Shandong Donghong Pipe Industry Co (603856) Fair Value & Analysis
Industrials · CN · Market cap 3.6B CNY
Fair value as of: Jul 12, 2026
From 25 valuation models · updated 29 days ago
Share price −14.1% over the past month.
A solid business, screening 28% undervalued on our models.
What matters now
- Solid quality (55/100) at a price below fair value, the discount is the argument here, not the business quality.
- Our model range runs from ¥11.05 (bear) to ¥18.14 (bull), base ¥14.34. The closer the price sits to the lower half, the larger the margin of safety.
- Quality 55/100 (solid quality) with high evidence: the data supports the verdict.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.
How to read this chart
60‑month range ¥9.52 – ¥17.06 · fair‑value band ¥11.05 – ¥18.14 · the ¥11.24 price screens below the ¥14.34 fair value. Dashed = 300-day average. As of Jul 12, 2026.
Analysis
Shandong Donghong Pipe Industry Co (603856) currently trades at ¥11.24, while our model-based Fair Value estimate is ¥14.34, implying the stock looks roughly 27.6% undervalued today. The Quality Score stands at 55/100 (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, Shandong Donghong Pipe Industry Co generated revenue of 2.0B CNY at a net margin of 8.7%. Revenue grew 8.1% year over year. It earns a return on equity of 6.9%. Net debt stands at 469M CNY. Fundamentals as of Jul 12, 2026
Our scenario range runs from ¥11.05 (bear case) to ¥18.14 (bull case); at ¥11.24, 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 25% below its 52-week high and 3% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -33% fair-value upside, at 28%, 603856 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.
All 25 models by family
Widest divergence: Growth Earnings (¥14.68) versus Dividend Discount (¥3.29). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 56 · Market factors (momentum, volatility) 42
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
Shandong Donghong Pipe Industry Co., Ltd. engages in the research, development, manufacture, and servicing of pipeline systems in China. It offers SRTP piping systems, polyethylene pipes, PVC pipes, insulation pipe, and anti-corrosion metal pipes, as well as pipe connections.
Full company description
Shandong Donghong Pipe Industry Co., Ltd. engages in the research, development, manufacture, and servicing of pipeline systems in China. It offers SRTP piping systems, polyethylene pipes, PVC pipes, insulation pipe, and anti-corrosion metal pipes, as well as pipe connections. The company also develops and produces materials, such as plastic increase materials for polyolefin wear-resistant pipes, special bonding resin for steel wire mesh skeleton composite pipes, 3PE special anticorrosion materials for pipeline, epoxy resin powder coatings, phosphorus flame retardant materials for mining safety, special materials for antistatic flame-retardant polyethylene pipes used in coal mines, color parent materials, and functional carbon black mother particles. In addition, it provides engineering pipeline products, which are used in national municipal, water conservancy, industrial and mining, thermal, and other large-scale projects, as well as general contracting solutions. The company was founded in 1997 and is based in Qufu, China. Shandong Donghong Pipe Industry Co., Ltd. operates as a subsidiary of Shandong Donghong Group Co., Ltd.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Shandong Donghong Pipe Industry Co reported revenue of ¥2.2B in FY2025 versus ¥2.2B in FY2021, a compound −0.1%/yr. Reported net income was ¥249M in FY2025, compounding +17.0%/yr from FY2021.
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Peer Group
Building Products & Equipment · 247 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 Building Products & Equipment 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.
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.
Similar stocks
10 more Building Products & Equipment stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Trane Technologies plc TT | $469.98 | $212.34 | -55% |
| Johnson Controls International plc JCI | $142.81 | $45.65 | -68% |
| Carrier Global Corporation CARR | $68.61 | $17.35 | -75% |
| Compagnie de Saint-Gobain S.A SGO | €76.62 | €101.60 | +33% |
| Geberit AG GEBN | CHF 523.20 | CHF 307.66 | -41% |
| Lennox International Inc LII | $543.93 | $363.09 | -33% |
| Kingspan Group KRX | €87.30 | €70.76 | -19% |
| Masco Corporation MAS | $78.04 | $54.36 | -30% |
| PT Impack Pratama Industri Tbk, IMPC | 1,420 IDR | 179.76 IDR | -87% |
| NIBE Industrier AB NIBEB | kr 36.03 | kr 25.37 | -30% |
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Frequently asked questions
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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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