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China Petroleum Engineering Corporation (600339) Fair Value & Analysis

Energy · CN · Market cap 18.6B CNY

CP China Petroleum Engineering Corporation 600339 · SHG
Price¥3.34
Fair Value¥4.35
Upside+30.3%
Quality58/100
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Healthy Growth
Thin margins · 0.4% net margin
Low debt · generates free cash flow
0.77% dividend yield
Trails peers (5/13)
Narrow moat 24/100
Evidence: High Range ¥2.63 – ¥4.35 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 ¥3.03 to ¥4.35 (+43.6%) since Jul 24, 2026. Share price +7.4% over the past month.

A solid business, screening 30% undervalued on our models.

What matters now

  • Solid quality (58/100) at a price below fair value, the discount is the argument here, not the business quality.
  • Our model range runs from ¥2.63 (bear) to ¥4.35 (bull), base ¥4.35. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 58/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥5.24 ¥2.60 Fair Value ¥4.35 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 ¥2.60 – ¥5.24 · fair‑value band ¥2.63 – ¥4.35 · the ¥3.34 price screens below the ¥4.35 fair value. Dashed = 300-day average. As of Aug 8, 2026.

Full chart & analysis →

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Analysis

China Petroleum Engineering Corporation (600339) currently trades at ¥3.34, while our model-based Fair Value estimate is ¥4.35, implying the stock looks roughly 30.3% undervalued today. The Quality Score stands at 58/100 (solid 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: high), always confirm before acting.

Over the trailing twelve months, China Petroleum Engineering Corporation generated revenue of 99.4B CNY at a net margin of 0.4%. Revenue declined 1.5% year over year. It earns a return on equity of 1.4%. The balance sheet holds a net cash position of 21.4B CNY. Fundamentals as of Aug 8, 2026

Our scenario range runs from ¥2.63 (bear case) to ¥4.35 (bull case); at ¥3.34, 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 40% below its 52-week high and 5% above its 52-week low, currently below its 200-day average. For context, the median of 10 Energy peers we cover trades at -36% fair-value upside, at 30%, 600339 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 ¥21.23 ¥37.00 ¥62.86 80
Residual Income ¥3.30 ¥3.08 ¥2.31 76
Rev-Margin DCF ¥12.68 ¥16.65 ¥25.10 74
All 24 models by family
DCF Models
FCF DCF ¥22.24 ¥32.01 ¥63.11 38
Owner Earnings ¥7.88 ¥11.28 ¥18.43 31
5Y Revenue Exit ¥12.08 ¥15.18 ¥21.50 39
5Y EBITDA Exit ¥11.50 ¥13.99 ¥18.79 41
5Y P/E Exit ¥10.37 ¥12.88 ¥15.63 38
10Y Revenue Exit ¥15.02 ¥22.28 ¥25.50 36
10Y EBITDA Exit ¥14.72 ¥21.02 ¥30.27 37
10Y P/E Exit ¥13.90 ¥18.60 ¥24.79 35
Earnings-Based
Graham-Dodd ¥0.4300 ¥3.03 ¥4.25 54
Lynch FV ¥1.56 ¥2.23 ¥2.90 50
PEG = 1.0 ¥1.56 ¥2.23 ¥2.90 46
EPV ¥6.80 ¥7.06 ¥7.29 59
Multiples
P/E Multiple ¥0.6700 ¥0.8900 ¥1.12 63
P/S Multiple ¥0.8100 ¥1.08 ¥1.36 58
P/B Multiple ¥0.8100 ¥1.08 ¥1.36 55
EV/EBIT ¥7.46 ¥8.22 ¥8.97 53
EV/EBITDA ¥7.36 ¥8.08 ¥8.80 54
EV/Revenue ¥7.94 ¥9.12 ¥10.29 43
Asset-Based
NCAV (Graham) ¥2.39 ¥3.21 ¥4.79 50
Growth DCF
Growth DCF ¥21.23 ¥37.00 ¥62.86 80
Rev-Margin DCF ¥12.68 ¥16.65 ¥25.10 74
Economic Profit
Residual Income ¥3.30 ¥3.08 ¥2.31 76
ROIC Compounder ¥6.80 ¥7.06 ¥7.29 72
Growth Earnings
Growth-Adj P/E ¥1.83 ¥2.62 ¥3.40 68

Widest divergence: Growth DCF (¥16.65) versus Multiples (¥1.08). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 99.4B CNY
Revenue growth (YoY) -1.5%
Net margin 0.4%
Return on equity 1.4%
Free cash flow 5.6B CNY FY2025
P/E ratio 47.3
More key figures
Operating margin 3.3%
EPS (TTM) ¥0.0700
Dividend yield 0.8%
EPS growth (YoY) +8.3%
Net cash 21.4B CNY FY2024

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

Quality Score breakdown

Overall quality 58/100

Of which business quality 58 · Market factors (momentum, volatility) 36

Profitability 24
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 66
Earnings quality: real cash, not paper profit
Fin. Strength 52
Balance sheet, leverage, solvency risk
Investment 90
Disciplined investing over empire-building
Low Volatility 71
Calm price path (market factor)
Momentum 23
Price trend over the last 3–12 months (market factor)
52W Momentum 20
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 Petroleum Engineering Corporation provides energy and chemical engineering services. The company is involved in onshore and offshore oil and gas engineering design consulting, engineering contracting, construction and manufacturing, and operation and maintenance.

Full company description

China Petroleum Engineering Corporation provides energy and chemical engineering services. The company is involved in onshore and offshore oil and gas engineering design consulting, engineering contracting, construction and manufacturing, and operation and maintenance. It also engages in onshore and offshore oil and gas pipeline projects, chemical petroleum storage facilities, LNG receiving terminals and other engineering construction, marine pipeline survey and measurement, design and construction, and transportation of hydrogen and CO2. In addition, the company develops engineering businesses such as refining and chemical engineering, coal chemical engineering, textile and chemical fiber and synthetic materials; and industrial wastewater treatment and reuse, industrial tail gas treatment, VOCs control and management, oilfield sludge treatment, hazardous waste resource utilization, reduction and harmless treatment, as well as water and soil remediation services. Further, it offers engineering consulting; project management; equipment manufacturing, design and construction, and safety and environmental supervision; and project completion acceptance services. China Petroleum Engineering Corporation was formerly known as Xinjiang Dushanzi Tianli High and New Tech Co., Ltd. and changed its name to China Petroleum Engineering Corporation in February 2017. China Petroleum Engineering Corporation was founded in 1999 and is based in Beijing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Petroleum Engineering Corporation reported revenue of ¥99.7B in FY2025 versus ¥79.8B in FY2021, a compound +5.7%/yr. Reported net income was ¥356M in FY2025, compounding −6.2%/yr from FY2021.

Growth Quality 69/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
99.7B CNY
Latest YoY
+16.0%
Avg. growth/yr (3Y)
+6.0%
Avg. growth/yr (5Y)
+7.1%
Avg. growth/yr (28Y)
+24.1%
Revenue +5.7%/yr
FY21 ¥79.8B
FY22 ¥83.6B
FY23 ¥80.3B
FY24 ¥85.9B
FY25 ¥99.7B
Net income −6.2%/yr
FY21 ¥459M
FY22 ¥724M
FY23 ¥746M
FY24 ¥635M
FY25 ¥356M

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Cite: Fair Value Calculator (2026). "China Petroleum Engineering Corporation Fair Value". https://www.fairvalue-calculator.com/stock/600339

Peer Group

Oil & Gas Equipment & Services · 191 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 58 · Above median
Fair Value upside +30% · Top 25%
Return on equity (TTM) 1% · Below median
Return on assets 1% · Below median
Net margin (TTM) 0% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth -2% · Below median
Dividend yield (TTM) 0.8% · Below median
Debt / equity 0.35× · Higher than median

Valuation Multiples vs Oil & Gas Equipment & Services median · lower = cheaper

P/E (TTM) 47.7× · Pricier than 75% of peers
P/B 0.70× · Cheaper than median
P/S (TTM) 0.19× · Cheaper than 75% of peers
P/FCF 0.5× · 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 74 · sector 0
FUTURE 0 · sector 0
PAST 6 · sector 28
HEALTH 82 · sector 92
DIVIDEND 15 · sector 31

Values & ESG

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

Oil & gas

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Oil & Gas Equipment & Services stocks, each showing price versus our Fair Value estimate (as of Aug 8, 2026).

Stock Price Fair Value vs Fair Value
SLB N.V SLBN 836.00 MXN 533.97 MXN -36%
Baker Hughes Company BKR $55.95 $33.55 -40%
TechnipFMC plc FTI $74.57 $27.57 -63%
Halliburton Company HAL $35.22 $21.50 -39%
Tenaris S.A TS $57.16 $45.68 -20%
Yantai Jereh Oilfield Services Group 002353 ¥138.79 ¥34.17 -75%
Saipem SpA SPM €4.20 €2.72 -35%
Subsea 7 S.A SUBC kr 319.00 kr 227.98 -29%
China Oilfield Services Limited 601808 ¥12.08 ¥12.64 +5%
Gaztransport & Technigaz SA GTT €188.10 €95.01 -49%

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Frequently asked questions

Is China Petroleum Engineering Corporation (600339) overvalued or undervalued?
As of Aug 8, 2026, our model estimates a fair value of ¥4.35 versus a price of ¥3.34, about +30% (undervalued).
What is the fair value of 600339?
Our model-based fair value for China Petroleum Engineering Corporation is ¥4.35 (as of Aug 8, 2026), built from audited fundamentals. The current price is ¥3.34.
What is the quality score of 600339?
China Petroleum Engineering Corporation has a Quality Score of 58/100. 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 China Petroleum Engineering Corporation (600339)?
China Petroleum Engineering Corporation reported trailing-twelve-month revenue of about 99.4B CNY (latest available figure, as of Aug 8, 2026).
What is the net profit margin of 600339?
The net profit margin of China Petroleum Engineering Corporation is about 0.4%, meaning it keeps roughly 0.4% of revenue as net income. Based on the latest reported figures.
Does China Petroleum Engineering Corporation pay a dividend?
China Petroleum Engineering Corporation currently shows a dividend yield of about 0.80% 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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