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China Automotive Engineering Research Institute Co (601965) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 14.2B CNY

CA China Automotive Engineering Research Institute Co 601965 · SHG
Price¥14.14
Fair Value¥13.61
Upside-3.7%
Quality56/100
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Expensive Growth
Highly profitable · 21.2% net margin
Low debt · generates free cash flow
1.71% dividend yield
Ranks above peers (9/14)
Wide moat 68/100
Evidence: Medium Range ¥7.19 – ¥19.65 Share as image

Fair value as of: Aug 10, 2026

From 26 valuation models · updated today

Fair value updated Aug 10, 2026, revised from ¥21.05 to ¥13.61 (−35.3%) since Jul 11, 2026. Share price +17.1% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The model range is unusually wide (¥7.19 to ¥19.65). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
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Price vs Fair Value (5 years)

¥25.55 ¥10.75 Fair Value ¥13.61 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 ¥10.75 – ¥25.55 · fair‑value band ¥7.19 – ¥19.65 · the ¥14.14 price screens above the ¥13.61 fair value. Dashed = 300-day average. As of Aug 10, 2026.

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Analysis

China Automotive Engineering Research Institute Co (601965) currently trades at ¥14.14, while our model-based Fair Value estimate is ¥13.61, implying the stock looks roughly 3.7% fairly valued today. The Quality Score stands at 56/100 (solid quality), in the Consumer Cyclical 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: medium).

Over the trailing twelve months, China Automotive Engineering Research Institute Co generated revenue of 4.9B CNY at a net margin of 21.5%. Revenue declined 8.9% year over year. It earns a return on equity of 12.8%. The balance sheet holds a net cash position of 1.6B CNY. Fundamentals as of Aug 10, 2026

Our scenario range runs from ¥7.19 (bear case) to ¥19.65 (bull case); at ¥14.14, 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 32% below its 52-week high and 5% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 25% fair-value upside, at -4%, 601965 screens richer 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 ¥4.96 ¥7.41 ¥11.57 80
Residual Income ¥7.53 ¥9.30 ¥20.40 76
Rev-Margin DCF ¥5.55 ¥8.62 ¥12.58 74
All 26 models by family
DCF Models
FCF DCF ¥4.99 ¥7.66 ¥12.32 38
Owner Earnings ¥8.69 ¥14.38 ¥24.30 31
5Y Revenue Exit ¥5.55 ¥8.72 ¥13.08 39
5Y EBITDA Exit ¥12.88 ¥23.86 ¥37.90 41
5Y P/E Exit ¥13.69 ¥25.53 ¥39.29 38
10Y Revenue Exit ¥5.19 ¥8.15 ¥12.76 36
10Y EBITDA Exit ¥10.20 ¥19.25 ¥33.56 37
10Y P/E Exit ¥10.73 ¥20.47 ¥34.73 35
Earnings-Based
Graham-Dodd ¥7.19 ¥33.48 ¥46.00 54
Lynch FV ¥8.84 ¥12.63 ¥16.42 50
PEG = 1.0 ¥8.84 ¥12.63 ¥16.42 46
EPV ¥11.77 ¥13.45 ¥14.92 59
Dividend Discount
Gordon GGM ¥4.22 ¥8.78 ¥13.93 70
DDM Multi-Stage ¥4.22 ¥7.41 ¥9.22 61
Multiples
P/E Multiple ¥17.44 ¥23.25 ¥29.06 63
P/S Multiple ¥4.46 ¥5.94 ¥7.43 58
P/B Multiple ¥13.48 ¥17.97 ¥22.46 55
EV/EBIT ¥19.80 ¥25.83 ¥31.86 53
EV/EBITDA ¥17.85 ¥23.23 ¥28.61 54
EV/Revenue ¥5.86 ¥7.64 ¥9.43 43
Asset-Based
NCAV (Graham) ¥3.91 ¥5.23 ¥7.81 50
Growth DCF
Growth DCF ¥4.96 ¥7.41 ¥11.57 80
Rev-Margin DCF ¥5.55 ¥8.62 ¥12.58 74
Economic Profit
Residual Income ¥7.53 ¥9.30 ¥20.40 76
ROIC Compounder ¥13.11 ¥17.24 ¥22.77 72
Growth Earnings
Growth-Adj P/E ¥14.43 ¥20.62 ¥26.80 68

Widest divergence: Growth Earnings (¥20.62) versus Asset-Based (¥5.23). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 5.1B CNY
Revenue growth (YoY) +20.5%
Net margin 21.2%
Return on equity 12.8%
Free cash flow 255M CNY FY2025
P/E ratio 13.5
More key figures
Operating margin 27.1%
EPS (TTM) ¥1.05
Dividend yield 1.7%
EPS growth (YoY) +19.1%
Net cash 1.6B CNY FY2024

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

Quality Score breakdown

Overall quality 56/100

Of which business quality 57 · Market factors (momentum, volatility) 33

Profitability 55
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 41
Earnings quality: real cash, not paper profit
Fin. Strength 89
Balance sheet, leverage, solvency risk
Investment 18
Disciplined investing over empire-building
Low Volatility 80
Calm price path (market factor)
Momentum 11
Price trend over the last 3–12 months (market factor)
52W Momentum 16
Distance to the 52-week high (market factor)
Net Issuance 79
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

China Automotive Engineering Research Institute Co., Ltd. provides various technical services for automobiles in China. It develops automotive and related product technologies; and offers research and development, testing and evaluation, product certification, software tools, and testing equipment and technical consulting services for automobiles.

Full company description

China Automotive Engineering Research Institute Co., Ltd. provides various technical services for automobiles in China. It develops automotive and related product technologies; and offers research and development, testing and evaluation, product certification, software tools, and testing equipment and technical consulting services for automobiles. The company offers technical support and services, such as industry development planning, research on regulations and standards, and industry management; and government think tanks, indexes, software data based on government services and unique industry data sources, brand promotion, and other multi-data services. In addition, it researches, develops, produces, and sells engineering, sanitation, and logistics vehicles; gas vehicle systems and components; new energy technology services; and rail vehicle transmission systems, braking systems, and components. The company was formerly known as China Automotive Engineering Research Institute Corporation and changed its name to China Automotive Engineering Research Institute Co., Ltd. in 2010. China Automotive Engineering Research Institute Co., Ltd. was founded in 1965 and is based in Chongqing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Automotive Engineering Research Institute Co reported revenue of ¥5.0B in FY2025 versus ¥3.8B in FY2021, a compound +6.7%/yr. Reported net income was ¥1.1B in FY2025, compounding +11.3%/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)
5.0B CNY
Latest YoY
+5.8%
Avg. growth/yr (3Y)
+14.7%
Avg. growth/yr (5Y)
+7.8%
Avg. growth/yr (17Y)
+9.2%
Revenue +6.7%/yr
FY21 ¥3.8B
FY22 ¥3.3B
FY23 ¥4.1B
FY24 ¥4.7B
FY25 ¥5.0B
Net income +11.3%/yr
FY21 ¥692M
FY22 ¥689M
FY23 ¥836M
FY24 ¥908M
FY25 ¥1.1B

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Cite: Fair Value Calculator (2026). "China Automotive Engineering Research Institute Co Fair Value". https://www.fairvalue-calculator.com/stock/601965

Peer Group

Auto Manufacturers · 119 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 56 · Above median
Fair Value upside −4% · Above median
Return on equity (TTM) 13% · Above median
Return on assets 6% · Top 25%
Net margin (TTM) 21% · Top 25%
Operating margin (TTM) 27% · Top 25%
Revenue growth 21% · Above median
Dividend yield (TTM) 1.7% · Below median
Debt / equity 0.14× · Higher than median

Valuation Multiples vs Auto Manufacturers median · lower = cheaper

P/E (TTM) 13.5× · Cheaper than median
P/B 1.81× · Pricier than median
P/S (TTM) 2.78× · Pricier than 75% of peers
P/FCF 8.2× · Pricier than 75% of peers
EV/EBITDA 7.6× · 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 28 · sector 28
FUTURE 100 · sector 33
PAST 51 · sector 19
HEALTH 93 · sector 94
DIVIDEND 34 · sector 44

Insider activity: 40/100

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

Stock Price Fair Value vs Fair Value
Toyota Motor Corporation TM $179.76 $224.63 +25%
BYD Company 81211 HK$80.55 HK$50.85 -37%
Hyundai Motor Company 005380 425,000 KRW 616,918 KRW +45%
General Motors Company GM $77.72 $56.93 -27%
Bayerische Motoren Werke Aktiengesellschaft BMWM5N 1,909 MXN 2,944 MXN +54%
Ferrari N.V RACE $376.64 $228.05 -39%
Ford Motor Company F C$11.86 C$4.00 -66%
Mercedes-Benz Group BENZ C$20.44 C$35.15 +72%
Volkswagen AG VOW 2,149 CZK 7,191 CZK +235%
Maruti Suzuki India Limited MARUTI ₹13,803 ₹8,236 -40%

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Frequently asked questions

Is China Automotive Engineering Research Institute Co (601965) overvalued or undervalued?
As of Aug 10, 2026, our model estimates a fair value of ¥13.61 versus a price of ¥14.14, about −4% (fairly valued).
What is the fair value of 601965?
Our model-based fair value for China Automotive Engineering Research Institute Co is ¥13.61 (as of Aug 10, 2026), built from audited fundamentals. The current price is ¥14.14.
What is the quality score of 601965?
China Automotive Engineering Research Institute Co has a Quality Score of 56/100. 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 China Automotive Engineering Research Institute Co (601965)?
China Automotive Engineering Research Institute Co reported trailing-twelve-month revenue of about 4.9B CNY (latest available figure, as of Aug 10, 2026).
What is the net profit margin of 601965?
The net profit margin of China Automotive Engineering Research Institute Co is about 21.5%, meaning it keeps roughly 21.5% of revenue as net income. Based on the latest reported figures.
Does China Automotive Engineering Research Institute Co pay a dividend?
China Automotive Engineering Research Institute Co currently shows a dividend yield of about 2.42% 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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