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NARI Technology Co (600406) Fair Value & Analysis

Industrials · CN · Market cap 178B CNY

NT NARI Technology Co 600406 · SHG
Price¥24.17
Fair Value¥18.71
Upside-22.6%
Quality63/100
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Healthy Growth
Solidly profitable · 12.4% net margin
Low debt · generates free cash flow
2.81% dividend yield
Ranks above peers (11/14)
Moderate moat 53/100
Evidence: Medium Range ¥14.30 – ¥26.79 Share as image

Fair value as of: Jul 17, 2026

From 26 valuation models · updated 21 days ago

Share price +6.1% over the past month.

A solid business, but screening 23% overvalued on our models.

What matters now

  • Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (¥14.30 to ¥26.79) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥31.52 ¥14.66 Fair Value ¥18.71 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range ¥14.66 – ¥31.52 · fair‑value band ¥14.30 – ¥26.79 · the ¥24.17 price screens above the ¥18.71 fair value. Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

NARI Technology Co (600406) currently trades at ¥24.17, while our model-based Fair Value estimate is ¥18.71, implying the stock looks roughly 22.6% overvalued today. We read business quality at 63/100 (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: medium).

Over the trailing twelve months, NARI Technology Co generated revenue of 66.9B CNY at a net margin of 12.4%. Revenue grew 7.5% year over year. It earns a return on equity of 16.1%. The balance sheet holds a net cash position of 8.5B CNY. Fundamentals as of Jul 17, 2026

Our scenario range runs from ¥14.30 (bear case) to ¥26.79 (bull case); at ¥24.17, 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 25% below its 52-week high and 15% 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 -23%, 600406 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 ¥21.26 ¥39.99 ¥76.51 80
Residual Income ¥6.82 ¥8.65 ¥20.99 76
Rev-Margin DCF ¥15.28 ¥28.44 ¥48.38 74
All 26 models by family
DCF Models
FCF DCF ¥22.37 ¥36.05 ¥76.84 38
Owner Earnings ¥15.29 ¥33.65 ¥72.17 31
5Y Revenue Exit ¥15.28 ¥26.13 ¥47.40 39
5Y EBITDA Exit ¥16.32 ¥28.34 ¥50.48 41
5Y P/E Exit ¥17.91 ¥35.47 ¥58.16 38
10Y Revenue Exit ¥16.86 ¥32.03 ¥47.36 36
10Y EBITDA Exit ¥18.06 ¥34.05 ¥62.93 37
10Y P/E Exit ¥19.18 ¥37.14 ¥68.12 35
Earnings-Based
Graham-Dodd ¥7.01 ¥48.88 ¥68.60 54
Lynch FV ¥15.31 ¥21.87 ¥28.44 50
PEG = 1.0 ¥15.31 ¥21.87 ¥28.44 46
EPV ¥11.27 ¥12.99 ¥14.51 59
Dividend Discount
Gordon GGM ¥5.34 ¥11.10 ¥17.60 70
DDM Multi-Stage ¥5.34 ¥9.36 ¥11.65 61
Multiples
P/E Multiple ¥15.46 ¥20.62 ¥25.77 63
P/S Multiple ¥13.14 ¥17.52 ¥21.90 58
P/B Multiple ¥13.14 ¥17.52 ¥21.90 55
EV/EBIT ¥17.24 ¥22.69 ¥28.13 53
EV/EBITDA ¥14.15 ¥18.57 ¥22.98 54
EV/Revenue ¥11.92 ¥16.64 ¥21.36 43
Asset-Based
NCAV (Graham) ¥3.28 ¥4.39 ¥6.55 50
Growth DCF
Growth DCF ¥21.26 ¥39.99 ¥76.51 80
Rev-Margin DCF ¥15.28 ¥28.44 ¥48.38 74
Economic Profit
Residual Income ¥6.82 ¥8.65 ¥20.99 76
ROIC Compounder ¥13.99 ¥20.54 ¥27.23 72
Growth Earnings
Growth-Adj P/E ¥20.16 ¥28.81 ¥37.45 68

Widest divergence: DCF Models (¥33.65) versus Asset-Based (¥4.39). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 66.9B CNY
Revenue growth (YoY) +7.5%
Net margin 12.4%
Return on equity 16.1%
Free cash flow 10.7B CNY FY2025
P/E ratio 21.3
More key figures
Operating margin 8.3%
EPS (TTM) ¥1.04
Dividend yield 2.8%
Net cash 8.5B CNY FY2024

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 67 · Market factors (momentum, volatility) 51

Profitability 50
Margins and returns on capital today
Quality Growth 54
Are margins and returns improving?
Cashflow 73
Earnings quality: real cash, not paper profit
Fin. Strength 81
Balance sheet, leverage, solvency risk
Investment 71
Disciplined investing over empire-building
Low Volatility 86
Calm price path (market factor)
Momentum 35
Price trend over the last 3–12 months (market factor)
52W Momentum 37
Distance to the 52-week high (market factor)
Net Issuance 76
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

NARI Technology Co., Ltd., together with its subsidiaries, provides power intelligence solutions in China and internationally.

Full company description

NARI Technology Co., Ltd., together with its subsidiaries, provides power intelligence solutions in China and internationally. It offers intelligent control; smart power generation, and transmission; smart substation; intelligent power distribution; smart electricity consumption; information and communications; comprehensive energy; intelligent operation and maintenance; industrial control; municipal environmental protection; industrial automation; rail transit; and water conservancy and water affairs solutions. The company was founded in 2001 and is headquartered in Nanjing, China. NARI Technology Co., Ltd. operates as a subsidiary of NARI Group Corporation.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

NARI Technology Co reported revenue of ¥66.2B in FY2025 versus ¥42.4B in FY2021, a compound +11.8%/yr. Reported net income was ¥8.3B in FY2025, compounding +10.1%/yr from FY2021.

Growth Quality 94/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
66.2B CNY
Latest YoY
+15.3%
Avg. growth/yr (3Y)
+12.2%
Avg. growth/yr (5Y)
+11.5%
Avg. growth/yr (25Y)
+25.3%
Revenue +11.8%/yr
FY21 ¥42.4B
FY22 ¥46.8B
FY23 ¥51.7B
FY24 ¥57.4B
FY25 ¥66.2B
Net income +10.1%/yr
FY21 ¥5.6B
FY22 ¥6.4B
FY23 ¥7.2B
FY24 ¥7.6B
FY25 ¥8.3B

600406 screens 23% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "NARI Technology Co Fair Value". https://www.fairvalue-calculator.com/stock/600406

Peer Group

Specialty Industrial Machinery · 807 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 63 · Top 25%
Fair Value upside −23% · Above median
Return on equity (TTM) 16% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 12% · Top 25%
Operating margin (TTM) 8% · Above median
Revenue growth 8% · Above median
Dividend yield (TTM) 2.8% · Top 25%

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 21.3× · Cheaper than median
P/B 3.39× · Pricier than median
P/S (TTM) 2.66× · Pricier than median
P/FCF 2.5× · Cheaper than median
EV/EBITDA 16.7× · Pricier 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 3 · sector 0
FUTURE 38 · sector 23
PAST 64 · sector 28
HEALTH 100 · sector 96
DIVIDEND 56 · sector 24

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 Jul 17, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €967.60 €212.97 -78%
1SIE 1SIE €284.30 €122.46 -57%
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%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
Alfa Laval AB ALFA kr 564.60 kr 372.32 -34%

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Frequently asked questions

Is NARI Technology Co (600406) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of ¥18.71 versus a price of ¥24.17, about −23% (overvalued).
What is the fair value of 600406?
Our model-based fair value for NARI Technology Co is ¥18.71 (as of Jul 17, 2026), built from audited fundamentals. The current price is ¥24.17.
What is the quality score of 600406?
NARI Technology Co has a Quality Score of 63/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of NARI Technology Co (600406)?
NARI Technology Co reported trailing-twelve-month revenue of about 66.9B CNY (latest available figure, as of Jul 17, 2026).
What is the net profit margin of 600406?
The net profit margin of NARI Technology Co is about 12.4%, meaning it keeps roughly 12.4% of revenue as net income. Based on the latest reported figures.
Does NARI Technology Co pay a dividend?
NARI Technology Co currently shows a dividend yield of about 2.61% relative to its recent price (as of Jul 17, 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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