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Nancal Technology Co (603859) Fair Value & Analysis

Industrials · CN · Market cap 12.6B CNY

NT Nancal Technology Co 603859 · SHG
Price¥42.56
Fair Value¥15.67
Upside-63.2%
Quality45/100
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Expensive Growth
Solidly profitable · 14.8% net margin
generates free cash flow
0.18% dividend yield
Trails peers (4/13)
Moderate moat 50/100
Evidence: Medium Range ¥11.76 – ¥19.59 Share as image

Fair value as of: Jul 25, 2026

From 12 valuation models · updated 16 days ago

Share price −4.7% over the past month.

Below-average quality, and screening another 63% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥19.59). The favourable scenario is already priced in.
  • Solid but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥58.59 ¥13.64 Fair Value ¥15.67 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 25, 2026.

How to read this chart

60‑month range ¥13.64 – ¥58.59 · fair‑value band ¥11.76 – ¥19.59 · the ¥42.56 price screens above the ¥15.67 fair value. Dashed = 300-day average. As of Jul 25, 2026.

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Analysis

Nancal Technology Co (603859) currently trades at ¥42.56, while our model-based Fair Value estimate is ¥15.67, implying the stock looks roughly 63.2% overvalued today. The Quality Score stands at 45/100 (below-average 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: medium).

Over the trailing twelve months, Nancal Technology Co generated revenue of 1.5B CNY at a net margin of 14.8%. Revenue declined 1.0% year over year. It earns a return on equity of 9.2%. The balance sheet holds a net cash position of 300M CNY. Fundamentals as of Jul 25, 2026

Our scenario range runs from ¥11.76 (bear case) to ¥19.59 (bull case); at ¥42.56, 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 29% below its 52-week high and 60% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -14% fair-value upside, at -63%, 603859 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
Residual Income ¥10.33 ¥10.87 ¥11.84 76
Growth DCF ¥3.24 ¥3.87 ¥4.99 72
Gordon GGM ¥0.4300 ¥0.8900 ¥1.42 70
All 12 models by family
DCF Models
Owner Earnings ¥9.48 ¥16.13 ¥28.48 31
5Y P/E Exit ¥12.20 ¥23.25 ¥36.67 38
10Y P/E Exit ¥9.30 ¥18.42 ¥32.83 35
Earnings-Based
Graham-Dodd ¥6.27 ¥33.95 ¥47.07 54
Lynch FV ¥9.41 ¥13.44 ¥17.48 50
Dividend Discount
Gordon GGM ¥0.4300 ¥0.8900 ¥1.42 70
DDM Multi-Stage ¥0.4300 ¥0.7500 ¥0.9400 61
Multiples
P/E Multiple ¥14.52 ¥19.36 ¥24.20 63
P/B Multiple ¥11.76 ¥15.67 ¥19.59 55
Asset-Based
NCAV (Graham) ¥6.36 ¥8.53 ¥12.73 50
Growth DCF
Growth DCF ¥3.24 ¥3.87 ¥4.99 72
Economic Profit
Residual Income ¥10.33 ¥10.87 ¥11.84 76

Widest divergence: DCF Models (¥18.42) versus Dividend Discount (¥0.7500). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 1.5B CNY
Revenue growth (YoY) -1.0%
Net margin 14.8%
Return on equity 9.2%
Free cash flow 13.3M CNY FY2025
P/E ratio 55.3
More key figures
Operating margin 20.4%
EPS (TTM) ¥0.9300
Dividend yield 0.2%
Net cash 300M CNY FY2024

Figures from reported company fundamentals · as of Jul 25, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 45/100

Of which business quality 46 · Market factors (momentum, volatility) 56

Profitability 36
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 33
Earnings quality: real cash, not paper profit
Fin. Strength 86
Balance sheet, leverage, solvency risk
Investment 32
Disciplined investing over empire-building
Low Volatility 46
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 60
Distance to the 52-week high (market factor)
Net Issuance 42
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

Nancal Technology Co.,Ltd provides digital transformation solutions in China and internationally. It offers cloud products and services, such as technical tools, enterprise applications, business microservices, and Amazon Web Services (AWS) cloud services.

Full company description

Nancal Technology Co.,Ltd provides digital transformation solutions in China and internationally. It offers cloud products and services, such as technical tools, enterprise applications, business microservices, and Amazon Web Services (AWS) cloud services. The company also provides smart manufacturing services and products, including strategic planning and consulting services, simulation and testing services, test bench products, digital factory services, process automation services, ERP solutions, Internet enterprise informatization services, and IT software technology outsourcing services. In addition, it offers software systems and services in local deployment, as well as full-process system services, including business consulting, solution design, software application and customization, software system integration, online debugging, personnel training and operation, and maintenance. Further the company offers industrial engineering and industrial electrical products and services comprising digital manufacturing assembly lines, digital twin test benches; and smart electrical products, such as high-power high-voltage inverters, engineering inverters, soft starters, shore power supplies, power quality products, and energy management systems. It provides its products and services to central enterprises and heavy industries, semiconductor electronics, automobiles and rail transit, equipment manufacturing, energy and infrastructure, new energy, and other industries. The company was founded in 2006 and is headquartered in Beijing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Nancal Technology Co reported revenue of ¥1.5B in FY2025 versus ¥1.1B in FY2021, a compound +7.5%/yr. Reported net income was ¥226M in FY2025, compounding +9.1%/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)
1.5B CNY
Latest YoY
+1.0%
Avg. growth/yr (3Y)
+7.3%
Avg. growth/yr (5Y)
+9.9%
Avg. growth/yr (14Y)
+13.2%
Revenue +7.5%/yr
FY21 ¥1.1B
FY22 ¥1.2B
FY23 ¥1.4B
FY24 ¥1.5B
FY25 ¥1.5B
Net income +9.1%/yr
FY21 ¥159M
FY22 ¥198M
FY23 ¥226M
FY24 ¥192M
FY25 ¥226M

603859 screens 63% overvalued. Compare with CITIC Limited →

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Cite: Fair Value Calculator (2026). "Nancal Technology Co Fair Value". https://www.fairvalue-calculator.com/stock/603859

Peer Group

Conglomerates · 370 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 45 · Below median
Fair Value upside −63% · Bottom 25%
Return on equity (TTM) 9% · Above median
Return on assets 4% · Above median
Net margin (TTM) 15% · Top 25%
Operating margin (TTM) 20% · Top 25%
Revenue growth -1% · Below median
Dividend yield (TTM) 0.2% · Bottom 25%

Valuation Multiples vs Conglomerates median · lower = cheaper

P/E (TTM) 55.3× · Pricier than 75% of peers
P/B 4.04× · Pricier than 75% of peers
P/S (TTM) 8.28× · Pricier than 75% of peers
P/FCF 140.4× · Pricier than 75% of peers
EV/EBITDA 40.4× · 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 21
FUTURE 0 · sector 16
PAST 37 · sector 20
HEALTH 0 · sector 88
DIVIDEND 4 · sector 39

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 Conglomerates stocks, each showing price versus our Fair Value estimate (as of Jul 25, 2026).

Stock Price Fair Value vs Fair Value
CITIC Limited 0267 HK$11.28 HK$22.56 +100%
SK Inc 034730 580,000 KRW 497,919 KRW -14%
PT Astra International Tbk, ASII 4,810 IDR 9,620 IDR +100%
The Siam Cement Public Company SCC 254.00 THB 199.40 THB -21%
SRF Limited SRF ₹2,875 ₹1,053 -63%
Empresas Copec S.A COPEC 6,330 CLP 10,879 CLP +72%
Posco International Corporation 047050 50,900 KRW 61,248 KRW +20%
Tube Investments of India Limited TIINDIA ₹2,940 ₹559.30 -81%
Doosan Corporation 000155 464,000 KRW 75,620 KRW -84%
Thermax Limited THERMAX ₹4,809 ₹1,087 -77%

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Frequently asked questions

Is Nancal Technology Co (603859) overvalued or undervalued?
As of Jul 25, 2026, our model estimates a fair value of ¥15.67 versus a price of ¥42.56, about −63% (overvalued).
What is the fair value of 603859?
Our model-based fair value for Nancal Technology Co is ¥15.67 (as of Jul 25, 2026), built from audited fundamentals. The current price is ¥42.56.
What is the quality score of 603859?
Nancal Technology Co has a Quality Score of 45/100. 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 Nancal Technology Co (603859)?
Nancal Technology Co reported trailing-twelve-month revenue of about 1.5B CNY (latest available figure, as of Jul 25, 2026).
What is the net profit margin of 603859?
The net profit margin of Nancal Technology Co is about 14.8%, meaning it keeps roughly 14.8% of revenue as net income. Based on the latest reported figures.
Does Nancal Technology Co pay a dividend?
Nancal Technology Co currently shows a dividend yield of about 0.18% relative to its recent price (as of Jul 25, 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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