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Wuchan Zhongda Group (600704) Fair Value & Analysis

Industrials · CN · Market cap 25.7B CNY

WZ Wuchan Zhongda Group 600704 · SHG
Price¥4.98
Fair Value¥7.85
Upside+57.6%
Quality44/100
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Mixed Growth
Thin margins · 0.6% net margin
Low debt · negative free cash flow
4.38% dividend yield
Mixed vs. peers (7/13)
Narrow moat 26/100
Evidence: Medium Range ¥7.25 – ¥9.55 Share as image

Fair value as of: Aug 9, 2026

From 9 valuation models · updated 2 days ago

Fair value updated Aug 9, 2026, revised from ¥9.94 to ¥7.85 (−21.0%) since Jul 25, 2026. Share price +4.0% over the past month.

Below-average quality, screening 58% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (44/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (¥7.25). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

¥10.94 ¥3.95 Fair Value ¥7.85 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 ¥3.95 – ¥10.94 · fair‑value band ¥7.25 – ¥9.55 · the ¥4.98 price screens below the ¥7.85 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

Wuchan Zhongda Group (600704) currently trades at ¥4.98, while our model-based Fair Value estimate is ¥7.85, implying the stock looks roughly 57.6% undervalued today. The Quality Score stands at 44/100 (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, Wuchan Zhongda Group generated revenue of 598B CNY at a net margin of 0.6%. Revenue grew 0.8% year over year. It earns a return on equity of 8.8%. Net debt stands at 19.5B CNY. Fundamentals as of Aug 9, 2026

Our scenario range runs from ¥7.25 (bear case) to ¥9.55 (bull case); at ¥4.98, 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 23% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -14% fair-value upside, at 58%, 600704 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 Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ¥7.17 ¥7.74 ¥9.04 76
Gordon GGM ¥4.61 ¥9.58 ¥15.20 70
P/E Multiple ¥11.56 ¥15.41 ¥19.27 63
All 9 models by family
DCF Models
Owner Earnings ¥12.98 ¥25.23 ¥50.93 31
Earnings-Based
Graham-Dodd ¥4.76 ¥33.23 ¥46.63 54
Lynch FV ¥12.33 ¥17.61 ¥22.90 50
Dividend Discount
Gordon GGM ¥4.61 ¥9.58 ¥15.20 70
DDM Multi-Stage ¥4.61 ¥8.08 ¥10.06 61
Multiples
P/E Multiple ¥11.56 ¥15.41 ¥19.27 63
P/B Multiple ¥8.93 ¥11.91 ¥14.89 55
Asset-Based
NCAV (Graham) ¥4.24 ¥5.68 ¥8.48 50
Economic Profit
Residual Income ¥7.17 ¥7.74 ¥9.04 76

Widest divergence: DCF Models (¥25.23) versus Asset-Based (¥5.68). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 598B CNY
Revenue growth (YoY) +0.8%
Net margin 0.6%
Return on equity 8.8%
Free cash flow −10.0B CNY FY2025
P/E ratio 7.2
More key figures
Operating margin 2.0%
EPS (TTM) ¥0.6900
Dividend yield 4.4%
Net debt 19.5B CNY FY2025

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

Quality Score breakdown

Overall quality 44/100

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

Profitability 39
Margins and returns on capital today
Quality Growth 33
Are margins and returns improving?
Cashflow 11
Earnings quality: real cash, not paper profit
Fin. Strength 48
Balance sheet, leverage, solvency risk
Investment 66
Disciplined investing over empire-building
Low Volatility 90
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 20
Distance to the 52-week high (market factor)
Net Issuance 88
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

Wuchan Zhongda Group Co.,Ltd., together with its subsidiaries, provides bulk commodity supply chain integration services in China and internationally. It operates through Supply chain integration services, Financial Services Business, and High-end industrial business segments.

Full company description

Wuchan Zhongda Group Co.,Ltd., together with its subsidiaries, provides bulk commodity supply chain integration services in China and internationally. It operates through Supply chain integration services, Financial Services Business, and High-end industrial business segments. The company offers metal materials, car, energy, rubber, and chemical industry; financial leasing, futures brokerage, financial futures brokerage, futures investment consulting, asset management, wealth management, and risk management, as well as trading platform. It also provides thermoelectric, medical services, utilities, wire and cables, stainless steel, motor core, and construction services. Wuchan Zhongda Group Co.,Ltd. was founded in 1992 and is based in Hangzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Wuchan Zhongda Group reported revenue of ¥596B in FY2025 versus ¥563B in FY2021, a compound +1.5%/yr. Reported net income was ¥3.6B in FY2025, compounding −2.4%/yr from FY2021.

Growth Quality 30/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
596B CNY
Latest YoY
−0.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.1%
Avg. growth/yr (32Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+22.3%
Revenue +1.5%/yr
FY21 ¥563B
FY22 ¥577B
FY23 ¥580B
FY24 ¥600B
FY25 ¥596B
Net income −2.4%/yr
FY21 ¥4.0B
FY22 ¥3.9B
FY23 ¥3.6B
FY24 ¥3.1B
FY25 ¥3.6B
Character of growth · EPS growth decomposed (2013-2024) +8.8 % p.a.
Revenue per share +10.4 pp

of which total revenue +16.7 pp · buybacks/dilution −6.3 pp

EBIT margin +1.3 pp
Tax rate −0.2 pp
Residual (interest, one-offs) −2.7 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Wuchan Zhongda Group Fair Value". https://www.fairvalue-calculator.com/stock/600704

Peer Group

Conglomerates · 369 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 44 · Below median
Fair Value upside +58% · Top 25%
Return on equity (TTM) 9% · Above median
Return on assets 1% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 2% · Below median
Revenue growth 1% · Below median
Dividend yield (TTM) 4.4% · Top 25%
Debt / equity 0.25× · Higher than median

Valuation Multiples vs Conglomerates median · lower = cheaper

P/E (TTM) 7.2× · Cheaper than 75% of peers
P/B 0.59× · Cheaper than median
P/S (TTM) 0.04× · Cheaper than 75% of peers
EV/EBITDA 1.3× · 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 4 · sector 16
PAST 35 · sector 20
HEALTH 87 · sector 88
DIVIDEND 88 · sector 39

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.

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Frequently asked questions

Is Wuchan Zhongda Group (600704) overvalued or undervalued?
As of Aug 9, 2026, our model estimates a fair value of ¥7.85 versus a price of ¥4.98, about +58% (undervalued).
What is the fair value of 600704?
Our model-based fair value for Wuchan Zhongda Group is ¥7.85 (as of Aug 9, 2026), built from audited fundamentals. The current price is ¥4.98.
What is the quality score of 600704?
Wuchan Zhongda Group has a Quality Score of 44/100. 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 Wuchan Zhongda Group (600704)?
Wuchan Zhongda Group reported trailing-twelve-month revenue of about 598B CNY (latest available figure, as of Aug 9, 2026).
What is the net profit margin of 600704?
The net profit margin of Wuchan Zhongda Group is about 0.6%, meaning it keeps roughly 0.6% of revenue as net income. Based on the latest reported figures.
Does Wuchan Zhongda Group pay a dividend?
Wuchan Zhongda Group currently shows a dividend yield of about 4.71% 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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