EN DE

Riyue Heavy Industry Co (603218) Fair Value & Analysis

Industrials · CN · Market cap 11.2B CNY

RH Riyue Heavy Industry Co 603218 · SHG
Price¥10.03
Fair Value¥11.17
Upside+11.4%
Quality61/100
Watch Riyue Heavy Industry Co for free, get notified when fair value or trend changes. Watch for free
Healthy Growth
Thin margins · 8.5% net margin
Low debt · generates free cash flow
3.55% dividend yield
Ranks above peers (9/14)
Narrow moat 37/100
Evidence: High Range ¥8.46 – ¥13.67 Share as image

Fair value as of: Jul 11, 2026

From 26 valuation models · updated 30 days ago

Fair value updated Jul 11, 2026, revised from ¥11.28 to ¥11.17 (−1.0%) since Jun 24, 2026. Share price +4.6% over the past month.

A solid business, screening 11% undervalued on our models.

What matters now

  • Our model range runs from ¥8.46 (bear) to ¥13.67 (bull), base ¥11.17. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 61/100 (solid quality) with high evidence: the data supports the verdict.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

¥40.77 ¥8.60 Fair Value ¥11.17 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 ¥8.60 – ¥40.77 · fair‑value band ¥8.46 – ¥13.67 · the ¥10.03 price screens below the ¥11.17 fair value. Dashed = 300-day average. As of Jul 11, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Riyue Heavy Industry Co (603218) currently trades at ¥10.03, while our model-based Fair Value estimate is ¥11.17, implying the stock looks roughly 11.4% undervalued today. The Quality Score stands at 61/100 (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, Riyue Heavy Industry Co generated revenue of 6.1B CNY at a net margin of 8.5%. Revenue declined 12.2% year over year. It earns a return on equity of 4.8%. The balance sheet holds a net cash position of 1.2B CNY. Fundamentals as of Jul 11, 2026

Our scenario range runs from ¥8.46 (bear case) to ¥13.67 (bull case); at ¥10.03, 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 41% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at 11%, 603218 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 ¥6.43 ¥10.15 ¥16.78 80
Residual Income ¥7.83 ¥8.04 ¥7.92 76
Rev-Margin DCF ¥7.20 ¥11.66 ¥17.73 74
All 26 models by family
DCF Models
FCF DCF ¥6.52 ¥10.60 ¥18.64 38
Owner Earnings ¥10.17 ¥17.91 ¥32.29 31
5Y Revenue Exit ¥7.20 ¥11.86 ¥18.46 39
5Y EBITDA Exit ¥10.11 ¥18.16 ¥28.79 41
5Y P/E Exit ¥8.97 ¥15.70 ¥23.79 38
10Y Revenue Exit ¥6.75 ¥11.20 ¥18.58 36
10Y EBITDA Exit ¥8.92 ¥15.95 ¥27.65 37
10Y P/E Exit ¥8.15 ¥14.09 ¥23.26 35
Earnings-Based
Graham-Dodd ¥3.65 ¥19.85 ¥27.52 54
Lynch FV ¥5.51 ¥7.87 ¥10.23 50
PEG = 1.0 ¥5.51 ¥7.87 ¥10.23 46
EPV ¥7.11 ¥7.94 ¥8.67 59
Dividend Discount
Gordon GGM ¥3.21 ¥6.68 ¥10.59 70
DDM Multi-Stage ¥3.21 ¥5.63 ¥7.01 61
Multiples
P/E Multiple ¥8.46 ¥11.28 ¥14.10 63
P/S Multiple ¥6.85 ¥9.13 ¥11.41 58
P/B Multiple ¥6.85 ¥9.13 ¥11.41 55
EV/EBIT ¥9.60 ¥12.10 ¥14.60 53
EV/EBITDA ¥12.30 ¥15.70 ¥19.10 54
EV/Revenue ¥7.45 ¥9.74 ¥12.04 43
Asset-Based
NCAV (Graham) ¥5.02 ¥6.73 ¥10.04 50
Growth DCF
Growth DCF ¥6.43 ¥10.15 ¥16.78 80
Rev-Margin DCF ¥7.20 ¥11.66 ¥17.73 74
Economic Profit
Residual Income ¥7.83 ¥8.04 ¥7.92 76
ROIC Compounder ¥7.11 ¥7.94 ¥8.67 72
Growth Earnings
Growth-Adj P/E ¥8.05 ¥11.50 ¥14.95 68

Widest divergence: DCF Models (¥14.09) versus Dividend Discount (¥5.63). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 6.1B CNY
Revenue growth (YoY) -12.2%
Net margin 8.5%
Return on equity 4.8%
Free cash flow 331M CNY FY2025
P/E ratio 21.2
More key figures
Operating margin 7.7%
EPS (TTM) ¥0.5100
Dividend yield 3.6%
EPS growth (YoY) -33.3%
Net cash 1.2B CNY FY2024

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

Quality Score breakdown

Overall quality 61/100

Of which business quality 60 · Market factors (momentum, volatility) 31

Profitability 31
Margins and returns on capital today
Quality Growth 64
Are margins and returns improving?
Cashflow 39
Earnings quality: real cash, not paper profit
Fin. Strength 91
Balance sheet, leverage, solvency risk
Investment 83
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 13
Price trend over the last 3–12 months (market factor)
52W Momentum 6
Distance to the 52-week high (market factor)
Net Issuance 70
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

Riyue Heavy Industry Co.,Ltd. engages in the research and development, production, and sale of large-scale heavy industry equipment castings in China. It offers wind power, plastic machinery, ship power and machining centers, diesel engine, machining center, and other castings used for energy, general machinery, marine engineering, etc.

Full company description

Riyue Heavy Industry Co.,Ltd. engages in the research and development, production, and sale of large-scale heavy industry equipment castings in China. It offers wind power, plastic machinery, ship power and machining centers, diesel engine, machining center, and other castings used for energy, general machinery, marine engineering, etc. The company was founded in 2007 and is headquartered in Ningbo, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Riyue Heavy Industry Co reported revenue of ¥6.3B in FY2025 versus ¥4.7B in FY2021, a compound +7.3%/yr. Reported net income was ¥553M in FY2025, compounding −4.6%/yr from FY2021.

Growth Quality 62/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
6.3B CNY
Latest YoY
+33.2%
Avg. growth/yr (3Y)
+8.7%
Avg. growth/yr (5Y)
+4.1%
Avg. growth/yr (14Y)
+13.5%
Revenue +7.3%/yr
FY21 ¥4.7B
FY22 ¥4.9B
FY23 ¥4.7B
FY24 ¥4.7B
FY25 ¥6.3B
Net income −4.6%/yr
FY21 ¥667M
FY22 ¥344M
FY23 ¥482M
FY24 ¥624M
FY25 ¥553M

Watch 603218: get an alert when its fair value changes →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "Riyue Heavy Industry Co Fair Value". https://www.fairvalue-calculator.com/stock/603218

Peer Group

Specialty Industrial Machinery · 809 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 61 · Above median
Fair Value upside +11% · Top 25%
Return on equity (TTM) 5% · Below median
Return on assets 2% · Below median
Net margin (TTM) 8% · Above median
Operating margin (TTM) 8% · Below median
Revenue growth -12% · Bottom 25%
Dividend yield (TTM) 3.6% · Top 25%
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 21.2× · Cheaper than median
P/B 1.08× · Cheaper than 75% of peers
P/S (TTM) 1.83× · Cheaper than median
P/FCF 5.0× · Pricier than median
EV/EBITDA 9.7× · Cheaper 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.

VALUE 49 · sector 0
FUTURE 0 · sector 23
PAST 19 · sector 28
HEALTH 100 · sector 96
DIVIDEND 71 · sector 24

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 Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €887.60 €186.93 -79%
1SIE 1SIE €273.20 €91.93 -66%
SMNS SMNS C$31.76 C$22.68 -29%
Eaton Corporation ETN $407.28 $171.92 -58%
Atlas Copco AB ATCOA kr 195.15 kr 112.59 -42%
Sandvik AB SAND kr 384.10 kr 193.01 -50%
Doosan Enerbility Co 034020 76,400 KRW 7,938 KRW -90%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%

Compare Riyue Heavy Industry Co with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Industrials stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is Riyue Heavy Industry Co (603218) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of ¥11.17 versus a price of ¥10.03, about +11% (undervalued).
What is the fair value of 603218?
Our model-based fair value for Riyue Heavy Industry Co is ¥11.17 (as of Jul 11, 2026), built from audited fundamentals. The current price is ¥10.03.
What is the quality score of 603218?
Riyue Heavy Industry Co has a Quality Score of 61/100. 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 Riyue Heavy Industry Co (603218)?
Riyue Heavy Industry Co reported trailing-twelve-month revenue of about 6.1B CNY (latest available figure, as of Jul 11, 2026).
What is the net profit margin of 603218?
The net profit margin of Riyue Heavy Industry Co is about 8.5%, meaning it keeps roughly 8.5% of revenue as net income. Based on the latest reported figures.
Does Riyue Heavy Industry Co pay a dividend?
Riyue Heavy Industry Co currently shows a dividend yield of about 3.55% 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.

14 days Pro free · no card

Track Riyue Heavy Industry Co and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.