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Xianhe Co (603733) Fair Value & Analysis

Basic Materials · CN · Market cap 19.1B CNY

XC Xianhe Co 603733 · SHG
Price¥21.03
Fair Value¥24.32
Upside+15.6%
Quality44/100
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Expensive Growth
Thin margins · 8.2% net margin
Moderate debt · negative free cash flow
2.42% dividend yield
Mixed vs. peers (7/13)
Narrow moat 39/100
Evidence: High Range ¥18.24 – ¥30.40 Share as image

Fair value as of: Jul 11, 2026

From 16 valuation models · updated 30 days ago

Share price −4.6% over the past month.

Below-average quality, screening 16% undervalued on our models.

What matters now

  • Our model range runs from ¥18.24 (bear) to ¥30.40 (bull), base ¥24.32. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 44/100 (below-average quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥41.83 ¥11.80 Fair Value ¥24.32 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 ¥11.80 – ¥41.83 · fair‑value band ¥18.24 – ¥30.40 · the ¥21.03 price screens below the ¥24.32 fair value. Dashed = 300-day average. As of Jul 11, 2026.

Full chart & analysis →

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Analysis

Xianhe Co (603733) currently trades at ¥21.03, while our model-based Fair Value estimate is ¥24.32, implying the stock looks roughly 15.6% undervalued today. The Quality Score stands at 44/100 (below-average quality), in the Basic Materials 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, Xianhe Co generated revenue of 12.5B CNY at a net margin of 8.2%. Revenue grew 5.9% year over year. It earns a return on equity of 11.9%. Net debt stands at 11.3B CNY. Fundamentals as of Jul 11, 2026

Our scenario range runs from ¥18.24 (bear case) to ¥30.40 (bull case); at ¥21.03, 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 30% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -29% fair-value upside, at 16%, 603733 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
Residual Income ¥11.37 ¥13.09 ¥22.15 76
ROIC Compounder ¥2.72 ¥5.36 ¥7.68 72
Gordon GGM ¥8.79 ¥18.29 ¥29.01 70
All 16 models by family
Earnings-Based
Graham-Dodd ¥9.73 ¥66.93 ¥93.87 54
Lynch FV ¥19.70 ¥28.14 ¥36.59 50
PEG = 1.0 ¥19.70 ¥28.14 ¥36.59 46
EPV ¥2.72 ¥5.36 ¥7.68 59
Dividend Discount
Gordon GGM ¥8.79 ¥18.29 ¥29.01 70
DDM Multi-Stage ¥8.79 ¥15.42 ¥19.19 61
Multiples
P/E Multiple ¥18.24 ¥24.32 ¥30.40 63
P/S Multiple ¥18.24 ¥24.32 ¥30.40 58
P/B Multiple ¥18.24 ¥24.32 ¥30.40 55
EV/EBIT ¥6.29 ¥12.77 ¥19.24 53
EV/EBITDA ¥10.08 ¥17.82 ¥25.57 54
EV/Revenue ¥3.70 ¥10.92 ¥18.13 43
Asset-Based
NCAV (Graham) ¥6.18 ¥8.28 ¥12.35 50
Economic Profit
Residual Income ¥11.37 ¥13.09 ¥22.15 76
ROIC Compounder ¥2.72 ¥5.36 ¥7.68 72
Growth Earnings
Growth-Adj P/E ¥24.86 ¥35.51 ¥46.16 68

Widest divergence: Growth Earnings (¥35.51) versus Economic Profit (¥5.36). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 12.5B CNY
Revenue growth (YoY) +5.9%
Net margin 8.2%
Return on equity 11.9%
Free cash flow −1.1B CNY FY2025
P/E ratio 22.9
More key figures
Operating margin 10.5%
EPS (TTM) ¥1.18
Dividend yield 2.4%
EPS growth (YoY) +13.3%
Net debt 11.3B CNY FY2025

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

Quality Score breakdown

Overall quality 44/100

Of which business quality 42 · Market factors (momentum, volatility) 45

Profitability 34
Margins and returns on capital today
Quality Growth 66
Are margins and returns improving?
Cashflow 13
Earnings quality: real cash, not paper profit
Fin. Strength 33
Balance sheet, leverage, solvency risk
Investment 29
Disciplined investing over empire-building
Low Volatility 70
Calm price path (market factor)
Momentum 41
Price trend over the last 3–12 months (market factor)
52W Momentum 24
Distance to the 52-week high (market factor)
Net Issuance 96
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

Xianhe Co.,Ltd. develops and produces specialty pulps and paper products in China and internationally. It offers papers for tobacco industry, home decoration, business communication and anti- counterfeiting, food and medical packing, heat transfer base, label release, low quantitative publishing and printing, and electrical and industrial.

Full company description

Xianhe Co.,Ltd. develops and produces specialty pulps and paper products in China and internationally. It offers papers for tobacco industry, home decoration, business communication and anti- counterfeiting, food and medical packing, heat transfer base, label release, low quantitative publishing and printing, and electrical and industrial. The company was founded in 1997 and is based in Quzhou, China. Xianhe Co.,Ltd. is a subsidiary of Zhejiang Xianhe Holdings Co., Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Xianhe Co reported revenue of ¥12.3B in FY2025 versus ¥6.0B in FY2021, a compound +19.7%/yr. Reported net income was ¥1.0B in FY2025, compounding −0.1%/yr from FY2021.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
12.3B CNY
Latest YoY
+20.1%
Avg. growth/yr (3Y)
+16.8%
Avg. growth/yr (5Y)
+20.6%
Avg. growth/yr (12Y)
+18.5%
Revenue +19.7%/yr
FY21 ¥6.0B
FY22 ¥7.7B
FY23 ¥8.6B
FY24 ¥10.3B
FY25 ¥12.3B
Net income −0.1%/yr
FY21 ¥1.0B
FY22 ¥710M
FY23 ¥664M
FY24 ¥1.0B
FY25 ¥1.0B

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Cite: Fair Value Calculator (2026). "Xianhe Co Fair Value". https://www.fairvalue-calculator.com/stock/603733

Peer Group

Paper & Paper Products · 113 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 +16% · Above median
Return on equity (TTM) 12% · Top 25%
Return on assets 3% · Above median
Net margin (TTM) 8% · Top 25%
Operating margin (TTM) 10% · Top 25%
Revenue growth 6% · Above median
Dividend yield (TTM) 2.4% · Above median
Debt / equity 1.12× · Higher than 75% of peers

Valuation Multiples vs Paper & Paper Products median · lower = cheaper

P/E (TTM) 22.9× · Pricier than median
P/B 2.18× · Pricier than 75% of peers
P/S (TTM) 1.53× · Pricier than 75% of peers
EV/EBITDA 13.3× · 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 54 · sector 20
FUTURE 30 · sector 7
PAST 47 · sector 12
HEALTH 44 · sector 91
DIVIDEND 48 · sector 41

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 Paper & Paper Products stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
Klabin S.A KLBN11 R$17.58 R$3.89 -78%
UPM-Kymmene Oyj UPM €23.45 €15.47 -34%
Suzano S.A SUZB3 R$41.70 R$138.01 +231%
Svenska Cellulosa Aktiebolaget SCA (publ) SCAB kr 103.00 kr 49.40 -52%
Shandong Sunpaper Co 002078 ¥14.13 ¥17.29 +22%
Holmen AB HOLMB kr 305.40 kr 217.72 -29%
Nine Dragons Paper (Holdings) Limited 2689 HK$7.55 HK$8.73 +16%
Empresas CMPC S.A CMPC 1,078 CLP 1,269 CLP +18%
Billerud AB BILL kr 68.70 kr 48.60 -29%
MCC Meili Cloud Computing Industry Investment Co 000815 ¥12.12 ¥1.63 -87%

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Frequently asked questions

Is Xianhe Co (603733) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of ¥24.32 versus a price of ¥21.03, about +16% (undervalued).
What is the fair value of 603733?
Our model-based fair value for Xianhe Co is ¥24.32 (as of Jul 11, 2026), built from audited fundamentals. The current price is ¥21.03.
What is the quality score of 603733?
Xianhe Co 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 Xianhe Co (603733)?
Xianhe Co reported trailing-twelve-month revenue of about 12.5B CNY (latest available figure, as of Jul 11, 2026).
What is the net profit margin of 603733?
The net profit margin of Xianhe Co is about 8.2%, meaning it keeps roughly 8.2% of revenue as net income. Based on the latest reported figures.
Does Xianhe Co pay a dividend?
Xianhe Co currently shows a dividend yield of about 2.42% 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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