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Jiangsu Lidao New Material Co Ltd Class A (603937) Fair Value & Analysis

Basic Materials · CN · Market cap 2.3B CNY

JL Jiangsu Lidao New Material Co Ltd Class A 603937 · SHG
Price¥11.95
Fair Value¥2.56
Upside-78.6%
Quality52/100

Structural break: The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.

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Strengths

Low debt · generates free cash flow

Risks

!Trades 367% ABOVE our fair value of ¥2.56
!Mixed Growth (revenue 5y +7.6 %/yr)
!Loss-making · -1.8% net margin
!Trails peers (5/13)
Mixed Growth (revenue 5y +7.6 %/yr)
Loss-making · -1.8% net margin
Low debt · generates free cash flow
Trails peers (5/13)
Narrow moat 13/100
Evidence: Medium Range ¥1.68 – ¥3.20 Share as image

Fair value as of: Aug 13, 2026

From 12 valuation models · updated 12 days ago

Fair value updated Aug 13, 2026, revised from ¥1.28 to ¥2.56 (+100.0%) since Aug 11, 2026. Share price +26.6% over the past month.

A solid business, but trading 367% above our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The price sits above even our optimistic bull case (¥3.20). The favourable scenario is already priced in.
  • Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (¥1.68 to ¥3.20) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥18.88 ¥6.81 Fair Value ¥2.56 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ¥6.81 – ¥18.88 · fair‑value band ¥1.68 – ¥3.20 · the ¥11.95 price screens above the ¥2.56 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Jiangsu Lidao New Material Co Ltd Class A (603937) currently trades at ¥11.95, while our model-based Fair Value estimate is ¥2.56, implying the stock looks roughly 78.6% overvalued today. The Quality Score stands at 52/100 (solid quality), in the Basic Materials 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, Jiangsu Lidao New Material Co Ltd Class A generated revenue of 2.0B CNY at a net margin of -1.8%. Revenue grew 28.4% year over year. It earns a return on equity of -2.3%. Net debt stands at 94.7M CNY. Fundamentals as of Aug 13, 2026

Our scenario range runs from ¥1.68 (bear case) to ¥3.20 (bull case); at ¥11.95, 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 37% below its 52-week high and 33% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at 11% fair-value upside, at -79%, 603937 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.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (¥0.0800 to ¥4.98). Read the values as a conservative anchor, not as a price target.
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
Growth DCF ¥0.1900 ¥0.4600 ¥0.8400 80
Gordon GGM ¥0.0500 ¥0.1000 ¥0.1500 70
DDM Multi-Stage ¥0.0500 ¥0.0800 ¥0.1100 61
All 12 models by family
DCF Models
FCF DCF ¥0.1700 ¥0.4900 ¥0.9400 38
Owner Earnings ¥0.0400 ¥0.2900 ¥0.6500 31
5Y Revenue Exit ¥0.1000 ¥0.4000 ¥0.7800 39
5Y EBITDA Exit ¥1.77 ¥3.49 ¥5.50 41
10Y Revenue Exit ¥0.1100 ¥0.3800 ¥0.7400 36
10Y EBITDA Exit ¥1.16 ¥2.47 ¥4.23 37
Dividend Discount
Gordon GGM ¥0.0500 ¥0.1000 ¥0.1500 70
DDM Multi-Stage ¥0.0500 ¥0.0800 ¥0.1100 61
Multiples
EV/EBITDA ¥3.10 ¥4.28 ¥5.47 54
EV/Revenue ¥0.0800 ¥0.3100 ¥0.5400 43
Asset-Based
NCAV (Graham) ¥3.71 ¥4.98 ¥7.43 50
Growth DCF
Growth DCF ¥0.1900 ¥0.4600 ¥0.8400 80

Widest divergence: Asset-Based (¥4.98) versus Dividend Discount (¥0.0800). Highest evidence: Growth DCF (80).

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Key figures & financial health

P/S ratio 1.18 TTM
Net margin -1.8% TTM
Return on equity -2.3% TTM
Return on assets -0.2% TTM
Operating margin 4.8% TTM
EPS (TTM) ¥-0.0600
More key figures
Growth
Revenue (TTM) 2.0B CNY TTM
Revenue growth (YoY) +28.4% 3y avg +7.2%
EPS growth (YoY) -57.8%
Balance sheet & cash flow
Free cash flow 12.3M CNY FY2025
Net debt 94.7M CNY FY2025 · ≈ 7.7 yrs of FCF

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 52 · Market factors (momentum, volatility) 38

Profitability 18
Margins and returns on capital today
Quality Growth 59
Are margins and returns improving?
Cashflow 15
Earnings quality: real cash, not paper profit
Fin. Strength 75
Balance sheet, leverage, solvency risk
Investment 81
Disciplined investing over empire-building
Low Volatility 58
Calm price path (market factor)
Momentum 25
Price trend over the last 3–12 months (market factor)
52W Momentum 37
Distance to the 52-week high (market factor)
Net Issuance 92
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Jiangsu Lidao New Materials Co., Ltd. engages in the research and development, production, and sale of aluminum products in China and internationally. The company is involved in the processing and manufacturing of new building decoration materials and metal materials; aluminum alloy ceiling system; sheet metal parts; and hardware processing activities.

Full company description

Jiangsu Lidao New Materials Co., Ltd. engages in the research and development, production, and sale of aluminum products in China and internationally. The company is involved in the processing and manufacturing of new building decoration materials and metal materials; aluminum alloy ceiling system; sheet metal parts; and hardware processing activities. It offers aluminum magnesium manganese roofing systems, color coated aluminum coils, and curtain wall facing panels; and finishing and cutting aluminum materials, as well as high-end colored aluminum products, welded honeycomb panels, and other materials for rail transit, new energy vehicles, military industry, petrochemical industry, shipbuilding, construction, industry, food packaging, and other industries. The company was formerly known as Changzhou Lidao Metal Material Manufacturing Co., Ltd. Jiangsu Lidao New Materials Co., Ltd. was founded in 2004 and is headquartered in Changzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Jiangsu Lidao New Material Co Ltd Class A reported revenue of ¥2.0B in FY2025 versus ¥1.7B in FY2021, a compound +3.1%/yr. Reported net income was −¥35.8M in FY2025.

Growth Quality 47/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
2.0B CNY
Latest YoY
+25.0%
Avg. revenue 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.
+7.2%
Avg. revenue 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.
+7.6%
Avg. revenue growth/yr (13Y) 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.
+5.1%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Revenue +3.1%/yr
FY21 ¥1.7B
FY22 ¥1.6B
FY23 ¥1.4B
FY24 ¥1.6B
FY25 ¥2.0B
Net income
FY21 ¥132M
FY22 ¥87.9M
FY23 ¥67.4M
FY24 −¥34.2M
FY25 −¥35.8M
Character of growth · EPS growth decomposed (2013-2024) −0.6 % p.a.
Revenue per share +0.1 pp

of which total revenue +3.6 pp · buybacks/dilution −3.5 pp

EBIT margin −0.8 pp
Tax rate +0.4 pp
Residual (interest, one-offs) −0.3 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).

603937 screens 79% overvalued. Compare with Shandong Hongqiao Aluminum Industry Holding →

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Cite: Fair Value Calculator (2026). "Jiangsu Lidao New Material Co Ltd Class A Fair Value". https://www.fairvalue-calculator.com/stock/603937

Peer Group

Aluminum · 84 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 52 · Above median
Fair Value upside −79% · Bottom 25%
Return on assets -0% · Bottom 25%
Net margin (TTM) -2% · Bottom 25%
Operating margin (TTM) 5% · Below median
Revenue growth 28% · Top 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.18× · Higher than median

Valuation Multiples vs Aluminum median · lower = cheaper

P/B 0.22× · Cheaper than 75% of peers
P/S (TTM) 0.18× · Cheaper than 75% of peers
P/FCF 28.2× · Pricier than 75% of peers
EV/EBITDA 4.5× · Cheaper 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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 16
FUTURE100 · sector 23
PAST0 · sector 31
HEALTH91 · sector 92
DIVIDEND1 · sector 38

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

Similar stocks

10 more Aluminum stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Shandong Hongqiao Aluminum Industry Holding 002379 ¥21.34 ¥23.44 +10%
China Hongqiao Group 1378 HK$24.44 HK$45.58 +86%
Hindalco Industries Limited HINDALCO ₹1,028 ₹997.35 -3%
Aluminum Corporation 601600 ¥9.45 ¥16.30 +72%
Norsk Hydro ASA NHY kr 90.02 kr 58.10 -35%
Press Metal Aluminium Holdings 8869 7.90 MYR 3.88 MYR -51%
Alcoa Corporation AAI A$73.19 A$49.53 -32%
Yunnan Aluminium Co 000807 ¥25.88 ¥29.68 +15%
Henan Shenhuo Coal Industry and Electricity Power Co 000933 ¥27.24 ¥30.28 +11%
Tianshan Aluminum Group 002532 ¥12.67 ¥21.86 +73%

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Frequently asked questions

Is Jiangsu Lidao New Material Co Ltd Class A (603937) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ¥2.56 versus a price of ¥11.95, about −79% (overvalued).
What is the fair value of 603937?
Our model-based fair value for Jiangsu Lidao New Material Co Ltd Class A is ¥2.56 (as of Aug 13, 2026), built from audited fundamentals. The current price: ¥11.95.
What is the quality score of 603937?
Jiangsu Lidao New Material Co Ltd Class A has a Quality Score of 52/100. 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 Jiangsu Lidao New Material Co Ltd Class A (603937)?
Jiangsu Lidao New Material Co Ltd Class A reported trailing-twelve-month revenue of about 2.0B CNY (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 603937?
The net profit margin of Jiangsu Lidao New Material Co Ltd Class A is about -1.8%, meaning it is currently running at a net loss. Based on the latest reported figures.

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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