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Wuxi Huaguang Environment & Energy Group (600475) Fair Value & Analysis

Industrials · CN · Market cap 14.0B CNY

WH Wuxi Huaguang Environment & Energy Group 600475 · SHG
Price¥14.61
Fair Value¥7.64
Upside-47.7%
Quality45/100
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Healthy Growth
Thin margins · 4.2% net margin
Moderate debt · generates free cash flow
2.34% dividend yield
Trails peers (5/14)
Narrow moat 36/100
Evidence: Medium Range ¥5.17 – ¥10.64 Share as image

Fair value as of: Aug 8, 2026

From 23 valuation models · updated 2 days ago

Fair value updated Aug 8, 2026, revised from ¥7.96 to ¥7.64 (−4.0%) since Jul 11, 2026. Share price +10.2% over the past month.

Below-average quality, and screening another 48% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥10.64). The favourable scenario is already priced in.
  • Solid but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (¥5.17 to ¥10.64) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥25.92 ¥6.21 Fair Value ¥7.64 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 ¥6.21 – ¥25.92 · fair‑value band ¥5.17 – ¥10.64 · the ¥14.61 price screens above the ¥7.64 fair value. Dashed = 300-day average. As of Aug 8, 2026.

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Analysis

Wuxi Huaguang Environment & Energy Group (600475) currently trades at ¥14.61, while our model-based Fair Value estimate is ¥7.64, implying the stock looks roughly 47.7% overvalued today. The Quality Score stands at 45/100 (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: medium).

Over the trailing twelve months, Wuxi Huaguang Environment & Energy Group generated revenue of 9.0B CNY at a net margin of 4.2%. Revenue declined 6.4% year over year. It earns a return on equity of 4.8%. Net debt stands at 4.6B CNY. Fundamentals as of Aug 8, 2026

Our scenario range runs from ¥5.17 (bear case) to ¥10.64 (bull case); at ¥14.61, 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 48% below its 52-week high and 43% 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 -48%, 600475 screens richer 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 ¥2.86 ¥6.32 ¥11.95 80
Residual Income ¥6.78 ¥6.78 ¥6.31 76
Rev-Margin DCF ¥3.79 ¥8.29 ¥13.81 74
All 23 models by family
DCF Models
FCF DCF ¥2.84 ¥6.45 ¥12.39 38
5Y Revenue Exit ¥3.79 ¥8.39 ¥14.51 39
5Y EBITDA Exit ¥7.67 ¥16.05 ¥26.34 41
5Y P/E Exit ¥3.21 ¥7.25 ¥11.69 38
10Y Revenue Exit ¥3.19 ¥7.39 ¥13.55 36
10Y EBITDA Exit ¥5.93 ¥12.87 ¥23.05 37
10Y P/E Exit ¥3.03 ¥6.58 ¥11.29 35
Earnings-Based
Graham-Dodd ¥2.76 ¥10.89 ¥14.79 54
Lynch FV ¥2.69 ¥3.85 ¥5.00 50
PEG = 1.0 ¥2.69 ¥3.85 ¥5.00 46
EPV ¥2.95 ¥3.85 ¥4.63 59
Multiples
P/E Multiple ¥6.38 ¥8.51 ¥10.64 63
P/S Multiple ¥5.17 ¥6.89 ¥8.61 58
P/B Multiple ¥5.17 ¥6.89 ¥8.61 55
EV/EBIT ¥7.20 ¥10.40 ¥13.60 53
EV/EBITDA ¥11.35 ¥15.93 ¥20.51 54
EV/Revenue ¥4.45 ¥7.39 ¥10.33 43
Asset-Based
NCAV (Graham) ¥4.48 ¥6.00 ¥8.96 50
Growth DCF
Growth DCF ¥2.86 ¥6.32 ¥11.95 80
Rev-Margin DCF ¥3.79 ¥8.29 ¥13.81 74
Economic Profit
Residual Income ¥6.78 ¥6.78 ¥6.31 76
ROIC Compounder ¥2.95 ¥3.85 ¥4.63 72
Growth Earnings
Growth-Adj P/E ¥4.77 ¥6.82 ¥8.87 68

Widest divergence: DCF Models (¥7.39) versus Earnings-Based (¥3.85). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 9.0B CNY
Revenue growth (YoY) -6.4%
Net margin 4.2%
Return on equity 4.8%
Free cash flow 411M CNY FY2025
P/E ratio 37.5
More key figures
Operating margin 11.8%
EPS (TTM) ¥0.3900
Dividend yield 2.3%
EPS growth (YoY) -9.4%
Net debt 4.6B CNY FY2025

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

Quality Score breakdown

Overall quality 45/100

Of which business quality 44 · Market factors (momentum, volatility) 29

Profitability 22
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 47
Earnings quality: real cash, not paper profit
Fin. Strength 32
Balance sheet, leverage, solvency risk
Investment 64
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 18
Price trend over the last 3–12 months (market factor)
52W Momentum 25
Distance to the 52-week high (market factor)
Net Issuance 80
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

Wuxi Huaguang Environment & Energy Group Co.,Ltd. researches, develops, manufactures, and sells equipment in the field of energy and environmental protection.

Full company description

Wuxi Huaguang Environment & Energy Group Co.,Ltd. researches, develops, manufactures, and sells equipment in the field of energy and environmental protection. The company offers circulating fluidized bed boilers, pulverized coal boilers, waste incineration boilers, biomass boilers, gas waste heat boilers, and desulfurization and denitrification environmental equipment. It also engages in the investment, construction, and operation of coal-fired, gas-fired, geothermal, waste heat, and other thermal power enterprises; design of power station; general contracting of engineering construction and flue gas treatment; professional design in the field of municipal environment, and disposal of solid waste; and other businesses, as well as operation of photovoltaic power stations. In addition, the company involved in power station engineering installation; waste incineration power generation; heat supply; sludge treatment; and gas power generation. Further, it provides town heating, environmental protection engineering, and new energy technical services. The company was formerly known as Wuxi Huaguang Boiler Co., Ltd. and changed its name to Wuxi Huaguang Environment & Energy Group Co., Ltd. in June 2020. Wuxi Huaguang Environment & Energy Group Co.,Ltd. was founded in 1958 and is based in Wuxi, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Wuxi Huaguang Environment & Energy Group reported revenue of ¥9.1B in FY2025 versus ¥8.4B in FY2021, a compound +2.2%/yr. Reported net income was ¥388M in FY2025, compounding −15.4%/yr from FY2021.

Growth Quality 62/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
9.1B CNY
Latest YoY
+0.3%
Avg. growth/yr (3Y)
+1.1%
Avg. growth/yr (5Y)
+3.0%
Avg. growth/yr (25Y)
+15.2%
Revenue +2.2%/yr
FY21 ¥8.4B
FY22 ¥8.8B
FY23 ¥10.5B
FY24 ¥9.1B
FY25 ¥9.1B
Net income −15.4%/yr
FY21 ¥755M
FY22 ¥729M
FY23 ¥741M
FY24 ¥704M
FY25 ¥388M

600475 screens 48% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Wuxi Huaguang Environment & Energy Group Fair Value". https://www.fairvalue-calculator.com/stock/600475

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 45 · Below median
Fair Value upside −48% · Below median
Return on equity (TTM) 5% · Below median
Return on assets 2% · Below median
Net margin (TTM) 4% · Below median
Operating margin (TTM) 12% · Above median
Revenue growth -6% · Below median
Dividend yield (TTM) 2.3% · Above median
Debt / equity 0.65× · Higher than 75% of peers

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 37.5× · Pricier than median
P/B 1.63× · Cheaper than median
P/S (TTM) 1.55× · Cheaper than median
P/FCF 5.0× · Pricier than median
EV/EBITDA 12.4× · 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 0 · sector 0
FUTURE 0 · sector 23
PAST 19 · sector 28
HEALTH 68 · sector 96
DIVIDEND 47 · 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 Wuxi Huaguang Environment & Energy Group (600475) overvalued or undervalued?
As of Aug 8, 2026, our model estimates a fair value of ¥7.64 versus a price of ¥14.61, about −48% (overvalued).
What is the fair value of 600475?
Our model-based fair value for Wuxi Huaguang Environment & Energy Group is ¥7.64 (as of Aug 8, 2026), built from audited fundamentals. The current price is ¥14.61.
What is the quality score of 600475?
Wuxi Huaguang Environment & Energy Group has a Quality Score of 45/100. 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 Wuxi Huaguang Environment & Energy Group (600475)?
Wuxi Huaguang Environment & Energy Group reported trailing-twelve-month revenue of about 9.0B CNY (latest available figure, as of Aug 8, 2026).
What is the net profit margin of 600475?
The net profit margin of Wuxi Huaguang Environment & Energy Group is about 4.2%, meaning it keeps roughly 4.2% of revenue as net income. Based on the latest reported figures.
Does Wuxi Huaguang Environment & Energy Group pay a dividend?
Wuxi Huaguang Environment & Energy Group currently shows a dividend yield of about 2.34% 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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