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Fujian Longking Co (600388) Fair Value & Analysis

Industrials · CN · Market cap 22.3B CNY

FL Fujian Longking Co 600388 · SHG
Price¥17.58
Fair Value¥13.25
Upside-24.6%
Quality46/100
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Mixed Growth
Thin margins · 9.5% net margin
Low debt · generates free cash flow
2.14% dividend yield
Ranks above peers (9/14)
Moderate moat 45/100
Evidence: High Range ¥7.32 – ¥17.04 Share as image

Fair value as of: Aug 9, 2026

From 26 valuation models · updated yesterday

Share price +8.8% over the past month.

Below-average quality, and screening another 25% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥17.04). The favourable scenario is already priced in.
  • Solid but not exceptional quality (46/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (¥7.32 to ¥17.04) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥20.75 ¥7.60 Fair Value ¥13.25 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 9, 2026.

How to read this chart

60‑month range ¥7.60 – ¥20.75 · fair‑value band ¥7.32 – ¥17.04 · the ¥17.58 price screens above the ¥13.25 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 9, 2026.

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Analysis

Fujian Longking Co (600388) currently trades at ¥17.58, while our model-based Fair Value estimate is ¥13.25, implying the stock looks roughly 24.6% overvalued today. The Quality Score stands at 46/100 (below-average 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, Fujian Longking Co generated revenue of 12.3B CNY at a net margin of 9.5%. Revenue grew 20.8% year over year. It earns a return on equity of 10.7%. Net debt stands at 2.9B CNY. Fundamentals as of Aug 9, 2026

Our scenario range runs from ¥7.32 (bear case) to ¥17.04 (bull case); at ¥17.58, 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 17% below its 52-week high and 53% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -25%, 600388 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 ¥5.18 ¥9.06 ¥15.65 80
Residual Income ¥7.63 ¥8.50 ¥13.80 76
Rev-Margin DCF ¥8.13 ¥15.02 ¥23.94 74
All 26 models by family
DCF Models
FCF DCF ¥5.22 ¥9.46 ¥16.86 38
Owner Earnings ¥5.20 ¥9.43 ¥16.80 31
5Y Revenue Exit ¥8.13 ¥15.30 ¥25.24 39
5Y EBITDA Exit ¥10.72 ¥20.67 ¥33.34 41
5Y P/E Exit ¥10.36 ¥19.92 ¥30.99 38
10Y Revenue Exit ¥6.78 ¥13.29 ¥23.59 36
10Y EBITDA Exit ¥8.83 ¥17.22 ¥30.40 37
10Y P/E Exit ¥8.59 ¥16.67 ¥28.42 35
Earnings-Based
Graham-Dodd ¥5.96 ¥27.88 ¥38.32 54
Lynch FV ¥7.38 ¥10.54 ¥13.70 50
PEG = 1.0 ¥7.38 ¥10.54 ¥13.70 46
EPV ¥8.95 ¥10.44 ¥11.74 59
Dividend Discount
Gordon GGM ¥2.57 ¥5.35 ¥8.48 70
DDM Multi-Stage ¥2.57 ¥4.51 ¥5.61 61
Multiples
P/E Multiple ¥13.79 ¥18.39 ¥22.99 63
P/S Multiple ¥11.17 ¥14.89 ¥18.61 58
P/B Multiple ¥11.17 ¥14.89 ¥18.61 55
EV/EBIT ¥13.43 ¥17.90 ¥22.36 53
EV/EBITDA ¥14.41 ¥19.20 ¥23.99 54
EV/Revenue ¥9.60 ¥13.69 ¥17.79 43
Asset-Based
NCAV (Graham) ¥4.32 ¥5.79 ¥8.64 50
Growth DCF
Growth DCF ¥5.18 ¥9.06 ¥15.65 80
Rev-Margin DCF ¥8.13 ¥15.02 ¥23.94 74
Economic Profit
Residual Income ¥7.63 ¥8.50 ¥13.80 76
ROIC Compounder ¥9.12 ¥12.37 ¥16.19 72
Growth Earnings
Growth-Adj P/E ¥11.70 ¥16.71 ¥21.73 68

Widest divergence: Growth Earnings (¥16.71) versus Dividend Discount (¥4.51). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 12.3B CNY
Revenue growth (YoY) +20.8%
Net margin 9.5%
Return on equity 10.7%
Free cash flow 508M CNY FY2025
P/E ratio 19.1
More key figures
Operating margin 13.7%
EPS (TTM) ¥0.9200
Dividend yield 2.1%
EPS growth (YoY) +26.7%
Net debt 2.9B CNY FY2025

Figures from reported company fundamentals · as of Aug 9, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 46/100

Of which business quality 45 · Market factors (momentum, volatility) 61

Profitability 34
Margins and returns on capital today
Quality Growth 64
Are margins and returns improving?
Cashflow 38
Earnings quality: real cash, not paper profit
Fin. Strength 53
Balance sheet, leverage, solvency risk
Investment 58
Disciplined investing over empire-building
Low Volatility 74
Calm price path (market factor)
Momentum 48
Price trend over the last 3–12 months (market factor)
52W Momentum 71
Distance to the 52-week high (market factor)
Net Issuance 31
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

Fujian Longking Co., Ltd. manufactures and sells environmental protection equipment worldwide. It operates through two segments: Environmental Protection and New Energy Segment.

Full company description

Fujian Longking Co., Ltd. manufactures and sells environmental protection equipment worldwide. It operates through two segments: Environmental Protection and New Energy Segment. The company offers products and solutions for environmental protection; air pollution control; water pollution control; solid waste treatment; waste incineration power; and generation and hazardous waste disposal, as well as soil pollution control and remediation services; power generation, power transmission, power supply, and battery sales; and manufacturing of mining machinery and equipment. It also engages in the property management; consulting; trading; testing; industrial investment; technical; waste incineration; household waste disposal; comprehensive water utilization; hazardous waste and solid waste treatment; water treatment; technology promotion and application; ecological protection and environmental governance; electricity and heat production and supply; energy storage technology; electrical machinery and equipment manufacturing; battery manufacturing and sales; specialized equipment research and development, manufacturing, and sales; construction and maintenance of hydropower stations; and electricity production, transmission, distribution, and sales business. The company exports its products to Russia, Kazakhstan, Indonesia, and other countries. Fujian Longking Co., Ltd. was founded in 1971 and is based in Longyan, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Fujian Longking Co reported revenue of ¥11.8B in FY2025 versus ¥11.3B in FY2021, a compound +1.2%/yr. Reported net income was ¥1.1B in FY2025, compounding +6.6%/yr from FY2021.

Growth Quality 50/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
11.8B CNY
Latest YoY
+18.0%
Avg. growth/yr (3Y)
−0.2%
Avg. growth/yr (5Y)
+3.0%
Avg. growth/yr (28Y)
+19.0%
Revenue +1.2%/yr
FY21 ¥11.3B
FY22 ¥11.9B
FY23 ¥11.0B
FY24 ¥10.0B
FY25 ¥11.8B
Net income +6.6%/yr
FY21 ¥860M
FY22 ¥805M
FY23 ¥509M
FY24 ¥830M
FY25 ¥1.1B

600388 screens 25% overvalued. Compare with Veralto Corporation →

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Cite: Fair Value Calculator (2026). "Fujian Longking Co Fair Value". https://www.fairvalue-calculator.com/stock/600388

Peer Group

Pollution & Treatment Controls · 91 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 46 · Below median
Fair Value upside −25% · Above median
Return on equity (TTM) 11% · Top 25%
Return on assets 3% · Above median
Net margin (TTM) 10% · Above median
Operating margin (TTM) 14% · Top 25%
Revenue growth 21% · Top 25%
Dividend yield (TTM) 2.1% · Above median
Debt / equity 0.21× · Higher than median

Valuation Multiples vs Pollution & Treatment Controls median · lower = cheaper

P/E (TTM) 19.1× · Cheaper than median
P/B 2.03× · Pricier than median
P/S (TTM) 1.82× · Pricier than median
P/FCF 6.5× · Pricier than median
EV/EBITDA 10.9× · 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.

VALUE 1 · sector 0
FUTURE 100 · sector 14
PAST 43 · sector 10
HEALTH 89 · sector 95
DIVIDEND 43 · sector 37

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 Pollution & Treatment Controls stocks, each showing price versus our Fair Value estimate (as of Aug 9, 2026).

Stock Price Fair Value vs Fair Value
Veralto Corporation VLTO $94.21 $69.11 -27%
Zurn Elkay Water Solutions Corporation ZWS $47.63 $24.92 -48%
Canmax Technologies Co 300390 ¥57.02 ¥10.41 -82%
CECO Environmental Corp CECO $83.63 $15.19 -82%
Munters Group MTRS kr 166.60 kr 16.90 -90%
China Conch Venture Holdings 0586 HK$8.83 HK$14.14 +60%
Mega Union Technology Inc 6944 1,005 TWD 539.58 TWD -46%
MayAir Technology (China) Co 688376 ¥96.57 ¥18.80 -81%
Shanghai Emperor of Cleaning Hi-Tech Co 603200 ¥38.97 ¥5.73 -85%
Zhongyuan Environmental Protection Co 000544 ¥7.30 ¥15.46 +112%

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Frequently asked questions

Is Fujian Longking Co (600388) overvalued or undervalued?
As of Aug 9, 2026, our model estimates a fair value of ¥13.25 versus a price of ¥17.58, about −25% (overvalued).
What is the fair value of 600388?
Our model-based fair value for Fujian Longking Co is ¥13.25 (as of Aug 9, 2026), built from audited fundamentals. The current price is ¥17.58.
What is the quality score of 600388?
Fujian Longking Co has a Quality Score of 46/100. 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 Fujian Longking Co (600388)?
Fujian Longking Co reported trailing-twelve-month revenue of about 12.3B CNY (latest available figure, as of Aug 9, 2026).
What is the net profit margin of 600388?
The net profit margin of Fujian Longking Co is about 9.5%, meaning it keeps roughly 9.5% of revenue as net income. Based on the latest reported figures.
Does Fujian Longking Co pay a dividend?
Fujian Longking Co currently shows a dividend yield of about 2.29% relative to its recent price (as of Aug 9, 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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