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Atlantic China Welding Consumables, Inc (600558) Fair Value & Analysis

Industrials · CN · Market cap 4.3B CNY

AC Atlantic China Welding Consumables, Inc 600558 · SHG
Price¥4.76
Fair Value¥4.26
Upside-10.5%
Quality69/100
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Healthy Growth
Thin margins · 5.2% net margin
Low debt · generates free cash flow
3.53% dividend yield
Ranks above peers (12/14)
Narrow moat 41/100
Evidence: Medium Range ¥3.19 – ¥5.33 Share as image

Fair value as of: Aug 9, 2026

From 26 valuation models · updated yesterday

A solid business, but screening 11% overvalued on our models.

What matters now

  • Our model range runs from ¥3.19 (bear) to ¥5.33 (bull), base ¥4.26. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 69/100 (solid quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

¥6.81 ¥2.72 Fair Value ¥4.26 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 ¥2.72 – ¥6.81 · fair‑value band ¥3.19 – ¥5.33 · the ¥4.76 price screens above the ¥4.26 fair value. Dashed = 300-day average. As of Aug 9, 2026.

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Analysis

Atlantic China Welding Consumables, Inc (600558) currently trades at ¥4.76, while our model-based Fair Value estimate is ¥4.26, implying the stock looks roughly 10.5% overvalued today. The Quality Score stands at 69/100 (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, Atlantic China Welding Consumables, Inc generated revenue of 3.8B CNY at a net margin of 5.2%. Revenue grew 7.3% year over year. It earns a return on equity of 8.8%. The balance sheet holds a net cash position of 366M CNY. Fundamentals as of Aug 9, 2026

Our scenario range runs from ¥3.19 (bear case) to ¥5.33 (bull case); at ¥4.76, 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 32% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -11%, 600558 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 ¥3.00 ¥4.07 ¥5.52 80
Residual Income ¥2.21 ¥2.35 ¥2.52 76
Rev-Margin DCF ¥3.18 ¥4.76 ¥6.56 74
All 26 models by family
DCF Models
FCF DCF ¥2.96 ¥4.17 ¥5.92 38
Owner Earnings ¥3.41 ¥4.85 ¥6.94 31
5Y Revenue Exit ¥3.18 ¥4.76 ¥6.77 39
5Y EBITDA Exit ¥3.69 ¥5.71 ¥8.06 41
5Y P/E Exit ¥3.26 ¥4.91 ¥6.62 38
10Y Revenue Exit ¥2.99 ¥4.39 ¥6.25 36
10Y EBITDA Exit ¥3.39 ¥5.03 ¥7.20 37
10Y P/E Exit ¥3.12 ¥4.49 ¥6.14 35
Earnings-Based
Graham-Dodd ¥1.38 ¥4.17 ¥5.53 54
Lynch FV ¥0.8900 ¥1.27 ¥1.65 50
PEG = 1.0 ¥0.8900 ¥1.27 ¥1.65 46
EPV ¥3.16 ¥3.56 ¥3.91 59
Dividend Discount
Gordon GGM ¥1.34 ¥2.68 ¥4.05 70
DDM Multi-Stage ¥1.34 ¥2.16 ¥2.83 61
Multiples
P/E Multiple ¥3.20 ¥4.26 ¥5.33 63
P/S Multiple ¥2.59 ¥3.45 ¥4.31 58
P/B Multiple ¥2.59 ¥3.45 ¥4.31 55
EV/EBIT ¥4.59 ¥5.92 ¥7.25 53
EV/EBITDA ¥4.56 ¥5.88 ¥7.20 54
EV/Revenue ¥3.45 ¥4.67 ¥5.89 43
Asset-Based
NCAV (Graham) ¥1.35 ¥1.81 ¥2.70 50
Growth DCF
Growth DCF ¥3.00 ¥4.07 ¥5.52 80
Rev-Margin DCF ¥3.18 ¥4.76 ¥6.56 74
Economic Profit
Residual Income ¥2.21 ¥2.35 ¥2.52 76
ROIC Compounder ¥3.26 ¥3.92 ¥4.72 72
Growth Earnings
Growth-Adj P/E ¥2.62 ¥3.74 ¥4.86 68

Widest divergence: DCF Models (¥4.76) versus Earnings-Based (¥1.27). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 3.8B CNY
Revenue growth (YoY) +7.3%
Net margin 5.2%
Return on equity 8.8%
Free cash flow 198M CNY FY2025
P/E ratio 21.6
More key figures
Operating margin 7.2%
EPS (TTM) ¥0.2200
Dividend yield 3.5%
EPS growth (YoY) +36.2%
Net cash 366M CNY FY2024

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

Quality Score breakdown

Overall quality 69/100

Of which business quality 67 · Market factors (momentum, volatility) 32

Profitability 46
Margins and returns on capital today
Quality Growth 56
Are margins and returns improving?
Cashflow 51
Earnings quality: real cash, not paper profit
Fin. Strength 91
Balance sheet, leverage, solvency risk
Investment 92
Disciplined investing over empire-building
Low Volatility 76
Calm price path (market factor)
Momentum 15
Price trend over the last 3–12 months (market factor)
52W Momentum 12
Distance to the 52-week high (market factor)
Net Issuance 82
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

Atlantic China Welding Consumables, Inc. engages in the research and development, production, and sale of welding rods, welding wires, and fluxes in China and internationally.

Full company description

Atlantic China Welding Consumables, Inc. engages in the research and development, production, and sale of welding rods, welding wires, and fluxes in China and internationally. It offers carbon steel welding rods, low alloy steel welding rods, stainless steel welding rods, cladding welding rods, cast iron welding rods, nickel and nickel alloy welding rods, copper and copper alloy welding rods; welding wires for gas shielded welding of MAG, MIG, and TIG; solid, flux-cored welding wires, non-ferrous metal welding wires, and submerged arc welding wires; and smelting and sintering fluxes. The company's products are used in kitchen equipment, fitness equipment, pharmaceutical equipment, and transportation; infrastructure construction, including bridges, tunnel engineering, roads, railways, high-rise buildings, pipeline engineering, and port construction; and energy equipment construction. Atlantic China Welding Consumables, Inc. was founded in 1949 and is based in Zigong, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Atlantic China Welding Consumables, Inc reported revenue of ¥3.7B in FY2025 versus ¥3.4B in FY2021, a compound +1.9%/yr. Reported net income was ¥182M in FY2025, compounding +23.9%/yr from FY2021.

Growth Quality 62/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
3.7B CNY
Latest YoY
+4.3%
Avg. growth/yr (3Y)
+3.6%
Avg. growth/yr (5Y)
+4.3%
Avg. growth/yr (28Y)
+10.3%
Revenue +1.9%/yr
FY21 ¥3.4B
FY22 ¥3.3B
FY23 ¥3.4B
FY24 ¥3.6B
FY25 ¥3.7B
Net income +23.9%/yr
FY21 ¥77.4M
FY22 ¥68.1M
FY23 ¥101M
FY24 ¥155M
FY25 ¥182M

600558 screens 11% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Atlantic China Welding Consumables, Inc Fair Value". https://www.fairvalue-calculator.com/stock/600558

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 69 · Top 25%
Fair Value upside −11% · Above median
Return on equity (TTM) 9% · Above median
Return on assets 5% · Above median
Net margin (TTM) 5% · Below median
Operating margin (TTM) 7% · Below median
Revenue growth 7% · Above median
Dividend yield (TTM) 3.5% · Top 25%

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 21.6× · Cheaper than median
P/B 1.76× · Cheaper than median
P/S (TTM) 1.13× · Cheaper than median
P/FCF 3.2× · Cheaper than median
EV/EBITDA 10.9× · 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 19 · sector 0
FUTURE 37 · sector 23
PAST 35 · sector 28
HEALTH 100 · sector 96
DIVIDEND 71 · 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 Aug 9, 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 Atlantic China Welding Consumables, Inc (600558) overvalued or undervalued?
As of Aug 9, 2026, our model estimates a fair value of ¥4.26 versus a price of ¥4.76, about −11% (overvalued).
What is the fair value of 600558?
Our model-based fair value for Atlantic China Welding Consumables, Inc is ¥4.26 (as of Aug 9, 2026), built from audited fundamentals. The current price is ¥4.76.
What is the quality score of 600558?
Atlantic China Welding Consumables, Inc has a Quality Score of 69/100. 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 Atlantic China Welding Consumables, Inc (600558)?
Atlantic China Welding Consumables, Inc reported trailing-twelve-month revenue of about 3.8B CNY (latest available figure, as of Aug 9, 2026).
What is the net profit margin of 600558?
The net profit margin of Atlantic China Welding Consumables, Inc is about 5.2%, meaning it keeps roughly 5.2% of revenue as net income. Based on the latest reported figures.
Does Atlantic China Welding Consumables, Inc pay a dividend?
Atlantic China Welding Consumables, Inc currently shows a dividend yield of about 3.14% relative to its recent price (as of Aug 9, 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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