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Daqin Railway Co (601006) Fair Value & Analysis

Industrials · CN · Market cap 95.3B CNY

DR Daqin Railway Co 601006 · SHG
Price¥4.84
Fair Value¥5.30
Upside+9.6%
Quality37/100
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Weak Growth
Thin margins · 7.2% net margin
Low debt · negative free cash flow
4.71% dividend yield
Ranks above peers (10/14)
Narrow moat 38/100
Evidence: Medium Range ¥3.98 – ¥6.63 Share as image

Fair value as of: Jul 20, 2026

From 16 valuation models · updated 18 days ago

Share price +4.1% over the past month.

Below-average quality, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from ¥3.98 (bear) to ¥6.63 (bull), base ¥5.30. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 37/100 (below-average quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

¥7.78 ¥4.55 Fair Value ¥5.30 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 20, 2026.

How to read this chart

60‑month range ¥4.55 – ¥7.78 · fair‑value band ¥3.98 – ¥6.63 · the ¥4.84 price screens below the ¥5.30 fair value. Dashed = 300-day average. As of Jul 20, 2026.

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Analysis

Daqin Railway Co (601006) currently trades at ¥4.84, while our model-based Fair Value estimate is ¥5.30, implying the stock looks roughly 9.6% fairly valued today. We read business quality at 37/100 (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, Daqin Railway Co generated revenue of 78.4B CNY at a net margin of 7.2%. Revenue grew 4.3% year over year. It earns a return on equity of 3.6%. The balance sheet holds a net cash position of 43.0B CNY. Fundamentals as of Jul 20, 2026

Our scenario range runs from ¥3.98 (bear case) to ¥6.63 (bull case); at ¥4.84, 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 29% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -44% fair-value upside, at 10%, 601006 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 ¥6.15 ¥6.14 ¥5.49 76
ROIC Compounder ¥2.64 ¥2.87 ¥3.06 72
Gordon GGM ¥2.18 ¥4.54 ¥7.20 70
All 16 models by family
Earnings-Based
Graham-Dodd ¥2.02 ¥6.14 ¥8.15 54
Lynch FV ¥1.31 ¥1.88 ¥2.44 50
PEG = 1.0 ¥1.31 ¥1.88 ¥2.44 46
EPV ¥2.64 ¥2.87 ¥3.06 59
Dividend Discount
Gordon GGM ¥2.18 ¥4.54 ¥7.20 70
DDM Multi-Stage ¥2.18 ¥3.57 ¥4.77 61
Multiples
P/E Multiple ¥4.46 ¥5.94 ¥7.43 63
P/S Multiple ¥3.79 ¥5.05 ¥6.31 58
P/B Multiple ¥3.79 ¥5.05 ¥6.31 55
EV/EBIT ¥5.09 ¥6.35 ¥7.61 53
EV/EBITDA ¥6.85 ¥8.69 ¥10.54 54
EV/Revenue ¥3.86 ¥4.95 ¥6.04 43
Asset-Based
NCAV (Graham) ¥4.14 ¥5.54 ¥8.27 50
Economic Profit
Residual Income ¥6.15 ¥6.14 ¥5.49 76
ROIC Compounder ¥2.64 ¥2.87 ¥3.06 72
Growth Earnings
Growth-Adj P/E ¥3.67 ¥5.25 ¥6.82 68

Widest divergence: Asset-Based (¥5.54) versus Earnings-Based (¥1.88). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 78.4B CNY
Revenue growth (YoY) +4.3%
Net margin 7.2%
Return on equity 3.6%
Free cash flow −22.2B CNY FY2025
P/E ratio 17.8
More key figures
Operating margin 12.6%
EPS (TTM) ¥0.2900
Dividend yield 4.3%
EPS growth (YoY) -7.7%
Net cash 43.0B CNY FY2024

Figures from reported company fundamentals · as of Jul 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 37/100

Of which business quality 36 · Market factors (momentum, volatility) 43

Profitability 24
Margins and returns on capital today
Quality Growth 24
Are margins and returns improving?
Cashflow 14
Earnings quality: real cash, not paper profit
Fin. Strength 78
Balance sheet, leverage, solvency risk
Investment 50
Disciplined investing over empire-building
Low Volatility 100
Calm price path (market factor)
Momentum 24
Price trend over the last 3–12 months (market factor)
52W Momentum 11
Distance to the 52-week high (market factor)
Net Issuance 25
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

Daqin Railway Co., Ltd. provides railway freight and passenger transport services in the People's Republic of China and internationally. It transports coal, coke, steel, and ore, as well as containers and scattered bulk goods. The company also provides railway passenger and freight transportation, railway freight loading and unloading warehousing, etc.

Full company description

Daqin Railway Co., Ltd. provides railway freight and passenger transport services in the People's Republic of China and internationally. It transports coal, coke, steel, and ore, as well as containers and scattered bulk goods. The company also provides railway passenger and freight transportation, railway freight loading and unloading warehousing, etc. services. In addition, it offers services to other domestic railway transportation enterprises, including locomotive traction, freight car use, track use, and freight car repair, etc. Daqin Railway Co., Ltd. was founded in 2004 and is based in Taiyuan, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Daqin Railway Co reported revenue of ¥77.6B in FY2025 versus ¥78.7B in FY2021, a compound −0.3%/yr. Reported net income was ¥5.9B in FY2025, compounding −16.6%/yr from FY2021.

Growth Quality 22/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
77.6B CNY
Latest YoY
+4.0%
Avg. growth/yr (3Y)
+0.8%
Avg. growth/yr (5Y)
+1.3%
Avg. growth/yr (22Y)
+13.1%
Revenue −0.3%/yr
FY21 ¥78.7B
FY22 ¥75.8B
FY23 ¥81.0B
FY24 ¥74.6B
FY25 ¥77.6B
Net income −16.6%/yr
FY21 ¥12.2B
FY22 ¥11.2B
FY23 ¥11.9B
FY24 ¥9.0B
FY25 ¥5.9B

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Cite: Fair Value Calculator (2026). "Daqin Railway Co Fair Value". https://www.fairvalue-calculator.com/stock/601006

Peer Group

Railroads · 109 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 37 · Bottom 25%
Fair Value upside +10% · Above median
Return on equity (TTM) 4% · Below median
Return on assets 2% · Below median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 13% · Above median
Revenue growth 4% · Above median
Dividend yield (TTM) 4.7% · Top 25%
Debt / equity 0.06× · Lower than median

Valuation Multiples vs Railroads median · lower = cheaper

P/E (TTM) 16.6× · Cheaper than median
P/B 0.58× · Cheaper than 75% of peers
P/S (TTM) 1.22× · Pricier than median
EV/EBITDA 6.6× · Cheaper than median
PEG 1.22× · 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 46 · sector 27
FUTURE 22 · sector 20
PAST 15 · sector 31
HEALTH 97 · sector 88
DIVIDEND 94 · sector 41

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 Railroads stocks, each showing price versus our Fair Value estimate (as of Jul 20, 2026).

Stock Price Fair Value vs Fair Value
Union Pacific Corporation UNP $301.75 $144.60 -52%
CSX Corporation CSX $49.41 $12.85 -74%
Canadian Pacific Kansas City Limited CP $92.91 $35.00 -62%
Canadian National Railway Company CNI $128.22 $92.63 -28%
Norfolk Southern Corporation NSC $327.47 $117.90 -64%
Westinghouse Air Brake Technologies Corporation WAB $259.71 $144.80 -44%
Beijing-Shanghai High-Speed Railway Co 601816 ¥4.82 ¥5.65 +17%
CRRC Corporation 601766 ¥5.65 ¥9.53 +69%
Hyundai Rotem Company 064350 167,700 KRW 125,182 KRW -25%
Getlink SE GET €18.51 €10.42 -44%

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Frequently asked questions

Is Daqin Railway Co (601006) overvalued or undervalued?
As of Jul 20, 2026, our model estimates a fair value of ¥5.30 versus a price of ¥4.84, about +10% (fairly valued).
What is the fair value of 601006?
Our model-based fair value for Daqin Railway Co is ¥5.30 (as of Jul 20, 2026), built from audited fundamentals. The current price is ¥4.84.
What is the quality score of 601006?
Daqin Railway Co has a Quality Score of 37/100. 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 Daqin Railway Co (601006)?
Daqin Railway Co reported trailing-twelve-month revenue of about 78.4B CNY (latest available figure, as of Jul 20, 2026).
What is the net profit margin of 601006?
The net profit margin of Daqin Railway Co is about 7.2%, meaning it keeps roughly 7.2% of revenue as net income. Based on the latest reported figures.
Does Daqin Railway Co pay a dividend?
Daqin Railway Co currently shows a dividend yield of about 4.29% relative to its recent price (as of Jul 20, 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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