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Shanghai Construction Group Co Ltd (600170) Fair Value & Analysis

Industrials · CN · Market cap 20.9B CNY

SC Shanghai Construction Group Co Ltd 600170 · SHG
Price¥2.25
Fair Value¥4.03
Upside+79.1%
Quality47/100
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Strengths

Trades 44% below our fair value of ¥4.03
Moderate debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +7.9 %/yr)
!Thin margins · 0.7% net margin
!Trails peers (5/13)
!Narrow moat 21/100
Mixed Growth (revenue 5y +7.9 %/yr)
Thin margins · 0.7% net margin
Moderate debt · generates free cash flow
1.47% dividend yield
Trails peers (5/13)
Narrow moat 21/100
Evidence: High Range ¥2.19 – ¥4.03 Share as image

Fair value as of: Aug 15, 2026

From 26 valuation models · updated 10 days ago

Share price −2.2% over the past month.

Below-average quality, trading 44% 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

  • Solid quality (47/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (¥2.19 to ¥4.03) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥3.92 ¥1.89 Fair Value ¥4.03 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 15, 2026.

How to read this chart

60‑month range ¥1.89 – ¥3.92 · fair‑value band ¥2.19 – ¥4.03 · the ¥2.25 price screens below the ¥4.03 fair value. Dashed = 300-day average. As of Aug 15, 2026.

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Analysis

Shanghai Construction Group Co Ltd (600170) currently trades at ¥2.25, while our model-based Fair Value estimate is ¥4.03, implying the stock looks roughly 79.1% undervalued today. The Quality Score stands at 47/100 (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: high), always confirm before acting.

Over the trailing twelve months, Shanghai Construction Group Co Ltd generated revenue of 215B CNY at a net margin of 0.7%. Revenue grew 21.8% year over year. It earns a return on equity of 2.1%. The balance sheet holds a net cash position of 39.6B CNY. Fundamentals as of Aug 15, 2026

Our scenario range runs from ¥2.19 (bear case) to ¥4.03 (bull case); at ¥2.25, 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 42% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -46% fair-value upside, at 79%, 600170 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
Growth DCF ¥11.80 ¥16.74 ¥25.03 80
Residual Income ¥4.08 ¥3.98 ¥3.29 76
Rev-Margin DCF ¥10.83 ¥14.89 ¥20.09 74
All 26 models by family
DCF Models
FCF DCF ¥11.84 ¥17.16 ¥26.31 38
Owner Earnings ¥9.51 ¥13.02 ¥19.04 31
5Y Revenue Exit ¥10.83 ¥14.97 ¥20.54 39
5Y EBITDA Exit ¥13.35 ¥20.12 ¥28.59 41
5Y P/E Exit ¥8.59 ¥10.41 ¥12.38 38
10Y Revenue Exit ¥10.93 ¥14.97 ¥21.03 36
10Y EBITDA Exit ¥12.78 ¥18.72 ¥27.70 37
10Y P/E Exit ¥9.63 ¥11.64 ¥14.26 35
Earnings-Based
Graham-Dodd ¥0.9500 ¥4.24 ¥5.81 54
Lynch FV ¥1.10 ¥1.58 ¥2.05 50
PEG = 1.0 ¥1.10 ¥1.58 ¥2.05 46
EPV ¥9.62 ¥10.39 ¥11.06 59
Dividend Discount
Gordon GGM ¥3.93 ¥8.18 ¥12.98 70
DDM Multi-Stage ¥3.93 ¥6.90 ¥8.59 61
Multiples
P/E Multiple ¥2.19 ¥2.92 ¥3.65 63
P/S Multiple ¥1.78 ¥2.37 ¥2.96 58
P/B Multiple ¥1.78 ¥2.37 ¥2.96 55
EV/EBIT ¥12.60 ¥15.12 ¥17.65 53
EV/EBITDA ¥14.87 ¥18.16 ¥21.44 54
EV/Revenue ¥10.43 ¥12.75 ¥15.06 43
Asset-Based
NCAV (Graham) ¥2.84 ¥3.81 ¥5.68 50
Growth DCF
Growth DCF ¥11.80 ¥16.74 ¥25.03 80
Rev-Margin DCF ¥10.83 ¥14.89 ¥20.09 74
Economic Profit
Residual Income ¥4.08 ¥3.98 ¥3.29 76
ROIC Compounder ¥9.92 ¥11.09 ¥12.38 72
Growth Earnings
Growth-Adj P/E ¥1.80 ¥2.57 ¥3.34 68

Widest divergence: DCF Models (¥14.97) versus Earnings-Based (¥1.58). Highest evidence: Growth DCF (80).

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Key figures & financial health

P/E ratio 22.5
P/S ratio 0.10 TTM
Dividend yield 1.5% payout 33.3%
Net margin 0.7% TTM
Return on equity 2.1% TTM
Return on assets 0.5% TTM
More key figures
Profitability
Operating margin 2.0% TTM
EPS (TTM) ¥0.1000
Growth
Revenue (TTM) 215B CNY TTM
Revenue growth (YoY) +21.8% 3y avg -10.4%
EPS growth (YoY) -95.9%
Balance sheet & cash flow
Free cash flow 4.8B CNY FY2025
Net cash 39.6B CNY FY2024

Figures from reported company fundamentals · as of Aug 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 46 · Market factors (momentum, volatility) 36

Profitability 21
Margins and returns on capital today
Quality Growth 34
Are margins and returns improving?
Cashflow 53
Earnings quality: real cash, not paper profit
Fin. Strength 29
Balance sheet, leverage, solvency risk
Investment 87
Disciplined investing over empire-building
Low Volatility 72
Calm price path (market factor)
Momentum 24
Price trend over the last 3–12 months (market factor)
52W Momentum 16
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.

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

Shanghai Construction Group Co., Ltd. operates as a construction company in China and internationally. It is involved in the contracting, design, infrastructure projects, specialized engineering projects, architectural decoration, and construction and surveying design services; and real estate development, sales, leasing, and property management, as well as …

Full company description

Shanghai Construction Group Co., Ltd. operates as a construction company in China and internationally. It is involved in the contracting, design, infrastructure projects, specialized engineering projects, architectural decoration, and construction and surveying design services; and real estate development, sales, leasing, and property management, as well as engages in the production and sales of concrete and precast components, steel structures, and other products. The company also engages in urban infrastructure investment and construction; sale of complete equipment and other goods; gold mining; and engineering project management consulting, labor dispatch and other related services. In addition, it is involved in building construction, building materials industry, urban construction investment, urban renewal, ecological and environmental services, water resources and water affairs, industrialized construction, stone mining, and photovoltaic power station business. Shanghai Construction Group Co., Ltd. was founded in 1998 and is based in Shanghai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shanghai Construction Group Co Ltd reported revenue of ¥206B in FY2025 versus ¥281B in FY2021, a compound −7.5%/yr. Reported net income was ¥1.2B in FY2025, compounding −24.3%/yr from FY2021.

Growth Quality 71/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
206B CNY
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.
+2.2%
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.
+7.9%
Avg. revenue growth/yr (29Y) 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.
+14.0%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−18.5% (-20.0 + 1.5)
Revenue −7.5%/yr
FY21 ¥281B
FY22 ¥286B
FY23 ¥305B
FY24 ¥300B
FY25 ¥206B
Net income −24.3%/yr
FY21 ¥3.8B
FY22 ¥1.4B
FY23 ¥1.6B
FY24 ¥2.2B
FY25 ¥1.2B
Character of growth · EPS growth decomposed (2013-2024) −1.7 % p.a.
Revenue per share +9.8 pp

of which total revenue +11.2 pp · buybacks/dilution −1.4 pp

EBIT margin −6.6 pp
Tax rate −1.9 pp
Residual (interest, one-offs) −2.9 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). "Shanghai Construction Group Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/600170

Peer Group

Engineering & Construction · 841 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 47 · Below median
Fair Value upside +79% · Top 25%
Return on equity (TTM) 2% · Below median
Return on assets 1% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 2% · Below median
Revenue growth 22% · Above median
Dividend yield (TTM) 1.6% · Below median
Debt / equity 1.14× · Higher than 75% of peers

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 22.5× · Pricier than median
P/B 0.41× · Cheaper than 75% of peers
P/S (TTM) 0.10× · Cheaper than 75% of peers
P/FCF 0.7× · 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 16
FUTURE100 · sector 14
PAST8 · sector 26
HEALTH43 · sector 94
DIVIDEND31 · sector 38

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

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 15, 2026).

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Larsen & Toubro Limited LT ₹4,072 ₹2,196 -46%
Ferrovial N.V FER €57.28 €19.17 -67%
HOCHTIEF Aktiengesellschaft HOT €427.60 €203.87 -52%
Samsung C&T Corporation 028260 357,500 KRW 261,411 KRW -27%
ACS, Actividades de Construcción y Servicios, S.A ACS €110.70 €75.04 -32%
EMCOR Group EME $833.40 $549.47 -34%
MasTec, Inc MTZ $281.11 $100.00 -64%

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Frequently asked questions

Is Shanghai Construction Group Co Ltd (600170) overvalued or undervalued?
As of Aug 15, 2026, our model estimates a fair value of ¥4.03 versus a price of ¥2.25, about +79% (undervalued).
What is the fair value of 600170?
Our model-based fair value for Shanghai Construction Group Co Ltd is ¥4.03 (as of Aug 15, 2026), built from audited fundamentals. The current price: ¥2.25.
What is the quality score of 600170?
Shanghai Construction Group Co Ltd has a Quality Score of 47/100. 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 Construction Group Co Ltd (600170)?
Shanghai Construction Group Co Ltd reported trailing-twelve-month revenue of about 215B CNY (latest available figure, as of Aug 15, 2026).
What is the net profit margin of 600170?
The net profit margin of Shanghai Construction Group Co Ltd is about 0.7%, meaning it keeps roughly 0.7% of revenue as net income. Based on the latest reported figures.
Does Shanghai Construction Group Co Ltd pay a dividend?
Shanghai Construction Group Co Ltd currently shows a dividend yield of about 1.48% relative to its recent price (as of Aug 15, 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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