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Qijing Machinery Co (603677) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 2.8B CNY

QM Qijing Machinery Co 603677 · SHG
Price¥13.90
Fair Value¥6.15
Upside-55.7%
Quality50/100
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Expensive Growth
Thin margins · 2.0% net margin
Low debt · negative free cash flow
1.37% dividend yield
Trails peers (0/13)
Narrow moat 28/100
Evidence: High Range ¥4.62 – ¥7.69 Share as image

Fair value as of: Jul 11, 2026

From 16 valuation models · updated 30 days ago

Fair value updated Jul 11, 2026, revised from ¥5.01 to ¥6.15 (+22.8%) since Jun 24, 2026. Share price +10.7% over the past month.

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

What matters now

  • The price sits above even our optimistic bull case (¥7.69). The favourable scenario is already priced in.
  • Solid but not exceptional quality (50/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥31.01 ¥8.35 Fair Value ¥6.15 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 ¥8.35 – ¥31.01 · fair‑value band ¥4.62 – ¥7.69 · the ¥13.90 price screens above the ¥6.15 fair value. Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

Qijing Machinery Co (603677) currently trades at ¥13.90, while our model-based Fair Value estimate is ¥6.15, implying the stock looks roughly 55.7% overvalued today. The Quality Score stands at 50/100 (solid 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: high).

Over the trailing twelve months, Qijing Machinery Co generated revenue of 2.0B CNY at a net margin of 2.0%. Revenue declined 4.9% year over year. It earns a return on equity of 3.5%. Net debt stands at 168M CNY. Fundamentals as of Jul 11, 2026

Our scenario range runs from ¥4.62 (bear case) to ¥7.69 (bull case); at ¥13.90, 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 35% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -44% fair-value upside, at -56%, 603677 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
Residual Income ¥4.49 ¥4.50 ¥4.10 76
ROIC Compounder ¥2.73 ¥3.27 ¥3.73 72
Gordon GGM ¥2.74 ¥5.16 ¥8.28 70
All 16 models by family
DCF Models
Owner Earnings ¥0.1400 ¥0.4900 31
Earnings-Based
Graham-Dodd ¥1.70 ¥4.36 ¥5.68 54
PEG = 1.0 ¥0.8200 ¥1.17 ¥1.52 46
EPV ¥2.73 ¥3.27 ¥3.73 59
Dividend Discount
Gordon GGM ¥2.74 ¥5.16 ¥8.28 70
DDM Multi-Stage ¥2.74 ¥4.12 ¥5.55 61
Multiples
P/E Multiple ¥3.76 ¥5.01 ¥6.26 63
P/S Multiple ¥3.19 ¥4.26 ¥5.32 58
P/B Multiple ¥3.19 ¥4.26 ¥5.32 55
EV/EBIT ¥4.94 ¥6.81 ¥8.68 53
EV/EBITDA ¥8.03 ¥10.93 ¥13.83 54
EV/Revenue ¥3.11 ¥4.74 ¥6.36 43
Asset-Based
NCAV (Graham) ¥3.01 ¥4.04 ¥6.02 50
Economic Profit
Residual Income ¥4.49 ¥4.50 ¥4.10 76
ROIC Compounder ¥2.73 ¥3.27 ¥3.73 72
Growth Earnings
Growth-Adj P/E ¥2.93 ¥4.18 ¥5.44 68

Widest divergence: Multiples (¥4.74) versus DCF Models (¥0.1400). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 2.0B CNY
Revenue growth (YoY) -4.9%
Net margin 2.0%
Return on equity 3.5%
Free cash flow −101M CNY FY2025
P/E ratio 69.5
More key figures
Operating margin 4.8%
EPS (TTM) ¥0.2100
Dividend yield 1.4%
EPS growth (YoY) -36.9%
Net debt 168M CNY FY2025

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

Quality Score breakdown

Overall quality 50/100

Of which business quality 48 · Market factors (momentum, volatility) 29

Profitability 33
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 6
Earnings quality: real cash, not paper profit
Fin. Strength 63
Balance sheet, leverage, solvency risk
Investment 84
Disciplined investing over empire-building
Low Volatility 74
Calm price path (market factor)
Momentum 15
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 80
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

Qijing Machinery Co., Ltd. researches and develops, produces, and sells electric tool parts in China. It offers home appliance parts, such as washing machine clutch parts, washing machine injection molding parts, drum washing machine spare parts, and dishwasher parts; auto parts including engine parts, gearbox parts, engineering machinery parts, etc., …

Full company description

Qijing Machinery Co., Ltd. researches and develops, produces, and sells electric tool parts in China. It offers home appliance parts, such as washing machine clutch parts, washing machine injection molding parts, drum washing machine spare parts, and dishwasher parts; auto parts including engine parts, gearbox parts, engineering machinery parts, etc., mainly used in automobile car engines, automotive parts, gearboxes, transmissions, and engineering hydraulic systems; and power tool parts comprising shafts, cylinder sleeves, tool handles, and other parts used to assemble professional-grade electric tools. The company was founded in 1996 and is headquartered in Ningbo, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Qijing Machinery Co reported revenue of ¥2.1B in FY2025 versus ¥2.0B in FY2021, a compound +0.8%/yr. Reported net income was ¥48.2M in FY2025, compounding −14.2%/yr from FY2021.

Growth Quality 39/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
2.1B CNY
Latest YoY
+3.2%
Avg. 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.
+4.6%
Avg. 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.
+5.8%
Avg. growth/yr (14Y) 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%
Revenue +0.8%/yr
FY21 ¥2.0B
FY22 ¥1.8B
FY23 ¥1.8B
FY24 ¥2.0B
FY25 ¥2.1B
Net income −14.2%/yr
FY21 ¥88.9M
FY22 ¥64.0M
FY23 ¥69.2M
FY24 ¥67.4M
FY25 ¥48.2M
Character of growth · EPS growth decomposed (2013-2024) −4.0 % p.a.
Revenue per share +0.5 pp

of which total revenue +4.6 pp · buybacks/dilution −4.0 pp

EBIT margin −7.8 pp
Tax rate +2.9 pp
Residual (interest, one-offs) +0.5 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

603677 screens 56% overvalued. Compare with Hyundai Mobis Co →

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Cite: Fair Value Calculator (2026). "Qijing Machinery Co Fair Value". https://www.fairvalue-calculator.com/stock/603677

Peer Group

Auto Parts · 642 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 50 · Below median
Fair Value upside −56% · Bottom 25%
Return on equity (TTM) 3% · Below median
Return on assets 2% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 5% · Below median
Revenue growth -5% · Below median
Dividend yield (TTM) 1.4% · Below median
Debt / equity 0.29× · Higher than 75% of peers

Valuation Multiples vs Auto Parts median · lower = cheaper

P/E (TTM) 69.5× · Pricier than 75% of peers
P/B 2.42× · Pricier than median
P/S (TTM) 1.38× · Pricier than median
EV/EBITDA 20.5× · 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.

VALUE 0 · sector 16
FUTURE 0 · sector 23
PAST 14 · sector 26
HEALTH 85 · sector 95
DIVIDEND 27 · sector 30

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 Auto Parts stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
Hyundai Mobis Co 012330 482,000 KRW 678,420 KRW +41%
Magna International Inc MGAN 1,122 MXN 1,172 MXN +4%
Samvardhana Motherson International Limited MOTHERSON ₹144.17 ₹80.63 -44%
Bosch Limited BOSCHLTD ₹41,110 ₹14,004 -66%
Bharat Forge Limited BHARATFORG ₹2,117 ₹441.74 -79%
Uno Minda Limited UNOMINDA ₹1,158 ₹426.57 -63%
Schaeffler India Limited SCHAEFFLER ₹4,135 ₹1,412 -66%
Hankook Tire & Technology Co 161390 73,600 KRW 196,479 KRW +167%
MRF Limited MRF ₹131,025 ₹125,849 -4%
Sona BLW Precision Forgings Limited SONACOMS ₹792.00 ₹207.06 -74%

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Frequently asked questions

Is Qijing Machinery Co (603677) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of ¥6.15 versus a price of ¥13.90, about −56% (overvalued).
What is the fair value of 603677?
Our model-based fair value for Qijing Machinery Co is ¥6.15 (as of Jul 11, 2026), built from audited fundamentals. The current price is ¥13.90.
What is the quality score of 603677?
Qijing Machinery Co has a Quality Score of 50/100. 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 Qijing Machinery Co (603677)?
Qijing Machinery Co reported trailing-twelve-month revenue of about 2.0B CNY (latest available figure, as of Jul 11, 2026).
What is the net profit margin of 603677?
The net profit margin of Qijing Machinery Co is about 2.0%, meaning it keeps roughly 2.0% of revenue as net income. Based on the latest reported figures.
Does Qijing Machinery Co pay a dividend?
Qijing Machinery Co currently shows a dividend yield of about 1.37% 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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