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Shanghai Huafon Aluminium Corporation (601702) Fair Value & Analysis

Basic Materials · CN · Market cap 15.4B CNY

SH Shanghai Huafon Aluminium Corporation 601702 · SHG
Price¥15.43
Fair Value¥18.74
Upside+21.5%
Quality51/100
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Expensive Growth
Thin margins · 9.4% net margin
Low debt · negative free cash flow
1.94% dividend yield
Ranks above peers (9/13)
Moderate moat 53/100
Evidence: High Range ¥11.66 – ¥23.42 Share as image

Fair value as of: Aug 10, 2026

From 17 valuation models · updated today

Share price +7.8% over the past month.

A solid business, screening 21% undervalued on our models.

What matters now

  • Solid quality (51/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (¥11.66 to ¥23.42) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥27.42 ¥6.33 Fair Value ¥18.74 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 ¥6.33 – ¥27.42 · fair‑value band ¥11.66 – ¥23.42 · the ¥15.43 price screens below the ¥18.74 fair value. Dashed = 300-day average. As of Aug 10, 2026.

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Analysis

Shanghai Huafon Aluminium Corporation (601702) currently trades at ¥15.43, while our model-based Fair Value estimate is ¥18.74, implying the stock looks roughly 21.5% undervalued today. The Quality Score stands at 51/100 (solid quality), in the Basic Materials 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: high), always confirm before acting.

Over the trailing twelve months, Shanghai Huafon Aluminium Corporation generated revenue of 12.6B CNY at a net margin of 9.4%. Revenue grew 2.5% year over year. It earns a return on equity of 18.9%. Net debt stands at 2.1B CNY. Fundamentals as of Aug 10, 2026

Our scenario range runs from ¥11.66 (bear case) to ¥23.42 (bull case); at ¥15.43, 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 44% below its 52-week high and 3% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at 19% fair-value upside, at 21%, 601702 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 ¥7.99 ¥10.71 ¥43.31 76
ROIC Compounder ¥14.08 ¥20.52 ¥28.64 72
Gordon GGM ¥2.75 ¥5.73 ¥9.09 70
All 17 models by family
DCF Models
Owner Earnings ¥14.63 ¥31.72 ¥66.60 31
Earnings-Based
Graham-Dodd ¥8.18 ¥54.09 ¥75.73 54
Lynch FV ¥15.78 ¥22.54 ¥29.31 50
PEG = 1.0 ¥15.78 ¥22.54 ¥29.31 46
EPV ¥11.50 ¥13.35 ¥14.98 59
Dividend Discount
Gordon GGM ¥2.75 ¥5.73 ¥9.09 70
DDM Multi-Stage ¥2.75 ¥4.83 ¥6.01 61
Multiples
P/E Multiple ¥15.35 ¥20.46 ¥25.58 63
P/S Multiple ¥14.05 ¥18.74 ¥23.42 58
P/B Multiple ¥14.50 ¥19.33 ¥24.16 55
EV/EBIT ¥14.38 ¥19.05 ¥23.73 53
EV/EBITDA ¥11.96 ¥15.83 ¥19.70 54
EV/Revenue ¥12.51 ¥17.72 ¥22.93 43
Asset-Based
NCAV (Graham) ¥3.22 ¥4.32 ¥6.44 50
Economic Profit
Residual Income ¥7.99 ¥10.71 ¥43.31 76
ROIC Compounder ¥14.08 ¥20.52 ¥28.64 72
Growth Earnings
Growth-Adj P/E ¥20.18 ¥28.83 ¥37.49 68

Widest divergence: DCF Models (¥31.72) versus Asset-Based (¥4.32). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 12.6B CNY
Revenue growth (YoY) +2.5%
Net margin 9.4%
Return on equity 18.9%
Free cash flow −332M CNY FY2025
P/E ratio 13.2
More key figures
Operating margin 10.7%
EPS (TTM) ¥1.17
Dividend yield 1.9%
EPS growth (YoY) -11.1%
Net debt 2.1B CNY FY2025

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

Quality Score breakdown

Overall quality 51/100

Of which business quality 51 · Market factors (momentum, volatility) 30

Profitability 64
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 6
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 37
Disciplined investing over empire-building
Low Volatility 63
Calm price path (market factor)
Momentum 14
Price trend over the last 3–12 months (market factor)
52W Momentum 20
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.

About the company

Shanghai Huafon Aluminium Corporation engages in the research and development, production, and sales of aluminum sheets, strips, and foils.

Full company description

Shanghai Huafon Aluminium Corporation engages in the research and development, production, and sales of aluminum sheets, strips, and foils. The company's products include aluminum heat transfer materials comprising composite and non-composite materials for automobiles and engineering machinery; power plants and heat exchange systems for household and commercial air conditioners; battery materials, including rectangular/square battery casing materials, aluminum strips for strip batteries, battery foils, and aluminum foils for soft-pack batteries; and stamped parts. It also provides radiator, air charge air cooler, water charge air cooler, oil cooler, parallel flow condenser, stacked evaporator, heater core, water condenser, parallel flow evaporator; battery cooling plate; and honey comb plate and fin. The company was founded in 2008 and is based in Shanghai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shanghai Huafon Aluminium Corporation reported revenue of ¥12.5B in FY2025 versus ¥6.4B in FY2021, a compound +17.9%/yr. Reported net income was ¥1.2B in FY2025, compounding +24.5%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
12.5B CNY
Latest YoY
+14.7%
Avg. growth/yr (3Y)
+13.4%
Avg. growth/yr (5Y)
+25.1%
Avg. growth/yr (10Y)
+21.5%
Revenue +17.9%/yr
FY21 ¥6.4B
FY22 ¥8.5B
FY23 ¥9.3B
FY24 ¥10.9B
FY25 ¥12.5B
Net income +24.5%/yr
FY21 ¥500M
FY22 ¥666M
FY23 ¥899M
FY24 ¥1.2B
FY25 ¥1.2B

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Cite: Fair Value Calculator (2026). "Shanghai Huafon Aluminium Corporation Fair Value". https://www.fairvalue-calculator.com/stock/601702

Peer Group

Aluminum · 83 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 51 · Above median
Fair Value upside +22% · Top 25%
Return on equity (TTM) 19% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 9% · Top 25%
Operating margin (TTM) 11% · Above median
Revenue growth 3% · Below median
Dividend yield (TTM) 1.9% · Above median
Debt / equity 0.01× · Lower than 75% of peers

Valuation Multiples vs Aluminum median · lower = cheaper

P/E (TTM) 13.2× · Cheaper than median
P/B 2.39× · Pricier than 75% of peers
P/S (TTM) 1.23× · Pricier than median
EV/EBITDA 9.6× · 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 62 · sector 15
FUTURE 13 · sector 26
PAST 76 · sector 30
HEALTH 100 · sector 91
DIVIDEND 39 · sector 33

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

Stock Price Fair Value vs Fair Value
Shandong Hongqiao Aluminum Industry Holding 002379 ¥18.54 ¥26.70 +44%
China Hongqiao Group 1378 HK$24.54 HK$45.53 +86%
Hindalco Industries Limited HINDALCO ₹955.80 ₹1,026 +7%
Aluminum Corporation 601600 ¥8.11 ¥12.58 +55%
Norsk Hydro ASA NHY kr 84.96 kr 58.10 -32%
Press Metal Aluminium Holdings 8869 8.02 MYR 3.88 MYR -52%
Alcoa Corporation AAI A$70.60 A$49.53 -30%
Yunnan Aluminium Co 000807 ¥25.12 ¥29.68 +18%
Henan Shenhuo Coal Industry and Electricity Power Co 000933 ¥25.51 ¥30.28 +19%
Tianshan Aluminum Group 002532 ¥11.99 ¥21.86 +82%

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Frequently asked questions

Is Shanghai Huafon Aluminium Corporation (601702) overvalued or undervalued?
As of Aug 10, 2026, our model estimates a fair value of ¥18.74 versus a price of ¥15.43, about +21% (undervalued).
What is the fair value of 601702?
Our model-based fair value for Shanghai Huafon Aluminium Corporation is ¥18.74 (as of Aug 10, 2026), built from audited fundamentals. The current price is ¥15.43.
What is the quality score of 601702?
Shanghai Huafon Aluminium Corporation has a Quality Score of 51/100. 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 Huafon Aluminium Corporation (601702)?
Shanghai Huafon Aluminium Corporation reported trailing-twelve-month revenue of about 12.6B CNY (latest available figure, as of Aug 10, 2026).
What is the net profit margin of 601702?
The net profit margin of Shanghai Huafon Aluminium Corporation is about 9.4%, meaning it keeps roughly 9.4% of revenue as net income. Based on the latest reported figures.
Does Shanghai Huafon Aluminium Corporation pay a dividend?
Shanghai Huafon Aluminium Corporation currently shows a dividend yield of about 1.78% relative to its recent price (as of Aug 10, 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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