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Data-driven stock valuation

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.

  1. Compare price with fair valuebelow fair value = cheap, above = expensive
  2. Check the quality50 and up solid, 75 and up strong
  3. Watch it or check another stockalert when fair value or trend changes

Industrials · CN · Market cap 5.3B CNY (≈ $794M) · ISIN CNE1000029B7

At a glance

SH Shanghai Hugong Elec(Group) 603131 · SHG
Price¥14.55
Fair Value¥1.46
Upside−90.0%
Quality52/100

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.

!Mixed Growth (revenue 5y +3.5 %/yr)
!Loss-making · -1.6% net margin
Low debt · generates free cash flow
!Trails peers (2/14)
!Narrow moat 21/100
!Evidence only low, so the estimate is less certain
!Weak on dividend: 5 out of 100
Evidence: Low Range ¥1.13 to ¥1.78

Fair value as of: Sep 7, 2026

From 16 valuation models · updated today

Share price −5.3% over the past month.

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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)

¥34.34 ¥9.71 Fair Value ¥1.46 Mar 2021 Sep 2026

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.

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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 →

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (¥0.2700 to ¥3.06). Read the values as a conservative anchor, not as a price target.
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
FCF DCF best evidence ¥2.13 ¥3.06 ¥4.34 81
Growth DCF ¥2.18 ¥3.03 ¥4.14 79
Owner Earnings ¥0.1900 ¥0.2700 ¥0.3800 77
All 16 models by family
DCF Models
FCF DCF best evidence ¥2.13 ¥3.06 ¥4.34 81
Owner Earnings ¥0.1900 ¥0.2700 ¥0.3800 77
5Y Revenue Exit ¥1.22 ¥1.61 ¥2.08 74
5Y EBITDA Exit ¥1.83 ¥2.71 ¥3.70 75
10Y Revenue Exit ¥1.53 ¥1.95 ¥2.45 68
10Y EBITDA Exit ¥1.93 ¥2.68 ¥3.61 69
Earnings-Based
EPV ¥0.6400 ¥0.7400 ¥0.8200 74
Dividend Discount
Gordon GGM ¥0.3700 ¥0.6800 ¥1.07 66
DDM Multi-Stage ¥0.3700 ¥0.5600 ¥0.7500 66
Multiples
EV/EBIT ¥0.9900 ¥1.31 ¥1.64 66
EV/EBITDA ¥1.87 ¥2.49 ¥3.11 67
EV/Revenue ¥0.7100 ¥1.01 ¥1.31 53
Asset-Based
NCAV (Graham) ¥2.14 ¥2.87 ¥4.29 54
Growth DCF
Growth DCF ¥2.18 ¥3.03 ¥4.14 79
Rev-Margin DCF ¥1.22 ¥1.65 ¥2.14 74
Economic Profit
ROIC Compounder ¥0.6400 ¥0.7400 ¥0.8200 72

Widest divergence: Asset-Based (¥2.87) versus Dividend Discount (¥0.5600). Highest evidence: FCF DCF (81).

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Key figures & financial health

P/S ratio 6.88 TTM
EPS (TTM) ¥−0.0500
Dividend yield 0.2%
Net margin −2.0% FY2025
Return on equity −0.9% TTM
Return on assets (EBIT) 0.1% avg 5y
More key figures
Profitability
Operating margin 4.6% TTM
Growth
Revenue (TTM) 914M CNY TTM
Revenue growth (YoY) −4.2% 3y avg −2.4%
EPS growth (YoY) +33.3%
Balance sheet & cash flow
Free cash flow 69.5M CNY FY2025
Net cash 54.5M CNY FY2024

Figures from reported company fundamentals · as of Sep 7, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 52 · Market factors (momentum, volatility) 22

Profitability 14
Margins and returns on capital today
Quality Growth 46
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 93
Disciplined investing over empire-building
Low Volatility 52
Calm price path (market factor)
Momentum 11
Price trend over the last 3–12 months (market factor)
52W Momentum 5
Distance to the 52-week high (market factor)
Net Issuance 52
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.

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.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
923M CNY
Avg. revenue 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.
−6.3%
Avg. revenue 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.
+3.5%
Avg. revenue 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.
+7.5%
EBIT margin (trend) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
12.5% (2020) → 2.8% (2025)
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Revenue −8.4%/yr
FY21 1.3B CNY
FY22 992M CNY
FY23 1.1B CNY
FY24 1.1B CNY
FY25 923M CNY
Net income
FY21 144M CNY
FY22 −127M CNY
FY23 −54.2M CNY
FY24 12.6M CNY
FY25 −18.2M CNY

603131 screens 897% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Shanghai Hugong Elec(Group) Fair Value". https://www.fairvalue-calculator.com/stock/603131

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
Quality Score 52 · Below median
Fair Value upside −90% · Bottom 25%
Profitability
Return on assets 0% · Bottom 25%
Net margin (TTM) −2% · Bottom 25%
Operating margin (TTM) 5% · Below median
Growth and dividend
Revenue growth −4% · Below median
Dividend yield (TTM) 0.2% · Bottom 25%
Balance sheet
Debt / equity 0.30× · Highest 25%

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/B 0.55× · Cheapest 25%
P/S (TTM) 0.87× · Cheaper than median
P/FCF 11.4× · Pricier than median
EV/EBITDA 24.4× · Pricier than median
PEG 47.65× · Priciest 25%

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.

Implied FCF growth, 10 years+24.3 % per year
Achieved revenue growth, 5 years-3.2 % p.a.
Sector median revenue growth+4.6 %
FCF yield on price1.45 %
Discount rate (WACC) in the models10.4 %

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

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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE0 · sector 21
PAST0 · sector 28
HEALTH85 · sector 96
DIVIDEND5 · sector 27

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

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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Frequently asked questions

Is Shanghai Hugong Elec(Group) (603131) overvalued or undervalued?
As of Sep 7, 2026, our model estimates a fair value of ¥1.46 versus a price of ¥14.55, about −90% upside (overvalued).
What is the fair value of 603131?
Our model-based fair value for Shanghai Hugong Elec(Group) is ¥1.46 (as of Sep 7, 2026), built from audited fundamentals. The current price: ¥14.55.
What is the quality score of 603131?
Shanghai Hugong Elec(Group) has a Quality Score of 52/100. 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 price target for Shanghai Hugong Elec(Group) (603131)?
Our model-based price target is the fair value of ¥1.46 (as of Sep 7, 2026) from 16 valuation models. Cautious scenario ¥1.13, optimistic scenario ¥1.78. It is a calculation from audited fundamentals, not an analyst target.
What is the Shanghai Hugong Elec(Group) stock forecast for 2026?
Our models put fair value at ¥1.46, about −90% upside versus a price of ¥14.55 (overvalued). Cautious scenario ¥1.13, optimistic scenario ¥1.78. The calculation is refreshed regularly with new filings.
What is the revenue of Shanghai Hugong Elec(Group) (603131)?
Shanghai Hugong Elec(Group) reported trailing-twelve-month revenue of about 914M CNY (latest available figure, as of Sep 7, 2026).
What is the net profit margin of 603131?
The net profit margin of Shanghai Hugong Elec(Group) is about −1.6%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Shanghai Hugong Elec(Group) pay a dividend?
Shanghai Hugong Elec(Group) currently shows a dividend yield of about 0.23% relative to its recent price (as of Sep 7, 2026).
What growth is priced into Shanghai Hugong Elec(Group) (603131)?
For today's price to be fair in a discounted-cash-flow model, Shanghai Hugong Elec(Group) would have to grow free cash flow by +24.3 % per year for ten years (discount rate 10.4 %, then 2 % perpetual growth). Over the last 5 years revenue grew -3.2 % per year. As of Sep 7, 2026.
What discount rate (WACC) does the fair value of 603131 use?
Our models discount Shanghai Hugong Elec(Group) at 10.4 %: a base by market capitalisation (small), damped by beta 0.29, country premium for China. The same rate applies in all 26 models.
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