Longyan Kaolin Clay Co (605086) Fair Value & Analysis
Basic Materials · CN · Market cap 5.1B CNY
Fair value as of: Jul 12, 2026
From 24 valuation models · updated 29 days ago
Share price −0.7% over the past month.
A solid business, but screening 63% overvalued on our models.
What matters now
- A high-quality business (quality 71/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
- The price sits above even our optimistic bull case (¥11.12). The favourable scenario is already priced in.
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 ¥10.43 – ¥48.98 · fair‑value band ¥6.43 – ¥11.12 · the ¥23.87 price screens above the ¥8.92 fair value. Dashed = 300-day average. As of Jul 12, 2026.
Analysis
Longyan Kaolin Clay Co (605086) currently trades at ¥23.87, while our model-based Fair Value estimate is ¥8.92, implying the stock looks roughly 62.6% overvalued today. The Quality Score stands at 71/100 (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: high).
Over the trailing twelve months, Longyan Kaolin Clay Co generated revenue of 270M CNY at a net margin of 42.5%. Revenue declined 26.5% year over year. It earns a return on equity of 7.9%. The balance sheet holds a net cash position of 18.1M CNY. Fundamentals as of Jul 12, 2026
Our scenario range runs from ¥6.43 (bear case) to ¥11.12 (bull case); at ¥23.87, 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 52% below its 52-week high, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -34% fair-value upside, at -63%, 605086 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.
All 24 models by family
Widest divergence: Growth Earnings (¥8.97) versus Dividend Discount (¥2.27). Highest evidence: Residual Income (76).
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 69 · Market factors (momentum, volatility) 30
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
Longyan Kaolin Clay Co., Ltd. engages in production and supply of kaolin for ceramic raw materials in China. The company provides kaolin ore, mesh kaolin concentrate, longyan kaolin, modified kaolin, and comprehensive utilization products. Its products are used in ceramics, papermaking, rubber, ink, coatings, chemicals, and other fields.
Full company description
Longyan Kaolin Clay Co., Ltd. engages in production and supply of kaolin for ceramic raw materials in China. The company provides kaolin ore, mesh kaolin concentrate, longyan kaolin, modified kaolin, and comprehensive utilization products. Its products are used in ceramics, papermaking, rubber, ink, coatings, chemicals, and other fields. The company also exports its products to South Korea, Japan, Pakistan, South Africa, Southeast Asia, and internationally. The company was founded in 2003 and is based in Longyan, China. Longyan Kaolin Clay Co., Ltd. is a subsidiary of Longyan Investment & Development Group Co.,Ltd.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Longyan Kaolin Clay Co reported revenue of ¥289M in FY2025 versus ¥269M in FY2021, a compound +1.8%/yr. Reported net income was ¥121M in FY2025, compounding +9.5%/yr from FY2021.
605086 screens 63% overvalued. Compare with BHP Group →
Peer Group
Other Industrial Metals & Mining · 476 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 Other Industrial Metals & Mining 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.
Similar stocks
10 more Other Industrial Metals & Mining stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| BHP Group BHPN | 1,425 MXN | 942.42 MXN | -34% |
| Rio Tinto Group RIO | A$164.89 | A$81.76 | -50% |
| Grupo México, S.A. GMEXICOB | 199.23 MXN | 187.72 MXN | -6% |
| Vale S.A VALE | $14.19 | $9.14 | -36% |
| Saudi Arabian Mining Company 1211 | 58.05 SAR | 33.87 SAR | -42% |
| CMOC Group 603993 | ¥18.20 | ¥16.15 | -11% |
| Fortescue Ltd FMG | A$18.47 | A$18.62 | +1% |
| China Tungsten And Hightech Materials Co 000657 | ¥74.71 | ¥9.55 | -87% |
| Hindustan Zinc Limited HINDZINC | ₹521.95 | ₹576.80 | +11% |
| China Northern Rare Earth (Group) High-Tech Co 600111 | ¥39.56 | ¥10.59 | -73% |
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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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