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Lingyuan Iron & Steel Co (600231) Fair Value & Analysis

Basic Materials · CN · Market cap 4.9B CNY

LI Lingyuan Iron & Steel Co 600231 · SHG
Price¥1.68
Fair Value¥1.16
Upside-31.0%
Quality37/100
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Weak Growth
Loss-making · -11.5% net margin
Moderate debt · negative free cash flow
Trails peers (2/10)
Narrow moat 9/100
Evidence: Low Range ¥0.6600 – ¥1.76 Share as image

Fair value as of: Aug 7, 2026

From 3 valuation models · updated 3 days ago

Fair value updated Aug 7, 2026, revised from ¥0.6800 to ¥1.16 (+70.6%) since Jul 24, 2026. Share price +7.0% over the past month.

Below-average quality, and screening another 31% overvalued on our models.

What matters now

  • Weak quality (37/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The model range is unusually wide (¥0.6600 to ¥1.76). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
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Price vs Fair Value (5 years)

¥3.87 ¥1.23 Fair Value ¥1.16 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 7, 2026.

How to read this chart

60‑month range ¥1.23 – ¥3.87 · fair‑value band ¥0.6600 – ¥1.76 · the ¥1.68 price screens above the ¥1.16 fair value. Dashed = 300-day average. As of Aug 7, 2026.

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Analysis

Lingyuan Iron & Steel Co (600231) currently trades at ¥1.68, while our model-based Fair Value estimate is ¥1.16, implying the stock looks roughly 31.0% overvalued today. The Quality Score stands at 37/100 (below-average 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: low).

Over the trailing twelve months, Lingyuan Iron & Steel Co generated revenue of 15.5B CNY at a net margin of -11.5%. Revenue declined 3.5% year over year. It earns a return on equity of -39.9%. Net debt stands at 1.6B CNY. Fundamentals as of Aug 7, 2026

Our scenario range runs from ¥0.6600 (bear case) to ¥1.76 (bull case); at ¥1.68, 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 37% below its 52-week high, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -7% fair-value upside, at -31%, 600231 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
Gordon GGM ¥0.3300 ¥0.5800 ¥0.8900 70
DDM Multi-Stage ¥0.3300 ¥0.4900 ¥0.6600 61
NCAV (Graham) ¥0.7000 ¥0.9400 ¥1.40 50
All 3 models by family
Dividend Discount
Gordon GGM ¥0.3300 ¥0.5800 ¥0.8900 70
DDM Multi-Stage ¥0.3300 ¥0.4900 ¥0.6600 61
Asset-Based
NCAV (Graham) ¥0.7000 ¥0.9400 ¥1.40 50

Widest divergence: Asset-Based (¥0.9400) versus Dividend Discount (¥0.4900). Highest evidence: Gordon GGM (70).

Key figures & financial health

Revenue (TTM) 15.5B CNY
Revenue growth (YoY) -3.5%
Net margin -11.5%
Return on equity -39.9%
Free cash flow −635M CNY FY2025
Operating margin -11.8%
More key figures
EPS (TTM) ¥-0.6400
EPS growth (YoY) -50.0%
Net debt 1.6B CNY FY2025

Figures from reported company fundamentals · as of Aug 7, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 37/100

Of which business quality 35 · Market factors (momentum, volatility) 26

Profitability 15
Margins and returns on capital today
Quality Growth 22
Are margins and returns improving?
Cashflow 5
Earnings quality: real cash, not paper profit
Fin. Strength 30
Balance sheet, leverage, solvency risk
Investment 98
Disciplined investing over empire-building
Low Volatility 66
Calm price path (market factor)
Momentum 9
Price trend over the last 3–12 months (market factor)
52W Momentum 12
Distance to the 52-week high (market factor)
Net Issuance 79
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

Lingyuan Iron & Steel Co., Ltd. engages in the production, operation, and development of metallurgical products; and mining, washing, and deep processing of ferrous metal ores in China. The company offers hot-rolled round steel, rebars, medium and wide bands, wire rods, welded steel pipes, ferrous metal ore mining, etc.

Full company description

Lingyuan Iron & Steel Co., Ltd. engages in the production, operation, and development of metallurgical products; and mining, washing, and deep processing of ferrous metal ores in China. The company offers hot-rolled round steel, rebars, medium and wide bands, wire rods, welded steel pipes, ferrous metal ore mining, etc. The company was founded in 1994 and is based in Lingyuan, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Lingyuan Iron & Steel Co reported revenue of ¥15.7B in FY2025 versus ¥26.2B in FY2021, a compound −12.0%/yr. Reported net income was −¥1.6B in FY2025.

Growth Quality 0/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
15.7B CNY
Latest YoY
−13.5%
Avg. growth/yr (3Y)
−10.1%
Avg. growth/yr (5Y)
−5.1%
Avg. growth/yr (28Y)
+10.5%
Revenue −12.0%/yr
FY21 ¥26.2B
FY22 ¥21.6B
FY23 ¥20.3B
FY24 ¥18.1B
FY25 ¥15.7B
Net income
FY21 ¥919M
FY22 −¥834M
FY23 −¥681M
FY24 −¥1.7B
FY25 −¥1.6B

600231 screens 31% overvalued. Compare with Tata Steel Limited →

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Cite: Fair Value Calculator (2026). "Lingyuan Iron & Steel Co Fair Value". https://www.fairvalue-calculator.com/stock/600231

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 37 · Bottom 25%
Fair Value upside −31% · Below median
Return on assets -7% · Bottom 25%
Net margin (TTM) -12% · Bottom 25%
Operating margin (TTM) -12% · Bottom 25%
Revenue growth -4% · Below median
Debt / equity 0.57× · Higher than 75% of peers

Valuation Multiples vs Steel median · lower = cheaper

P/B 0.18× · Cheaper than 75% of peers
P/S (TTM) 0.05× · Cheaper 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 20
FUTURE 0 · sector 4
PAST 0 · sector 15
HEALTH 72 · sector 95
DIVIDEND 0 · sector 41

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 Steel stocks, each showing price versus our Fair Value estimate (as of Aug 7, 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 Lingyuan Iron & Steel Co (600231) overvalued or undervalued?
As of Aug 7, 2026, our model estimates a fair value of ¥1.16 versus a price of ¥1.68, about −31% (overvalued).
What is the fair value of 600231?
Our model-based fair value for Lingyuan Iron & Steel Co is ¥1.16 (as of Aug 7, 2026), built from audited fundamentals. The current price is ¥1.68.
What is the quality score of 600231?
Lingyuan Iron & Steel Co has a Quality Score of 37/100. 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 Lingyuan Iron & Steel Co (600231)?
Lingyuan Iron & Steel Co reported trailing-twelve-month revenue of about 15.5B CNY (latest available figure, as of Aug 7, 2026).
What is the net profit margin of 600231?
The net profit margin of Lingyuan Iron & Steel Co is about -11.5%, 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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