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Yantai Eddie Precision Machinery Co (603638) Fair Value & Analysis

Industrials · CN · Market cap 20.9B CNY

YE Yantai Eddie Precision Machinery Co 603638 · SHG
Price¥20.00
Fair Value¥9.65
Upside-51.8%
Quality59/100
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Expensive Growth
Solidly profitable · 12.3% net margin
Low debt · generates free cash flow
0.86% dividend yield
Mixed vs. peers (6/14)
Moderate moat 54/100
Evidence: High Range ¥5.07 – ¥12.13 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 ¥9.71 to ¥9.65 (−0.6%) since Jun 24, 2026. Share price −16.1% over the past month.

A solid business, but screening 52% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥12.13). The favourable scenario is already priced in.
  • Solid but not exceptional quality (59/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (¥5.07 to ¥12.13) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥61.01 ¥13.61 Fair Value ¥9.65 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 ¥13.61 – ¥61.01 · fair‑value band ¥5.07 – ¥12.13 · the ¥20.00 price screens above the ¥9.65 fair value. Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

Yantai Eddie Precision Machinery Co (603638) currently trades at ¥20.00, while our model-based Fair Value estimate is ¥9.65, implying the stock looks roughly 51.8% overvalued today. The Quality Score stands at 59/100 (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, Yantai Eddie Precision Machinery Co generated revenue of 3.6B CNY at a net margin of 12.3%. Revenue grew 51.6% year over year. It earns a return on equity of 12.1%. Net debt stands at 1.3B CNY. Fundamentals as of Jul 11, 2026

Our scenario range runs from ¥5.07 (bear case) to ¥12.13 (bull case); at ¥20.00, 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 26% below its 52-week high and 20% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -52%, 603638 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 BearBaseBull Evidence
Highest evidence
Growth DCF ¥0.7300 ¥2.01 ¥4.48 80
Residual Income ¥3.88 ¥4.38 ¥7.60 76
Rev-Margin DCF ¥3.36 ¥8.15 ¥15.39 74
All 26 models by family
DCF Models
FCF DCF ¥0.8000 ¥1.74 ¥4.50 38
Owner Earnings ¥4.21 ¥10.40 ¥23.38 31
5Y Revenue Exit ¥3.36 ¥7.59 ¥16.00 39
5Y EBITDA Exit ¥6.79 ¥14.95 ¥30.13 41
5Y P/E Exit ¥4.94 ¥12.28 ¥21.96 38
10Y Revenue Exit ¥2.41 ¥7.26 ¥13.16 36
10Y EBITDA Exit ¥5.03 ¥13.84 ¥30.87 37
10Y P/E Exit ¥3.72 ¥10.28 ¥22.09 35
Earnings-Based
Graham-Dodd ¥3.14 ¥21.92 ¥30.76 54
Lynch FV ¥6.68 ¥9.55 ¥12.41 50
PEG = 1.0 ¥6.68 ¥9.55 ¥12.41 46
EPV ¥4.93 ¥5.86 ¥6.67 59
Dividend Discount
Gordon GGM ¥1.65 ¥3.44 ¥5.46 70
DDM Multi-Stage ¥1.65 ¥2.90 ¥3.61 61
Multiples
P/E Multiple ¥7.28 ¥9.71 ¥12.13 63
P/S Multiple ¥5.63 ¥7.51 ¥9.38 58
P/B Multiple ¥5.89 ¥7.86 ¥9.82 55
EV/EBIT ¥7.71 ¥10.49 ¥13.27 53
EV/EBITDA ¥9.25 ¥12.55 ¥15.85 54
EV/Revenue ¥4.09 ¥6.12 ¥8.15 43
Asset-Based
NCAV (Graham) ¥2.16 ¥2.90 ¥4.33 50
Growth DCF
Growth DCF ¥0.7300 ¥2.01 ¥4.48 80
Rev-Margin DCF ¥3.36 ¥8.15 ¥15.39 74
Economic Profit
Residual Income ¥3.88 ¥4.38 ¥7.60 76
ROIC Compounder ¥5.49 ¥8.11 ¥10.42 72
Growth Earnings
Growth-Adj P/E ¥9.06 ¥12.94 ¥16.82 68

Widest divergence: Growth Earnings (¥12.94) versus Growth DCF (¥2.01). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 3.6B CNY
Revenue growth (YoY) +51.6%
Net margin 12.3%
Return on equity 12.1%
Free cash flow 76.4M CNY FY2025
P/E ratio 46.3
More key figures
Operating margin 16.2%
EPS (TTM) ¥0.5300
Dividend yield 0.9%
EPS growth (YoY) +50.0%
Net debt 1.3B CNY FY2025

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

Quality Score breakdown

Overall quality 59/100

Of which business quality 57 · Market factors (momentum, volatility) 52

Profitability 40
Margins and returns on capital today
Quality Growth 63
Are margins and returns improving?
Cashflow 35
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 56
Disciplined investing over empire-building
Low Volatility 56
Calm price path (market factor)
Momentum 54
Price trend over the last 3–12 months (market factor)
52W Momentum 42
Distance to the 52-week high (market factor)
Net Issuance 88
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

Yantai Eddie Precision Machinery Co., Ltd., together with its subsidiaries, engages in the development, production, and sale of hydraulic attachments for construction machinery and marines in China.

Full company description

Yantai Eddie Precision Machinery Co., Ltd., together with its subsidiaries, engages in the development, production, and sale of hydraulic attachments for construction machinery and marines in China. The company offers hydraulic breakers, including conventional and special breakers; pliers accessories, which includes hydraulic shears, crushing pliers, hawkbill scissors, and car dismantling pliers; gripping tolls; vibration accessories; and quick connect devices. It also provides high-end hydraulic parts; industrial robots; carbide cutting tools; and battery energy storage. In addition, the company offers aftermarket products and services. It also exports its products. Yantai Eddie Precision Machinery Co., Ltd. was founded in 2003 and is based in Yantai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Yantai Eddie Precision Machinery Co reported revenue of ¥3.2B in FY2025 versus ¥2.7B in FY2021, a compound +4.5%/yr. Reported net income was ¥394M in FY2025, compounding −4.3%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
3.2B CNY
Latest YoY
+17.3%
Avg. growth/yr (3Y)
+16.4%
Avg. growth/yr (5Y)
+7.2%
Avg. growth/yr (14Y)
+20.7%
Revenue +4.5%/yr
FY21 ¥2.7B
FY22 ¥2.0B
FY23 ¥2.2B
FY24 ¥2.7B
FY25 ¥3.2B
Net income −4.3%/yr
FY21 ¥470M
FY22 ¥249M
FY23 ¥279M
FY24 ¥344M
FY25 ¥394M

603638 screens 52% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Yantai Eddie Precision Machinery Co Fair Value". https://www.fairvalue-calculator.com/stock/603638

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 59 · Above median
Fair Value upside −52% · Below median
Return on equity (TTM) 12% · Above median
Return on assets 5% · Above median
Net margin (TTM) 12% · Top 25%
Operating margin (TTM) 16% · Top 25%
Revenue growth 52% · Top 25%
Dividend yield (TTM) 0.9% · Below median
Debt / equity 0.30× · Higher than 75% of peers

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 46.3× · Pricier than median
P/B 5.66× · Pricier than 75% of peers
P/S (TTM) 5.81× · Pricier than 75% of peers
P/FCF 40.5× · Pricier than 75% of peers
EV/EBITDA 24.9× · Pricier than median

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 · sector 0
FUTURE 100 · sector 23
PAST 49 · sector 28
HEALTH 85 · sector 96
DIVIDEND 17 · sector 24

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

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%

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Frequently asked questions

Is Yantai Eddie Precision Machinery Co (603638) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of ¥9.65 versus a price of ¥20.00, about −52% (overvalued).
What is the fair value of 603638?
Our model-based fair value for Yantai Eddie Precision Machinery Co is ¥9.65 (as of Jul 11, 2026), built from audited fundamentals. The current price is ¥20.00.
What is the quality score of 603638?
Yantai Eddie Precision Machinery Co has a Quality Score of 59/100. 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 Yantai Eddie Precision Machinery Co (603638)?
Yantai Eddie Precision Machinery Co reported trailing-twelve-month revenue of about 3.6B CNY (latest available figure, as of Jul 11, 2026).
What is the net profit margin of 603638?
The net profit margin of Yantai Eddie Precision Machinery Co is about 12.3%, meaning it keeps roughly 12.3% of revenue as net income. Based on the latest reported figures.
Does Yantai Eddie Precision Machinery Co pay a dividend?
Yantai Eddie Precision Machinery Co currently shows a dividend yield of about 0.86% 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.

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