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Shanxi Lanhua Sci-Tech Venture Co Ltd (600123) Fair Value & Analysis

Energy · CN · Market cap 10.2B CNY

SL Shanxi Lanhua Sci-Tech Venture Co Ltd 600123 · SHG
Price¥7.30
Fair Value¥11.68
Upside+60.0%
Quality28/100
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Strengths

Trades 38% below our fair value of ¥11.68

Risks

!Expensive Growth (revenue 5y +4.2 %/yr)
!Loss-making · -7.2% net margin
!Moderate debt · negative free cash flow
!Mixed vs. peers (6/12)
Expensive Growth (revenue 5y +4.2 %/yr)
Loss-making · -7.2% net margin
Moderate debt · negative free cash flow
Mixed vs. peers (6/12)
Narrow moat 10/100
Evidence: Low Range ¥5.45 – ¥11.68 Share as image

Fair value as of: Aug 19, 2026

From 4 valuation models · updated 5 days ago

Fair value updated Aug 19, 2026, revised from ¥7.59 to ¥11.68 (+53.9%) since Aug 13, 2026. Share price +13.9% over the past month.

Below-average quality, trading 38% below our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The large discount to fair value meets weak quality (28/100). That raises the risk this is a value trap rather than a bargain.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • A fairly wide model range (¥5.45 to ¥11.68) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥12.61 ¥3.34 Fair Value ¥11.68 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 19, 2026.

How to read this chart

60‑month range ¥3.34 – ¥12.61 · fair‑value band ¥5.45 – ¥11.68 · the ¥7.30 price screens below the ¥11.68 fair value. Dashed = 300-day average. As of Aug 19, 2026.

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Analysis

Shanxi Lanhua Sci-Tech Venture Co Ltd (600123) currently trades at ¥7.30, while our model-based Fair Value estimate is ¥11.68, implying the stock looks roughly 60.0% undervalued today. The Quality Score stands at 28/100 (below-average quality), in the Energy 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: low), always confirm before acting.

Over the trailing twelve months, Shanxi Lanhua Sci-Tech Venture Co Ltd generated revenue of 8.4B CNY at a net margin of -7.2%. Revenue grew 9.9% year over year. It earns a return on equity of -6.0%. Net debt stands at 7.7B CNY. Fundamentals as of Aug 19, 2026

Our scenario range runs from ¥5.45 (bear case) to ¥11.68 (bull case); at ¥7.30, 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 4% below its 52-week high and 26% above its 52-week low, currently above its 200-day average. For context, the median of 10 Energy peers we cover trades at -21% fair-value upside, at 60%, 600123 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
Gordon GGM ¥3.43 ¥7.14 ¥11.32 70
DDM Multi-Stage ¥3.43 ¥5.63 ¥7.49 61
EV/EBITDA ¥1.04 ¥2.21 54
All 4 models by family
Dividend Discount
Gordon GGM ¥3.43 ¥7.14 ¥11.32 70
DDM Multi-Stage ¥3.43 ¥5.63 ¥7.49 61
Multiples
EV/EBITDA ¥1.04 ¥2.21 54
Asset-Based
NCAV (Graham) ¥5.13 ¥6.88 ¥10.27 50

Widest divergence: Asset-Based (¥6.88) versus Multiples (¥1.04). Highest evidence: Gordon GGM (70).

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Key figures & financial health

P/S ratio 1.22 TTM
Net margin -7.2% TTM
Return on equity -6.0% TTM
Return on assets -1.2% TTM
Operating margin 3.7% TTM
EPS (TTM) ¥-0.4100
More key figures
Growth
Revenue (TTM) 8.4B CNY TTM
Revenue growth (YoY) +9.9% 3y avg -16.8%
EPS growth (YoY) -94.2%
Balance sheet & cash flow
Free cash flow −8.5B CNY FY2025
Net debt 7.7B CNY FY2025

Figures from reported company fundamentals · as of Aug 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 28/100

Of which business quality 29 · Market factors (momentum, volatility) 63

Profitability 7
Margins and returns on capital today
Quality Growth 2
Are margins and returns improving?
Cashflow 4
Earnings quality: real cash, not paper profit
Fin. Strength 40
Balance sheet, leverage, solvency risk
Investment 57
Disciplined investing over empire-building
Low Volatility 78
Calm price path (market factor)
Momentum 52
Price trend over the last 3–12 months (market factor)
52W Momentum 64
Distance to the 52-week high (market factor)
Net Issuance 86
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Shanxi Lanhua Sci-Tech Venture Co.,Ltd produces and sells coal. It also offers coal chemicals, urea, dimethyl ether, ammonium sulfate, and caprolactam. The company was founded in 1998 and is headquartered in Jincheng, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shanxi Lanhua Sci-Tech Venture Co Ltd reported revenue of ¥8.1B in FY2025 versus ¥12.9B in FY2021, a compound −10.9%/yr. Reported net income was −¥540M in FY2025.

Growth Quality 9/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
8.1B CNY
Latest YoY
−30.4%
Avg. revenue 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.
−16.8%
Avg. revenue 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.
+4.2%
Avg. revenue growth/yr (30Y) 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.
+11.0%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Revenue −10.9%/yr
FY21 ¥12.9B
FY22 ¥14.2B
FY23 ¥13.3B
FY24 ¥11.7B
FY25 ¥8.1B
Net income
FY21 ¥2.4B
FY22 ¥3.2B
FY23 ¥2.1B
FY24 ¥718M
FY25 −¥540M
Character of growth · EPS growth decomposed (2013-2024) +21.1 % p.a.
Revenue per share +10.2 pp

of which total revenue +10.2 pp · buybacks/dilution +0.0 pp

EBIT margin +14.5 pp
Tax rate +0.8 pp
Residual (interest, one-offs) −4.4 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).

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Cite: Fair Value Calculator (2026). "Shanxi Lanhua Sci-Tech Venture Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/600123

Peer Group

Thermal Coal · 102 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 28 · Bottom 25%
Fair Value upside +60% · Top 25%
Return on assets -1% · Bottom 25%
Net margin (TTM) -7% · Bottom 25%
Operating margin (TTM) 4% · Below median
Revenue growth 10% · Top 25%
Dividend yield (TTM) 5.3% · Top 25%
Debt / equity 0.64× · Higher than 75% of peers

Valuation Multiples vs Thermal Coal median · lower = cheaper

P/B 0.10× · Cheaper than 75% of peers
P/S (TTM) 0.18× · Cheaper than 75% of peers
EV/EBITDA 6.5× · 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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 18
FUTURE50 · sector 0
PAST0 · sector 21
HEALTH68 · sector 93
DIVIDEND100 · sector 52

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Coal Oil & gas

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Frequently asked questions

Is Shanxi Lanhua Sci-Tech Venture Co Ltd (600123) overvalued or undervalued?
As of Aug 19, 2026, our model estimates a fair value of ¥11.68 versus a price of ¥7.30, about +60% (undervalued).
What is the fair value of 600123?
Our model-based fair value for Shanxi Lanhua Sci-Tech Venture Co Ltd is ¥11.68 (as of Aug 19, 2026), built from audited fundamentals. The current price: ¥7.30.
What is the quality score of 600123?
Shanxi Lanhua Sci-Tech Venture Co Ltd has a Quality Score of 28/100. 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 Shanxi Lanhua Sci-Tech Venture Co Ltd (600123)?
Shanxi Lanhua Sci-Tech Venture Co Ltd reported trailing-twelve-month revenue of about 8.4B CNY (latest available figure, as of Aug 19, 2026).
What is the net profit margin of 600123?
The net profit margin of Shanxi Lanhua Sci-Tech Venture Co Ltd is about -7.2%, 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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