EN DE

China Energy Engineering Corp (3996) Fair Value & Analysis

Industrials · HK · Market cap HK$50.0B

CE China Energy Engineering Corp 3996 · HK
PriceHK$1.06
Fair ValueHK$2.22
Upside+110.4%
Quality41/100
Watch China Energy Engineering Corp for free, get notified when fair value or trend changes. Watch for free
Expensive Growth
Thin margins · 1.3% net margin
High debt · negative free cash flow
Trails peers (5/13)
Narrow moat 26/100
Evidence: Medium Range HK$1.74 – HK$2.89 Share as image

Fair value as of: Aug 13, 2026

From 16 valuation models · updated 3 days ago

Share price −1.4% over the past month.

Below-average quality, screening 110% undervalued on our models.

Fair value for all 35,000+ stocks, review alerts and the diversification check: 14 days of Pro free, no card.

What matters now

  • The large discount to fair value meets weak quality (41/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (HK$1.74). The market is more pessimistic than our downside scenario.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

HK$1.60 HK$0.5750 Fair Value HK$2.22 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$0.5750 – HK$1.60 · fair‑value band HK$1.74 – HK$2.89 · the HK$1.06 price screens below the HK$2.22 fair value. Dashed = 300-day average. As of Aug 13, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

China Energy Engineering Corp (3996) currently trades at HK$1.06, while our model-based Fair Value estimate is HK$2.22, implying the stock looks roughly 110.4% undervalued today. The Quality Score stands at 41/100 (below-average quality), in the Industrials 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: medium), always confirm before acting.

Over the trailing twelve months, China Energy Engineering Corp generated revenue of HK$455B at a net margin of 1.3%. Revenue grew 1.6% year over year. It earns a return on equity of 4.4%. Net debt stands at HK$265B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$1.74 (bear case) to HK$2.89 (bull case); at HK$1.06, 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 46% 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 110%, 3996 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
Residual Income HK$2.05 HK$2.07 HK$1.99 76
ROIC Compounder HK$0.0600 HK$0.5300 72
Gordon GGM HK$0.2300 HK$0.4900 HK$0.7700 70
All 16 models by family
Earnings-Based
Graham-Dodd HK$0.9300 HK$3.50 HK$4.74 54
Lynch FV HK$0.8500 HK$1.21 HK$1.58 50
PEG = 1.0 HK$0.8500 HK$1.21 HK$1.58 46
EPV HK$0.0600 HK$0.5300 59
Dividend Discount
Gordon GGM HK$0.2300 HK$0.4900 HK$0.7700 70
DDM Multi-Stage HK$0.2300 HK$0.4100 HK$0.5100 61
Multiples
P/E Multiple HK$2.15 HK$2.87 HK$3.58 63
P/S Multiple HK$1.74 HK$2.32 HK$2.90 58
P/B Multiple HK$1.74 HK$2.32 HK$2.90 55
EV/EBIT HK$1.70 HK$3.51 HK$5.33 53
EV/EBITDA HK$2.82 HK$5.01 HK$7.19 54
EV/Revenue HK$0.1500 HK$1.81 HK$3.47 43
Asset-Based
NCAV (Graham) HK$1.34 HK$1.79 HK$2.68 50
Economic Profit
Residual Income HK$2.05 HK$2.07 HK$1.99 76
ROIC Compounder HK$0.0600 HK$0.5300 72
Growth Earnings
Growth-Adj P/E HK$1.56 HK$2.22 HK$2.89 68

Widest divergence: Multiples (HK$2.32) versus Economic Profit (HK$0.0600). Highest evidence: Residual Income (76).

Notify me when 3996 reaches fair value

Free. You confirm by email (double opt-in) and can unsubscribe anytime in one click.

Key figures & financial health

Revenue (TTM) HK$455B
Revenue growth (YoY) +1.6%
Net margin 1.3%
Return on equity 4.4%
Free cash flow −HK$28.6B FY2025
P/E ratio 7.5 as of Jul 2, 2026
More key figures
Operating margin 4.6%
EPS (TTM) HK$0.1470
EPS growth (YoY) -8.1%
Net debt HK$265B FY2025

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

Quality Score breakdown

Overall quality 41/100

Of which business quality 38 · Market factors (momentum, volatility) 37

Profitability 21
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 31
Earnings quality: real cash, not paper profit
Fin. Strength 11
Balance sheet, leverage, solvency risk
Investment 61
Disciplined investing over empire-building
Low Volatility 82
Calm price path (market factor)
Momentum 23
Price trend over the last 3–12 months (market factor)
52W Momentum 8
Distance to the 52-week high (market factor)
Net Issuance 98
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

China Energy Engineering Corporation Limited provides solutions and services in the energy, power and infrastructure sectors in the People's Republic of China and internationally. It operates through five segment: Survey, Design and Consulting; Construction and contracting; Industrial manufacturing; Industrial manufacturing; and others.

Full company description

China Energy Engineering Corporation Limited provides solutions and services in the energy, power and infrastructure sectors in the People's Republic of China and internationally. It operates through five segment: Survey, Design and Consulting; Construction and contracting; Industrial manufacturing; Industrial manufacturing; and others. The company offers planning and research, consulting, evaluation, engineering survey, design, supervision, project management, preparation, and specification services for domestic and foreign thermal power, hydropower, nuclear power, wind power, solar power generation, and power grid projects, as well as consulting services for power industry. It is also involved in the provision of project contracting, engineering and construction, and project operation and maintenance to domestic and overseas tradition energy, new energy, smart energy, water conservancy, ecological environmental protection, transportation, municipal, buildings, and structures. In addition, the company designs, manufactures, and sells construction materials, civil explosives, cement products, auxiliary machinery and equipment, energy-saving and environmental protection equipment, and other equipment related to the power industry, as well as provides blasting services, as well as engages in the investment and operation of traditional and new energy, smart energy, water conservancy, ecological environmental protection, and transportation projects; provision of financial services; and investment and development of real estate properties. Further, it provides logistics and trading, leasing and commercial business, software and information, and other services, as well as involved in project investment; asset and supply chain management; and Building construction investment business. The company was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Energy Engineering Corp reported revenue of HK$441B in FY2025 versus HK$322B in FY2021, a compound +8.1%/yr. Reported net income was HK$5.7B in FY2025, compounding −3.3%/yr from FY2021.

Growth Quality 50/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$441B
Latest YoY
+0.9%
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.
+6.3%
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.
+10.3%
Avg. growth/yr (13Y) 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.
+9.3%
Revenue +8.1%/yr
FY21 HK$322B
FY22 HK$366B
FY23 HK$406B
FY24 HK$437B
FY25 HK$441B
Net income −3.3%/yr
FY21 HK$6.5B
FY22 HK$7.8B
FY23 HK$8.0B
FY24 HK$8.4B
FY25 HK$5.7B
Character of growth · EPS growth decomposed (2014-2025) −0.1 % p.a.
Revenue per share +0.3 pp

of which total revenue +8.6 pp · buybacks/dilution −8.2 pp

EBIT margin −4.2 pp
Tax rate +1.0 pp
Residual (interest, one-offs) +2.7 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).

Watch 3996: get an alert when its fair value changes →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "China Energy Engineering Corp Fair Value". https://www.fairvalue-calculator.com/stock/3996

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 41 · Below median
Fair Value upside +110% · Top 25%
Return on equity (TTM) 4% · Below median
Return on assets 1% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 5% · Below median
Revenue growth 2% · Below median
Dividend yield (TTM) 2.1% · Below median
Debt / equity 2.24× · Higher than 75% of peers

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 7.5× · Cheaper than 75% of peers
P/B 0.45× · Cheaper than 75% of peers
P/S (TTM) 0.11× · Cheaper than 75% of peers
EV/EBITDA 6.8× · 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 14
FUTURE 8 · sector 15
PAST 18 · sector 26
HEALTH 0 · sector 94
DIVIDEND 43 · sector 43

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%

Compare China Energy Engineering Corp with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Industrials stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is China Energy Engineering Corp (3996) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$2.22 versus a price of HK$1.06, about +110% (undervalued).
What is the fair value of 3996?
Our model-based fair value for China Energy Engineering Corp is HK$2.22 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$1.06.
What is the quality score of 3996?
China Energy Engineering Corp has a Quality Score of 41/100. 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 China Energy Engineering Corp (3996)?
China Energy Engineering Corp reported trailing-twelve-month revenue of about HK$455B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 3996?
The net profit margin of China Energy Engineering Corp is about 1.3%, meaning it keeps roughly 1.3% 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.

14 days Pro free · no card

Track China Energy Engineering Corp and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.