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Fangda Special Steel Technology Co (600507) Fair Value & Analysis

Basic Materials · CN · Market cap 10.1B CNY

FS Fangda Special Steel Technology Co 600507 · SHG
Price¥4.37
Fair Value¥6.92
Upside+58.4%
Quality60/100
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Mixed Growth
Thin margins · 4.5% net margin
Low debt · generates free cash flow
4.61% dividend yield
Ranks above peers (11/14)
Narrow moat 32/100
Evidence: High Range ¥5.19 – ¥8.66 Share as image

Fair value as of: Aug 8, 2026

From 26 valuation models · updated 2 days ago

Share price +7.6% over the past month.

A solid business, screening 58% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (¥5.19). The market is more pessimistic than our downside scenario.
  • Solid quality (60/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

¥8.94 ¥3.54 Fair Value ¥6.92 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 ¥3.54 – ¥8.94 · fair‑value band ¥5.19 – ¥8.66 · the ¥4.37 price screens below the ¥6.92 fair value. Dashed = 300-day average. As of Aug 8, 2026.

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Analysis

Fangda Special Steel Technology Co (600507) currently trades at ¥4.37, while our model-based Fair Value estimate is ¥6.92, implying the stock looks roughly 58.4% undervalued today. The Quality Score stands at 60/100 (solid quality), in the Basic Materials 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: high), always confirm before acting.

Over the trailing twelve months, Fangda Special Steel Technology Co generated revenue of 17.9B CNY at a net margin of 4.5%. Revenue declined 8.0% year over year. It earns a return on equity of 7.9%. Net debt stands at 504M CNY. Fundamentals as of Aug 8, 2026

Our scenario range runs from ¥5.19 (bear case) to ¥8.66 (bull case); at ¥4.37, 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 41% below its 52-week high and 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -7% fair-value upside, at 58%, 600507 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 ¥4.88 ¥6.65 ¥9.61 80
Residual Income ¥3.77 ¥4.14 ¥6.25 76
Rev-Margin DCF ¥5.84 ¥8.60 ¥12.11 74
All 26 models by family
DCF Models
FCF DCF ¥4.89 ¥6.79 ¥10.05 38
Owner Earnings ¥10.07 ¥15.99 ¥26.10 31
5Y Revenue Exit ¥5.84 ¥8.70 ¥12.60 39
5Y EBITDA Exit ¥6.22 ¥9.47 ¥13.55 41
5Y P/E Exit ¥6.44 ¥9.92 ¥13.88 38
10Y Revenue Exit ¥5.36 ¥7.96 ¥11.97 36
10Y EBITDA Exit ¥5.75 ¥8.53 ¥12.75 37
10Y P/E Exit ¥5.89 ¥8.85 ¥13.03 35
Earnings-Based
Graham-Dodd ¥2.77 ¥12.27 ¥16.80 54
Lynch FV ¥3.18 ¥4.54 ¥5.90 50
PEG = 1.0 ¥3.18 ¥4.54 ¥5.90 46
EPV ¥5.42 ¥5.92 ¥6.36 59
Dividend Discount
Gordon GGM ¥0.3000 ¥0.6200 ¥0.9800 70
DDM Multi-Stage ¥0.3000 ¥0.5200 ¥0.6500 61
Multiples
P/E Multiple ¥5.19 ¥6.92 ¥8.66 63
P/S Multiple ¥5.19 ¥6.92 ¥8.66 58
P/B Multiple ¥5.19 ¥6.92 ¥8.66 55
EV/EBIT ¥6.98 ¥8.50 ¥10.01 53
EV/EBITDA ¥7.26 ¥8.88 ¥10.49 54
EV/Revenue ¥6.37 ¥8.06 ¥9.75 43
Asset-Based
NCAV (Graham) ¥2.19 ¥2.94 ¥4.39 50
Growth DCF
Growth DCF ¥4.88 ¥6.65 ¥9.61 80
Rev-Margin DCF ¥5.84 ¥8.60 ¥12.11 74
Economic Profit
Residual Income ¥3.77 ¥4.14 ¥6.25 76
ROIC Compounder ¥5.78 ¥6.96 ¥8.56 72
Growth Earnings
Growth-Adj P/E ¥4.66 ¥6.66 ¥8.66 68

Widest divergence: DCF Models (¥8.70) versus Dividend Discount (¥0.5200). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 17.9B CNY
Revenue growth (YoY) -8.0%
Net margin 4.5%
Return on equity 7.9%
Free cash flow 450M CNY FY2025
P/E ratio 12.5
More key figures
Operating margin 4.1%
EPS (TTM) ¥0.3500
Dividend yield 4.6%
EPS growth (YoY) -56.5%
Net debt 504M CNY FY2025

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

Quality Score breakdown

Overall quality 60/100

Of which business quality 59 · Market factors (momentum, volatility) 28

Profitability 39
Margins and returns on capital today
Quality Growth 52
Are margins and returns improving?
Cashflow 36
Earnings quality: real cash, not paper profit
Fin. Strength 78
Balance sheet, leverage, solvency risk
Investment 83
Disciplined investing over empire-building
Low Volatility 76
Calm price path (market factor)
Momentum 7
Price trend over the last 3–12 months (market factor)
52W Momentum 9
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

Fangda Special Steel Technology Co., Ltd. manufactures, process, and sells ferrous metal smelting and related products in China. It operates through two segments, Special Steel Industry and Mining Industry.

Full company description

Fangda Special Steel Technology Co., Ltd. manufactures, process, and sells ferrous metal smelting and related products in China. It operates through two segments, Special Steel Industry and Mining Industry. The company offers spring steel flat bars used in the automobile leaf spring and steering arm of air suspension; leaf spring; and hot-rolled steel bars, including ribbed bars, plate round bars, and resin anchoring bolt bars. It also provides free cutting steel wire rods, flat bars, and round bars used in the auto-parts manufacture of electronic and electrical appliances, auto parts, medical equipment, instrumentation, lighting furniture, watches, printing consumables, machine tools, various fasteners, and standard parts of various machines. In addition, the company engages in the iron ore concentrate, processing of metallurgical raw materials and fuels, and other businesses. Further, its products are primarily used in construction, automobile manufacturing, and other industries. The company was formerly known as Nanchang Changli Iron & Steel Co., Ltd. and changed its name to Fangda Special Steel Technology Co., Ltd. in December 2009. Fangda Special Steel Technology Co., Ltd. was founded in 1999 and is based in Nanchang, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Fangda Special Steel Technology Co reported revenue of ¥18.2B in FY2025 versus ¥21.7B in FY2021, a compound −4.3%/yr. Reported net income was ¥942M in FY2025, compounding −23.4%/yr from FY2021.

Growth Quality 60/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
18.2B CNY
Avg. growth/yr (3Y)
−0.2%
Avg. growth/yr (5Y)
+7.0%
Avg. growth/yr (25Y)
+22.1%
Revenue −4.3%/yr
FY21 ¥21.7B
FY22 ¥31.5B
FY23 ¥26.5B
FY24 ¥21.6B
FY25 ¥18.2B
Net income −23.4%/yr
FY21 ¥2.7B
FY22 ¥1.1B
FY23 ¥689M
FY24 ¥248M
FY25 ¥942M

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Cite: Fair Value Calculator (2026). "Fangda Special Steel Technology Co Fair Value". https://www.fairvalue-calculator.com/stock/600507

Peer Group

Steel · 378 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 60 · Top 25%
Fair Value upside +58% · Top 25%
Return on equity (TTM) 8% · Above median
Return on assets 3% · Above median
Net margin (TTM) 4% · Above median
Operating margin (TTM) 4% · Above median
Revenue growth -8% · Below median
Dividend yield (TTM) 4.6% · Top 25%
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Steel median · lower = cheaper

P/E (TTM) 12.5× · Cheaper than median
P/B 1.00× · Cheaper than median
P/S (TTM) 0.57× · Pricier than median
P/FCF 3.3× · Pricier than 75% of peers
EV/EBITDA 3.3× · 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 20
FUTURE 0 · sector 4
PAST 32 · sector 15
HEALTH 100 · sector 95
DIVIDEND 92 · sector 41

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 Steel stocks, each showing price versus our Fair Value estimate (as of Aug 8, 2026).

Stock Price Fair Value vs Fair Value
Tata Steel Limited TTST $0.2010 $0.2000 -0%
JSW Steel Limited JSWSTEEL ₹1,227 ₹1,140 -7%
Baoshan Iron & Steel Co 600019 ¥5.89 ¥8.07 +37%
China Steel Corporation 2002A 38.55 TWD 8.74 TWD -77%
POSCO Holdings 005490 313,500 KRW 155,270 KRW -50%
Companhia Siderúrgica Nacional, SID 13,670 ARS 15,940 ARS +17%
Jindal Steel Limited JINDALSTEL ₹1,028 ₹545.12 -47%
Lloyds Metals and Energy Limited LLOYDSME ₹1,844 ₹1,098 -40%
Gerdau S.A GGBN 83.50 MXN 42.64 MXN -49%
Ternium S.A TXR 17,780 ARS 27,210 ARS +53%

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Frequently asked questions

Is Fangda Special Steel Technology Co (600507) overvalued or undervalued?
As of Aug 8, 2026, our model estimates a fair value of ¥6.92 versus a price of ¥4.37, about +58% (undervalued).
What is the fair value of 600507?
Our model-based fair value for Fangda Special Steel Technology Co is ¥6.92 (as of Aug 8, 2026), built from audited fundamentals. The current price is ¥4.37.
What is the quality score of 600507?
Fangda Special Steel Technology Co has a Quality Score of 60/100. 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 Fangda Special Steel Technology Co (600507)?
Fangda Special Steel Technology Co reported trailing-twelve-month revenue of about 17.9B CNY (latest available figure, as of Aug 8, 2026).
What is the net profit margin of 600507?
The net profit margin of Fangda Special Steel Technology Co is about 4.5%, meaning it keeps roughly 4.5% of revenue as net income. Based on the latest reported figures.
Does Fangda Special Steel Technology Co pay a dividend?
Fangda Special Steel Technology Co currently shows a dividend yield of about 4.73% 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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