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Jiangxi Hongcheng Environment Co (600461) Fair Value & Analysis

Utilities · CN · Market cap 11.5B CNY

JH Jiangxi Hongcheng Environment Co 600461 · SHG
Price¥8.90
Fair Value¥16.73
Upside+88.0%
Quality55/100
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Mixed Growth
Solidly profitable · 16.2% net margin
Low debt · generates free cash flow
5.23% dividend yield
Ranks above peers (13/14)
Moderate moat 58/100
Evidence: Medium Range ¥10.47 – ¥20.91 Share as image

Fair value as of: Aug 8, 2026

From 24 valuation models · updated 2 days ago

Share price −1.8% over the past month.

A solid business, screening 88% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (¥10.47). The market is more pessimistic than our downside scenario.
  • Solid quality (55/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (¥10.47 to ¥20.91) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥12.25 ¥4.85 Fair Value ¥16.73 Feb 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 ¥4.85 – ¥12.25 · fair‑value band ¥10.47 – ¥20.91 · the ¥8.90 price screens below the ¥16.73 fair value. Dashed = 300-day average. As of Aug 8, 2026.

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Analysis

Jiangxi Hongcheng Environment Co (600461) currently trades at ¥8.90, while our model-based Fair Value estimate is ¥16.73, implying the stock looks roughly 88.0% undervalued today. The Quality Score stands at 55/100 (solid quality), in the Utilities 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: medium), always confirm before acting.

Over the trailing twelve months, Jiangxi Hongcheng Environment Co generated revenue of 7.3B CNY at a net margin of 16.2%. Revenue declined 11.9% year over year. It earns a return on equity of 11.4%. Net debt stands at 3.4B CNY. Fundamentals as of Aug 8, 2026

Our scenario range runs from ¥10.47 (bear case) to ¥20.91 (bull case); at ¥8.90, the current price sits below 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 16% below its 52-week high and 2% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at -10% fair-value upside, at 88%, 600461 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 ¥8.47 ¥18.75 ¥35.67 80
Residual Income ¥7.20 ¥8.54 ¥17.86 76
Rev-Margin DCF ¥9.21 ¥18.82 ¥32.52 74
All 24 models by family
DCF Models
FCF DCF ¥8.80 ¥16.75 ¥37.48 38
Owner Earnings ¥11.95 ¥26.43 ¥55.00 31
5Y Revenue Exit ¥9.21 ¥19.25 ¥34.04 39
5Y EBITDA Exit ¥12.89 ¥27.54 ¥47.69 41
5Y P/E Exit ¥10.30 ¥21.80 ¥36.06 38
10Y Revenue Exit ¥8.64 ¥18.60 ¥34.82 36
10Y EBITDA Exit ¥11.57 ¥25.04 ¥48.58 37
10Y P/E Exit ¥9.79 ¥20.51 ¥37.89 35
Earnings-Based
Graham-Dodd ¥6.32 ¥39.10 ¥54.58 54
Lynch FV ¥11.23 ¥16.05 ¥20.86 50
PEG = 1.0 ¥11.23 ¥16.05 ¥20.86 46
EPV ¥10.11 ¥11.98 ¥13.62 59
Multiples
P/E Multiple ¥12.54 ¥16.73 ¥20.91 63
P/S Multiple ¥10.93 ¥14.57 ¥18.22 58
P/B Multiple ¥10.50 ¥14.01 ¥17.51 55
EV/EBIT ¥14.74 ¥20.02 ¥25.30 53
EV/EBITDA ¥15.25 ¥20.71 ¥26.16 54
EV/Revenue ¥9.09 ¥13.47 ¥17.84 43
Asset-Based
NCAV (Graham) ¥3.89 ¥5.21 ¥7.78 50
Growth DCF
Growth DCF ¥8.47 ¥18.75 ¥35.67 80
Rev-Margin DCF ¥9.21 ¥18.82 ¥32.52 74
Economic Profit
Residual Income ¥7.20 ¥8.54 ¥17.86 76
ROIC Compounder ¥11.71 ¥17.80 ¥22.96 72
Growth Earnings
Growth-Adj P/E ¥15.06 ¥21.52 ¥27.97 68

Widest divergence: Growth Earnings (¥21.52) versus Asset-Based (¥5.21). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 7.3B CNY
Revenue growth (YoY) -11.9%
Net margin 16.2%
Return on equity 11.4%
Free cash flow 866M CNY FY2025
P/E ratio 11.0
More key figures
Operating margin 26.0%
EPS (TTM) ¥0.8100
Dividend yield 5.2%
EPS growth (YoY) -4.2%
Net debt 3.4B CNY FY2025

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

Quality Score breakdown

Overall quality 55/100

Of which business quality 53 · Market factors (momentum, volatility) 50

Profitability 38
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 58
Earnings quality: real cash, not paper profit
Fin. Strength 41
Balance sheet, leverage, solvency risk
Investment 47
Disciplined investing over empire-building
Low Volatility 96
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 24
Distance to the 52-week high (market factor)
Net Issuance 89
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

Jiangxi Hongcheng Environment Co.,Ltd., together with its subsidiaries, produces and supplies tap water in China. The company engages in municipal water supply and drainage engineering design; water pollution prevention and control; environmental protection consulting service; supply of solar photovoltaic power; sale and installation of natural gas; sale of …

Full company description

Jiangxi Hongcheng Environment Co.,Ltd., together with its subsidiaries, produces and supplies tap water in China. The company engages in municipal water supply and drainage engineering design; water pollution prevention and control; environmental protection consulting service; supply of solar photovoltaic power; sale and installation of natural gas; sale of vehicle natural gas and specialty chemical products; water quality testing and operation; solid waste disposal; and construction, operation, and maintenance of municipal pipe network facilities. It is also involved in kitchen waste treatment; urban domestic waste; incineration power generation; industrial solid waste disposal and power generation; power transmission and distribution business; urban food waste treatment; urban garbage leachate; and concentrate disposal services. The company was formerly known as Jiangxi Hongcheng Waterworks Co.,Ltd. and changed its name to Jiangxi Hongcheng Environment Co., Ltd. in February 2021. Jiangxi Hongcheng Environment Co.,Ltd. was founded in 2001 and is headquartered in Nanchang, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Jiangxi Hongcheng Environment Co reported revenue of ¥7.5B in FY2025 versus ¥9.1B in FY2021, a compound −4.9%/yr. Reported net income was ¥1.2B in FY2025, compounding +4.0%/yr from FY2021.

Growth Quality 62/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
7.5B CNY
Latest YoY
−9.0%
Avg. growth/yr (3Y)
−1.3%
Avg. growth/yr (5Y)
+2.5%
Avg. growth/yr (24Y)
+19.3%
Revenue −4.9%/yr
FY21 ¥9.1B
FY22 ¥7.8B
FY23 ¥8.0B
FY24 ¥8.2B
FY25 ¥7.5B
Net income +4.0%/yr
FY21 ¥1.0B
FY22 ¥962M
FY23 ¥1.1B
FY24 ¥1.2B
FY25 ¥1.2B

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Cite: Fair Value Calculator (2026). "Jiangxi Hongcheng Environment Co Fair Value". https://www.fairvalue-calculator.com/stock/600461

Peer Group

Utilities - Regulated Water · 67 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 55 · Top 25%
Fair Value upside +88% · Top 25%
Return on equity (TTM) 11% · Top 25%
Return on assets 4% · Top 25%
Net margin (TTM) 16% · Above median
Operating margin (TTM) 26% · Above median
Revenue growth -12% · Bottom 25%
Dividend yield (TTM) 5.2% · Top 25%
Debt / equity 0.40× · Lower than median

Valuation Multiples vs Utilities - Regulated Water median · lower = cheaper

P/E (TTM) 11.0× · Cheaper than 75% of peers
P/B 1.15× · Cheaper than median
P/S (TTM) 1.58× · Cheaper than median
P/FCF 2.0× · Cheaper than median
EV/EBITDA 4.8× · 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 100 · sector 7
FUTURE 0 · sector 28
PAST 45 · sector 29
HEALTH 80 · sector 66
DIVIDEND 100 · sector 49

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 Utilities - Regulated Water stocks, each showing price versus our Fair Value estimate (as of Aug 8, 2026).

Stock Price Fair Value vs Fair Value
American Water Works Company AWK $134.33 $65.80 -51%
SBSP3 SBSP3 R$29.22 R$31.23 +7%
SBS SBS $5.79 $5.21 -10%
Essential Utilities, Inc WTRG $38.59 $21.81 -43%
CSMG3 CSMG3 R$66.10 R$60.17 -9%
Grandblue Environment Co 600323 ¥29.42 ¥33.29 +13%
American States Water Company AWR $85.01 $48.02 -44%
Chengdu Xingrong Environment Co 000598 ¥6.97 ¥10.74 +54%
California Water Service Group CWT $49.73 $33.56 -33%
Chongqing Water Group 601158 ¥4.12 ¥2.77 -33%

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Frequently asked questions

Is Jiangxi Hongcheng Environment Co (600461) overvalued or undervalued?
As of Aug 8, 2026, our model estimates a fair value of ¥16.73 versus a price of ¥8.90, about +88% (undervalued).
What is the fair value of 600461?
Our model-based fair value for Jiangxi Hongcheng Environment Co is ¥16.73 (as of Aug 8, 2026), built from audited fundamentals. The current price is ¥8.90.
What is the quality score of 600461?
Jiangxi Hongcheng Environment Co has a Quality Score of 55/100. 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 Jiangxi Hongcheng Environment Co (600461)?
Jiangxi Hongcheng Environment Co reported trailing-twelve-month revenue of about 7.3B CNY (latest available figure, as of Aug 8, 2026).
What is the net profit margin of 600461?
The net profit margin of Jiangxi Hongcheng Environment Co is about 16.2%, meaning it keeps roughly 16.2% of revenue as net income. Based on the latest reported figures.
Does Jiangxi Hongcheng Environment Co pay a dividend?
Jiangxi Hongcheng Environment Co currently shows a dividend yield of about 4.99% 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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