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Kailuan Energy Chemical Co (600997) Fair Value & Analysis

Basic Materials · CN · Market cap 8.6B CNY

KE Kailuan Energy Chemical Co 600997 · SHG
Price¥5.41
Fair Value¥3.44
Upside-36.4%
Quality46/100
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Weak Growth
Loss-making · -1.2% net margin
Low debt · negative free cash flow
0.36% dividend yield
Ranks above peers (7/11)
Narrow moat 12/100
Evidence: Low Range ¥3.34 – ¥3.54 Share as image

Fair value as of: Aug 8, 2026

From 7 valuation models · updated 2 days ago

Fair value updated Aug 8, 2026, revised from ¥1.72 to ¥3.44 (+100.0%) since Jul 11, 2026. Share price +3.8% over the past month.

Below-average quality, and screening another 36% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥3.54). The favourable scenario is already priced in.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid but not exceptional quality (46/100) and above fair value, neither a clear bargain nor a standout compounder.
  • The models converge in a tight band (¥3.34 to ¥3.54), unusually little disagreement for a valuation.
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Price vs Fair Value (5 years)

¥10.30 ¥4.75 Fair Value ¥3.44 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 ¥4.75 – ¥10.30 · fair‑value band ¥3.34 – ¥3.54 · the ¥5.41 price screens above the ¥3.44 fair value. Dashed = 300-day average. As of Aug 8, 2026.

Full chart & analysis →

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Analysis

Kailuan Energy Chemical Co (600997) currently trades at ¥5.41, while our model-based Fair Value estimate is ¥3.44, implying the stock looks roughly 36.4% overvalued today. The Quality Score stands at 46/100 (below-average quality), in the Basic Materials 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: low).

Over the trailing twelve months, Kailuan Energy Chemical Co generated revenue of 17.3B CNY at a net margin of -1.2%. Revenue declined 2.0% year over year. It earns a return on equity of -1.5%. The balance sheet holds a net cash position of 2.4B CNY. Fundamentals as of Aug 8, 2026

Our scenario range runs from ¥3.34 (bear case) to ¥3.54 (bull case); at ¥5.41, 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 28% below its 52-week high and 4% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -51% fair-value upside, at -36%, 600997 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
ROIC Compounder ¥3.06 ¥3.07 ¥3.08 72
EPV ¥3.06 ¥3.07 ¥3.08 59
EV/EBITDA ¥7.90 ¥9.53 ¥11.17 54
All 7 models by family
DCF Models
Owner Earnings ¥3.92 ¥4.31 ¥4.85 31
Earnings-Based
EPV ¥3.06 ¥3.07 ¥3.08 59
Multiples
EV/EBIT ¥3.15 ¥3.20 ¥3.25 53
EV/EBITDA ¥7.90 ¥9.53 ¥11.17 54
EV/Revenue ¥3.12 ¥3.18 ¥3.24 43
Asset-Based
NCAV (Graham) ¥4.29 ¥5.75 ¥8.58 50
Economic Profit
ROIC Compounder ¥3.06 ¥3.07 ¥3.08 72

Widest divergence: Asset-Based (¥5.75) versus Earnings-Based (¥3.07). Highest evidence: ROIC Compounder (72).

Key figures & financial health

Revenue (TTM) 17.3B CNY
Revenue growth (YoY) -2.0%
Net margin -1.2%
Return on equity -1.5%
Free cash flow −1.5B CNY FY2025
Operating margin -1.4%
More key figures
EPS (TTM) ¥-0.1300
Dividend yield 0.4%
EPS growth (YoY) +18.6%
Net cash 2.4B CNY FY2024

Figures from reported company fundamentals · as of Aug 8, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 46/100

Of which business quality 46 · Market factors (momentum, volatility) 40

Profitability 20
Margins and returns on capital today
Quality Growth 17
Are margins and returns improving?
Cashflow 34
Earnings quality: real cash, not paper profit
Fin. Strength 52
Balance sheet, leverage, solvency risk
Investment 95
Disciplined investing over empire-building
Low Volatility 80
Calm price path (market factor)
Momentum 24
Price trend over the last 3–12 months (market factor)
52W Momentum 21
Distance to the 52-week high (market factor)
Net Issuance 85
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

Kailuan Energy Chemical Co.,Ltd. engages in coal, coal chemical, and other businesses in China and internationally. It is involved in coal mining, raw coal washing and processing; coking; and production and sales of coal chemical products, such as metallurgical coke; investment; and house leasing.

Full company description

Kailuan Energy Chemical Co.,Ltd. engages in coal, coal chemical, and other businesses in China and internationally. It is involved in coal mining, raw coal washing and processing; coking; and production and sales of coal chemical products, such as metallurgical coke; investment; and house leasing. The company offers chemical products, such as methanol, benzene, adipic acid, and polyoxymethylene; coal tar derivatives; technical services; and promotion services for new material technologies. The company was formerly known as Kailuan Coal Co., Ltd. Kailuan Energy Chemical Co.,Ltd. was incorporated in 2001 and is based in Tangshan, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Kailuan Energy Chemical Co reported revenue of ¥17.4B in FY2025 versus ¥23.2B in FY2021, a compound −6.9%/yr. Reported net income was −¥32.4M in FY2025.

Growth Quality 3/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
17.4B CNY
Latest YoY
−17.9%
Avg. growth/yr (3Y)
−12.5%
Avg. growth/yr (5Y)
−0.9%
Avg. growth/yr (24Y)
+13.6%
Revenue −6.9%/yr
FY21 ¥23.2B
FY22 ¥26.0B
FY23 ¥22.8B
FY24 ¥21.2B
FY25 ¥17.4B
Net income
FY21 ¥1.9B
FY22 ¥1.9B
FY23 ¥1.1B
FY24 ¥816M
FY25 −¥32.4M

600997 screens 36% overvalued. Compare with PT Alamtri Minerals Indonesia Tbk, →

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Cite: Fair Value Calculator (2026). "Kailuan Energy Chemical Co Fair Value". https://www.fairvalue-calculator.com/stock/600997

Peer Group

Coking Coal · 28 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 46 · Above median
Fair Value upside −36% · Below median
Return on assets -1% · Above median
Net margin (TTM) -1% · Above median
Operating margin (TTM) -1% · Below median
Revenue growth -2% · Below median
Dividend yield (TTM) 0.4% · Below median
Debt / equity 0.05× · Lower than median

Valuation Multiples vs Coking Coal median · lower = cheaper

P/B 0.09× · Cheaper than 75% of peers
P/S (TTM) 0.07× · 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 3
FUTURE 0 · sector 18
PAST 0 · sector 0
HEALTH 97 · sector 97
DIVIDEND 7 · sector 11

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.

Coal

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

Similar stocks

10 more Coking Coal stocks, each showing price versus our Fair Value estimate (as of Aug 8, 2026).

Stock Price Fair Value vs Fair Value
PT Alamtri Minerals Indonesia Tbk, ADMR 1,515 IDR 1,267 IDR -16%
Warrior Met Coal, Inc HCC $78.91 $18.35 -77%
Shanxi Meijin Energy Co 000723 ¥3.34 ¥1.24 -63%
Alpha Metallurgical Resources, Inc AMR $143.80 $45.29 -69%
Shougang Fushan Resources Group 0639 HK$2.39 HK$2.34 -2%
Shanxi Coking Co 600740 ¥3.54 ¥1.75 -51%
Ramaco Resources, Inc METC $12.80 $1.74 -86%
Baotailong New Materials Co 601011 ¥2.63 ¥1.91 -27%
SunCoke Energy, Inc SXC $8.37 $3.67 -56%
Shandong Jinling Mining Co 000655 ¥6.50 ¥6.54 +1%

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Frequently asked questions

Is Kailuan Energy Chemical Co (600997) overvalued or undervalued?
As of Aug 8, 2026, our model estimates a fair value of ¥3.44 versus a price of ¥5.41, about −36% (overvalued).
What is the fair value of 600997?
Our model-based fair value for Kailuan Energy Chemical Co is ¥3.44 (as of Aug 8, 2026), built from audited fundamentals. The current price is ¥5.41.
What is the quality score of 600997?
Kailuan Energy Chemical Co has a Quality Score of 46/100. 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 Kailuan Energy Chemical Co (600997)?
Kailuan Energy Chemical Co reported trailing-twelve-month revenue of about 17.3B CNY (latest available figure, as of Aug 8, 2026).
What is the net profit margin of 600997?
The net profit margin of Kailuan Energy Chemical Co is about -1.2%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Kailuan Energy Chemical Co pay a dividend?
Kailuan Energy Chemical Co currently shows a dividend yield of about 0.37% 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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