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Ningbo Shenglong Automotive Powertrain System Co Ltd (603178) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 4.0B CNY (≈ $601M) · ISIN CNE100002Y58

NS Ningbo Shenglong Automotive Powertrain System Co Ltd 603178 · SHG
Price¥16.48
Fair Value¥8.47
Upside-48.6%
Quality44/100
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Strengths

Low debt · generates free cash flow

Risks

!Trades 95% ABOVE our fair value of ¥8.47
!Mixed Growth (revenue 5y +6.5 %/yr)
!Loss-making · -9.8% net margin
!Trails peers (4/12)
Mixed Growth (revenue 5y +6.5 %/yr)
Loss-making · -9.8% net margin
Low debt · generates free cash flow
Trails peers (4/12)
Narrow moat 13/100
Evidence: Medium Range ¥5.38 – ¥11.56 Share as image

Fair value as of: Aug 28, 2026

From 9 valuation models · updated today

Fair value updated Aug 28, 2026, revised from ¥1.26 to ¥8.47 (+572.2%) since Aug 13, 2026. Share price +9.0% over the past month.

Below-average quality, and trading another 95% above our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The price sits above even our optimistic bull case (¥11.56). The favourable scenario is already priced in.
  • Weak quality (44/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (¥5.38 to ¥11.56) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥51.80 ¥7.96 Fair Value ¥8.47 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 28, 2026.

How to read this chart

60‑month range ¥7.96 – ¥51.80 · fair‑value band ¥5.38 – ¥11.56 · the ¥16.48 price screens above the ¥8.47 fair value. Dashed = 300-day average. As of Aug 28, 2026.

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Analysis

Ningbo Shenglong Automotive Powertrain System Co Ltd (603178) currently trades at ¥16.48, while our model-based Fair Value estimate is ¥8.47, implying the stock looks roughly 48.6% overvalued today. The Quality Score stands at 44/100 (below-average quality), in the Consumer Cyclical 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, Ningbo Shenglong Automotive Powertrain System Co Ltd generated revenue of 1.6B CNY at a net margin of -9.8%. Revenue declined 7.5% year over year. It earns a return on equity of -13.4%. Net debt stands at 63.8M CNY. Fundamentals as of Aug 28, 2026

Our scenario range runs from ¥5.38 (bear case) to ¥11.56 (bull case); at ¥16.48, 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 33% below its 52-week high and 13% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -17% fair-value upside, at -49%, 603178 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 ¥1.87 ¥2.37 ¥3.03 80
Rev-Margin DCF ¥1.71 ¥2.28 ¥2.90 74
Gordon GGM ¥0.5900 ¥1.13 ¥1.78 70
All 9 models by family
DCF Models
FCF DCF ¥1.85 ¥2.39 ¥3.15 38
5Y Revenue Exit ¥1.71 ¥2.27 ¥2.96 39
10Y Revenue Exit ¥1.72 ¥2.22 ¥2.85 36
Dividend Discount
Gordon GGM ¥0.5900 ¥1.13 ¥1.78 70
DDM Multi-Stage ¥0.5900 ¥0.8900 ¥1.20 61
Multiples
EV/Revenue ¥1.70 ¥2.16 ¥2.62 43
Asset-Based
NCAV (Graham) ¥2.41 ¥3.23 ¥4.83 50
Growth DCF
Growth DCF ¥1.87 ¥2.37 ¥3.03 80
Rev-Margin DCF ¥1.71 ¥2.28 ¥2.90 74

Widest divergence: Asset-Based (¥3.23) versus Dividend Discount (¥0.8900). Highest evidence: Growth DCF (80).

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Key figures & financial health

P/S ratio 2.40 TTM
EPS (TTM) ¥-0.6800
Net margin -12.6% FY2025
Return on equity -13.4% TTM
Return on assets (EBIT) 1.2% avg 5y
Operating margin 5.2% TTM
More key figures
Growth
Revenue (TTM) 1.6B CNY TTM
Revenue growth (YoY) -7.5% 3y avg +4.2%
EPS growth (YoY) -36.0%
Balance sheet & cash flow
Free cash flow 27.8M CNY FY2025
Net debt 63.8M CNY FY2025 · ≈ 2.3 yrs of FCF

Figures from reported company fundamentals · as of Aug 28, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 44/100

Of which business quality 44 · Market factors (momentum, volatility) 36

Profitability 12
Margins and returns on capital today
Quality Growth 30
Are margins and returns improving?
Cashflow 21
Earnings quality: real cash, not paper profit
Fin. Strength 73
Balance sheet, leverage, solvency risk
Investment 88
Disciplined investing over empire-building
Low Volatility 56
Calm price path (market factor)
Momentum 31
Price trend over the last 3–12 months (market factor)
52W Momentum 23
Distance to the 52-week high (market factor)
Net Issuance 64
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

Ningbo Shenglong Automotive Powertrain System Co.,Ltd. engages in the research and development, production, and sale of automotive powertrain components in China and internationally.

Full company description

Ningbo Shenglong Automotive Powertrain System Co.,Ltd. engages in the research and development, production, and sale of automotive powertrain components in China and internationally. The company's products include engine mechanical, transmission, and new energy vehicle transmission and all-in-one electric drive system electronic oil pumps; electronic and mechanical, and heavy-duty silicone oil clutch water pumps; cast camshafts, forged camshafts, and assembled camshafts; and transmission core components. It also provides system integration and engineering services. The company was founded in 2007 and is headquartered in Ningbo, China. Ningbo Shenglong Automotive Powertrain System Co.,Ltd. operates as a subsidiary of Ningbo Shenglong Group Co., Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Ningbo Shenglong Automotive Powertrain System Co Ltd reported revenue of ¥1.7B in FY2025 versus ¥1.5B in FY2021, a compound +2.8%/yr. Reported net income was −¥211M in FY2025.

Growth Quality 44/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
1.7B CNY
Latest YoY
+3.4%
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.
+4.2%
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.
+6.5%
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.
+7.9%
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 +2.8%/yr
FY21 ¥1.5B
FY22 ¥1.5B
FY23 ¥1.5B
FY24 ¥1.6B
FY25 ¥1.7B
Net income
FY21 ¥103M
FY22 ¥89.1M
FY23 ¥53.3M
FY24 ¥29.8M
FY25 −¥211M

603178 screens 49% overvalued. Compare with Toyota Motor Corporation →

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Cite: Fair Value Calculator (2026). "Ningbo Shenglong Automotive Powertrain System Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/603178

Peer Group

Auto Manufacturers · 119 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 44 · Below median
Fair Value upside −49% · Bottom 25%
Return on assets -3% · Bottom 25%
Net margin (TTM) -10% · Bottom 25%
Operating margin (TTM) 5% · Above median
Revenue growth -8% · Bottom 25%
Dividend yield (TTM) 0.4% · Bottom 25%
Debt / equity 0.04× · Lower than median

Valuation Multiples vs Auto Manufacturers median · lower = cheaper

P/B 0.53× · Cheaper than 75% of peers
P/S (TTM) 0.37× · Cheaper than median
P/FCF 21.6× · Pricier than 75% of peers

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 27
FUTURE0 · sector 32
PAST0 · sector 21
HEALTH98 · sector 94
DIVIDEND8 · sector 49

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 Auto Manufacturers stocks, each showing price versus our Fair Value estimate (as of Aug 28, 2026).

Stock Price Fair Value vs Fair Value
Toyota Motor Corporation TM $191.84 $247.83 +29%
BYD Company 81211 HK$76.90 HK$48.59 -37%
Hyundai Motor Company 005380 418,500 KRW 567,393 KRW +36%
Ferrari N.V RACE €355.80 €167.67 -53%
General Motors Company GM $86.33 $52.69 -39%
Ford Motor Company F $13.90 $11.51 -17%
Mercedes-Benz Group MBG €45.60 €106.16 +133%
Dr. Ing. h.c. F. Porsche AG P911 €43.91 €17.34 -61%
Maruti Suzuki India Limited MARUTI ₹13,875 ₹8,236 -41%
Volkswagen AG VOW3 €72.42 €248.34 +243%

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Frequently asked questions

Is Ningbo Shenglong Automotive Powertrain System Co Ltd (603178) overvalued or undervalued?
As of Aug 28, 2026, our model estimates a fair value of ¥8.47 versus a price of ¥16.48, about −49% (overvalued).
What is the fair value of 603178?
Our model-based fair value for Ningbo Shenglong Automotive Powertrain System Co Ltd is ¥8.47 (as of Aug 28, 2026), built from audited fundamentals. The current price: ¥16.48.
What is the quality score of 603178?
Ningbo Shenglong Automotive Powertrain System Co Ltd has a Quality Score of 44/100. 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 Ningbo Shenglong Automotive Powertrain System Co Ltd (603178)?
Ningbo Shenglong Automotive Powertrain System Co Ltd reported trailing-twelve-month revenue of about 1.6B CNY (latest available figure, as of Aug 28, 2026).
What is the net profit margin of 603178?
The net profit margin of Ningbo Shenglong Automotive Powertrain System Co Ltd is about -9.8%, meaning it is currently running at a net loss. Based on the latest reported figures.

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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