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AVIC Heavy Machinery Co (600765) Fair Value & Analysis

Industrials · CN · Market cap 20.9B CNY

AH AVIC Heavy Machinery Co 600765 · SHG
Price¥13.44
Fair Value¥12.05
Upside-10.4%
Quality36/100
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Expensive Growth
Thin margins · 5.5% net margin
Low debt · negative free cash flow
0.06% dividend yield
Mixed vs. peers (6/13)
Narrow moat 38/100
Evidence: Medium Range ¥8.45 – ¥15.64 Share as image

Fair value as of: Aug 9, 2026

From 17 valuation models · updated yesterday

Fair value updated Aug 9, 2026, revised from ¥7.74 to ¥12.05 (+55.6%) since Jul 11, 2026. Share price +5.3% over the past month.

Below-average quality, and screening another 10% overvalued on our models.

What matters now

  • A fairly wide model range (¥8.45 to ¥15.64) leaves room in how you read the outcome.
  • Our model range runs from ¥8.45 (bear) to ¥15.64 (bull), base ¥12.05. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 36/100 (below-average quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

¥35.78 ¥11.08 Fair Value ¥12.05 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 ¥11.08 – ¥35.78 · fair‑value band ¥8.45 – ¥15.64 · the ¥13.44 price screens above the ¥12.05 fair value. Dashed = 300-day average. As of Aug 9, 2026.

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Analysis

AVIC Heavy Machinery Co (600765) currently trades at ¥13.44, while our model-based Fair Value estimate is ¥12.05, implying the stock looks roughly 10.4% overvalued today. The Quality Score stands at 36/100 (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, AVIC Heavy Machinery Co generated revenue of 10.3B CNY at a net margin of 5.5%. Revenue grew 6.5% year over year. It earns a return on equity of 4.8%. Net debt stands at 2.3B CNY. Fundamentals as of Aug 9, 2026

Our scenario range runs from ¥8.45 (bear case) to ¥15.64 (bull case); at ¥13.44, 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 39% below its 52-week high and 3% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -10%, 600765 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 ¥6.87 ¥6.86 ¥6.31 76
ROIC Compounder ¥6.26 ¥7.02 ¥7.69 72
Gordon GGM ¥1.31 ¥2.72 ¥4.32 70
All 17 models by family
DCF Models
Owner Earnings ¥5.46 ¥9.91 ¥18.95 31
Earnings-Based
Graham-Dodd ¥2.67 ¥17.45 ¥24.42 54
Lynch FV ¥5.08 ¥7.25 ¥9.43 50
PEG = 1.0 ¥5.08 ¥7.25 ¥9.43 46
EPV ¥6.26 ¥7.02 ¥7.69 59
Dividend Discount
Gordon GGM ¥1.31 ¥2.72 ¥4.32 70
DDM Multi-Stage ¥1.31 ¥2.29 ¥2.85 61
Multiples
P/E Multiple ¥6.18 ¥8.24 ¥10.29 63
P/S Multiple ¥5.00 ¥6.67 ¥8.33 58
P/B Multiple ¥5.00 ¥6.67 ¥8.33 55
EV/EBIT ¥8.62 ¥10.92 ¥13.23 53
EV/EBITDA ¥10.83 ¥13.88 ¥16.92 54
EV/Revenue ¥6.63 ¥8.75 ¥10.87 43
Asset-Based
NCAV (Graham) ¥4.57 ¥6.12 ¥9.13 50
Economic Profit
Residual Income ¥6.87 ¥6.86 ¥6.31 76
ROIC Compounder ¥6.26 ¥7.02 ¥7.69 72
Growth Earnings
Growth-Adj P/E ¥7.12 ¥10.17 ¥13.22 68

Widest divergence: Growth Earnings (¥10.17) versus Dividend Discount (¥2.29). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 10.3B CNY
Revenue growth (YoY) +6.5%
Net margin 5.5%
Return on equity 4.8%
Free cash flow −2.0B CNY FY2025
P/E ratio 38.9
More key figures
Operating margin 15.3%
EPS (TTM) ¥0.3600
Dividend yield 0.1%
EPS growth (YoY) -23.1%
Net debt 2.3B CNY FY2025

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

Quality Score breakdown

Overall quality 36/100

Of which business quality 35 · Market factors (momentum, volatility) 30

Profitability 24
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 58
Balance sheet, leverage, solvency risk
Investment 47
Disciplined investing over empire-building
Low Volatility 78
Calm price path (market factor)
Momentum 10
Price trend over the last 3–12 months (market factor)
52W Momentum 9
Distance to the 52-week high (market factor)
Net Issuance 40
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

AVIC Heavy Machinery Co., Ltd. engages in forging, casting, hydraulic environmental control and other business in China.

Full company description

AVIC Heavy Machinery Co., Ltd. engages in forging, casting, hydraulic environmental control and other business in China. The company is involved in the production of die, free, isothermal, and ring forging, which consist of aircraft beams; frames; joints; hangings; landing gear and other structural parts; aircraft engines and gas turbine discs; rotating parts, such as discs and shafts; and still parts such as receivers and mounting edges; missile engine and rocket engine forgings; and other civilian forgings for aviation, and other military and civilian uses. Its forging products are primarily used in aviation, aerospace, ships, weapons, electric power, petrochemical, railway, automobile, mining, construction machinery, and other fields. It is also involved in the research, development, and production of aerospace castings, investment in precision casting, metal mold casting, centrifugal casting, etc.; and alloy casting, such as high-temperature alloys, aluminum alloys, titanium alloys, magnesium alloys, etc.; and military and civilian high-pressure piston pump products. In addition, the company manufactures aviation environmental control accessories and civil heat exchangers, including heat exchangers, high-speed rotating machinery, lubricating oil tanks, cooling devices, and high-temperature insulation components for hydraulic systems and lubrication systems used in engineering machinery, air compressors, wind power, medical treatment, and high-speed rail industries. It also exports its products to Europe, the Americas, Oceania, and the Asia-Pacific region. AVIC Heavy Machinery Co., Ltd. was incorporated in 1996 and is headquartered in Guiyang, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

AVIC Heavy Machinery Co reported revenue of ¥10.1B in FY2025 versus ¥8.8B in FY2021, a compound +3.6%/yr. Reported net income was ¥609M in FY2025, compounding −9.1%/yr from FY2021.

Growth Quality 39/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
10.1B CNY
Latest YoY
−2.3%
Avg. growth/yr (3Y)
−1.5%
Avg. growth/yr (5Y)
+8.6%
Avg. growth/yr (32Y)
+17.7%
Revenue +3.6%/yr
FY21 ¥8.8B
FY22 ¥10.6B
FY23 ¥11.6B
FY24 ¥10.4B
FY25 ¥10.1B
Net income −9.1%/yr
FY21 ¥891M
FY22 ¥1.2B
FY23 ¥1.3B
FY24 ¥640M
FY25 ¥609M

600765 screens 10% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "AVIC Heavy Machinery Co Fair Value". https://www.fairvalue-calculator.com/stock/600765

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 36 · Bottom 25%
Fair Value upside −10% · Above median
Return on equity (TTM) 5% · Below median
Return on assets 2% · Below median
Net margin (TTM) 6% · Below median
Operating margin (TTM) 15% · Top 25%
Revenue growth 7% · Above median
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 0.07× · Lower than median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 37.3× · Pricier than median
P/B 1.47× · Cheaper than median
P/S (TTM) 2.03× · Pricier than median
EV/EBITDA 13.0× · 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 33 · sector 23
PAST 19 · sector 28
HEALTH 97 · sector 96
DIVIDEND 1 · 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 AVIC Heavy Machinery Co (600765) overvalued or undervalued?
As of Aug 9, 2026, our model estimates a fair value of ¥12.05 versus a price of ¥13.44, about −10% (overvalued).
What is the fair value of 600765?
Our model-based fair value for AVIC Heavy Machinery Co is ¥12.05 (as of Aug 9, 2026), built from audited fundamentals. The current price is ¥13.44.
What is the quality score of 600765?
AVIC Heavy Machinery Co has a Quality Score of 36/100. 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 AVIC Heavy Machinery Co (600765)?
AVIC Heavy Machinery Co reported trailing-twelve-month revenue of about 10.3B CNY (latest available figure, as of Aug 9, 2026).
What is the net profit margin of 600765?
The net profit margin of AVIC Heavy Machinery Co is about 5.5%, meaning it keeps roughly 5.5% of revenue as net income. Based on the latest reported figures.
Does AVIC Heavy Machinery Co pay a dividend?
AVIC Heavy Machinery Co currently shows a dividend yield of about 0.06% 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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