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Shanxi Huaxiang Group (603112) Fair Value & Analysis

Industrials · CN · Market cap 9.9B CNY

SH Shanxi Huaxiang Group 603112 · SHG
Price¥15.04
Fair Value¥12.15
Upside-19.2%
Quality38/100
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Expensive Growth
Solidly profitable · 13.6% net margin
Low debt · negative free cash flow
2.31% dividend yield
Ranks above peers (9/13)
Moderate moat 54/100
Evidence: Medium Range ¥8.03 – ¥22.19 Share as image

Fair value as of: Jul 11, 2026

From 17 valuation models · updated 30 days ago

Share price −5.4% over the past month.

Below-average quality, and screening another 19% overvalued on our models.

What matters now

  • Weak quality (38/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The model range is unusually wide (¥8.03 to ¥22.19). The outcome hinges heavily on assumptions, so read the point estimate with caution.
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Price vs Fair Value (5 years)

¥22.62 ¥7.80 Fair Value ¥12.15 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.

How to read this chart

60‑month range ¥7.80 – ¥22.62 · fair‑value band ¥8.03 – ¥22.19 · the ¥15.04 price screens above the ¥12.15 fair value. Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

Shanxi Huaxiang Group (603112) currently trades at ¥15.04, while our model-based Fair Value estimate is ¥12.15, implying the stock looks roughly 19.2% overvalued today. The Quality Score stands at 38/100 (below-average 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: medium).

Over the trailing twelve months, Shanxi Huaxiang Group generated revenue of 4.2B CNY at a net margin of 13.6%. Revenue grew 8.1% year over year. It earns a return on equity of 14.3%. Net debt stands at 14.4M CNY. Fundamentals as of Jul 11, 2026

Our scenario range runs from ¥8.03 (bear case) to ¥22.19 (bull case); at ¥15.04, 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 37% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -72% fair-value upside, at -19%, 603112 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 ¥7.54 ¥9.03 ¥18.36 76
ROIC Compounder ¥10.04 ¥13.31 ¥17.78 72
Gordon GGM ¥3.25 ¥6.47 ¥9.80 70
All 17 models by family
DCF Models
Owner Earnings ¥15.29 ¥26.41 ¥44.62 31
Earnings-Based
Graham-Dodd ¥7.07 ¥31.07 ¥42.52 54
Lynch FV ¥8.03 ¥11.46 ¥14.90 50
PEG = 1.0 ¥8.03 ¥11.46 ¥14.90 46
EPV ¥9.47 ¥10.96 ¥12.26 59
Dividend Discount
Gordon GGM ¥3.25 ¥6.47 ¥9.80 70
DDM Multi-Stage ¥3.25 ¥5.59 ¥6.83 61
Multiples
P/E Multiple ¥16.39 ¥21.85 ¥27.31 63
P/S Multiple ¥11.47 ¥15.29 ¥19.12 58
P/B Multiple ¥13.26 ¥17.69 ¥22.11 55
EV/EBIT ¥14.95 ¥19.94 ¥24.93 53
EV/EBITDA ¥16.29 ¥21.72 ¥27.16 54
EV/Revenue ¥9.61 ¥13.74 ¥17.87 43
Asset-Based
NCAV (Graham) ¥4.04 ¥5.41 ¥8.08 50
Economic Profit
Residual Income ¥7.54 ¥9.03 ¥18.36 76
ROIC Compounder ¥10.04 ¥13.31 ¥17.78 72
Growth Earnings
Growth-Adj P/E ¥13.24 ¥18.92 ¥24.60 68

Widest divergence: DCF Models (¥26.41) versus Asset-Based (¥5.41). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 4.2B CNY
Revenue growth (YoY) +8.1%
Net margin 13.6%
Return on equity 14.3%
Free cash flow −104M CNY FY2025
P/E ratio 16.8
More key figures
Operating margin 16.4%
EPS (TTM) ¥1.09
Dividend yield 2.3%
EPS growth (YoY) -3.7%
Net debt 14.4M CNY FY2025

Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 38/100

Of which business quality 38 · Market factors (momentum, volatility) 32

Profitability 45
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 6
Earnings quality: real cash, not paper profit
Fin. Strength 76
Balance sheet, leverage, solvency risk
Investment 47
Disciplined investing over empire-building
Low Volatility 61
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 9
Distance to the 52-week high (market factor)
Net Issuance 13
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

Shanxi Huaxiang Group Co., Ltd. engages in the research and development, production, and sale of customized metal parts in China and internationally.

Full company description

Shanxi Huaxiang Group Co., Ltd. engages in the research and development, production, and sale of customized metal parts in China and internationally. It offers precision products, such as auto parts, compressor castings, power fittings, railway parts, and pump valve pipe castings; and project products for use in logistics handling, construction machinery, aerial work platforms, port machinery, loading systems, agricultural parts and drilling, and foundation industries. The company also provides resin sand products that are used in motors, fluid control, chassis transmission, air compressor, industrial robots, wind power and mining machinery, and other industries, as well as other products. Shanxi Huaxiang Group Co., Ltd. was founded in 1999 and is headquartered in Linfen, China. Shanxi Huaxiang Group Co., Ltd. operates as a subsidiary of Shanxi Linfen Huaxiang Industrial Co., Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shanxi Huaxiang Group reported revenue of ¥4.1B in FY2025 versus ¥3.3B in FY2021, a compound +5.9%/yr. Reported net income was ¥562M in FY2025, compounding +14.4%/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)
4.1B CNY
Latest YoY
+7.9%
Avg. growth/yr (3Y)
+8.6%
Avg. growth/yr (5Y)
+16.2%
Avg. growth/yr (9Y)
+13.6%
Revenue +5.9%/yr
FY21 ¥3.3B
FY22 ¥3.2B
FY23 ¥3.3B
FY24 ¥3.8B
FY25 ¥4.1B
Net income +14.4%/yr
FY21 ¥328M
FY22 ¥264M
FY23 ¥389M
FY24 ¥471M
FY25 ¥562M

603112 screens 19% overvalued. Compare with Carpenter Technology Corporation →

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Cite: Fair Value Calculator (2026). "Shanxi Huaxiang Group Fair Value". https://www.fairvalue-calculator.com/stock/603112

Peer Group

Metal Fabrication · 243 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 38 · Bottom 25%
Fair Value upside −19% · Above median
Return on equity (TTM) 14% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 14% · Top 25%
Operating margin (TTM) 16% · Top 25%
Revenue growth 8% · Above median
Dividend yield (TTM) 2.3% · Above median
Debt / equity 0.15× · Higher than median

Valuation Multiples vs Metal Fabrication median · lower = cheaper

P/E (TTM) 16.8× · Cheaper than median
P/B 2.26× · Pricier than median
P/S (TTM) 2.34× · Pricier than median
EV/EBITDA 11.3× · 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 8 · sector 0
FUTURE 41 · sector 35
PAST 57 · sector 21
HEALTH 93 · sector 95
DIVIDEND 46 · sector 25

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.

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10 more Metal Fabrication stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

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Frequently asked questions

Is Shanxi Huaxiang Group (603112) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of ¥12.15 versus a price of ¥15.04, about −19% (overvalued).
What is the fair value of 603112?
Our model-based fair value for Shanxi Huaxiang Group is ¥12.15 (as of Jul 11, 2026), built from audited fundamentals. The current price is ¥15.04.
What is the quality score of 603112?
Shanxi Huaxiang Group has a Quality Score of 38/100. 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 Shanxi Huaxiang Group (603112)?
Shanxi Huaxiang Group reported trailing-twelve-month revenue of about 4.2B CNY (latest available figure, as of Jul 11, 2026).
What is the net profit margin of 603112?
The net profit margin of Shanxi Huaxiang Group is about 13.6%, meaning it keeps roughly 13.6% of revenue as net income. Based on the latest reported figures.
Does Shanxi Huaxiang Group pay a dividend?
Shanxi Huaxiang Group currently shows a dividend yield of about 2.31% relative to its recent price (as of Jul 11, 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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