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Shandong Iron and Steel Company (600022) Fair Value & Analysis

Basic Materials · CN · Market cap 14.8B CNY

SI Shandong Iron and Steel Company 600022 · SHG
Price¥1.35
Fair Value¥1.43
Upside+5.9%
Quality50/100
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Weak Growth
Loss-making · 0.0% net margin
Low debt · generates free cash flow
Mixed vs. peers (7/13)
Narrow moat 17/100
Evidence: Medium Range ¥0.9527 – ¥1.43 Share as image

Fair value as of: Aug 6, 2026

From 24 valuation models · updated 4 days ago

Fair value updated Aug 6, 2026, revised from ¥0.9100 to ¥1.43 (+57.0%) since Jul 11, 2026. Share price +6.3% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from ¥0.9527 (bear) to ¥1.43 (bull), base ¥1.43. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 50/100 (solid quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

¥2.44 ¥1.13 Fair Value ¥1.43 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 6, 2026.

How to read this chart

60‑month range ¥1.13 – ¥2.44 · fair‑value band ¥0.9527 – ¥1.43 · the ¥1.35 price screens below the ¥1.43 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 6, 2026.

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Analysis

Shandong Iron and Steel Company (600022) currently trades at ¥1.35, while our model-based Fair Value estimate is ¥1.43, implying the stock looks roughly 5.9% fairly valued today. The Quality Score stands at 50/100 (solid quality), in the Basic Materials 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.

Trailing-twelve-month revenue stands at 63.9B CNY. Revenue declined 18.6% year over year. It earns a return on equity of 1.2%. Net debt stands at 13.8B CNY. Fundamentals as of Aug 6, 2026

Our scenario range runs from ¥0.9527 (bear case) to ¥1.43 (bull case); at ¥1.35, 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 26% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -7% fair-value upside, at 6%, 600022 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 BearBaseBull Evidence
Highest evidence
Growth DCF ¥3.91 ¥5.41 ¥7.49 80
Residual Income ¥1.20 ¥1.12 ¥0.7900 76
Rev-Margin DCF ¥2.12 ¥2.91 ¥3.79 74
All 24 models by family
DCF Models
FCF DCF ¥3.78 ¥5.36 ¥7.64 38
Owner Earnings ¥2.86 ¥4.07 ¥5.82 31
5Y Revenue Exit ¥2.12 ¥2.84 ¥3.70 39
5Y EBITDA Exit ¥3.22 ¥4.75 ¥6.46 41
5Y P/E Exit ¥1.36 ¥1.52 ¥1.66 38
10Y Revenue Exit ¥2.67 ¥3.42 ¥4.26 36
10Y EBITDA Exit ¥3.39 ¥4.70 ¥6.22 37
10Y P/E Exit ¥2.24 ¥2.54 ¥2.80 35
Earnings-Based
Graham-Dodd ¥0.0700 ¥0.1400 ¥0.1700 54
EPV ¥1.17 ¥1.39 ¥1.58 59
Dividend Discount
Gordon GGM ¥0.5300 ¥0.7700 ¥1.03 70
DDM Multi-Stage ¥0.5300 ¥0.7500 ¥1.00 61
Multiples
P/E Multiple ¥0.1300 ¥0.1700 ¥0.2100 63
P/S Multiple ¥0.1300 ¥0.1700 ¥0.2100 58
P/B Multiple ¥0.1300 ¥0.1700 ¥0.2100 55
EV/EBIT ¥1.46 ¥2.00 ¥2.54 53
EV/EBITDA ¥3.34 ¥4.51 ¥5.68 54
EV/Revenue ¥1.25 ¥1.85 ¥2.45 43
Asset-Based
NCAV (Graham) ¥0.8900 ¥1.19 ¥1.78 50
Growth DCF
Growth DCF ¥3.91 ¥5.41 ¥7.49 80
Rev-Margin DCF ¥2.12 ¥2.91 ¥3.79 74
Economic Profit
Residual Income ¥1.20 ¥1.12 ¥0.7900 76
ROIC Compounder ¥1.17 ¥1.39 ¥1.58 72
Growth Earnings
Growth-Adj P/E ¥0.0900 ¥0.1300 ¥0.1700 68

Widest divergence: DCF Models (¥3.42) versus Growth Earnings (¥0.1300). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 63.9B CNY
Revenue growth (YoY) -18.6%
Net margin 0.0%
Return on equity 1.2%
Free cash flow 4.0B CNY FY2025
Operating margin 0.0%
More key figures
EPS growth (YoY) -88.3%
Net debt 13.8B CNY FY2025

Figures from reported company fundamentals · as of Aug 6, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 50/100

Of which business quality 50 · Market factors (momentum, volatility) 40

Profitability 25
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 66
Earnings quality: real cash, not paper profit
Fin. Strength 24
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 86
Calm price path (market factor)
Momentum 21
Price trend over the last 3–12 months (market factor)
52W Momentum 20
Distance to the 52-week high (market factor)
Net Issuance 77
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

Shandong Iron and Steel Company Ltd. provides iron and steel products in China and internationally. The company offers thick plates, steel and special steel, hot-rolled coils, cold-rolled coils, and steel bars, etc.

Full company description

Shandong Iron and Steel Company Ltd. provides iron and steel products in China and internationally. The company offers thick plates, steel and special steel, hot-rolled coils, cold-rolled coils, and steel bars, etc. Its products are used in automotive, petroleum, railways, bridges, construction, electricity, transportation, machinery, shipbuilding, light industry, and household appliances. The company was formerly known as Jinan Iron & Steel Co. Ltd. Shandong Iron and Steel Company Ltd. was founded in 2000 and is headquartered in Jinan, China. Shandong Iron and Steel Company Ltd. operates as a subsidiary of Shandong Iron & Steel Group Co.,Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shandong Iron and Steel Company reported revenue of ¥67.3B in FY2025 versus ¥111B in FY2021, a compound −11.7%/yr. Reported net income was ¥106M in FY2025, compounding −45.8%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
67.3B CNY
Latest YoY
−18.1%
Avg. growth/yr (3Y)
−13.0%
Avg. growth/yr (5Y)
−5.1%
Avg. growth/yr (24Y)
+11.4%
Revenue −11.7%/yr
FY21 ¥111B
FY22 ¥102B
FY23 ¥90.5B
FY24 ¥82.1B
FY25 ¥67.3B
Net income −45.8%/yr
FY21 ¥1.2B
FY22 ¥554M
FY23 −¥400M
FY24 −¥2.3B
FY25 ¥106M

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Cite: Fair Value Calculator (2026). "Shandong Iron and Steel Company Fair Value". https://www.fairvalue-calculator.com/stock/600022

Peer Group

Steel · 378 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 50 · Above median
Fair Value upside +6% · Above median
Return on equity (TTM) 1% · Below median
Return on assets 1% · Below median
Net margin (TTM) -0% · Below median
Operating margin (TTM) 0% · Below median
Revenue growth -19% · Bottom 25%
Debt / equity 0.41× · Higher than 75% of peers

Valuation Multiples vs Steel median · lower = cheaper

P/B 0.12× · Cheaper than 75% of peers
P/S (TTM) 0.03× · Cheaper than 75% of peers
P/FCF 0.5× · Cheaper than median
EV/EBITDA 1.0× · Cheaper than 75% of peers
PEG 0.53× · 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 41 · sector 20
FUTURE 0 · sector 4
PAST 5 · sector 15
HEALTH 80 · sector 95
DIVIDEND 0 · sector 41

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 Steel stocks, each showing price versus our Fair Value estimate (as of Aug 6, 2026).

Stock Price Fair Value vs Fair Value
Tata Steel Limited TTST $0.2010 $0.2000 -0%
JSW Steel Limited JSWSTEEL ₹1,227 ₹1,140 -7%
Baoshan Iron & Steel Co 600019 ¥5.89 ¥8.07 +37%
China Steel Corporation 2002A 38.55 TWD 8.74 TWD -77%
POSCO Holdings 005490 313,500 KRW 155,270 KRW -50%
Companhia Siderúrgica Nacional, SID 13,670 ARS 15,940 ARS +17%
Jindal Steel Limited JINDALSTEL ₹1,028 ₹545.12 -47%
Lloyds Metals and Energy Limited LLOYDSME ₹1,844 ₹1,098 -40%
Gerdau S.A GGBN 83.50 MXN 42.64 MXN -49%
Ternium S.A TXR 17,780 ARS 27,210 ARS +53%

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Frequently asked questions

Is Shandong Iron and Steel Company (600022) overvalued or undervalued?
As of Aug 6, 2026, our model estimates a fair value of ¥1.43 versus a price of ¥1.35, about +6% (fairly valued).
What is the fair value of 600022?
Our model-based fair value for Shandong Iron and Steel Company is ¥1.43 (as of Aug 6, 2026), built from audited fundamentals. The current price is ¥1.35.
What is the quality score of 600022?
Shandong Iron and Steel Company has a Quality Score of 50/100. 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 Shandong Iron and Steel Company (600022)?
Shandong Iron and Steel Company reported trailing-twelve-month revenue of about 63.9B CNY (latest available figure, as of Aug 6, 2026).
What is the net profit margin of 600022?
The net profit margin of Shandong Iron and Steel Company is about 0.0%, 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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