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Shanghai Environment Group (601200) Fair Value & Analysis

Industrials · CN · Market cap 9.4B CNY

SE Shanghai Environment Group 601200 · SHG
Price¥6.98
Fair Value¥8.45
Upside+21.1%
Quality49/100
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Healthy Growth
Thin margins · 9.8% net margin
Moderate debt · generates free cash flow
1.92% dividend yield
Mixed vs. peers (8/14)
Moderate moat 46/100
Evidence: Medium Range ¥5.71 – ¥11.76 Share as image

Fair value as of: Aug 8, 2026

From 24 valuation models · updated 2 days ago

Fair value updated Aug 8, 2026, revised from ¥8.71 to ¥8.45 (−3.0%) since Jul 11, 2026. Share price +1.0% over the past month.

Below-average quality, screening 21% undervalued on our models.

What matters now

  • Solid quality (49/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (¥5.71 to ¥11.76) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥11.16 ¥6.60 Fair Value ¥8.45 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 ¥6.60 – ¥11.16 · fair‑value band ¥5.71 – ¥11.76 · the ¥6.98 price screens below the ¥8.45 fair value. Dashed = 300-day average. As of Aug 8, 2026.

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Analysis

Shanghai Environment Group (601200) currently trades at ¥6.98, while our model-based Fair Value estimate is ¥8.45, implying the stock looks roughly 21.1% undervalued today. The Quality Score stands at 49/100 (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, Shanghai Environment Group generated revenue of 6.2B CNY at a net margin of 9.8%. Revenue declined 5.5% year over year. It earns a return on equity of 5.3%. Net debt stands at 8.0B CNY. Fundamentals as of Aug 8, 2026

Our scenario range runs from ¥5.71 (bear case) to ¥11.76 (bull case); at ¥6.98, 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 24% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -40% fair-value upside, at 21%, 601200 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 ¥4.64 ¥11.48 ¥22.44 80
Residual Income ¥6.57 ¥6.63 ¥6.28 76
Rev-Margin DCF ¥2.00 ¥6.62 ¥12.58 74
All 24 models by family
DCF Models
FCF DCF ¥4.74 ¥12.27 ¥24.84 38
Owner Earnings ¥0.2500 ¥4.37 ¥11.23 31
5Y Revenue Exit ¥2.00 ¥6.66 ¥12.88 39
5Y EBITDA Exit ¥5.71 ¥14.31 ¥25.07 41
5Y P/E Exit ¥2.47 ¥7.65 ¥13.47 38
10Y Revenue Exit ¥2.67 ¥7.36 ¥14.32 36
10Y EBITDA Exit ¥5.27 ¥12.83 ¥24.27 37
10Y P/E Exit ¥3.17 ¥8.06 ¥14.81 35
Earnings-Based
Graham-Dodd ¥3.05 ¥14.04 ¥19.27 54
Lynch FV ¥3.69 ¥5.27 ¥6.86 50
PEG = 1.0 ¥3.69 ¥5.27 ¥6.86 46
EPV ¥1.65 ¥2.72 ¥3.65 59
Multiples
P/E Multiple ¥7.06 ¥9.41 ¥11.76 63
P/S Multiple ¥5.71 ¥7.62 ¥9.52 58
P/B Multiple ¥5.71 ¥7.62 ¥9.52 55
EV/EBIT ¥5.84 ¥9.51 ¥13.17 53
EV/EBITDA ¥7.20 ¥11.32 ¥15.44 54
EV/Revenue ¥0.7100 ¥3.22 ¥5.73 43
Asset-Based
NCAV (Graham) ¥4.33 ¥5.81 ¥8.67 50
Growth DCF
Growth DCF ¥4.64 ¥11.48 ¥22.44 80
Rev-Margin DCF ¥2.00 ¥6.62 ¥12.58 74
Economic Profit
Residual Income ¥6.57 ¥6.63 ¥6.28 76
ROIC Compounder ¥1.65 ¥2.72 ¥3.65 72
Growth Earnings
Growth-Adj P/E ¥5.91 ¥8.45 ¥10.98 68

Widest divergence: Growth Earnings (¥8.45) versus Economic Profit (¥2.72). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 6.2B CNY
Revenue growth (YoY) -5.5%
Net margin 9.8%
Return on equity 5.3%
Free cash flow 1.1B CNY FY2025
P/E ratio 15.5
More key figures
Operating margin 23.4%
EPS (TTM) ¥0.4500
Dividend yield 1.9%
EPS growth (YoY) +0.1%
Net debt 8.0B CNY FY2025

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

Quality Score breakdown

Overall quality 49/100

Of which business quality 48 · Market factors (momentum, volatility) 41

Profitability 24
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 79
Earnings quality: real cash, not paper profit
Fin. Strength 30
Balance sheet, leverage, solvency risk
Investment 76
Disciplined investing over empire-building
Low Volatility 96
Calm price path (market factor)
Momentum 20
Price trend over the last 3–12 months (market factor)
52W Momentum 17
Distance to the 52-week high (market factor)
Net Issuance 48
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 Environment Group Co., Ltd., engages in the domestic waste and wastewater treatment businesses in China. The company offers incineration of municipal solid waste; generation of electricity to reduce municipal solid waste; sanitary landfill treatment of domestic waste; and pre-treating collected waste.

Full company description

Shanghai Environment Group Co., Ltd., engages in the domestic waste and wastewater treatment businesses in China. The company offers incineration of municipal solid waste; generation of electricity to reduce municipal solid waste; sanitary landfill treatment of domestic waste; and pre-treating collected waste. It also provides planning consulting, ecological restoration, hazardous and medical waste, municipal sludge, and solid waste resource utilization. In addition, the company is involved in environmental protection project construction and operation; and provision of design, engineering contracting, and ecological restoration services. Shanghai Environment Group Co., Ltd. was founded in 2004 and is based in Shanghai, China. Shanghai Environment Group Co., Ltd. is a subsidiary of Shanghai Chengtou Holding Co.,Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shanghai Environment Group reported revenue of ¥6.3B in FY2025 versus ¥7.2B in FY2021, a compound −3.4%/yr. Reported net income was ¥603M in FY2025, compounding −4.1%/yr from FY2021.

Growth Quality 73/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
6.3B CNY
Latest YoY
+0.0%
Avg. growth/yr (3Y)
−0.1%
Avg. growth/yr (5Y)
+6.8%
Avg. growth/yr (20Y)
+14.0%
Revenue −3.4%/yr
FY21 ¥7.2B
FY22 ¥6.3B
FY23 ¥6.4B
FY24 ¥6.3B
FY25 ¥6.3B
Net income −4.1%/yr
FY21 ¥713M
FY22 ¥520M
FY23 ¥547M
FY24 ¥575M
FY25 ¥603M

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Cite: Fair Value Calculator (2026). "Shanghai Environment Group Fair Value". https://www.fairvalue-calculator.com/stock/601200

Peer Group

Waste Management · 169 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 49 · Above median
Fair Value upside +21% · Above median
Return on equity (TTM) 5% · Below median
Return on assets 2% · Below median
Net margin (TTM) 10% · Above median
Operating margin (TTM) 23% · Top 25%
Revenue growth -6% · Below median
Dividend yield (TTM) 1.9% · Above median
Debt / equity 0.69× · Higher than median

Valuation Multiples vs Waste Management median · lower = cheaper

P/E (TTM) 15.5× · Cheaper than median
P/B 0.81× · Cheaper than median
P/S (TTM) 1.52× · Pricier than median
P/FCF 1.3× · Cheaper than median
EV/EBITDA 9.9× · Pricier 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 61 · sector 10
FUTURE 0 · sector 21
PAST 21 · sector 24
HEALTH 66 · sector 82
DIVIDEND 38 · sector 30

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 Waste Management stocks, each showing price versus our Fair Value estimate (as of Aug 8, 2026).

Stock Price Fair Value vs Fair Value
Waste Management, Inc WM $233.33 $128.02 -45%
Republic Services, Inc RSG $219.20 $122.01 -44%
Waste Connections, Inc WCN C$242.43 C$78.67 -68%
Veolia Environnement SA VIE €37.51 €24.50 -35%
Clean Harbors, Inc CLH $303.64 $155.37 -49%
GFL Environmental Inc GFL C$55.40 C$94.12 +70%
Fomento de Construcciones y Contratas, S.A FCC €12.20 €7.30 -40%
GEM Co 002340 ¥6.32 ¥5.27 -17%
Zhejiang Weiming Environment Protection Co 603568 ¥16.18 ¥20.91 +29%
Cleanaway Waste Management Limited CWY A$2.34 A$1.18 -50%

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Frequently asked questions

Is Shanghai Environment Group (601200) overvalued or undervalued?
As of Aug 8, 2026, our model estimates a fair value of ¥8.45 versus a price of ¥6.98, about +21% (undervalued).
What is the fair value of 601200?
Our model-based fair value for Shanghai Environment Group is ¥8.45 (as of Aug 8, 2026), built from audited fundamentals. The current price is ¥6.98.
What is the quality score of 601200?
Shanghai Environment Group has a Quality Score of 49/100. 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 Environment Group (601200)?
Shanghai Environment Group reported trailing-twelve-month revenue of about 6.2B CNY (latest available figure, as of Aug 8, 2026).
What is the net profit margin of 601200?
The net profit margin of Shanghai Environment Group is about 9.8%, meaning it keeps roughly 9.8% of revenue as net income. Based on the latest reported figures.
Does Shanghai Environment Group pay a dividend?
Shanghai Environment Group currently shows a dividend yield of about 1.92% 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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