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Long Yuan Construction Group (600491) Fair Value & Analysis

Industrials · CN · Market cap 1.9B CNY

LY Long Yuan Construction Group 600491 · SHG
Price¥1.23
Fair Value¥1.81
Upside+47.2%
Quality40/100
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Weak Growth
Loss-making · -67.6% net margin
High debt · generates free cash flow
Mixed vs. peers (4/10)
Narrow moat 21/100
Evidence: Medium Range ¥1.81 – ¥1.81 Share as image

Fair value as of: Aug 9, 2026

From 8 valuation models · updated today

Fair value updated Aug 9, 2026, revised from ¥6.83 to ¥1.81 (−73.5%) since Jul 11, 2026. Share price +20.6% over the past month.

Below-average quality, screening 47% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (40/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (¥1.81). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

¥7.54 ¥0.9200 Fair Value ¥1.81 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 ¥0.9200 – ¥7.54 · the ¥1.23 price screens below the ¥1.81 fair value. Dashed = 300-day average. As of Aug 9, 2026.

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Analysis

Long Yuan Construction Group (600491) currently trades at ¥1.23, while our model-based Fair Value estimate is ¥1.81, implying the stock looks roughly 47.2% undervalued today. The Quality Score stands at 40/100 (below-average quality), in the Industrials 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, Long Yuan Construction Group generated revenue of 4.3B CNY at a net margin of -67.6%. Revenue declined 9.4% year over year. It earns a return on equity of -29.7%. Net debt stands at 18.0B CNY. Fundamentals as of Aug 9, 2026

The share trades about 68% below its 52-week high and 1% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -45% fair-value upside, at 47%, 600491 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 ¥0.4000 ¥3.03 ¥7.12 80
Rev-Margin DCF ¥1.14 74
Gordon GGM ¥4.51 ¥4.86 ¥5.38 70
All 8 models by family
DCF Models
FCF DCF ¥0.1000 ¥2.88 ¥7.55 38
5Y Revenue Exit ¥0.8500 39
10Y Revenue Exit ¥0.6900 36
Dividend Discount
Gordon GGM ¥4.51 ¥4.86 ¥5.38 70
DDM Multi-Stage ¥4.51 ¥5.37 ¥6.47 61
Asset-Based
NCAV (Graham) ¥2.31 ¥3.10 ¥4.62 50
Growth DCF
Growth DCF ¥0.4000 ¥3.03 ¥7.12 80
Rev-Margin DCF ¥1.14 74

Widest divergence: Dividend Discount (¥4.86) versus DCF Models (¥2.88). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 4.3B CNY
Revenue growth (YoY) -9.4%
Net margin -67.6%
Return on equity -29.7%
Free cash flow 1.7B CNY FY2025
Operating margin 16.7%
More key figures
EPS (TTM) ¥-1.90
EPS growth (YoY) -54.5%
Net debt 18.0B CNY FY2025

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

Quality Score breakdown

Overall quality 40/100

Of which business quality 47 · Market factors (momentum, volatility) 23

Profitability 0
Margins and returns on capital today
Quality Growth 25
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 3
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 62
Calm price path (market factor)
Momentum 7
Price trend over the last 3–12 months (market factor)
52W Momentum 5
Distance to the 52-week high (market factor)
Net Issuance 85
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

Long Yuan Construction Group Co., Ltd. operates as a construction company in China. It engages in the general contracting of construction engineering, municipal public works construction, mechanical and electrical engineering, foundation engineering, architectural decoration and decoration engineering, and ancient architectural engineering.

Full company description

Long Yuan Construction Group Co., Ltd. operates as a construction company in China. It engages in the general contracting of construction engineering, municipal public works construction, mechanical and electrical engineering, foundation engineering, architectural decoration and decoration engineering, and ancient architectural engineering. The company undertakes various complex construction tasks, such as industrial, civil, municipal, transportation, water conservancy and large volume, high standards, and fine decoration. In addition, it provides steel structure and grid engineering special design, architectural and decoration design, engineering consulting, construction engineering supervision, house quality; pre-planning, planning and design, investment, financing, and construction and investment for the cooperation area. Further, the company it is engaged in investment business for traditional building, infrastructure investment construction and operation, construction industrialization and technology sectors. Long Yuan Construction Group Co., Ltd. was founded in 1980 and is headquartered in Shanghai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Long Yuan Construction Group reported revenue of ¥4.4B in FY2025 versus ¥19.5B in FY2021, a compound −31.0%/yr. Reported net income was −¥2.6B in FY2025.

Growth Quality 23/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
4.4B CNY
Latest YoY
−51.4%
Avg. growth/yr (3Y)
−32.2%
Avg. growth/yr (5Y)
−24.3%
Avg. growth/yr (24Y)
+3.4%
Revenue −31.0%/yr
FY21 ¥19.5B
FY22 ¥14.2B
FY23 ¥9.0B
FY24 ¥9.1B
FY25 ¥4.4B
Net income
FY21 ¥667M
FY22 ¥381M
FY23 −¥1.3B
FY24 −¥663M
FY25 −¥2.6B

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Cite: Fair Value Calculator (2026). "Long Yuan Construction Group Fair Value". https://www.fairvalue-calculator.com/stock/600491

Peer Group

Engineering & Construction · 837 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 40 · Below median
Fair Value upside +47% · Top 25%
Return on assets -1% · Bottom 25%
Net margin (TTM) -68% · Bottom 25%
Operating margin (TTM) 17% · Top 25%
Revenue growth -9% · Below median
Debt / equity 2.09× · Higher than 75% of peers

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/S (TTM) 0.07× · Cheaper than 75% of peers
P/FCF 0.2× · 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 96 · sector 16
FUTURE 0 · sector 17
PAST 0 · sector 26
HEALTH 0 · sector 94
DIVIDEND 0 · sector 33

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 Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 9, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹3,815 ₹1,994 -48%
Samsung C&T Corporation 028260 346,000 KRW 268,779 KRW -22%
Hyundai Engineering & Construction Co 000720 99,000 KRW 63,993 KRW -35%
United Integrated Services Co 2404 1,250 TWD 925.62 TWD -26%
Samsung E&A Co 028050 42,550 KRW 44,840 KRW +5%
Rail Vikas Nigam Limited RVNL ₹232.67 ₹61.46 -74%
Daewoo Engineering & Construction Co 047040 16,240 KRW 6,507 KRW -60%
NBCC (India) Limited NBCC ₹96.32 ₹48.22 -50%
Cemindia Projects Limited CEMPRO ₹1,330 ₹730.69 -45%
KEPCO Engineering & Construction Company 052690 92,700 KRW 20,172 KRW -78%

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Frequently asked questions

Is Long Yuan Construction Group (600491) overvalued or undervalued?
As of Aug 9, 2026, our model estimates a fair value of ¥1.81 versus a price of ¥1.23, about +47% (undervalued).
What is the fair value of 600491?
Our model-based fair value for Long Yuan Construction Group is ¥1.81 (as of Aug 9, 2026), built from audited fundamentals. The current price is ¥1.23.
What is the quality score of 600491?
Long Yuan Construction Group has a Quality Score of 40/100. 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 Long Yuan Construction Group (600491)?
Long Yuan Construction Group reported trailing-twelve-month revenue of about 4.3B CNY (latest available figure, as of Aug 9, 2026).
What is the net profit margin of 600491?
The net profit margin of Long Yuan Construction Group is about -67.6%, meaning it is currently running at a net loss. Based on the latest reported figures.

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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