EN DE

ARTS Group (603017) Fair Value & Analysis

Industrials · CN · Market cap 2.6B CNY

AG ARTS Group 603017 · SHG
Price¥9.70
Fair Value¥3.73
Upside-61.6%
Quality61/100
Watch ARTS Group for free, get notified when fair value or trend changes. Watch for free
Mixed Growth
Thin margins · 4.2% net margin
Low debt · generates free cash flow
3.72% dividend yield
Mixed vs. peers (7/14)
Narrow moat 33/100
Evidence: High Range ¥2.80 – ¥4.66 Share as image

Fair value as of: Aug 10, 2026

From 24 valuation models · updated today

Share price −1.7% over the past month.

A solid business, but screening 62% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥4.66). The favourable scenario is already priced in.
  • Solid but not exceptional quality (61/100) and above fair value, neither a clear bargain nor a standout compounder.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

¥17.57 ¥6.40 Fair Value ¥3.73 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 ¥6.40 – ¥17.57 · fair‑value band ¥2.80 – ¥4.66 · the ¥9.70 price screens above the ¥3.73 fair value. Dashed = 300-day average. As of Aug 10, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

ARTS Group (603017) currently trades at ¥9.70, while our model-based Fair Value estimate is ¥3.73, implying the stock looks roughly 61.6% overvalued today. The Quality Score stands at 61/100 (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, ARTS Group generated revenue of 1.2B CNY at a net margin of 4.2%. Revenue declined 7.2% year over year. It earns a return on equity of 3.1%. The balance sheet holds a net cash position of 104M CNY. Fundamentals as of Aug 10, 2026

Our scenario range runs from ¥2.80 (bear case) to ¥4.66 (bull case); at ¥9.70, 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 46% below its 52-week high and 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -45% fair-value upside, at -62%, 603017 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 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 ¥8.96 ¥11.46 ¥15.89 80
Residual Income ¥3.88 ¥3.83 ¥3.31 76
Rev-Margin DCF ¥6.95 ¥9.43 ¥12.60 74
All 24 models by family
DCF Models
FCF DCF ¥8.66 ¥11.24 ¥16.22 38
Owner Earnings ¥3.19 ¥3.96 ¥5.44 31
5Y Revenue Exit ¥6.95 ¥9.24 ¥12.68 39
5Y EBITDA Exit ¥8.15 ¥11.28 ¥15.56 41
5Y P/E Exit ¥5.40 ¥6.61 ¥8.14 38
10Y Revenue Exit ¥7.44 ¥9.43 ¥11.61 36
10Y EBITDA Exit ¥8.29 ¥10.72 ¥13.39 37
10Y P/E Exit ¥6.65 ¥7.76 ¥8.80 35
Earnings-Based
Graham-Dodd ¥1.21 ¥1.86 ¥2.22 54
EPV ¥6.74 ¥7.66 ¥8.46 59
Dividend Discount
Gordon GGM ¥2.04 ¥2.37 ¥2.75 70
DDM Multi-Stage ¥2.04 ¥2.64 ¥3.38 61
Multiples
P/E Multiple ¥2.80 ¥3.73 ¥4.66 63
P/S Multiple ¥2.26 ¥3.02 ¥3.77 58
P/B Multiple ¥2.26 ¥3.02 ¥3.77 55
EV/EBIT ¥10.00 ¥13.04 ¥16.08 53
EV/EBITDA ¥8.93 ¥11.62 ¥14.30 54
EV/Revenue ¥6.26 ¥8.56 ¥10.86 43
Asset-Based
NCAV (Graham) ¥2.67 ¥3.57 ¥5.33 50
Growth DCF
Growth DCF ¥8.96 ¥11.46 ¥15.89 80
Rev-Margin DCF ¥6.95 ¥9.43 ¥12.60 74
Economic Profit
Residual Income ¥3.88 ¥3.83 ¥3.31 76
ROIC Compounder ¥6.78 ¥7.88 ¥9.07 72
Growth Earnings
Growth-Adj P/E ¥1.98 ¥2.82 ¥3.67 68

Widest divergence: Growth DCF (¥9.43) versus Earnings-Based (¥1.86). Highest evidence: Growth DCF (80).

Notify me when 603017 reaches fair value

Free. You confirm by email (double opt-in) and can unsubscribe anytime in one click.

Key figures & financial health

Revenue (TTM) 1.2B CNY
Revenue growth (YoY) -7.2%
Net margin 4.2%
Return on equity 3.1%
Free cash flow 226M CNY FY2025
P/E ratio 61.5
More key figures
Operating margin 11.2%
EPS (TTM) ¥0.1800
Dividend yield 3.2%
Net cash 104M CNY FY2024

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

Quality Score breakdown

Overall quality 61/100

Of which business quality 61 · Market factors (momentum, volatility) 31

Profitability 24
Margins and returns on capital today
Quality Growth 31
Are margins and returns improving?
Cashflow 88
Earnings quality: real cash, not paper profit
Fin. Strength 63
Balance sheet, leverage, solvency risk
Investment 98
Disciplined investing over empire-building
Low Volatility 54
Calm price path (market factor)
Momentum 18
Price trend over the last 3–12 months (market factor)
52W Momentum 26
Distance to the 52-week high (market factor)
Net Issuance 73
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

ARTS Group Co., Ltd operates in the engineering technology service industry in China and internationally. It offers engineering supervision and management, engineering design, architectural and planning design consulting business, EPC project general contracting services, as well as investment and financing activities.

Full company description

ARTS Group Co., Ltd operates in the engineering technology service industry in China and internationally. It offers engineering supervision and management, engineering design, architectural and planning design consulting business, EPC project general contracting services, as well as investment and financing activities. The company was formerly known as Suzhou Industrial Park Design & Research Institute Co., Ltd. and changed its name to ARTS Group Co., Ltd. in August 2015. ARTS Group Co., Ltd was founded in 1995 and is based in Suzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

ARTS Group reported revenue of ¥1.2B in FY2025 versus ¥1.8B in FY2021, a compound −10.0%/yr. Reported net income was ¥49.1M in FY2025.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
1.2B CNY
Avg. 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.
−9.4%
Avg. 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.
−7.2%
Avg. growth/yr (13Y) 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.
+10.1%
Revenue −10.0%/yr
FY21 ¥1.8B
FY22 ¥1.8B
FY23 ¥1.7B
FY24 ¥1.3B
FY25 ¥1.2B
Net income
FY21 −¥419M
FY22 ¥86.9M
FY23 ¥107M
FY24 ¥51.3M
FY25 ¥49.1M
Character of growth · EPS growth decomposed (2013-2024) −3.4 % p.a.
Revenue per share +8.8 pp

of which total revenue +12.7 pp · buybacks/dilution −3.9 pp

EBIT margin −9.4 pp
Tax rate −0.7 pp
Residual (interest, one-offs) −2.0 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).

603017 screens 62% overvalued. Compare with Larsen & Toubro Limited →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "ARTS Group Fair Value". https://www.fairvalue-calculator.com/stock/603017

Peer Group

Engineering & Construction · 839 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 61 · Top 25%
Fair Value upside −62% · Bottom 25%
Return on equity (TTM) 3% · Below median
Return on assets 3% · Above median
Net margin (TTM) 4% · Above median
Operating margin (TTM) 11% · Top 25%
Revenue growth -7% · Below median
Dividend yield (TTM) 3.7% · Top 25%
Debt / equity 0.04× · Lower than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 52.6× · Pricier than 75% of peers
P/B 1.78× · Pricier than median
P/S (TTM) 2.26× · Pricier than 75% of peers
P/FCF 1.7× · Cheaper than median
EV/EBITDA 15.0× · 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 16
FUTURE 0 · sector 17
PAST 13 · sector 26
HEALTH 98 · sector 94
DIVIDEND 74 · sector 33

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

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹3,815 ₹1,994 -48%
Samsung C&T Corporation 028260 346,000 KRW 268,779 KRW -22%
Hyundai Engineering & Construction Co 000720 99,000 KRW 63,993 KRW -35%
United Integrated Services Co 2404 1,250 TWD 925.62 TWD -26%
Samsung E&A Co 028050 42,550 KRW 44,840 KRW +5%
Rail Vikas Nigam Limited RVNL ₹232.67 ₹61.46 -74%
Daewoo Engineering & Construction Co 047040 16,240 KRW 6,507 KRW -60%
NBCC (India) Limited NBCC ₹96.32 ₹48.22 -50%
Cemindia Projects Limited CEMPRO ₹1,330 ₹730.69 -45%
KEPCO Engineering & Construction Company 052690 92,700 KRW 20,172 KRW -78%

Compare ARTS Group with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Industrials stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is ARTS Group (603017) overvalued or undervalued?
As of Aug 10, 2026, our model estimates a fair value of ¥3.73 versus a price of ¥9.70, about −62% (overvalued).
What is the fair value of 603017?
Our model-based fair value for ARTS Group is ¥3.73 (as of Aug 10, 2026), built from audited fundamentals. The current price is ¥9.70.
What is the quality score of 603017?
ARTS Group has a Quality Score of 61/100. 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 ARTS Group (603017)?
ARTS Group reported trailing-twelve-month revenue of about 1.2B CNY (latest available figure, as of Aug 10, 2026).
What is the net profit margin of 603017?
The net profit margin of ARTS Group is about 4.2%, meaning it keeps roughly 4.2% of revenue as net income. Based on the latest reported figures.
Does ARTS Group pay a dividend?
ARTS Group currently shows a dividend yield of about 3.22% 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.

14 days Pro free · no card

Track ARTS Group and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.