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SINOMACH HEAVY EQUIPMENT GROUP CO.,LTD researches, (601399) Fair Value & Analysis

Industrials · CN · Market cap 23.9B CNY

SH SINOMACH HEAVY EQUIPMENT GROUP CO.,LTD researches, 601399 · SHG
Price¥3.32
Fair Value¥1.35
Upside-59.3%
Quality54/100
Watch SINOMACH HEAVY EQUIPMENT GROUP CO.,LTD researches, for free, get notified when fair value or trend changes. Watch for free
Expensive Growth
Thin margins · 3.4% net margin
Low debt · generates free cash flow
Trails peers (4/13)
Narrow moat 23/100
Evidence: High Range ¥1.01 – ¥1.69 Share as image

Fair value as of: Aug 10, 2026

From 24 valuation models · updated today

Share price +6.1% over the past month.

A solid business, but screening 59% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥1.69). The favourable scenario is already priced in.
  • Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥6.41 ¥2.38 Fair Value ¥1.35 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 10, 2026.

How to read this chart

60‑month range ¥2.38 – ¥6.41 · fair‑value band ¥1.01 – ¥1.69 · the ¥3.32 price screens above the ¥1.35 fair value. Dashed = 300-day average. As of Aug 10, 2026.

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Analysis

SINOMACH HEAVY EQUIPMENT GROUP CO.,LTD researches, (601399) currently trades at ¥3.32, while our model-based Fair Value estimate is ¥1.35, implying the stock looks roughly 59.3% overvalued today. The Quality Score stands at 54/100 (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: high).

Over the trailing twelve months, SINOMACH HEAVY EQUIPMENT GROUP CO.,LTD researches, generated revenue of 14.0B CNY at a net margin of 3.4%. Revenue grew 3.0% year over year. It earns a return on equity of 3.4%. The balance sheet holds a net cash position of 8.6B CNY. Fundamentals as of Aug 10, 2026

Our scenario range runs from ¥1.01 (bear case) to ¥1.69 (bull case); at ¥3.32, 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 50% below its 52-week high and 15% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -72% fair-value upside, at -59%, 601399 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 ¥1.22 ¥1.23 ¥1.23 80
Residual Income ¥1.49 ¥1.43 ¥1.20 76
ROIC Compounder ¥2.41 ¥2.81 ¥3.34 72
All 24 models by family
DCF Models
FCF DCF ¥1.22 ¥1.23 ¥1.23 38
5Y Revenue Exit ¥1.98 ¥2.73 ¥3.76 39
5Y EBITDA Exit ¥2.35 ¥3.46 ¥4.84 41
5Y P/E Exit ¥1.83 ¥2.44 ¥3.12 38
10Y Revenue Exit ¥1.68 ¥2.31 ¥3.27 36
10Y EBITDA Exit ¥1.96 ¥2.82 ¥4.14 37
10Y P/E Exit ¥1.62 ¥2.09 ¥2.75 35
Earnings-Based
Graham-Dodd ¥0.4400 ¥1.76 ¥2.39 54
Lynch FV ¥0.4400 ¥0.6300 ¥0.8100 50
PEG = 1.0 ¥0.4400 ¥0.6300 ¥0.8100 46
EPV ¥2.32 ¥2.50 ¥2.66 59
Dividend Discount
Gordon GGM ¥0.0100 ¥0.0300 ¥0.0400 70
DDM Multi-Stage ¥0.0100 ¥0.0200 ¥0.0300 61
Multiples
P/E Multiple ¥1.01 ¥1.35 ¥1.69 63
P/S Multiple ¥0.8200 ¥1.09 ¥1.37 58
P/B Multiple ¥0.8200 ¥1.09 ¥1.37 55
EV/EBIT ¥2.86 ¥3.41 ¥3.96 53
EV/EBITDA ¥3.07 ¥3.69 ¥4.31 54
EV/Revenue ¥2.39 ¥2.89 ¥3.40 43
Asset-Based
NCAV (Graham) ¥1.03 ¥1.38 ¥2.06 50
Growth DCF
Growth DCF ¥1.22 ¥1.23 ¥1.23 80
Economic Profit
Residual Income ¥1.49 ¥1.43 ¥1.20 76
ROIC Compounder ¥2.41 ¥2.81 ¥3.34 72
Growth Earnings
Growth-Adj P/E ¥0.7700 ¥1.09 ¥1.42 68

Widest divergence: DCF Models (¥2.44) versus Dividend Discount (¥0.0200). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 14.0B CNY
Revenue growth (YoY) +3.0%
Net margin 3.4%
Return on equity 3.4%
Free cash flow 2.9M CNY FY2025
P/E ratio 47.4
More key figures
Operating margin 4.1%
EPS (TTM) ¥0.0700
EPS growth (YoY) +14.3%
Net cash 8.6B CNY FY2024

Figures from reported company fundamentals · as of Aug 10, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 54 · Market factors (momentum, volatility) 28

Profitability 22
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 38
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 74
Disciplined investing over empire-building
Low Volatility 66
Calm price path (market factor)
Momentum 11
Price trend over the last 3–12 months (market factor)
52W Momentum 15
Distance to the 52-week high (market factor)
Net Issuance 81
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

SINOMACH HEAVY EQUIPMENT GROUP CO.,LTD researches, develops, designs, manufactures, and sells technical and heavy equipment in China and internationally.

Full company description

SINOMACH HEAVY EQUIPMENT GROUP CO.,LTD researches, develops, designs, manufactures, and sells technical and heavy equipment in China and internationally. The company offers complete sets of equipment, including forging press, hot continuous rolling mill, rubber bladder press, cold rolling mill, new-type slag vertical mill, forging four-beam bridge crane, free forging hydraulic press, wide-and-thick-plate rolling mill, acid unit, continuous casting machine, hot rolling h-type steel mill, dumping plough, tube mill, hot die forging press, and intelligent stretcher; large-scale castings and forgings; heavy pressure vessels; nuclear power products; wind power products; transmission parts; clean energy equipment; heavy petrochemical containers; and other major technical equipment. It provides infrastructure construction, design and general contracting of ports, transportation infrastructure, power transmission and transformation projects, water affairs, environmental protection, and other projects, as well as import and export trade, and engineering; and engineering project design and consulting services. SINOMACH HEAVY EQUIPMENT GROUP CO.,LTD was formerly known as China Erzhong Group (Deyang) Heavy Industries Co.,Ltd. and changed its name to SINOMACH HEAVY EQUIPMENT GROUP CO.,LTD in March 2018. The company was founded in 2001 and is based in Deyang, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

SINOMACH HEAVY EQUIPMENT GROUP CO.,LTD researches, reported revenue of ¥13.9B in FY2025 versus ¥9.5B in FY2021, a compound +9.9%/yr. Reported net income was ¥464M in FY2025, compounding +4.1%/yr from FY2021.

Growth Quality 60/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
13.9B CNY
Latest YoY
+9.5%
Avg. growth/yr (3Y)
+12.8%
Avg. growth/yr (5Y)
+9.5%
Avg. growth/yr (20Y)
+7.9%
Revenue +9.9%/yr
FY21 ¥9.5B
FY22 ¥9.7B
FY23 ¥11.3B
FY24 ¥12.7B
FY25 ¥13.9B
Net income +4.1%/yr
FY21 ¥394M
FY22 ¥403M
FY23 ¥431M
FY24 ¥432M
FY25 ¥464M

601399 screens 59% overvalued. Compare with Carpenter Technology Corporation →

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Cite: Fair Value Calculator (2026). "SINOMACH HEAVY EQUIPMENT GROUP CO.,LTD researches, Fair Value". https://www.fairvalue-calculator.com/stock/601399

Peer Group

Metal Fabrication · 243 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 54 · Above median
Fair Value upside −59% · Bottom 25%
Return on equity (TTM) 3% · Below median
Return on assets 1% · Below median
Net margin (TTM) 3% · Above median
Operating margin (TTM) 4% · Below median
Revenue growth 3% · Below median
Debt / equity 0.04× · Lower than median

Valuation Multiples vs Metal Fabrication median · lower = cheaper

P/E (TTM) 47.4× · Pricier than median
P/B 1.61× · Cheaper than median
P/S (TTM) 1.71× · Pricier than median
P/FCF 1,213.3× · Pricier than 75% of peers
EV/EBITDA 15.1× · 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 0 · sector 0
FUTURE 15 · sector 35
PAST 13 · sector 21
HEALTH 98 · sector 95
DIVIDEND 0 · sector 25

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.

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 Metal Fabrication stocks, each showing price versus our Fair Value estimate (as of Aug 10, 2026).

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Frequently asked questions

Is SINOMACH HEAVY EQUIPMENT GROUP CO.,LTD researches, (601399) overvalued or undervalued?
As of Aug 10, 2026, our model estimates a fair value of ¥1.35 versus a price of ¥3.32, about −59% (overvalued).
What is the fair value of 601399?
Our model-based fair value for SINOMACH HEAVY EQUIPMENT GROUP CO.,LTD researches, is ¥1.35 (as of Aug 10, 2026), built from audited fundamentals. The current price is ¥3.32.
What is the quality score of 601399?
SINOMACH HEAVY EQUIPMENT GROUP CO.,LTD researches, has a Quality Score of 54/100. 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 SINOMACH HEAVY EQUIPMENT GROUP CO.,LTD researches, (601399)?
SINOMACH HEAVY EQUIPMENT GROUP CO.,LTD researches, reported trailing-twelve-month revenue of about 14.0B CNY (latest available figure, as of Aug 10, 2026).
What is the net profit margin of 601399?
The net profit margin of SINOMACH HEAVY EQUIPMENT GROUP CO.,LTD researches, is about 3.4%, meaning it keeps roughly 3.4% of revenue as net income. Based on the latest reported figures.

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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