cash flow HK$5.5B FY2025
P/E ratio 33.8
More key figures
Operating margin 3.2%
EPS (TTM) HK$0.0438
Dividend yield 0.4%
EPS growth (YoY) +30.3%
Net debt HK$3.4B FY2025

Figures from reported company fundamentals · as of Jul 7, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 36/100

Of which business quality 36 · Market factors (momentum, volatility) 32

Profitability 18
Margins and returns on capital today
Quality Growth 50
Are margins and returns improving?
Cashflow 50
Earnings quality: real cash, not paper profit
Fin. Strength 29
Balance sheet, leverage, solvency risk
Investment 90
Disciplined investing over empire-building
Low Volatility 49
Calm price path (market factor)
Momentum 25
Price trend over the last 3–12 months (market factor)
52W Momentum 25
Distance to the 52-week high (market factor)
Net Issuance 0
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

Shanghai Electric Group Co., Ltd. manufactures and sells industrial and energy equipment in Mainland China and internationally. The company operates through Energy Equipment Business, Industrial Equipment Business, and Integrated Service Business segments.

Full company description

Shanghai Electric Group Co., Ltd. manufactures and sells industrial and energy equipment in Mainland China and internationally. The company operates through Energy Equipment Business, Industrial Equipment Business, and Integrated Service Business segments. It offers designs, manufactures, and sells nuclear power, energy storage, coal-fired power generation and auxiliary, gas power generation, wind power, hydrogen, photovoltaic, and high-end chemical equipment, as well as elevators, large and medium-sized electric motors, intelligent manufacturing equipment, industrial basic parts, and construction industrialization equipment. The company also provides power grid and industrial intelligent power supply system solutions; energy, environmental protection and automation engineering and services, such as traditional and new energy, comprehensive utilization of solid waste, sewage treatment, flue gas treatment, and rail transit; industrial internet services; financial services, including financial leasing, factoring, asset management, and insurance brokerage; and park and property management services. The company was founded in 1902 and is headquartered in Shanghai, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shanghai Electric Group reported revenue of HK$127B in FY2025 versus HK$131B in FY2021, a compound −0.9%/yr. Reported net income was HK$1.2B in FY2025.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$127B
Latest YoY
+9.0%
Avg. growth/yr (3Y)
+2.5%
Avg. growth/yr (5Y)
−1.6%
Avg. growth/yr (20Y)
+6.4%
Revenue −0.9%/yr
FY21 HK$131B
FY22 HK$118B
FY23 HK$115B
FY24 HK$116B
FY25 HK$127B
Net income
FY21 −HK$10.2B
FY22 −HK$2.3B
FY23 HK$285M
FY24 HK$752M
FY25 HK$1.2B

2727 screens 51% overvalued. Compare with GE Vernova Inc →

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Shanghai Electric Group · Fair Value
HK$1.60 −51%Fair Value
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Cite: Fair Value Calculator (2026). "Shanghai Electric Group Fair Value". https://www.fairvalue-calculator.com/stock/2727

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Specialty Industrial Machinery · 809 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 36 · Bottom 25%
Fair Value upside −51% · Below median
Return on equity (TTM) 4% · Below median
Return on assets 1% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth 9% · Above median
Dividend yield (TTM) 0.4% · Bottom 25%
Debt / equity 0.53× · Higher than 75% of peers

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 33.8× · Pricier than median
P/B 0.96× · Cheaper than 75% of peers
P/S (TTM) 0.41× · Cheaper than 75% of peers
P/FCF 1.2× · Cheaper than median
EV/EBITDA 7.1× · Cheaper than 75% of peers
PEG 2.92× · 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 0
FUTURE 47 · sector 23
PAST 16 · sector 28
HEALTH 74 · sector 96
DIVIDEND 8 · sector 24

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 Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Jul 7, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €887.60 €186.93 -79%
1SIE 1SIE €273.20 €91.93 -66%
SMNS SMNS C$31.76 C$22.68 -29%
Eaton Corporation ETN $407.28 $171.92 -58%
Atlas Copco AB ATCOA kr 195.15 kr 112.59 -42%
Sandvik AB SAND kr 384.10 kr 193.01 -50%
Doosan Enerbility Co 034020 76,400 KRW 7,938 KRW -90%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%

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Frequently asked questions

Is Shanghai Electric Group (2727) overvalued or undervalued?
As of Jul 7, 2026, our model estimates a fair value of HK$1.60 versus a price of HK$3.29, about −51% (overvalued).
What is the fair value of 2727?
Our model-based fair value for Shanghai Electric Group is HK$1.60 (as of Jul 7, 2026), built from audited fundamentals. The current price is HK$3.29.
What is the quality score of 2727?
Shanghai Electric Group has a Quality Score of 36/100. 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 Shanghai Electric Group (2727)?
Shanghai Electric Group reported trailing-twelve-month revenue of about HK$129B (latest available figure, as of Jul 7, 2026).
What is the net profit margin of 2727?
The net profit margin of Shanghai Electric Group is about 1.0%, meaning it keeps roughly 1.0% of revenue as net income. Based on the latest reported figures.
Does Shanghai Electric Group pay a dividend?
Shanghai Electric Group currently shows a dividend yield of about 0.40% relative to its recent price (as of Jul 7, 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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