Zhenhai Petrochemical Engineering Co (603637) Fair Value & Analysis

Industrials · CN · Market cap 3.9B CNY

A solid business, but screening 56% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (¥7.27). The favourable scenario is already priced in.
• Solid but not exceptional quality (64/100) 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 Jul 11, 2026.

How to read this chart

60‑month range ¥5.17 – ¥22.15 · fair‑value band ¥4.36 – ¥7.27 · the ¥13.19 price screens above the ¥5.82 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 11, 2026.

Full chart & analysis →

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Analysis

Zhenhai Petrochemical Engineering Co (603637) currently trades at ¥13.19, while our model-based Fair Value estimate is ¥5.82, implying the stock looks roughly 55.9% overvalued today. The Quality Score stands at 64/100 (solid 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: high).

Over the trailing twelve months, Zhenhai Petrochemical Engineering Co generated revenue of 464M CNY at a net margin of 12.6%. Revenue grew 4.2% year over year. It earns a return on equity of 5.6%. The balance sheet holds a net cash position of 862M CNY. Fundamentals as of Jul 11, 2026

Our scenario range runs from ¥4.36 (bear case) to ¥7.27 (bull case); at ¥13.19, 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 40% below its 52-week high and 37% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -45% fair-value upside, at -56%, 603637 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.

Widest divergence: DCF Models (¥7.14) versus Dividend Discount (¥2.26). Highest evidence: Residual Income (76).

Key figures & financial health

Quality Score breakdown

About the company

Zhenhai Petrochemical Engineering Co., Ltd. engages in general contracting, engineering consulting, engineering design, and engineering supervision in China.

Full company description

Zhenhai Petrochemical Engineering Co., Ltd. engages in general contracting, engineering consulting, engineering design, and engineering supervision in China. The company is involved in engineering management, supervision, engineering valuation, engineering bidding agency, and other activities; and plant-wide planning, project application reports, feasibility studies, overall design of large and complex projects, engineering consulting, design, procurement, construction management, engineering, procurement, and construction contracting, project management contracting, training, and commissioning for petrochemical engineering projects. It also engages in preparation and review of investment estimates and post-project evaluation reports; and preparation of construction project budget, estimate, settlement and final settlement reports and review, bidding prices and tender quotations for the construction project implementation phase, bills of quantities, and changes in construction contract prices and calculation of claims. In addition, the company offers appraisal services for engineering cost economic disputes; and engineering cost monitoring, and construction cost information services. Zhenhai Petrochemical Engineering Co., Ltd. was founded in 1974 and is based in Ningbo, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhenhai Petrochemical Engineering Co reported revenue of ¥462M in FY2025 versus ¥1.1B in FY2021, a compound −19.5%/yr. Reported net income was ¥66.1M in FY2025, compounding −3.1%/yr from FY2021.

603637 screens 56% overvalued. Compare with Larsen & Toubro Limited →

Peer Group

Engineering & Construction · 837 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 Engineering & Construction median · lower = cheaper

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.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

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.