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Shanghai Zhenhua Heavy Industries Co (600320) Fair Value & Analysis

Industrials · CN · Market cap 21.9B CNY

SZ Shanghai Zhenhua Heavy Industries Co 600320 · SHG
Price¥4.17
Fair Value¥2.92
Upside-30.0%
Quality56/100
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Healthy Growth
Thin margins · 2.4% net margin
Moderate debt · generates free cash flow
1.79% dividend yield
Mixed vs. peers (8/15)
Narrow moat 30/100
Evidence: High Range ¥2.19 – ¥3.65 Share as image

Fair value as of: Aug 8, 2026

From 24 valuation models · updated 2 days ago

Fair value updated Aug 8, 2026, revised from ¥2.80 to ¥2.92 (+4.3%) since Jul 5, 2026. Share price +3.2% over the past month.

A solid business, but screening 30% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥3.65). 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)

¥5.61 ¥2.93 Fair Value ¥2.92 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 8, 2026.

How to read this chart

60‑month range ¥2.93 – ¥5.61 · fair‑value band ¥2.19 – ¥3.65 · the ¥4.17 price screens above the ¥2.92 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 8, 2026.

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Analysis

Shanghai Zhenhua Heavy Industries Co (600320) currently trades at ¥4.17, while our model-based Fair Value estimate is ¥2.92, implying the stock looks roughly 30.0% overvalued today. The Quality Score stands at 56/100 (solid quality), in the Industrials 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: high).

Over the trailing twelve months, Shanghai Zhenhua Heavy Industries Co generated revenue of 36.3B CNY at a net margin of 2.4%. Revenue grew 0.9% year over year. It earns a return on equity of 5.8%. Net debt stands at 12.2B CNY. Fundamentals as of Aug 8, 2026

Our scenario range runs from ¥2.19 (bear case) to ¥3.65 (bull case); at ¥4.17, 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 26% below its 52-week high and 1% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -30%, 600320 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 ¥10.54 ¥18.73 ¥32.12 80
Residual Income ¥2.32 ¥2.33 ¥2.16 76
Rev-Margin DCF ¥4.87 ¥8.05 ¥12.04 74
All 24 models by family
DCF Models
FCF DCF ¥10.52 ¥19.12 ¥33.39 38
Owner Earnings ¥1.44 ¥3.60 ¥7.19 31
5Y Revenue Exit ¥4.87 ¥7.96 ¥11.84 39
5Y EBITDA Exit ¥6.70 ¥11.60 ¥17.44 41
5Y P/E Exit ¥3.73 ¥5.70 ¥7.72 38
10Y Revenue Exit ¥6.60 ¥10.06 ¥14.77 36
10Y EBITDA Exit ¥7.92 ¥12.68 ¥19.30 37
10Y P/E Exit ¥5.98 ¥8.44 ¥11.44 35
Earnings-Based
Graham-Dodd ¥0.9400 ¥3.84 ¥5.22 54
Lynch FV ¥0.9600 ¥1.37 ¥1.78 50
PEG = 1.0 ¥0.9600 ¥1.37 ¥1.78 46
EPV ¥1.96 ¥2.55 ¥3.07 59
Multiples
P/E Multiple ¥2.19 ¥2.92 ¥3.65 63
P/S Multiple ¥1.77 ¥2.36 ¥2.95 58
P/B Multiple ¥1.77 ¥2.36 ¥2.95 55
EV/EBIT ¥3.70 ¥5.46 ¥7.23 53
EV/EBITDA ¥5.45 ¥7.81 ¥10.16 54
EV/Revenue ¥2.18 ¥3.80 ¥5.42 43
Asset-Based
NCAV (Graham) ¥1.54 ¥2.06 ¥3.07 50
Growth DCF
Growth DCF ¥10.54 ¥18.73 ¥32.12 80
Rev-Margin DCF ¥4.87 ¥8.05 ¥12.04 74
Economic Profit
Residual Income ¥2.32 ¥2.33 ¥2.16 76
ROIC Compounder ¥1.96 ¥2.55 ¥3.07 72
Growth Earnings
Growth-Adj P/E ¥1.67 ¥2.38 ¥3.10 68

Widest divergence: DCF Models (¥8.44) versus Earnings-Based (¥1.37). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 36.3B CNY
Revenue growth (YoY) +0.9%
Net margin 2.4%
Return on equity 5.8%
Free cash flow 5.2B CNY FY2025
P/E ratio 27.5
More key figures
Operating margin 7.2%
EPS (TTM) ¥0.1600
Dividend yield 1.7%
EPS growth (YoY) +47.9%
Net debt 12.2B CNY FY2025

Figures from reported company fundamentals · as of Aug 8, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 54 · Market factors (momentum, volatility) 36

Profitability 21
Margins and returns on capital today
Quality Growth 52
Are margins and returns improving?
Cashflow 77
Earnings quality: real cash, not paper profit
Fin. Strength 20
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 16
Price trend over the last 3–12 months (market factor)
52W Momentum 18
Distance to the 52-week high (market factor)
Net Issuance 88
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

Shanghai Zhenhua Heavy Industries Co., Ltd., together with its subsidiaries, engages in the manufacture and sale of heavy-duty equipment in Chinese Mainland, rest of Asia, Africa, North America, Europe, South America, Oceania, and internationally.

Full company description

Shanghai Zhenhua Heavy Industries Co., Ltd., together with its subsidiaries, engages in the manufacture and sale of heavy-duty equipment in Chinese Mainland, rest of Asia, Africa, North America, Europe, South America, Oceania, and internationally. The company offers port machinery, including STS crane, RMG/RTG crane, bulk-cargo machinery, port mobile handling machinery, and automated terminal; offshore engineering equipment, such as heavy lift vessel, dredger vessel, wind power equipment, pipe-laying vessel, special purpose engineering, and jack-up rig; and steel structure comprising bridge, wind power equipment, and building construction steel structure. It also is involved in the provision of installation of heavy port equipment, engineering vessels, and heavy metal structure and its parts; manufacturing and installation of gearbox, container yard crane, super heavy duty bridge steel structure, and heavy marine machinery equipment; leasing of cranes; and contracting of steel structures. In addition, the company sells port loading and unloading machine, bulk cargo and container machine, port engineering vessels, and material handling mechanical products and parts; provides sales and technical services, installation and maintenance, and technical consultation services; marine transport and finance lease business; construction of port, waterway, highway, and bridge; and fabrication and installation of steel structure. Shanghai Zhenhua Heavy Industries Co., Ltd. was founded in 1885 and is headquartered in Shanghai, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shanghai Zhenhua Heavy Industries Co reported revenue of ¥36.3B in FY2025 versus ¥26.0B in FY2021, a compound +8.7%/yr. Reported net income was ¥732M in FY2025, compounding +13.6%/yr from FY2021.

Growth Quality 81/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
36.3B CNY
Latest YoY
+5.2%
Avg. growth/yr (3Y)
+6.3%
Avg. growth/yr (5Y)
+9.9%
Avg. growth/yr (31Y)
+17.1%
Revenue +8.7%/yr
FY21 ¥26.0B
FY22 ¥30.2B
FY23 ¥32.9B
FY24 ¥34.5B
FY25 ¥36.3B
Net income +13.6%/yr
FY21 ¥440M
FY22 ¥372M
FY23 ¥520M
FY24 ¥534M
FY25 ¥732M

600320 screens 30% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Shanghai Zhenhua Heavy Industries Co Fair Value". https://www.fairvalue-calculator.com/stock/600320

Peer Group

Specialty Industrial Machinery · 809 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 · Above median
Fair Value upside −30% · Above median
Return on equity (TTM) 6% · Below median
Return on assets 1% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 7% · Below median
Revenue growth 1% · Below median
Dividend yield (TTM) 1.8% · Above median
Debt / equity 0.81× · Higher than 75% of peers

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 26.1× · Cheaper than median
P/B 1.36× · Cheaper than median
P/S (TTM) 0.60× · Cheaper than 75% of peers
P/FCF 0.6× · Cheaper than 75% of peers
EV/EBITDA 10.1× · Cheaper than median
PEG 12.15× · 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 5 · sector 23
PAST 23 · sector 28
HEALTH 60 · sector 96
DIVIDEND 36 · sector 24

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 Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 8, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €887.60 €186.93 -79%
1SIE 1SIE €273.20 €91.93 -66%
SMNS SMNS C$31.76 C$22.68 -29%
Eaton Corporation ETN $407.28 $171.92 -58%
Atlas Copco AB ATCOA kr 195.15 kr 112.59 -42%
Sandvik AB SAND kr 384.10 kr 193.01 -50%
Doosan Enerbility Co 034020 76,400 KRW 7,938 KRW -90%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%

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Frequently asked questions

Is Shanghai Zhenhua Heavy Industries Co (600320) overvalued or undervalued?
As of Aug 8, 2026, our model estimates a fair value of ¥2.92 versus a price of ¥4.17, about −30% (overvalued).
What is the fair value of 600320?
Our model-based fair value for Shanghai Zhenhua Heavy Industries Co is ¥2.92 (as of Aug 8, 2026), built from audited fundamentals. The current price is ¥4.17.
What is the quality score of 600320?
Shanghai Zhenhua Heavy Industries Co has a Quality Score of 56/100. 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 Zhenhua Heavy Industries Co (600320)?
Shanghai Zhenhua Heavy Industries Co reported trailing-twelve-month revenue of about 36.3B CNY (latest available figure, as of Aug 8, 2026).
What is the net profit margin of 600320?
The net profit margin of Shanghai Zhenhua Heavy Industries Co is about 2.4%, meaning it keeps roughly 2.4% of revenue as net income. Based on the latest reported figures.
Does Shanghai Zhenhua Heavy Industries Co pay a dividend?
Shanghai Zhenhua Heavy Industries Co currently shows a dividend yield of about 1.74% relative to its recent price (as of Aug 8, 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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