Allied Machinery Co (605060) Fair Value & Analysis

Industrials · CN · Market cap 11.6B CNY

A solid business, but screening 53% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (¥24.84). The favourable scenario is already priced in.
• Solid but not exceptional quality (64/100) and above fair value, neither a clear bargain nor a standout compounder.
• A fairly wide model range (¥12.19 to ¥24.84) leaves room in how you read the outcome.

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 ¥11.47 – ¥73.00 · fair‑value band ¥12.19 – ¥24.84 · the ¥42.25 price screens above the ¥19.87 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Allied Machinery Co (605060) currently trades at ¥42.25, while our model-based Fair Value estimate is ¥19.87, implying the stock looks roughly 53.0% overvalued today. The Quality Score stands at 64/100 (solid 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: high).

Over the trailing twelve months, Allied Machinery Co generated revenue of 1.3B CNY at a net margin of 18.5%. Revenue grew 22.4% year over year. It earns a return on equity of 10.0%. The balance sheet holds a net cash position of 567M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥12.19 (bear case) to ¥24.84 (bull case); at ¥42.25, 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 43% below its 52-week high and 140% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -53%, 605060 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.

Widest divergence: Growth Earnings (¥18.03) versus Dividend Discount (¥4.39). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Allied Machinery Co., Ltd. designs, researches and develops, produces, and sells high-precision mechanical parts and precision cavity mold products in China and the United States.

Full company description

Allied Machinery Co., Ltd. designs, researches and develops, produces, and sells high-precision mechanical parts and precision cavity mold products in China and the United States. It provides gearbox and rear gearbox, engine block, flywheel housing, reducer and reducer housing, torque arm, and power frame; valve case and body, reducer rear cover, housing and motor housing, regulator, and pump rear cover; compressor, interstage and rotor housing, volute casing, suction cover, and motor housings products. The company also offers rear wheel hub, axle housing, turbine support, CASE, housing frame, end housing, left cam, bracket, left mounting frame, main reducer housing, crankcase housing, pump flange, slider, connecting rod, dual-end base, power frame, drive housing, base, main baffle, spindle disk, and right rear base products. It offers its products for power and energy, hydraulics, HVAC, construction, air compressor, agriculture, automation, and food process industry. Allied Machinery Co., Ltd. was founded in 2001 and is based in Hangzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Allied Machinery Co reported revenue of ¥1.3B in FY2025 versus ¥799M in FY2021, a compound +11.9%/yr. Reported net income was ¥228M in FY2025, compounding +9.1%/yr from FY2021.

605060 screens 53% overvalued. Compare with GE Vernova Inc →

Peer Group

Specialty Industrial Machinery · 809 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 Specialty Industrial Machinery 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.

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.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

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.