Shanghai Hugong Elec(Group) (603131) fair value: what the stock is really worth
We calculate from audited financials what Shanghai Hugong Elec(Group) is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily, free.
- Compare price with fair valuebelow fair value = cheap, above = expensive
- Check the quality50 and up solid, 75 and up strong
- Watch it or check another stockalert when fair value or trend changes
At a glance
Structural break: The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.
A solid business, but trading 897% above our fair value of ¥1.46.
As of Sep 7, 2026, the fair value of Shanghai Hugong Elec(Group) is ¥1.46 per share against a price of ¥14.55, so the fair value sits 90% below the price. A model estimate from reported figures, not an analyst target.
Fair value as of: Sep 7, 2026
From 16 valuation models · updated today
Share price −5.3% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits above even our optimistic bull case (¥1.78). The favourable scenario is already priced in.
- The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
- Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 7, 2026.
How to read this chart
60‑month range ¥9.71 – ¥34.34 · fair‑value band ¥1.13 – ¥1.78 · the ¥14.55 price screens above the ¥1.46 fair value. Dashed = 300-day average. As of Sep 7, 2026.
Analysis
Shanghai Hugong Elec(Group) (603131) currently trades at ¥14.55, while our model-based Fair Value estimate is ¥1.46, implying the stock looks roughly 897.0% overvalued today. The Quality Score stands at 52/100 (solid quality), in the Industrials sector. Bull case: the Asset-Based group reads highest at a median of ¥2.87 per share, and 0 of the 16 models we run sit above the ¥14.55 price. Bear case: the Dividend Discount group reads lowest at ¥0.5600, and 16 of the 16 models stay below the price. Evidence for this calculation is low.
Over the trailing twelve months, Shanghai Hugong Elec(Group) generated revenue of 914M CNY at a net margin of −1.6%. Revenue declined 4.2% year over year. It earns a return on equity of −0.9%. The balance sheet holds a net cash position of 54.5M CNY. Fundamentals as of Sep 7, 2026
Scenario range: ¥1.13 (bear) to ¥1.78 (bull), the price of ¥14.55 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target. The share trades about 59% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −49% fair-value upside, at −90%, 603131 screens richer than that median.
Fair Value models
Each model values the company its own way; the fair value above is the evidence-weighted blend. Evidence (0 to 100) shows how complete a model's inputs are. How we calculate →
All 16 models by family
Widest divergence: Asset-Based (¥2.87) versus Dividend Discount (¥0.5600). Highest evidence: FCF DCF (81).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Sep 7, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 52 · Market factors (momentum, volatility) 22
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.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Shanghai Hugong Electric Group Co.,Ltd. manufactures and sells welding and cutting equipment in China and internationally.
Full company description
Shanghai Hugong Electric Group Co.,Ltd. manufactures and sells welding and cutting equipment in China and internationally. The company offers welding machines, including stick welders, MIG/MAG welders, TIG welders, plasma cutters, submerged arc welders, engine driven welders, and laser welders; laser cutting machines; and plasma cutting machines comprising CNC flame and plasma cutting machines, and CNC pipe intersection cutting machines. It also provides TIG torch, holders, MIG torch, helmet, gloves, apron, welding wire, welding electrode, tungsten electotre, and cutting torch. The company was founded in 1958 and is headquartered in Shanghai, China.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Shanghai Hugong Elec(Group) reported revenue of 923M CNY in FY2025 versus 1.3B CNY in FY2021, a compound −8.4%/yr. Reported net income was −18.2M CNY in FY2025.
603131 screens 897% overvalued. Compare with GE Vernova Inc →
Peer Group
Specialty Industrial Machinery · 792 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.
Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper
What the price implies (reverse DCF)
The inverse question: what free-cash-flow growth must Shanghai Hugong Elec(Group) deliver for ten years so that today's price is fair in our DCF model? Same formula, same discount rate as the fair value.
The price demands an acceleration versus past growth: a high bar the company still has to clear. Ranking of the largest stocks →
Context: sector, industry, market
- Is the Industrials sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: Industrials
- Undervalued stocks: Chinese Stocks
Strength profile in five axes (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: 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.
Similar stocks
10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Sep 7, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| GE Vernova Inc GEV | $941.84 | $131.95 | −86% |
| SIE SIE | €272.65 | €139.77 | −49% |
| Eaton Corporation ETN | $410.85 | $168.65 | −59% |
| Parker-Hannifin Corporation PH | $995.02 | $398.69 | −60% |
| Atlas Copco AB ATCOA | kr 206.60 | kr 112.59 | −46% |
| Cummins Inc CMI | $564.40 | $348.94 | −38% |
| Illinois Tool Works Inc ITW | $270.12 | $145.84 | −46% |
| Emerson Electric Co EMR | $152.82 | $58.44 | −62% |
| AMETEK, Inc AME | $236.25 | $125.80 | −47% |
| Rockwell Automation, Inc ROK | $417.53 | $125.76 | −70% |
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