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Shanghai Mechanical & Electrical Industry Co (600835) Fair Value & Analysis

Industrials · CN · Market cap 19.2B CNY

SM Shanghai Mechanical & Electrical Industry Co 600835 · SHG
Price¥19.06
Fair Value¥16.27
Upside-14.6%
Quality60/100
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Weak Growth
Thin margins · 4.0% net margin
Low debt · generates free cash flow
1.89% dividend yield
Ranks above peers (10/15)
Narrow moat 34/100
Evidence: Medium Range ¥12.20 – ¥20.34 Share as image

Fair value as of: Aug 8, 2026

From 26 valuation models · updated 2 days ago

Share price −9.4% over the past month.

A solid business, but screening 15% overvalued on our models.

What matters now

  • Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
  • Our model range runs from ¥12.20 (bear) to ¥20.34 (bull), base ¥16.27. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 60/100 (solid quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

¥33.00 ¥10.25 Fair Value ¥16.27 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 ¥10.25 – ¥33.00 · fair‑value band ¥12.20 – ¥20.34 · the ¥19.06 price screens above the ¥16.27 fair value. Dashed = 300-day average. As of Aug 8, 2026.

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Analysis

Shanghai Mechanical & Electrical Industry Co (600835) currently trades at ¥19.06, while our model-based Fair Value estimate is ¥16.27, implying the stock looks roughly 14.6% overvalued today. The Quality Score stands at 60/100 (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, Shanghai Mechanical & Electrical Industry Co generated revenue of 19.3B CNY at a net margin of 4.0%. Revenue grew 1.1% year over year. It earns a return on equity of 6.9%. The balance sheet holds a net cash position of 13.3B CNY. Fundamentals as of Aug 8, 2026

Our scenario range runs from ¥12.20 (bear case) to ¥20.34 (bull case); at ¥19.06, 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 44% below its 52-week high and 2% 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 -15%, 600835 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 ¥25.99 ¥33.87 ¥46.45 80
Residual Income ¥10.79 ¥11.11 ¥11.09 76
Rev-Margin DCF ¥19.83 ¥22.68 ¥26.16 74
All 26 models by family
DCF Models
FCF DCF ¥25.88 ¥33.96 ¥46.90 38
Owner Earnings ¥24.25 ¥31.27 ¥42.53 31
5Y Revenue Exit ¥19.83 ¥22.54 ¥25.86 39
5Y EBITDA Exit ¥21.57 ¥25.90 ¥30.96 41
5Y P/E Exit ¥24.88 ¥32.34 ¥40.37 38
10Y Revenue Exit ¥21.74 ¥24.83 ¥28.84 36
10Y EBITDA Exit ¥22.97 ¥27.21 ¥32.87 37
10Y P/E Exit ¥25.12 ¥31.77 ¥40.30 35
Earnings-Based
Graham-Dodd ¥5.27 ¥19.35 ¥26.13 54
Lynch FV ¥4.62 ¥6.60 ¥8.58 50
PEG = 1.0 ¥4.62 ¥6.60 ¥8.58 46
EPV ¥15.94 ¥16.37 ¥16.74 59
Dividend Discount
Gordon GGM ¥3.86 ¥8.02 ¥12.72 70
DDM Multi-Stage ¥3.86 ¥6.76 ¥8.42 61
Multiples
P/E Multiple ¥12.20 ¥16.27 ¥20.34 63
P/S Multiple ¥9.88 ¥13.17 ¥16.47 58
P/B Multiple ¥9.88 ¥13.17 ¥16.47 55
EV/EBIT ¥18.27 ¥19.90 ¥21.53 53
EV/EBITDA ¥20.02 ¥22.23 ¥24.45 54
EV/Revenue ¥16.87 ¥18.36 ¥19.86 43
Asset-Based
NCAV (Graham) ¥6.87 ¥9.21 ¥13.75 50
Growth DCF
Growth DCF ¥25.99 ¥33.87 ¥46.45 80
Rev-Margin DCF ¥19.83 ¥22.68 ¥26.16 74
Economic Profit
Residual Income ¥10.79 ¥11.11 ¥11.09 76
ROIC Compounder ¥16.07 ¥16.67 ¥17.31 72
Growth Earnings
Growth-Adj P/E ¥8.66 ¥12.37 ¥16.08 68

Widest divergence: DCF Models (¥27.21) versus Earnings-Based (¥6.60). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 19.3B CNY
Revenue growth (YoY) +1.1%
Net margin 4.0%
Return on equity 6.9%
Free cash flow 1.1B CNY FY2025
P/E ratio 25.8
More key figures
Operating margin 5.9%
EPS (TTM) ¥0.7400
Dividend yield 1.9%
EPS growth (YoY) -15.0%
Net cash 13.3B 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 60 · Market factors (momentum, volatility) 29

Profitability 28
Margins and returns on capital today
Quality Growth 32
Are margins and returns improving?
Cashflow 56
Earnings quality: real cash, not paper profit
Fin. Strength 82
Balance sheet, leverage, solvency risk
Investment 95
Disciplined investing over empire-building
Low Volatility 66
Calm price path (market factor)
Momentum 15
Price trend over the last 3–12 months (market factor)
52W Momentum 10
Distance to the 52-week high (market factor)
Net Issuance 80
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

Shanghai Mechanical & Electrical Industry Co.,Ltd., together with its subsidiaries, designs and manufactures mechatronic products and equipment in China and internationally. It operates in four segments: Elevator Business, Printing and Packaging Machinery Business, Hydraulic Machinery Business, and Energy Engineering Business.

Full company description

Shanghai Mechanical & Electrical Industry Co.,Ltd., together with its subsidiaries, designs and manufactures mechatronic products and equipment in China and internationally. It operates in four segments: Elevator Business, Printing and Packaging Machinery Business, Hydraulic Machinery Business, and Energy Engineering Business. The company offers elevators and escalators; printing and packaging machinery and equipment and spare parts, and printing and packaging machinery raw and auxiliary materials and instruments; and hydraulic pumps, hydraulic valves, hydraulic equipment sets, and pressure reducers. It also provides welding wires and electrodes, surfacing and cast iron welding electrodes, brazing materials, thermal spraying powders, and fluxes and alloy materials; construction machinery, pile drivers, mechanical construction drilling rigs, hydrological well drilling rigs, geological exploration equipment, and mining machinery; electric actuators for automotive seat adjusters and window regulators, cooling fan assemblies, and blowers; and air conditioners and fuel-fired heaters. In addition, the company is involved in technology research, development, and system integration for building energy conservation; sale of self-produced products; provision of related after-sales services; repair and maintenance; construction and installation; and project investment. It exports its products. The company was formerly known as Shanghai Shangling Electric Co., Ltd. and changed its name to Shanghai Mechanical & Electrical Industry Co.,Ltd. in January 2003. Shanghai Mechanical & Electrical Industry Co.,Ltd. was founded in 1993 and is based in Shanghai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shanghai Mechanical & Electrical Industry Co reported revenue of ¥19.2B in FY2025 versus ¥24.7B in FY2021, a compound −6.1%/yr. Reported net income was ¥792M in FY2025, compounding −0.6%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
19.2B CNY
Latest YoY
−7.0%
Avg. growth/yr (3Y)
−6.5%
Avg. growth/yr (5Y)
−3.8%
Avg. growth/yr (35Y)
+10.7%
Revenue −6.1%/yr
FY21 ¥24.7B
FY22 ¥23.6B
FY23 ¥22.3B
FY24 ¥20.7B
FY25 ¥19.2B
Net income −0.6%/yr
FY21 ¥811M
FY22 ¥981M
FY23 ¥1,000M
FY24 ¥937M
FY25 ¥792M

600835 screens 15% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Shanghai Mechanical & Electrical Industry Co Fair Value". https://www.fairvalue-calculator.com/stock/600835

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 60 · Above median
Fair Value upside −15% · Above median
Return on equity (TTM) 7% · Below median
Return on assets 1% · Below median
Net margin (TTM) 4% · Below median
Operating margin (TTM) 6% · Below median
Revenue growth 1% · Below median
Dividend yield (TTM) 1.9% · Above median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 25.8× · Cheaper than median
P/B 1.37× · Cheaper than median
P/S (TTM) 0.99× · Cheaper than median
P/FCF 2.6× · Cheaper than median
EV/EBITDA 5.9× · Cheaper than 75% of peers
PEG 0.61× · 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 14 · sector 0
FUTURE 6 · sector 23
PAST 28 · sector 28
HEALTH 100 · sector 96
DIVIDEND 38 · 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 8, 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 Shanghai Mechanical & Electrical Industry Co (600835) overvalued or undervalued?
As of Aug 8, 2026, our model estimates a fair value of ¥16.27 versus a price of ¥19.06, about −15% (overvalued).
What is the fair value of 600835?
Our model-based fair value for Shanghai Mechanical & Electrical Industry Co is ¥16.27 (as of Aug 8, 2026), built from audited fundamentals. The current price is ¥19.06.
What is the quality score of 600835?
Shanghai Mechanical & Electrical Industry 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 Shanghai Mechanical & Electrical Industry Co (600835)?
Shanghai Mechanical & Electrical Industry Co reported trailing-twelve-month revenue of about 19.3B CNY (latest available figure, as of Aug 8, 2026).
What is the net profit margin of 600835?
The net profit margin of Shanghai Mechanical & Electrical Industry Co is about 4.0%, meaning it keeps roughly 4.0% of revenue as net income. Based on the latest reported figures.
Does Shanghai Mechanical & Electrical Industry Co pay a dividend?
Shanghai Mechanical & Electrical Industry Co currently shows a dividend yield of about 1.82% 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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