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Dongfang Electric Corporation (600875) Fair Value & Analysis

Industrials · CN · Market cap 86.0B CNY

DE Dongfang Electric Corporation 600875 · SHG
Price¥27.31
Fair Value¥22.42
Upside-17.9%
Quality40/100
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Expensive Growth
Thin margins · 5.4% net margin
Low debt · negative free cash flow
1.57% dividend yield
Mixed vs. peers (7/14)
Narrow moat 39/100
Evidence: High Range ¥16.81 – ¥28.02 Share as image

Fair value as of: Jul 18, 2026

From 17 valuation models · updated 20 days ago

Share price −3.8% over the past month.

Below-average quality, and screening another 18% overvalued on our models.

What matters now

  • Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • Our model range runs from ¥16.81 (bear) to ¥28.02 (bull), base ¥22.42. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 40/100 (below-average quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥44.22 ¥9.81 Fair Value ¥22.42 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range ¥9.81 – ¥44.22 · fair‑value band ¥16.81 – ¥28.02 · the ¥27.31 price screens above the ¥22.42 fair value. Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Dongfang Electric Corporation (600875) currently trades at ¥27.31, while our model-based Fair Value estimate is ¥22.42, implying the stock looks roughly 17.9% overvalued today. We read business quality at 40/100 (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: high).

Over the trailing twelve months, Dongfang Electric Corporation generated revenue of 78.5B CNY at a net margin of 5.4%. Revenue grew 5.7% year over year. It earns a return on equity of 9.1%. The balance sheet holds a net cash position of 24.2B CNY. Fundamentals as of Jul 18, 2026

Our scenario range runs from ¥16.81 (bear case) to ¥28.02 (bull case); at ¥27.31, 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 40% below its 52-week high and 69% 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 -18%, 600875 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 ¥12.53 ¥13.56 ¥16.84 76
ROIC Compounder ¥25.92 ¥34.86 ¥47.56 72
Gordon GGM ¥4.39 ¥9.12 ¥14.46 70
All 17 models by family
DCF Models
Owner Earnings ¥9.35 ¥13.12 ¥20.55 31
Earnings-Based
Graham-Dodd ¥8.54 ¥52.78 ¥73.67 54
Lynch FV ¥15.16 ¥21.65 ¥28.15 50
PEG = 1.0 ¥15.16 ¥21.65 ¥28.15 46
EPV ¥22.39 ¥25.14 ¥27.53 59
Dividend Discount
Gordon GGM ¥4.39 ¥9.12 ¥14.46 70
DDM Multi-Stage ¥4.39 ¥7.69 ¥9.57 61
Multiples
P/E Multiple ¥18.84 ¥25.12 ¥31.40 63
P/S Multiple ¥16.01 ¥21.35 ¥26.69 58
P/B Multiple ¥16.01 ¥21.35 ¥26.69 55
EV/EBIT ¥31.90 ¥40.55 ¥49.21 53
EV/EBITDA ¥28.40 ¥35.89 ¥43.37 54
EV/Revenue ¥23.44 ¥30.94 ¥38.44 43
Asset-Based
NCAV (Graham) ¥7.41 ¥9.94 ¥14.83 50
Economic Profit
Residual Income ¥12.53 ¥13.56 ¥16.84 76
ROIC Compounder ¥25.92 ¥34.86 ¥47.56 72
Growth Earnings
Growth-Adj P/E ¥21.28 ¥30.40 ¥39.52 68

Widest divergence: Growth Earnings (¥30.40) versus Dividend Discount (¥7.69). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 78.5B CNY
Revenue growth (YoY) +5.7%
Net margin 5.4%
Return on equity 9.1%
Free cash flow −2.3B CNY FY2025
P/E ratio 20.1
More key figures
Operating margin 7.9%
EPS (TTM) ¥1.24
Dividend yield 1.6%
EPS growth (YoY) +24.3%
Net cash 24.2B CNY FY2024

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 37 · Market factors (momentum, volatility) 52

Profitability 29
Margins and returns on capital today
Quality Growth 60
Are margins and returns improving?
Cashflow 8
Earnings quality: real cash, not paper profit
Fin. Strength 57
Balance sheet, leverage, solvency risk
Investment 58
Disciplined investing over empire-building
Low Volatility 45
Calm price path (market factor)
Momentum 50
Price trend over the last 3–12 months (market factor)
52W Momentum 65
Distance to the 52-week high (market factor)
Net Issuance 22
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

Dongfang Electric Corporation Limited engages in the design, development, manufacture, and sale of power generation equipment in China and internationally.

Full company description

Dongfang Electric Corporation Limited engages in the design, development, manufacture, and sale of power generation equipment in China and internationally. The company operates in five segments: Renewable Energy Equipment, High-Efficient Clean Energy Equipment, Engineering and Supply Chain, Modern Manufacturing Services Business, and Emerging Growth Industries. It offers power generation equipment for wind, solar, hydro, nuclear, gas, and thermal power, including hydro-generating units, steam turbine generators, wind power units, power station steam turbines, and power station boilers. The company also provides engineering contracting and services to global energy operators; trade and logistics services; chemical containers; energy-saving and environmental protection equipment; power electronics and control systems; and hydrogen energy equipment. In addition, it offers science and technology promotion and application services, heat production, and research and experimental development services, as well as power generators, generating sets, and general equipment. The company was formerly known as Dongfang Electric Machinery Co., Ltd. and changed its name to Dongfang Electric Corporation Limited in January 2008. The company was founded in 1958 and is headquartered in Chengdu, the People's Republic of China. Dongfang Electric Corporation Limited operates as a subsidiary of Dongfang Electric Corporation.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Dongfang Electric Corporation reported revenue of ¥78.6B in FY2025 versus ¥46.8B in FY2021, a compound +13.9%/yr. Reported net income was ¥3.8B in FY2025, compounding +13.7%/yr from FY2021.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
78.6B CNY
Latest YoY
+14.6%
Avg. growth/yr (3Y)
+13.2%
Avg. growth/yr (5Y)
+16.8%
Avg. growth/yr (31Y)
+18.6%
Revenue +13.9%/yr
FY21 ¥46.8B
FY22 ¥54.2B
FY23 ¥59.6B
FY24 ¥68.6B
FY25 ¥78.6B
Net income +13.7%/yr
FY21 ¥2.3B
FY22 ¥2.9B
FY23 ¥3.6B
FY24 ¥2.9B
FY25 ¥3.8B

600875 screens 18% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Dongfang Electric Corporation Fair Value". https://www.fairvalue-calculator.com/stock/600875

Peer Group

Specialty Industrial Machinery · 807 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 40 · Bottom 25%
Fair Value upside −18% · Above median
Return on equity (TTM) 9% · Above median
Return on assets 1% · Below median
Net margin (TTM) 5% · Below median
Operating margin (TTM) 8% · Below median
Revenue growth 6% · Above median
Dividend yield (TTM) 1.6% · Above median
Debt / equity 0.10× · Higher than median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 20.1× · Cheaper than median
P/B 1.90× · Cheaper than median
P/S (TTM) 1.10× · Cheaper than median
EV/EBITDA 17.6× · Pricier than median
PEG 3.18× · Pricier 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 9 · sector 0
FUTURE 29 · sector 23
PAST 37 · sector 28
HEALTH 95 · sector 96
DIVIDEND 31 · sector 24

Insider activity: 30/100

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 Jul 18, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €967.60 €212.97 -78%
1SIE 1SIE €284.30 €122.46 -57%
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%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%

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Frequently asked questions

Is Dongfang Electric Corporation (600875) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of ¥22.42 versus a price of ¥27.31, about −18% (overvalued).
What is the fair value of 600875?
Our model-based fair value for Dongfang Electric Corporation is ¥22.42 (as of Jul 18, 2026), built from audited fundamentals. The current price is ¥27.31.
What is the quality score of 600875?
Dongfang Electric Corporation has a Quality Score of 40/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Dongfang Electric Corporation (600875)?
Dongfang Electric Corporation reported trailing-twelve-month revenue of about 78.5B CNY (latest available figure, as of Jul 18, 2026).
What is the net profit margin of 600875?
The net profit margin of Dongfang Electric Corporation is about 5.4%, meaning it keeps roughly 5.4% of revenue as net income. Based on the latest reported figures.
Does Dongfang Electric Corporation pay a dividend?
Dongfang Electric Corporation currently shows a dividend yield of about 1.57% relative to its recent price (as of Jul 18, 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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