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Shandong Linglong Tyre Co (601966) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 16.4B CNY

SL Shandong Linglong Tyre Co 601966 · SHG
Price¥11.19
Fair Value¥13.08
Upside+16.9%
Quality48/100
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Expensive Growth
Thin margins · 4.2% net margin
Low debt · generates free cash flow
1.80% dividend yield
Mixed vs. peers (8/14)
Narrow moat 30/100
Evidence: High Range ¥10.88 – ¥20.28 Share as image

Fair value as of: Aug 9, 2026

From 25 valuation models · updated yesterday

Fair value updated Aug 9, 2026, revised from ¥13.99 to ¥13.08 (−6.5%) since Jul 11, 2026. Share price +5.2% over the past month.

Below-average quality, screening 17% undervalued on our models.

What matters now

  • A fairly wide model range (¥10.88 to ¥20.28) leaves room in how you read the outcome.
  • Our model range runs from ¥10.88 (bear) to ¥20.28 (bull), base ¥13.08. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 48/100 (below-average quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥54.36 ¥10.18 Fair Value ¥13.08 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 9, 2026.

How to read this chart

60‑month range ¥10.18 – ¥54.36 · fair‑value band ¥10.88 – ¥20.28 · the ¥11.19 price screens below the ¥13.08 fair value. Dashed = 300-day average. As of Aug 9, 2026.

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Analysis

Shandong Linglong Tyre Co (601966) currently trades at ¥11.19, while our model-based Fair Value estimate is ¥13.08, implying the stock looks roughly 16.9% undervalued today. The Quality Score stands at 48/100 (below-average quality), in the Consumer Cyclical 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, Shandong Linglong Tyre Co generated revenue of 25.0B CNY at a net margin of 4.2%. Revenue grew 6.3% year over year. It earns a return on equity of 4.7%. Net debt stands at 7.3B CNY. Fundamentals as of Aug 9, 2026

Our scenario range runs from ¥10.88 (bear case) to ¥20.28 (bull case); at ¥11.19, 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 31% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -44% fair-value upside, at 17%, 601966 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 ¥0.5200 ¥1.68 ¥3.55 80
Residual Income ¥12.47 ¥12.89 ¥13.05 76
ROIC Compounder ¥7.96 ¥9.51 ¥10.87 72
All 25 models by family
DCF Models
FCF DCF ¥0.5000 ¥1.70 ¥3.63 38
Owner Earnings ¥10.75 ¥18.67 ¥31.42 31
5Y Revenue Exit ¥5.86 ¥12.16 ¥20.62 39
5Y EBITDA Exit ¥12.25 ¥24.62 ¥39.76 41
5Y P/E Exit ¥8.53 ¥17.37 ¥27.12 38
10Y Revenue Exit ¥3.63 ¥8.97 ¥16.89 36
10Y EBITDA Exit ¥8.10 ¥17.81 ¥32.06 37
10Y P/E Exit ¥5.69 ¥12.67 ¥22.04 35
Earnings-Based
Graham-Dodd ¥6.36 ¥23.74 ¥32.10 54
Lynch FV ¥5.72 ¥8.17 ¥10.62 50
PEG = 1.0 ¥5.72 ¥8.17 ¥10.62 46
EPV ¥7.96 ¥9.51 ¥10.87 59
Dividend Discount
Gordon GGM ¥4.09 ¥8.51 ¥13.50 70
DDM Multi-Stage ¥4.09 ¥7.17 ¥8.93 61
Multiples
P/E Multiple ¥15.43 ¥20.58 ¥25.72 63
P/S Multiple ¥11.93 ¥15.90 ¥19.88 58
P/B Multiple ¥11.93 ¥15.90 ¥19.88 55
EV/EBIT ¥13.86 ¥18.92 ¥23.98 53
EV/EBITDA ¥20.32 ¥27.54 ¥34.76 54
EV/Revenue ¥8.91 ¥13.30 ¥17.68 43
Asset-Based
NCAV (Graham) ¥7.89 ¥10.58 ¥15.78 50
Growth DCF
Growth DCF ¥0.5200 ¥1.68 ¥3.55 80
Economic Profit
Residual Income ¥12.47 ¥12.89 ¥13.05 76
ROIC Compounder ¥7.96 ¥9.51 ¥10.87 72
Growth Earnings
Growth-Adj P/E ¥10.88 ¥15.55 ¥20.21 68

Widest divergence: Multiples (¥15.90) versus Growth DCF (¥1.68). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 25.0B CNY
Revenue growth (YoY) +6.3%
Net margin 4.2%
Return on equity 4.7%
Free cash flow 224M CNY FY2025
P/E ratio 16.4
More key figures
Operating margin 5.9%
EPS (TTM) ¥0.7200
Dividend yield 1.7%
EPS growth (YoY) -95.7%
Net debt 7.3B CNY FY2025

Figures from reported company fundamentals · as of Aug 9, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 47 · Market factors (momentum, volatility) 37

Profitability 29
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 30
Earnings quality: real cash, not paper profit
Fin. Strength 44
Balance sheet, leverage, solvency risk
Investment 66
Disciplined investing over empire-building
Low Volatility 95
Calm price path (market factor)
Momentum 12
Price trend over the last 3–12 months (market factor)
52W Momentum 14
Distance to the 52-week high (market factor)
Net Issuance 80
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

Shandong Linglong Tyre Co.,Ltd. designs, manufactures, develops, and sells tires in the People's Republic of China. It offers passenger light truck radial, bus radial, and off-highway tires. The company serves passenger cars, commercial, and construction machinery vehicles.

Full company description

Shandong Linglong Tyre Co.,Ltd. designs, manufactures, develops, and sells tires in the People's Republic of China. It offers passenger light truck radial, bus radial, and off-highway tires. The company serves passenger cars, commercial, and construction machinery vehicles. It also exports its products to approximately 173 countries, such as Europe, the Middle East, the Americas, Africa, and the Asia-Pacific. The company was founded in 1975 and is based in Zhaoyuan, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shandong Linglong Tyre Co reported revenue of ¥24.6B in FY2025 versus ¥18.6B in FY2021, a compound +7.3%/yr. Reported net income was ¥1.4B in FY2025, compounding +14.8%/yr from FY2021.

Growth Quality 51/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
24.6B CNY
Latest YoY
+11.7%
Avg. growth/yr (3Y)
+13.2%
Avg. growth/yr (5Y)
+6.0%
Avg. growth/yr (14Y)
+6.4%
Revenue +7.3%/yr
FY21 ¥18.6B
FY22 ¥17.0B
FY23 ¥20.2B
FY24 ¥22.1B
FY25 ¥24.6B
Net income +14.8%/yr
FY21 ¥789M
FY22 ¥292M
FY23 ¥1.4B
FY24 ¥1.8B
FY25 ¥1.4B

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Cite: Fair Value Calculator (2026). "Shandong Linglong Tyre Co Fair Value". https://www.fairvalue-calculator.com/stock/601966

Peer Group

Auto Parts · 642 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 48 · Below median
Fair Value upside +17% · Above median
Return on equity (TTM) 5% · Below median
Return on assets 1% · Below median
Net margin (TTM) 4% · Above median
Operating margin (TTM) 6% · Below median
Revenue growth 6% · Above median
Dividend yield (TTM) 1.8% · Above median
Debt / equity 0.23× · Higher than median

Valuation Multiples vs Auto Parts median · lower = cheaper

P/E (TTM) 15.5× · Cheaper than median
P/B 0.71× · Cheaper than 75% of peers
P/S (TTM) 0.66× · Cheaper than median
P/FCF 10.9× · Pricier than 75% of peers
EV/EBITDA 6.2× · 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 56 · sector 17
FUTURE 32 · sector 23
PAST 19 · sector 26
HEALTH 89 · sector 95
DIVIDEND 36 · 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 Auto Parts stocks, each showing price versus our Fair Value estimate (as of Aug 9, 2026).

Stock Price Fair Value vs Fair Value
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Magna International Inc MGAN 1,122 MXN 1,172 MXN +4%
Samvardhana Motherson International Limited MOTHERSON ₹144.17 ₹80.63 -44%
Bosch Limited BOSCHLTD ₹41,110 ₹14,004 -66%
Bharat Forge Limited BHARATFORG ₹2,117 ₹441.74 -79%
Uno Minda Limited UNOMINDA ₹1,158 ₹426.57 -63%
Schaeffler India Limited SCHAEFFLER ₹4,135 ₹1,412 -66%
Hankook Tire & Technology Co 161390 73,600 KRW 196,479 KRW +167%
MRF Limited MRF ₹131,025 ₹125,849 -4%
Sona BLW Precision Forgings Limited SONACOMS ₹792.00 ₹207.06 -74%

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Frequently asked questions

Is Shandong Linglong Tyre Co (601966) overvalued or undervalued?
As of Aug 9, 2026, our model estimates a fair value of ¥13.08 versus a price of ¥11.19, about +17% (undervalued).
What is the fair value of 601966?
Our model-based fair value for Shandong Linglong Tyre Co is ¥13.08 (as of Aug 9, 2026), built from audited fundamentals. The current price is ¥11.19.
What is the quality score of 601966?
Shandong Linglong Tyre Co has a Quality Score of 48/100. 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 Shandong Linglong Tyre Co (601966)?
Shandong Linglong Tyre Co reported trailing-twelve-month revenue of about 25.0B CNY (latest available figure, as of Aug 9, 2026).
What is the net profit margin of 601966?
The net profit margin of Shandong Linglong Tyre Co is about 4.2%, meaning it keeps roughly 4.2% of revenue as net income. Based on the latest reported figures.
Does Shandong Linglong Tyre Co pay a dividend?
Shandong Linglong Tyre Co currently shows a dividend yield of about 1.71% relative to its recent price (as of Aug 9, 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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