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CSSC Offshore & Marine Engineering (Group) Company (600685) Fair Value & Analysis

Industrials · CN · Market cap 36.9B CNY

CO CSSC Offshore & Marine Engineering (Group) Company 600685 · SHG
Price¥26.12
Fair Value¥12.15
Upside-53.5%
Quality48/100
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Expensive Growth
Thin margins · 5.4% net margin
Low debt · negative free cash flow
0.82% dividend yield
Mixed vs. peers (8/14)
Narrow moat 31/100
Evidence: Medium Range ¥10.96 – ¥15.16 Share as image

Fair value as of: Aug 9, 2026

From 17 valuation models · updated yesterday

Fair value updated Aug 9, 2026, revised from ¥12.17 to ¥12.15 (−0.2%) since Jul 5, 2026. Share price +0.5% over the past month.

Below-average quality, and screening another 53% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥15.16). The favourable scenario is already priced in.
  • Solid but not exceptional quality (48/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥37.46 ¥13.28 Fair Value ¥12.15 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 ¥13.28 – ¥37.46 · fair‑value band ¥10.96 – ¥15.16 · the ¥26.12 price screens above the ¥12.15 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 9, 2026.

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Analysis

CSSC Offshore & Marine Engineering (Group) Company (600685) currently trades at ¥26.12, while our model-based Fair Value estimate is ¥12.15, implying the stock looks roughly 53.5% overvalued today. The Quality Score stands at 48/100 (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, CSSC Offshore & Marine Engineering (Group) Company generated revenue of 22.6B CNY at a net margin of 5.4%. Revenue grew 56.1% year over year. It earns a return on equity of 6.6%. The balance sheet holds a net cash position of 10.5B CNY. Fundamentals as of Aug 9, 2026

Our scenario range runs from ¥10.96 (bear case) to ¥15.16 (bull case); at ¥26.12, 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 32% below its 52-week high and 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -59% fair-value upside, at -53%, 600685 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
Residual Income ¥10.04 ¥10.26 ¥10.14 76
ROIC Compounder ¥10.63 ¥11.03 ¥11.38 72
Gordon GGM ¥2.06 ¥4.29 ¥6.80 70
All 17 models by family
DCF Models
Owner Earnings ¥19.12 ¥27.66 ¥42.33 31
Earnings-Based
Graham-Dodd ¥4.85 ¥21.79 ¥29.86 54
Lynch FV ¥5.68 ¥8.11 ¥10.54 50
PEG = 1.0 ¥5.68 ¥8.11 ¥10.54 46
EPV ¥10.63 ¥11.03 ¥11.38 59
Dividend Discount
Gordon GGM ¥2.06 ¥4.29 ¥6.80 70
DDM Multi-Stage ¥2.06 ¥3.62 ¥4.50 61
Multiples
P/E Multiple ¥11.23 ¥14.98 ¥18.72 63
P/S Multiple ¥9.09 ¥12.13 ¥15.16 58
P/B Multiple ¥9.09 ¥12.13 ¥15.16 55
EV/EBIT ¥11.80 ¥12.98 ¥14.17 53
EV/EBITDA ¥14.30 ¥16.33 ¥18.35 54
EV/Revenue ¥10.78 ¥11.87 ¥12.96 43
Asset-Based
NCAV (Graham) ¥6.45 ¥8.64 ¥12.90 50
Economic Profit
Residual Income ¥10.04 ¥10.26 ¥10.14 76
ROIC Compounder ¥10.63 ¥11.03 ¥11.38 72
Growth Earnings
Growth-Adj P/E ¥9.24 ¥13.19 ¥17.15 68

Widest divergence: DCF Models (¥27.66) versus Dividend Discount (¥3.62). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 22.6B CNY
Revenue growth (YoY) +56.1%
Net margin 5.4%
Return on equity 6.6%
Free cash flow −607M CNY FY2025
P/E ratio 31.4
More key figures
Operating margin 2.0%
EPS (TTM) ¥0.8600
Dividend yield 0.8%
EPS growth (YoY) +115%
Net cash 10.5B CNY FY2024

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

Quality Score breakdown

Overall quality 48/100

Of which business quality 44 · Market factors (momentum, volatility) 25

Profitability 23
Margins and returns on capital today
Quality Growth 58
Are margins and returns improving?
Cashflow 8
Earnings quality: real cash, not paper profit
Fin. Strength 47
Balance sheet, leverage, solvency risk
Investment 80
Disciplined investing over empire-building
Low Volatility 35
Calm price path (market factor)
Momentum 22
Price trend over the last 3–12 months (market factor)
52W Momentum 21
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

CSSC Offshore & Marine Engineering (Group) Company Limited manufactures and sells marine and defense equipment in the People's Republic of China, other regions in Asia, Europe, Oceania, North America, South America, and Africa. It operates through Defense Industry, Shipbuilding and Marine Industry, and Emerging Industries segments.

Full company description

CSSC Offshore & Marine Engineering (Group) Company Limited manufactures and sells marine and defense equipment in the People's Republic of China, other regions in Asia, Europe, Oceania, North America, South America, and Africa. It operates through Defense Industry, Shipbuilding and Marine Industry, and Emerging Industries segments. The company provides defense equipment products, such as military ships, coast guard equipment, and official ships; marine and offshore products, including feeder container ships, bulk carriers, small and medium-sized gas carriers, dredging ships, and offshore engineering and wind power installation platforms; and energy equipment, high-end steel structures, engineering machinery, and industrial internet platforms. The company was formerly known as Guangzhou Shipyard International Company Limited and changed its name to CSSC Offshore & Marine Engineering (Group) Company Limited in June 2015. The company was founded in 1993 and is headquartered in Guangzhou, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

CSSC Offshore & Marine Engineering (Group) Company reported revenue of ¥20.5B in FY2025 versus ¥11.7B in FY2021, a compound +15.2%/yr. Reported net income was ¥1.0B in FY2025, compounding +88.8%/yr from FY2021.

Growth Quality 54/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
20.5B CNY
Latest YoY
+5.9%
Avg. growth/yr (3Y)
+17.1%
Avg. growth/yr (5Y)
+12.1%
Avg. growth/yr (35Y)
+11.7%
Revenue +15.2%/yr
FY21 ¥11.7B
FY22 ¥12.8B
FY23 ¥16.1B
FY24 ¥19.4B
FY25 ¥20.5B
Net income +88.8%/yr
FY21 ¥79.4M
FY22 ¥688M
FY23 ¥48.1M
FY24 ¥377M
FY25 ¥1.0B

600685 screens 53% overvalued. Compare with General Electric Company →

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Cite: Fair Value Calculator (2026). "CSSC Offshore & Marine Engineering (Group) Company Fair Value". https://www.fairvalue-calculator.com/stock/600685

Peer Group

Aerospace & Defense · 226 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 48 · Below median
Fair Value upside −54% · Above median
Return on equity (TTM) 7% · Below median
Return on assets 0% · Bottom 25%
Net margin (TTM) 5% · Below median
Operating margin (TTM) 2% · Bottom 25%
Revenue growth 56% · Top 25%
Dividend yield (TTM) 0.8% · Above median
Debt / equity 0.12× · Lower than median

Valuation Multiples vs Aerospace & Defense median · lower = cheaper

P/E (TTM) 30.4× · Cheaper than median
P/B 2.02× · Cheaper than median
P/S (TTM) 1.63× · Cheaper than median
EV/EBITDA 41.7× · Pricier than 75% of peers
PEG 0.30× · 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 0 · sector 0
FUTURE 100 · sector 46
PAST 26 · sector 38
HEALTH 94 · sector 94
DIVIDEND 16 · sector 15

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.

Weapons Defense

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate (as of Aug 9, 2026).

Stock Price Fair Value vs Fair Value
General Electric Company GE $381.22 $116.71 -69%
RTX Corporation RTX $195.93 $88.37 -55%
Airbus SE 1AIR €213.25 €86.20 -60%
The Boeing Company BA $217.11 $48.20 -78%
China CSSC Holdings 600150 ¥34.31 ¥21.90 -36%
HD Hyundai Heavy Industries Co 329180 466,000 KRW 272,966 KRW -41%
Hanwha Aerospace Co 012450 967,000 KRW 573,468 KRW -41%
ASELSAN Elektronik Sanayi ve Ticaret Anonim Sirketi ASELS 337.50 TRY 130.70 TRY -61%
Saab AB SAABB kr 520.40 kr 212.84 -59%
Kongsberg Gruppen ASA KOG kr 277.50 kr 106.93 -61%

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Frequently asked questions

Is CSSC Offshore & Marine Engineering (Group) Company (600685) overvalued or undervalued?
As of Aug 9, 2026, our model estimates a fair value of ¥12.15 versus a price of ¥26.12, about −53% (overvalued).
What is the fair value of 600685?
Our model-based fair value for CSSC Offshore & Marine Engineering (Group) Company is ¥12.15 (as of Aug 9, 2026), built from audited fundamentals. The current price is ¥26.12.
What is the quality score of 600685?
CSSC Offshore & Marine Engineering (Group) Company has a Quality Score of 48/100. 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 CSSC Offshore & Marine Engineering (Group) Company (600685)?
CSSC Offshore & Marine Engineering (Group) Company reported trailing-twelve-month revenue of about 22.6B CNY (latest available figure, as of Aug 9, 2026).
What is the net profit margin of 600685?
The net profit margin of CSSC Offshore & Marine Engineering (Group) Company is about 5.4%, meaning it keeps roughly 5.4% of revenue as net income. Based on the latest reported figures.
Does CSSC Offshore & Marine Engineering (Group) Company pay a dividend?
CSSC Offshore & Marine Engineering (Group) Company currently shows a dividend yield of about 0.83% 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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