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Lutian Machinery Co (605259) Fair Value & Analysis

Industrials · CN · Market cap 3.1B CNY

LM Lutian Machinery Co 605259 · SHG
Price¥18.48
Fair Value¥29.67
Upside+60.6%
Quality65/100
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Mixed Growth
Thin margins · 9.3% net margin
generates free cash flow
1.69% dividend yield
Ranks above peers (11/13)
Moderate moat 50/100
Evidence: High Range ¥17.94 – ¥35.66 Share as image

Fair value as of: Jul 12, 2026

From 26 valuation models · updated 30 days ago

Fair value updated Jul 12, 2026, revised from ¥29.89 to ¥29.67 (−0.7%) since Jun 24, 2026. Share price +3.8% over the past month.

A solid business, screening 61% undervalued on our models.

What matters now

  • Solid quality (65/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (¥17.94 to ¥35.66) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥29.01 ¥10.65 Fair Value ¥29.67 Jun 2021 Aug 2026

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 ¥10.65 – ¥29.01 · fair‑value band ¥17.94 – ¥35.66 · the ¥18.48 price screens below the ¥29.67 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Lutian Machinery Co (605259) currently trades at ¥18.48, while our model-based Fair Value estimate is ¥29.67, implying the stock looks roughly 60.6% undervalued today. The Quality Score stands at 65/100 (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, Lutian Machinery Co generated revenue of 2.5B CNY at a net margin of 9.3%. Revenue declined 0.6% year over year. It earns a return on equity of 12.1%. The balance sheet holds a net cash position of 988M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥17.94 (bear case) to ¥35.66 (bull case); at ¥18.48, 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 38% below its 52-week high and 7% 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 61%, 605259 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.

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
Residual Income ¥10.08 ¥12.21 ¥25.56 76
Growth DCF ¥12.26 ¥18.63 ¥28.10 72
Gordon GGM ¥5.27 ¥10.50 ¥15.90 70
All 26 models by family
DCF Models
FCF DCF ¥12.44 ¥18.40 ¥31.20 38
Owner Earnings ¥11.05 ¥16.40 ¥26.10 31
5Y Revenue Exit ¥17.31 ¥29.33 ¥46.65 39
5Y EBITDA Exit ¥19.19 ¥33.44 ¥52.40 41
5Y P/E Exit ¥22.06 ¥39.72 ¥61.26 38
10Y Revenue Exit ¥15.12 ¥26.03 ¥44.71 36
10Y EBITDA Exit ¥16.87 ¥29.07 ¥49.70 37
10Y P/E Exit ¥18.77 ¥33.74 ¥57.39 35
Earnings-Based
Graham-Dodd ¥9.68 ¥54.42 ¥75.60 54
Lynch FV ¥15.25 ¥21.78 ¥28.31 50
PEG = 1.0 ¥15.25 ¥21.78 ¥28.31 46
EPV ¥18.02 ¥20.02 ¥21.74 59
Dividend Discount
Gordon GGM ¥5.27 ¥10.50 ¥15.90 70
DDM Multi-Stage ¥5.27 ¥9.07 ¥11.08 61
Multiples
P/E Multiple ¥22.42 ¥29.89 ¥37.37 63
P/S Multiple ¥18.15 ¥24.20 ¥30.25 58
P/B Multiple ¥18.15 ¥24.20 ¥30.25 55
EV/EBIT ¥25.07 ¥31.63 ¥38.19 53
EV/EBITDA ¥23.35 ¥29.34 ¥35.33 54
EV/Revenue ¥19.44 ¥25.46 ¥31.47 43
Asset-Based
NCAV (Graham) ¥5.33 ¥7.15 ¥10.67 50
Growth DCF
Growth DCF ¥12.26 ¥18.63 ¥28.10 72
Rev-Margin DCF ¥17.31 ¥28.72 ¥44.43 67
Economic Profit
Residual Income ¥10.08 ¥12.21 ¥25.56 76
ROIC Compounder ¥20.21 ¥25.60 ¥32.66 67
Growth Earnings
Growth-Adj P/E ¥22.82 ¥32.60 ¥42.39 68

Widest divergence: Growth Earnings (¥32.60) versus Asset-Based (¥7.15). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 2.5B CNY
Revenue growth (YoY) -0.6%
Net margin 9.3%
Return on equity 12.1%
Free cash flow 91.6M CNY FY2025
P/E ratio 13.3
More key figures
Operating margin 8.4%
EPS (TTM) ¥1.35
Dividend yield 1.7%
EPS growth (YoY) -21.2%
Net cash 988M CNY FY2024

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 65 · Market factors (momentum, volatility) 39

Profitability 52
Margins and returns on capital today
Quality Growth 68
Are margins and returns improving?
Cashflow 33
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 60
Disciplined investing over empire-building
Low Volatility 75
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 19
Distance to the 52-week high (market factor)
Net Issuance 81
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

Lutian Machinery Co., Ltd. engages in the research, design, development, production, and sale of general power machinery and high-pressure washers in China.

Full company description

Lutian Machinery Co., Ltd. engages in the research, design, development, production, and sale of general power machinery and high-pressure washers in China. It offers high pressure washers, such as commercial and consumer washers; power equipment, including engines, inverter generators, LT and LS generators, and water pumps; and pressure washer and power equipment accessories. It also exports its products to Europe, South America, North America, Africa, the Middle East, Southeast Asia, and internationally. Lutian Machinery Co., Ltd. was founded in 2002 and is headquartered in Taizhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Lutian Machinery Co reported revenue of ¥2.5B in FY2025 versus ¥1.6B in FY2021, a compound +12.0%/yr. Reported net income was ¥246M in FY2025, compounding +11.4%/yr from FY2021.

Growth Quality 81/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
2.5B CNY
Latest YoY
+12.2%
Avg. 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.
+15.9%
Avg. 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.
+15.5%
Avg. growth/yr (8Y) 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.
+16.7%
Revenue +12.0%/yr
FY21 ¥1.6B
FY22 ¥1.6B
FY23 ¥1.6B
FY24 ¥2.2B
FY25 ¥2.5B
Net income +11.4%/yr
FY21 ¥159M
FY22 ¥215M
FY23 ¥180M
FY24 ¥186M
FY25 ¥246M

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Cite: Fair Value Calculator (2026). "Lutian Machinery Co Fair Value". https://www.fairvalue-calculator.com/stock/605259

Peer Group

Specialty Industrial Machinery · 808 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 65 · Top 25%
Fair Value upside +61% · Top 25%
Return on equity (TTM) 12% · Above median
Return on assets 5% · Above median
Net margin (TTM) 9% · Above median
Operating margin (TTM) 8% · Above median
Revenue growth -1% · Below median
Dividend yield (TTM) 1.7% · Above median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 13.3× · Cheaper than 75% of peers
P/B 1.68× · Cheaper than median
P/S (TTM) 1.23× · Cheaper than median
P/FCF 5.0× · Pricier than median
EV/EBITDA 7.8× · Cheaper 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 100 · sector 0
FUTURE 0 · sector 23
PAST 48 · sector 28
HEALTH 0 · sector 96
DIVIDEND 34 · sector 24

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 Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

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1SIE 1SIE €273.20 €91.93 -66%
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Sandvik AB SAND kr 384.10 kr 193.01 -50%
Doosan Enerbility Co 034020 76,400 KRW 7,938 KRW -90%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%

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Frequently asked questions

Is Lutian Machinery Co (605259) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥29.67 versus a price of ¥18.48, about +61% (undervalued).
What is the fair value of 605259?
Our model-based fair value for Lutian Machinery Co is ¥29.67 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥18.48.
What is the quality score of 605259?
Lutian Machinery Co has a Quality Score of 65/100. 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 Lutian Machinery Co (605259)?
Lutian Machinery Co reported trailing-twelve-month revenue of about 2.5B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 605259?
The net profit margin of Lutian Machinery Co is about 9.3%, meaning it keeps roughly 9.3% of revenue as net income. Based on the latest reported figures.
Does Lutian Machinery Co pay a dividend?
Lutian Machinery Co currently shows a dividend yield of about 1.69% relative to its recent price (as of Jul 12, 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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