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China Design Group (603018) Fair Value & Analysis

Industrials · CN · Market cap 4.3B CNY

CD China Design Group 603018 · SHG
Price¥5.25
Fair Value¥7.03
Upside+33.9%
Quality54/100
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Weak Growth
Thin margins · 7.0% net margin
Low debt · generates free cash flow
1.96% dividend yield
Ranks above peers (9/14)
Narrow moat 37/100
Evidence: High Range ¥5.27 – ¥8.79 Share as image

Fair value as of: Aug 10, 2026

From 26 valuation models · updated today

Fair value updated Aug 10, 2026, revised from ¥8.42 to ¥7.03 (−16.5%) since Jul 24, 2026. Share price −1.3% over the past month.

A solid business, screening 34% undervalued on our models.

What matters now

  • Solid quality (54/100) at a price below fair value, the discount is the argument here, not the business quality.
  • Our model range runs from ¥5.27 (bear) to ¥8.79 (bull), base ¥7.03. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 54/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥11.31 ¥4.98 Fair Value ¥7.03 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 ¥4.98 – ¥11.31 · fair‑value band ¥5.27 – ¥8.79 · the ¥5.25 price screens below the ¥7.03 fair value. Dashed = 300-day average. As of Aug 10, 2026.

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Analysis

China Design Group (603018) currently trades at ¥5.25, while our model-based Fair Value estimate is ¥7.03, implying the stock looks roughly 33.9% undervalued today. The Quality Score stands at 54/100 (solid quality), in the Industrials 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, China Design Group generated revenue of 4.1B CNY at a net margin of 7.0%. Revenue declined 3.2% year over year. It earns a return on equity of 5.3%. The balance sheet holds a net cash position of 1.2B CNY. Fundamentals as of Aug 10, 2026

Our scenario range runs from ¥5.27 (bear case) to ¥8.79 (bull case); at ¥5.25, the current price sits below 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 45% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -45% fair-value upside, at 34%, 603018 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 ¥5.78 ¥7.55 ¥10.01 80
Residual Income ¥4.97 ¥5.01 ¥4.73 76
Rev-Margin DCF ¥7.32 ¥10.94 ¥15.17 74
All 26 models by family
DCF Models
FCF DCF ¥5.75 ¥7.78 ¥10.83 38
Owner Earnings ¥5.65 ¥7.63 ¥10.60 31
5Y Revenue Exit ¥7.32 ¥11.00 ¥15.80 39
5Y EBITDA Exit ¥8.29 ¥12.85 ¥18.28 41
5Y P/E Exit ¥6.46 ¥9.36 ¥12.45 38
10Y Revenue Exit ¥6.51 ¥9.70 ¥14.15 36
10Y EBITDA Exit ¥7.31 ¥10.97 ¥16.03 37
10Y P/E Exit ¥6.16 ¥8.57 ¥11.62 35
Earnings-Based
Graham-Dodd ¥2.28 ¥7.69 ¥10.30 54
Lynch FV ¥1.76 ¥2.51 ¥3.26 50
PEG = 1.0 ¥1.76 ¥2.51 ¥3.26 46
EPV ¥8.26 ¥9.23 ¥10.07 59
Dividend Discount
Gordon GGM ¥0.9100 ¥1.81 ¥2.75 70
DDM Multi-Stage ¥0.9100 ¥1.54 ¥1.92 61
Multiples
P/E Multiple ¥5.27 ¥7.03 ¥8.79 63
P/S Multiple ¥4.27 ¥5.69 ¥7.12 58
P/B Multiple ¥4.27 ¥5.69 ¥7.12 55
EV/EBIT ¥11.78 ¥14.99 ¥18.21 53
EV/EBITDA ¥10.61 ¥13.43 ¥16.25 54
EV/Revenue ¥8.46 ¥11.17 ¥13.88 43
Asset-Based
NCAV (Graham) ¥3.29 ¥4.40 ¥6.57 50
Growth DCF
Growth DCF ¥5.78 ¥7.55 ¥10.01 80
Rev-Margin DCF ¥7.32 ¥10.94 ¥15.17 74
Economic Profit
Residual Income ¥4.97 ¥5.01 ¥4.73 76
ROIC Compounder ¥8.64 ¥10.39 ¥12.50 72
Growth Earnings
Growth-Adj P/E ¥4.49 ¥6.41 ¥8.34 68

Widest divergence: DCF Models (¥9.36) versus Dividend Discount (¥1.54). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 4.1B CNY
Revenue growth (YoY) -3.2%
Net margin 7.0%
Return on equity 5.3%
Free cash flow 268M CNY FY2025
P/E ratio 15.0
More key figures
Operating margin 7.3%
EPS (TTM) ¥0.3500
Dividend yield 2.0%
EPS growth (YoY) +24.9%
Net cash 1.2B CNY FY2024

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

Quality Score breakdown

Overall quality 54/100

Of which business quality 53 · Market factors (momentum, volatility) 28

Profitability 26
Margins and returns on capital today
Quality Growth 18
Are margins and returns improving?
Cashflow 49
Earnings quality: real cash, not paper profit
Fin. Strength 67
Balance sheet, leverage, solvency risk
Investment 83
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 4
Price trend over the last 3–12 months (market factor)
52W Momentum 4
Distance to the 52-week high (market factor)
Net Issuance 92
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 Design Group Co., Ltd., together with its subsidiaries, provides engineering survey and design services in China. The company offers engineering consulting services, including survey and design, planning research, and engineering management; and system integration and software development services.

Full company description

China Design Group Co., Ltd., together with its subsidiaries, provides engineering survey and design services in China. The company offers engineering consulting services, including survey and design, planning research, and engineering management; and system integration and software development services. It also engages in strategic and urban planning; highway; urban expressway; bridges and tunnels; waterways and ports; hydraulics; architecture and landscape; railway; metro; smart industry; engineering, procurement, and construction; survey; environmental; innovation; and agriculture businesses. In addition, the company engages in system development tools; investment management; sale of merchandise and food; printing services; project consultancy; new material technology promotion; commodity circulation; property management and leasing; agricultural production; business technology research and development, and operation management; and engineering technology research and experimental development activities. The company was formerly known as Jiangsu Province Communications Planning and Design Institute Limited Company and changed its name to China Design Group Co., Ltd. in July 2016. China Design Group Co., Ltd. was founded in 1960 and is headquartered in Nanjing, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Design Group reported revenue of ¥4.1B in FY2025 versus ¥5.8B in FY2021, a compound −8.3%/yr. Reported net income was ¥274M in FY2025, compounding −18.4%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
4.1B CNY
Latest YoY
−7.2%
Avg. growth/yr (3Y)
−11.0%
Avg. growth/yr (5Y)
−5.2%
Avg. growth/yr (14Y)
+11.9%
Revenue −8.3%/yr
FY21 ¥5.8B
FY22 ¥5.8B
FY23 ¥5.4B
FY24 ¥4.4B
FY25 ¥4.1B
Net income −18.4%/yr
FY21 ¥618M
FY22 ¥684M
FY23 ¥698M
FY24 ¥383M
FY25 ¥274M

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Cite: Fair Value Calculator (2026). "China Design Group Fair Value". https://www.fairvalue-calculator.com/stock/603018

Peer Group

Engineering & Construction · 837 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 54 · Above median
Fair Value upside +34% · Above median
Return on equity (TTM) 5% · Below median
Return on assets 1% · Below median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 7% · Above median
Revenue growth -3% · Below median
Dividend yield (TTM) 2.0% · Above median
Debt / equity 0.08× · Lower than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 15.0× · Cheaper than median
P/B 0.80× · Cheaper than median
P/S (TTM) 1.05× · Pricier than median
P/FCF 2.4× · Pricier than median
EV/EBITDA 7.9× · 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.

VALUE 79 · sector 16
FUTURE 0 · sector 18
PAST 21 · sector 26
HEALTH 96 · sector 94
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 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%

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Frequently asked questions

Is China Design Group (603018) overvalued or undervalued?
As of Aug 10, 2026, our model estimates a fair value of ¥7.03 versus a price of ¥5.25, about +34% (undervalued).
What is the fair value of 603018?
Our model-based fair value for China Design Group is ¥7.03 (as of Aug 10, 2026), built from audited fundamentals. The current price is ¥5.25.
What is the quality score of 603018?
China Design Group has a Quality Score of 54/100. 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 Design Group (603018)?
China Design Group reported trailing-twelve-month revenue of about 4.1B CNY (latest available figure, as of Aug 10, 2026).
What is the net profit margin of 603018?
The net profit margin of China Design Group is about 7.0%, meaning it keeps roughly 7.0% of revenue as net income. Based on the latest reported figures.
Does China Design Group pay a dividend?
China Design Group currently shows a dividend yield of about 1.86% 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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