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Metallurgical Corporation of China Ltd (601618) Fair Value & Analysis

Industrials · CN · Market cap 54.2B CNY

MC Metallurgical Corporation of China Ltd 601618 · SHG
Price¥2.56
Fair Value¥1.66
Upside-35.2%
Quality42/100
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Strengths

Low debt · generates free cash flow

Risks

!Trades 54% ABOVE our fair value of ¥1.66
!Mixed Growth (revenue 5y +10.3 %/yr)
!Thin margins · 0.3% net margin
!Trails peers (3/12)
Mixed Growth (revenue 5y +10.3 %/yr)
Thin margins · 0.3% net margin
Low debt · generates free cash flow
Trails peers (3/12)
Narrow moat 24/100
Evidence: High Range ¥1.17 – ¥2.22 Share as image

Fair value as of: Aug 23, 2026

From 23 valuation models · updated 2 days ago

Share price −3.4% over the past month.

Below-average quality, and trading another 54% above our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The price sits above even our optimistic bull case (¥2.22). The favourable scenario is already priced in.
  • Weak quality (42/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (¥1.17 to ¥2.22) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥5.64 ¥2.44 Fair Value ¥1.66 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 23, 2026.

How to read this chart

60‑month range ¥2.44 – ¥5.64 · fair‑value band ¥1.17 – ¥2.22 · the ¥2.56 price screens above the ¥1.66 fair value. Dashed = 300-day average. As of Aug 23, 2026.

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Analysis

Metallurgical Corporation of China Ltd (601618) currently trades at ¥2.56, while our model-based Fair Value estimate is ¥1.66, implying the stock looks roughly 35.2% overvalued today. The Quality Score stands at 42/100 (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, Metallurgical Corporation of China Ltd generated revenue of 405B CNY at a net margin of 0.3%. Revenue declined 24.6% year over year. It earns a return on equity of 4.3%. Net debt stands at 26.0B CNY. Fundamentals as of Aug 23, 2026

Our scenario range runs from ¥1.17 (bear case) to ¥2.22 (bull case); at ¥2.56, 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 40% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -46% fair-value upside, at -35%, 601618 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 Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ¥7.85 ¥10.85 ¥15.19 80
Residual Income ¥5.93 ¥5.48 ¥3.95 76
Rev-Margin DCF ¥8.83 ¥13.42 ¥18.75 74
All 23 models by family
DCF Models
FCF DCF ¥7.76 ¥11.19 ¥16.50 38
5Y Revenue Exit ¥8.83 ¥13.47 ¥19.46 39
5Y EBITDA Exit ¥10.29 ¥16.23 ¥23.25 41
5Y P/E Exit ¥4.62 ¥5.49 ¥6.35 38
10Y Revenue Exit ¥8.15 ¥12.31 ¥18.04 36
10Y EBITDA Exit ¥9.33 ¥14.25 ¥20.97 37
10Y P/E Exit ¥5.69 ¥6.73 ¥7.92 35
Earnings-Based
Graham-Dodd ¥0.5000 ¥1.66 ¥2.22 54
Lynch FV ¥0.3700 ¥0.5300 ¥0.6900 50
PEG = 1.0 ¥0.3700 ¥0.5300 ¥0.6900 46
EPV ¥9.28 ¥10.50 ¥11.57 59
Multiples
P/E Multiple ¥1.17 ¥1.55 ¥1.94 63
P/S Multiple ¥0.9400 ¥1.26 ¥1.57 58
P/B Multiple ¥0.9400 ¥1.26 ¥1.57 55
EV/EBIT ¥12.86 ¥16.51 ¥20.15 53
EV/EBITDA ¥12.78 ¥16.40 ¥20.02 54
EV/Revenue ¥9.73 ¥13.07 ¥16.42 43
Asset-Based
NCAV (Graham) ¥4.36 ¥5.85 ¥8.72 50
Growth DCF
Growth DCF ¥7.85 ¥10.85 ¥15.19 80
Rev-Margin DCF ¥8.83 ¥13.42 ¥18.75 74
Economic Profit
Residual Income ¥5.93 ¥5.48 ¥3.95 76
ROIC Compounder ¥9.44 ¥11.52 ¥14.21 72
Growth Earnings
Growth-Adj P/E ¥0.9800 ¥1.41 ¥1.83 68

Widest divergence: DCF Models (¥12.31) versus Earnings-Based (¥0.5300). Highest evidence: Growth DCF (80).

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Key figures & financial health

P/S ratio 0.13 TTM
Net margin 0.3% TTM
Return on equity 4.3% TTM
Return on assets 0.9% TTM
Operating margin 3.3% TTM
Revenue (TTM) 405B CNY TTM
More key figures
Growth
Revenue growth (YoY) -24.6% 3y avg -8.4%
Balance sheet & cash flow
Free cash flow 9.0B CNY FY2025
Net debt 26.0B CNY FY2024 · ≈ 2.9 yrs of FCF

Figures from reported company fundamentals · as of Aug 23, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100

Of which business quality 42 · Market factors (momentum, volatility) 32

Profitability 19
Margins and returns on capital today
Quality Growth 30
Are margins and returns improving?
Cashflow 47
Earnings quality: real cash, not paper profit
Fin. Strength 31
Balance sheet, leverage, solvency risk
Investment 64
Disciplined investing over empire-building
Low Volatility 63
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 82
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Metallurgical Corporation of China Ltd., together with its subsidiaries, engages in metallurgical construction and operation in China and internationally. The company operates in two segments, Engineering Contracting and Specialized Business.

Full company description

Metallurgical Corporation of China Ltd., together with its subsidiaries, engages in metallurgical construction and operation in China and internationally. The company operates in two segments, Engineering Contracting and Specialized Business. It is involved in metallurgical construction, building construction, and municipal infrastructure projects, as well as engineering services, provision of materials and metallurgical equipment, energy and environmental protection, and digital intelligence applications. It also engages in survey, design, scientific research, and engineering general contracting; maintenance and inspection cooperation; pipeline corridor technology development; engineering consulting; investment management; water resources management; resource development; and trading activities. The company was founded in 1948 and is based in Beijing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Metallurgical Corporation of China Ltd reported revenue of ¥455B in FY2025 versus ¥501B in FY2021, a compound −2.3%/yr. Reported net income was ¥1.3B in FY2025, compounding −37.0%/yr from FY2021.

Growth Quality 77/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
455B CNY
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.3%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.3%
Avg. revenue growth/yr (20Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.4%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, EBIT basis) plus dividend yield: value created per share and year.
+5.3% (5.3 + 0.0)
Revenue −2.3%/yr
FY21 ¥501B
FY22 ¥593B
FY23 ¥634B
FY24 ¥552B
FY25 ¥455B
Net income −37.0%/yr
FY21 ¥8.4B
FY22 ¥10.3B
FY23 ¥8.7B
FY24 ¥6.7B
FY25 ¥1.3B
Character of growth · EPS growth decomposed (2013-2024) +8.1 % p.a.
Revenue per share +11.1 pp

of which total revenue +12.1 pp · buybacks/dilution −1.0 pp

EBIT margin −1.5 pp
Tax rate +2.7 pp
Residual (interest, one-offs) −4.2 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

601618 screens 35% overvalued. Compare with Quanta Services, Inc →

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Cite: Fair Value Calculator (2026). "Metallurgical Corporation of China Ltd Fair Value". https://www.fairvalue-calculator.com/stock/601618

Peer Group

Engineering & Construction · 841 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 42 · Below median
Fair Value upside −35% · Below median
Return on equity (TTM) 4% · Below median
Return on assets 1% · Below median
Net margin (TTM) 0% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth -25% · Bottom 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.28× · Higher than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/B 0.05× · Cheaper than 75% of peers
P/S (TTM) 0.02× · Cheaper than 75% of peers
P/FCF 0.9× · 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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 16
FUTURE0 · sector 14
PAST17 · sector 26
HEALTH86 · sector 94
DIVIDEND0 · sector 38

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

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 23, 2026).

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Vinci SA DG €119.95 €185.62 +55%
Comfort Systems USA, Inc FIX $1,739 $519.97 -70%
Larsen & Toubro Limited LT ₹4,072 ₹2,196 -46%
Ferrovial N.V FER €57.28 €19.17 -67%
HOCHTIEF Aktiengesellschaft HOT €427.60 €203.87 -52%
Samsung C&T Corporation 028260 357,500 KRW 261,411 KRW -27%
ACS, Actividades de Construcción y Servicios, S.A ACS €110.70 €75.04 -32%
EMCOR Group EME $833.40 $549.47 -34%
MasTec, Inc MTZ $281.11 $100.00 -64%

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Frequently asked questions

Is Metallurgical Corporation of China Ltd (601618) overvalued or undervalued?
As of Aug 23, 2026, our model estimates a fair value of ¥1.66 versus a price of ¥2.56, about −35% (overvalued).
What is the fair value of 601618?
Our model-based fair value for Metallurgical Corporation of China Ltd is ¥1.66 (as of Aug 23, 2026), built from audited fundamentals. The current price: ¥2.56.
What is the quality score of 601618?
Metallurgical Corporation of China Ltd has a Quality Score of 42/100. 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 Metallurgical Corporation of China Ltd (601618)?
Metallurgical Corporation of China Ltd reported trailing-twelve-month revenue of about 405B CNY (latest available figure, as of Aug 23, 2026).
What is the net profit margin of 601618?
The net profit margin of Metallurgical Corporation of China Ltd is about 0.3%, meaning it keeps roughly 0.3% 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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