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Decai Decoration CO.,LTD (605287) Fair Value & Analysis

Industrials · CN · Market cap 5.5B CNY

DD Decai Decoration CO.,LTD 605287 · SHG
Price¥40.93
Fair Value¥10.49
Upside-74.4%
Quality50/100
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Weak Growth
Thin margins · 1.8% net margin
Low debt · generates free cash flow
Trails peers (0/13)
Narrow moat 22/100
Evidence: High Range ¥7.87 – ¥13.11 Share as image

Fair value as of: Jul 12, 2026

From 24 valuation models · updated 29 days ago

Fair value updated Jul 12, 2026, revised from ¥23.59 to ¥10.49 (−55.5%) since Jun 24, 2026. Share price −2.4% over the past month.

A solid business, but screening 74% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥13.11). The favourable scenario is already priced in.
  • Solid but not exceptional quality (50/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥67.36 ¥10.13 Fair Value ¥10.49 Jul 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 ¥10.13 – ¥67.36 · fair‑value band ¥7.87 – ¥13.11 · the ¥40.93 price screens above the ¥10.49 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Decai Decoration CO.,LTD (605287) currently trades at ¥40.93, while our model-based Fair Value estimate is ¥10.49, implying the stock looks roughly 74.4% overvalued today. The Quality Score stands at 50/100 (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, Decai Decoration CO.,LTD generated revenue of 3.4B CNY at a net margin of 1.8%. Revenue declined 17.7% year over year. It earns a return on equity of 3.8%. Net debt stands at 981M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥7.87 (bear case) to ¥13.11 (bull case); at ¥40.93, 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 40% below its 52-week high and 214% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -45% fair-value upside, at -74%, 605287 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
Growth DCF ¥23.73 ¥28.53 ¥35.38 80
Residual Income ¥8.34 ¥8.42 ¥7.82 76
Rev-Margin DCF ¥26.95 ¥36.46 ¥46.97 74
All 24 models by family
DCF Models
FCF DCF ¥23.29 ¥28.35 ¥35.95 38
Owner Earnings ¥18.30 ¥21.55 ¥26.43 31
5Y Revenue Exit ¥26.95 ¥36.29 ¥48.45 39
5Y EBITDA Exit ¥29.48 ¥40.66 ¥53.84 41
5Y P/E Exit ¥18.90 ¥22.35 ¥25.94 38
10Y Revenue Exit ¥24.81 ¥32.67 ¥42.05 36
10Y EBITDA Exit ¥26.91 ¥35.52 ¥45.71 37
10Y P/E Exit ¥20.51 ¥23.59 ¥26.76 35
Earnings-Based
Graham-Dodd ¥3.40 ¥6.62 ¥8.29 54
EPV ¥28.59 ¥31.63 ¥34.25 59
Dividend Discount
Gordon GGM ¥4.75 ¥6.54 ¥8.32 70
DDM Multi-Stage ¥4.75 ¥6.52 ¥8.53 61
Multiples
P/E Multiple ¥7.87 ¥10.49 ¥13.11 63
P/S Multiple ¥6.37 ¥8.49 ¥10.62 58
P/B Multiple ¥6.37 ¥8.49 ¥10.62 55
EV/EBIT ¥39.34 ¥49.34 ¥59.34 53
EV/EBITDA ¥37.01 ¥46.24 ¥55.46 54
EV/Revenue ¥30.75 ¥39.93 ¥49.10 43
Asset-Based
NCAV (Graham) ¥5.54 ¥7.42 ¥11.07 50
Growth DCF
Growth DCF ¥23.73 ¥28.53 ¥35.38 80
Rev-Margin DCF ¥26.95 ¥36.46 ¥46.97 74
Economic Profit
Residual Income ¥8.34 ¥8.42 ¥7.82 76
ROIC Compounder ¥28.75 ¥32.00 ¥34.93 72
Growth Earnings
Growth-Adj P/E ¥5.67 ¥8.09 ¥10.52 68

Widest divergence: Growth DCF (¥28.53) versus Dividend Discount (¥6.52). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 3.4B CNY
Revenue growth (YoY) -17.7%
Net margin 1.8%
Return on equity 3.8%
Free cash flow 199M CNY FY2025
P/E ratio 87.6
More key figures
Operating margin -5.6%
EPS (TTM) ¥0.4500
EPS growth (YoY) -20.6%
Net debt 981M CNY FY2025

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

Quality Score breakdown

Overall quality 50/100

Of which business quality 48 · Market factors (momentum, volatility) 56

Profitability 19
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 67
Earnings quality: real cash, not paper profit
Fin. Strength 18
Balance sheet, leverage, solvency risk
Investment 95
Disciplined investing over empire-building
Low Volatility 9
Calm price path (market factor)
Momentum 75
Price trend over the last 3–12 months (market factor)
52W Momentum 75
Distance to the 52-week high (market factor)
Net Issuance 76
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

Decai Decoration CO.,LTD engages in architectural decoration, infrastructure projects, and construction businesses in China and internationally. It operates through the Decai Decoration, China Construction Union, Decai Zhongfang, and Decai High-tech segments.

Full company description

Decai Decoration CO.,LTD engages in architectural decoration, infrastructure projects, and construction businesses in China and internationally. It operates through the Decai Decoration, China Construction Union, Decai Zhongfang, and Decai High-tech segments. The company is involved in the decoration and renovation business, including interior decoration, curtain wall door and window, and intelligent projects and ancient building projects. It also undertakes the construction of various types of housing buildings and their ancillary facilities, and the installation of supporting lines, pipelines, and equipment. In addition, the company undertakes the construction of various buildings, structures, including pipelines, integrated pipe corridors, roads, bridges, ancillary municipal engineering, landscape gardening construction, etc. Further, it is involved in the planning and architectural design, interior design, landscape garden design, and other design consulting services. Decai Decoration CO.,LTD was founded in 1999 and is headquartered in Qingdao, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Decai Decoration CO.,LTD reported revenue of ¥3.5B in FY2025 versus ¥5.0B in FY2021, a compound −8.7%/yr. Reported net income was ¥69.9M in FY2025, compounding −15.9%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
3.5B CNY
Latest YoY
−15.2%
Avg. growth/yr (3Y)
−14.6%
Avg. growth/yr (5Y)
−5.4%
Avg. growth/yr (9Y)
+10.1%
Revenue −8.7%/yr
FY21 ¥5.0B
FY22 ¥5.6B
FY23 ¥6.1B
FY24 ¥4.1B
FY25 ¥3.5B
Net income −15.9%/yr
FY21 ¥140M
FY22 ¥200M
FY23 ¥156M
FY24 −¥287M
FY25 ¥69.9M

605287 screens 74% overvalued. Compare with Larsen & Toubro Limited →

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Cite: Fair Value Calculator (2026). "Decai Decoration CO.,LTD Fair Value". https://www.fairvalue-calculator.com/stock/605287

Peer Group

Engineering & Construction · 837 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 50 · Below median
Fair Value upside −74% · Bottom 25%
Return on equity (TTM) 4% · Below median
Return on assets 2% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) -6% · Bottom 25%
Revenue growth -18% · Bottom 25%
Debt / equity 0.33× · Higher than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 87.6× · Pricier than 75% of peers
P/B 3.56× · Pricier than 75% of peers
P/S (TTM) 1.62× · Pricier than 75% of peers
P/FCF 4.1× · Pricier than median
EV/EBITDA 11.3× · Pricier 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.

VALUE 0 · sector 16
FUTURE 0 · sector 18
PAST 15 · sector 26
HEALTH 83 · sector 94
DIVIDEND 0 · sector 33

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 Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹3,815 ₹1,994 -48%
Samsung C&T Corporation 028260 346,000 KRW 268,779 KRW -22%
Hyundai Engineering & Construction Co 000720 99,000 KRW 63,993 KRW -35%
United Integrated Services Co 2404 1,250 TWD 925.62 TWD -26%
Samsung E&A Co 028050 42,550 KRW 44,840 KRW +5%
Rail Vikas Nigam Limited RVNL ₹232.67 ₹61.46 -74%
Daewoo Engineering & Construction Co 047040 16,240 KRW 6,507 KRW -60%
NBCC (India) Limited NBCC ₹96.32 ₹48.22 -50%
Cemindia Projects Limited CEMPRO ₹1,330 ₹730.69 -45%
KEPCO Engineering & Construction Company 052690 92,700 KRW 20,172 KRW -78%

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Frequently asked questions

Is Decai Decoration CO.,LTD (605287) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥10.49 versus a price of ¥40.93, about −74% (overvalued).
What is the fair value of 605287?
Our model-based fair value for Decai Decoration CO.,LTD is ¥10.49 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥40.93.
What is the quality score of 605287?
Decai Decoration CO.,LTD has a Quality Score of 50/100. 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 Decai Decoration CO.,LTD (605287)?
Decai Decoration CO.,LTD reported trailing-twelve-month revenue of about 3.4B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 605287?
The net profit margin of Decai Decoration CO.,LTD is about 1.8%, meaning it keeps roughly 1.8% of revenue as net income. 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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