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China Northern Rare Earth (Group) High-Tech Co (600111) Fair Value & Analysis

Basic Materials · CN · Market cap 143B CNY

CN China Northern Rare Earth (Group) High-Tech Co 600111 · SHG
Price¥41.91
Fair Value¥10.59
Upside-74.7%
Quality56/100
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Expensive Growth
Thin margins · 6.1% net margin
Low debt · negative free cash flow
0.33% dividend yield
Mixed vs. peers (6/13)
Moderate moat 46/100
Evidence: Medium Range ¥7.94 – ¥13.23 Share as image

Fair value as of: Jul 16, 2026

From 17 valuation models · updated 22 days ago

Share price −11.7% over the past month.

A solid business, but screening 75% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥13.23). The favourable scenario is already priced in.
  • Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥62.40 ¥15.81 Fair Value ¥10.59 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range ¥15.81 – ¥62.40 · fair‑value band ¥7.94 – ¥13.23 · the ¥41.91 price screens above the ¥10.59 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

China Northern Rare Earth (Group) High-Tech Co (600111) currently trades at ¥41.91, while our model-based Fair Value estimate is ¥10.59, implying the stock looks roughly 74.7% overvalued today. We read business quality at 56/100 (solid quality), in the Basic Materials 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, China Northern Rare Earth (Group) High-Tech Co generated revenue of 45.1B CNY at a net margin of 6.1%. Revenue grew 27.7% year over year. It earns a return on equity of 11.0%. Net debt stands at 1.3B CNY. Fundamentals as of Jul 16, 2026

Our scenario range runs from ¥7.94 (bear case) to ¥13.23 (bull case); at ¥41.91, 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 34% below its 52-week high and 76% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -34% fair-value upside, at -75%, 600111 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
Residual Income ¥5.84 ¥6.40 ¥9.33 76
ROIC Compounder ¥11.09 ¥16.30 ¥20.20 72
Gordon GGM ¥0.8900 ¥1.85 ¥2.94 70
All 17 models by family
DCF Models
Owner Earnings ¥8.47 ¥19.08 ¥41.34 31
Earnings-Based
Graham-Dodd ¥4.23 ¥29.53 ¥41.44 54
Lynch FV ¥9.76 ¥13.94 ¥18.13 50
PEG = 1.0 ¥9.76 ¥13.94 ¥18.13 46
EPV ¥9.15 ¥10.65 ¥11.97 59
Dividend Discount
Gordon GGM ¥0.8900 ¥1.85 ¥2.94 70
DDM Multi-Stage ¥0.8900 ¥1.56 ¥1.95 61
Multiples
P/E Multiple ¥9.34 ¥12.45 ¥15.57 63
P/S Multiple ¥7.94 ¥10.59 ¥13.23 58
P/B Multiple ¥7.94 ¥10.59 ¥13.23 55
EV/EBIT ¥14.33 ¥19.05 ¥23.77 53
EV/EBITDA ¥13.00 ¥17.29 ¥21.57 54
EV/Revenue ¥9.71 ¥13.80 ¥17.90 43
Asset-Based
NCAV (Graham) ¥3.41 ¥4.57 ¥6.82 50
Economic Profit
Residual Income ¥5.84 ¥6.40 ¥9.33 76
ROIC Compounder ¥11.09 ¥16.30 ¥20.20 72
Growth Earnings
Growth-Adj P/E ¥12.66 ¥18.09 ¥23.52 68

Widest divergence: DCF Models (¥19.08) versus Dividend Discount (¥1.56). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 45.1B CNY
Revenue growth (YoY) +27.7%
Net margin 6.1%
Return on equity 11.0%
Free cash flow −191M CNY FY2025
P/E ratio 52.1
More key figures
Operating margin 10.8%
EPS (TTM) ¥0.7600
Dividend yield 0.3%
EPS growth (YoY) +113%
Net debt 1.3B CNY FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 54 · Market factors (momentum, volatility) 51

Profitability 39
Margins and returns on capital today
Quality Growth 71
Are margins and returns improving?
Cashflow 9
Earnings quality: real cash, not paper profit
Fin. Strength 78
Balance sheet, leverage, solvency risk
Investment 70
Disciplined investing over empire-building
Low Volatility 55
Calm price path (market factor)
Momentum 46
Price trend over the last 3–12 months (market factor)
52W Momentum 57
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

China Northern Rare Earth (Group) High-Tech Co.,Ltd produces and sells rare earth metals in China and internationally. The company offers rare earth salts, rare earth oxides, and rare earth golds.

Full company description

China Northern Rare Earth (Group) High-Tech Co.,Ltd produces and sells rare earth metals in China and internationally. The company offers rare earth salts, rare earth oxides, and rare earth golds. It also provides rare earth new material products, such as rare earth magnetic, polishing, hydrogen storage, and catalytic materials; rare earth composites; rare earth alloys; and rare earth end-use products comprising earth permanent magnet high-efficiency energy-saving motors, solid-state hydrogen-powered two-wheeled vehicles, etc. The company was formerly known as Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-Tech Co., Ltd. and changed its name to China Northern Rare Earth (Group) High-Tech Co.,Ltd in January 2015. China Northern Rare Earth (Group) High-Tech Co.,Ltd was founded in 1961 and is headquartered in Baotou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Northern Rare Earth (Group) High-Tech Co reported revenue of ¥42.6B in FY2025 versus ¥30.4B in FY2021, a compound +8.8%/yr. Reported net income was ¥2.3B in FY2025, compounding −18.6%/yr from FY2021.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
42.6B CNY
Latest YoY
+29.1%
Avg. growth/yr (3Y)
+4.5%
Avg. growth/yr (5Y)
+14.2%
Avg. growth/yr (31Y)
+21.2%
Revenue +8.8%/yr
FY21 ¥30.4B
FY22 ¥37.3B
FY23 ¥33.5B
FY24 ¥33.0B
FY25 ¥42.6B
Net income −18.6%/yr
FY21 ¥5.1B
FY22 ¥6.0B
FY23 ¥2.4B
FY24 ¥1.0B
FY25 ¥2.3B

600111 screens 75% overvalued. Compare with BHP Group →

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Cite: Fair Value Calculator (2026). "China Northern Rare Earth (Group) High-Tech Co Fair Value". https://www.fairvalue-calculator.com/stock/600111

Peer Group

Other Industrial Metals & Mining · 477 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 56 · Top 25%
Fair Value upside −75% · Bottom 25%
Return on equity (TTM) 11% · Top 25%
Return on assets 5% · Top 25%
Net margin (TTM) 6% · Top 25%
Operating margin (TTM) 11% · Above median
Revenue growth 28% · Above median
Dividend yield (TTM) 0.3% · Below median
Debt / equity 0.16× · Higher than median

Valuation Multiples vs Other Industrial Metals & Mining median · lower = cheaper

P/E (TTM) 52.1× · Pricier than 75% of peers
P/B 5.80× · Pricier than 75% of peers
P/S (TTM) 3.17× · Pricier than median
EV/EBITDA 28.5× · 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 100 · sector 23
PAST 44 · sector 0
HEALTH 92 · sector 96
DIVIDEND 7 · sector 23

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 Other Industrial Metals & Mining stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
BHP Group BHPN 1,425 MXN 942.42 MXN -34%
Rio Tinto Group RIO A$164.89 A$81.76 -50%
Grupo México, S.A. GMEXICOB 199.23 MXN 187.72 MXN -6%
Vale S.A VALE $14.19 $9.14 -36%
Saudi Arabian Mining Company 1211 58.05 SAR 33.87 SAR -42%
CMOC Group 603993 ¥18.20 ¥16.15 -11%
Fortescue Ltd FMG A$18.47 A$18.62 +1%
China Tungsten And Hightech Materials Co 000657 ¥74.71 ¥9.55 -87%
Hindustan Zinc Limited HINDZINC ₹521.95 ₹576.80 +11%
Korea Zinc Company 010130 1,043,000 KRW 646,063 KRW -38%

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Frequently asked questions

Is China Northern Rare Earth (Group) High-Tech Co (600111) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of ¥10.59 versus a price of ¥41.91, about −75% (overvalued).
What is the fair value of 600111?
Our model-based fair value for China Northern Rare Earth (Group) High-Tech Co is ¥10.59 (as of Jul 16, 2026), built from audited fundamentals. The current price is ¥41.91.
What is the quality score of 600111?
China Northern Rare Earth (Group) High-Tech Co has a Quality Score of 56/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of China Northern Rare Earth (Group) High-Tech Co (600111)?
China Northern Rare Earth (Group) High-Tech Co reported trailing-twelve-month revenue of about 45.1B CNY (latest available figure, as of Jul 16, 2026).
What is the net profit margin of 600111?
The net profit margin of China Northern Rare Earth (Group) High-Tech Co is about 6.1%, meaning it keeps roughly 6.1% of revenue as net income. Based on the latest reported figures.
Does China Northern Rare Earth (Group) High-Tech Co pay a dividend?
China Northern Rare Earth (Group) High-Tech Co currently shows a dividend yield of about 0.33% relative to its recent price (as of Jul 16, 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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