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3S Industry Group (605305) Fair Value & Analysis

Industrials · CN · Market cap 7.9B CNY

3I 3S Industry Group 605305 · SHG
Price¥39.95
Fair Value¥42.42
Upside+6.2%
Quality77/100
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Mixed Growth
Highly profitable · 28.0% net margin
generates free cash flow
2.07% dividend yield
Ranks above peers (10/13)
Wide moat 82/100
Evidence: High Range ¥31.31 – ¥90.41 Share as image

Fair value as of: Jul 12, 2026

From 26 valuation models · updated 29 days ago

Fair value updated Jul 12, 2026, revised from ¥50.65 to ¥42.42 (−16.2%) since Jun 24, 2026. Share price −10.0% over the past month.

A strong business, currently priced close to our fair value.

What matters now

  • The model range is unusually wide (¥31.31 to ¥90.41). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
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Price vs Fair Value (5 years)

¥60.20 ¥18.82 Fair Value ¥42.42 May 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 ¥18.82 – ¥60.20 · fair‑value band ¥31.31 – ¥90.41 · the ¥39.95 price screens below the ¥42.42 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

3S Industry Group (605305) currently trades at ¥39.95, while our model-based Fair Value estimate is ¥42.42, implying the stock looks roughly 6.2% fairly valued today. The Quality Score stands at 77/100 (high 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, 3S Industry Group generated revenue of 2.0B CNY at a net margin of 28.0%. Revenue grew 38.4% year over year. It earns a return on equity of 19.5%. The balance sheet holds a net cash position of 900M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥31.31 (bear case) to ¥90.41 (bull case); at ¥39.95, 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 19% below its 52-week high and 55% 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 6%, 605305 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 BearBaseBull Evidence
Highest evidence
Residual Income ¥15.82 ¥20.83 ¥68.65 76
Growth DCF ¥22.74 ¥37.00 ¥64.90 72
Gordon GGM ¥7.20 ¥14.35 ¥21.73 70
All 26 models by family
DCF Models
FCF DCF ¥23.90 ¥34.17 ¥66.19 38
Owner Earnings ¥42.49 ¥88.23 ¥180.73 31
5Y Revenue Exit ¥19.12 ¥29.09 ¥49.91 39
5Y EBITDA Exit ¥30.80 ¥52.69 ¥95.69 41
5Y P/E Exit ¥39.33 ¥86.86 ¥152.47 38
10Y Revenue Exit ¥20.30 ¥37.59 ¥48.25 36
10Y EBITDA Exit ¥29.11 ¥62.15 ¥120.84 37
10Y P/E Exit ¥35.20 ¥80.11 ¥155.86 35
Earnings-Based
Graham-Dodd ¥16.97 ¥118.34 ¥166.07 54
Lynch FV ¥50.19 ¥71.69 ¥93.20 50
PEG = 1.0 ¥50.19 ¥71.69 ¥93.20 46
EPV ¥27.21 ¥30.74 ¥33.78 59
Dividend Discount
Gordon GGM ¥7.20 ¥14.35 ¥21.73 70
DDM Multi-Stage ¥7.20 ¥12.40 ¥15.15 61
Multiples
P/E Multiple ¥39.30 ¥52.40 ¥65.51 63
P/S Multiple ¥13.26 ¥17.68 ¥22.10 58
P/B Multiple ¥31.82 ¥42.42 ¥53.03 55
EV/EBIT ¥39.68 ¥51.29 ¥62.89 53
EV/EBITDA ¥32.62 ¥41.86 ¥51.11 54
EV/Revenue ¥16.01 ¥20.78 ¥25.56 43
Asset-Based
NCAV (Graham) ¥6.92 ¥9.27 ¥13.83 50
Growth DCF
Growth DCF ¥22.74 ¥37.00 ¥64.90 72
Rev-Margin DCF ¥19.76 ¥32.58 ¥57.71 67
Economic Profit
Residual Income ¥15.82 ¥20.83 ¥68.65 76
ROIC Compounder ¥34.37 ¥48.96 ¥64.31 67
Growth Earnings
Growth-Adj P/E ¥62.25 ¥88.93 ¥115.61 68

Widest divergence: Growth Earnings (¥88.93) versus Asset-Based (¥9.27). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 2.0B CNY
Revenue growth (YoY) +38.4%
Net margin 28.0%
Return on equity 19.5%
Free cash flow 254M CNY FY2025
P/E ratio 14.0
More key figures
Operating margin 35.5%
EPS (TTM) ¥2.65
Dividend yield 2.1%
EPS growth (YoY) +32.6%
Net cash 900M CNY FY2024

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

Quality Score breakdown

Overall quality 77/100

Of which business quality 73 · Market factors (momentum, volatility) 59

Profitability 64
Margins and returns on capital today
Quality Growth 84
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 98
Balance sheet, leverage, solvency risk
Investment 57
Disciplined investing over empire-building
Low Volatility 66
Calm price path (market factor)
Momentum 47
Price trend over the last 3–12 months (market factor)
52W Momentum 71
Distance to the 52-week high (market factor)
Net Issuance 83
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

3S Industry Group Inc., together with its subsidiaries, provides wind energy, construction, and safety protection equipment in China and internationally. The company offers service lifts, climb auto systems, climb assists, offshore davit cranes, aluminum ladders, suspended platforms, and passive smart locks and control systems.

Full company description

3S Industry Group Inc., together with its subsidiaries, provides wind energy, construction, and safety protection equipment in China and internationally. The company offers service lifts, climb auto systems, climb assists, offshore davit cranes, aluminum ladders, suspended platforms, and passive smart locks and control systems. It also provides ladder hoists, trailer lifts, tower climbers, industrial elevators, transport platforms, construction hoists, retractable discharge platforms, mast climbing work platforms, and electric rope hoists. In addition, the company offers transformers and switchgears; evacuation and rescue devices, vertical and horizontal fall protection systems, self-retracting lifelines, and body harnesses. Further, it provides engineering services; kit-setting, procurement, and logistics services; operation, installation, and maintenance training, as well as online training; installation, maintenance, troubleshooting, and repair on demand services; and retrofit solutions. The company also exports its products. 3S Industry Group Inc. was founded in 2005 and is headquartered in Beijing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

3S Industry Group reported revenue of ¥1.9B in FY2025 versus ¥883M in FY2021, a compound +20.8%/yr. Reported net income was ¥530M in FY2025, compounding +23.0%/yr from FY2021.

Growth Quality 91/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
1.9B CNY
Latest YoY
+44.6%
Avg. growth/yr (3Y)
+32.9%
Avg. growth/yr (5Y)
+22.5%
Avg. growth/yr (13Y)
+30.8%
Revenue +20.8%/yr
FY21 ¥883M
FY22 ¥799M
FY23 ¥1.1B
FY24 ¥1.3B
FY25 ¥1.9B
Net income +23.0%/yr
FY21 ¥232M
FY22 ¥155M
FY23 ¥207M
FY24 ¥315M
FY25 ¥530M

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Cite: Fair Value Calculator (2026). "3S Industry Group Fair Value". https://www.fairvalue-calculator.com/stock/605305

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.

Quality Score 77 · Top 25%
Fair Value upside +6% · Top 25%
Return on equity (TTM) 19% · Top 25%
Return on assets 11% · Top 25%
Net margin (TTM) 28% · Top 25%
Operating margin (TTM) 35% · Top 25%
Revenue growth 38% · Top 25%
Dividend yield (TTM) 2.1% · Above median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 14.0× · Cheaper than 75% of peers
P/B 2.69× · Pricier than median
P/S (TTM) 3.95× · Pricier than median
P/FCF 4.6× · Pricier than median
EV/EBITDA 10.7× · 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.

VALUE 42 · sector 0
FUTURE 100 · sector 23
PAST 78 · sector 28
HEALTH 0 · sector 96
DIVIDEND 41 · 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).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €887.60 €186.93 -79%
1SIE 1SIE €273.20 €91.93 -66%
SMNS SMNS C$31.76 C$22.68 -29%
Eaton Corporation ETN $407.28 $171.92 -58%
Atlas Copco AB ATCOA kr 195.15 kr 112.59 -42%
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 3S Industry Group (605305) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥42.42 versus a price of ¥39.95, about +6% (fairly valued).
What is the fair value of 605305?
Our model-based fair value for 3S Industry Group is ¥42.42 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥39.95.
What is the quality score of 605305?
3S Industry Group has a Quality Score of 77/100. 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 3S Industry Group (605305)?
3S Industry Group reported trailing-twelve-month revenue of about 2.0B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 605305?
The net profit margin of 3S Industry Group is about 28.0%, meaning it keeps roughly 28.0% of revenue as net income. Based on the latest reported figures.
Does 3S Industry Group pay a dividend?
3S Industry Group currently shows a dividend yield of about 2.07% 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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