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Ningbo Dechang Electrical Machinery Made Co (605555) Fair Value & Analysis

Industrials · CN · Market cap 7.5B CNY

ND Ningbo Dechang Electrical Machinery Made Co 605555 · SHG
Price¥12.10
Fair Value¥12.71
Upside+5.0%
Quality46/100
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Expensive Growth
Thin margins · 2.1% net margin
Low debt · negative free cash flow
1.82% dividend yield
Trails peers (4/13)
Narrow moat 26/100
Evidence: High Range ¥9.52 – ¥15.88 Share as image

Fair value as of: Jul 12, 2026

From 16 valuation models · updated 29 days ago

Fair value updated Jul 12, 2026, revised from ¥7.06 to ¥12.71 (+80.0%) since Jun 24, 2026. Share price −1.5% over the past month.

Below-average quality, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from ¥9.52 (bear) to ¥15.88 (bull), base ¥12.71. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 46/100 (below-average quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥22.61 ¥9.57 Fair Value ¥12.71 Oct 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

58‑month range ¥9.57 – ¥22.61 · fair‑value band ¥9.52 – ¥15.88 · the ¥12.10 price screens below the ¥12.71 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Ningbo Dechang Electrical Machinery Made Co (605555) currently trades at ¥12.10, while our model-based Fair Value estimate is ¥12.71, implying the stock looks roughly 5.0% fairly valued today. The Quality Score stands at 46/100 (below-average 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, Ningbo Dechang Electrical Machinery Made Co generated revenue of 4.5B CNY at a net margin of 2.1%. Revenue grew 2.7% year over year. It earns a return on equity of 3.1%. The balance sheet holds a net cash position of 1.1B CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥9.52 (bear case) to ¥15.88 (bull case); at ¥12.10, 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 42% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at 5%, 605555 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 ¥4.80 ¥4.92 ¥4.81 76
ROIC Compounder ¥4.01 ¥4.40 ¥4.75 72
Gordon GGM ¥2.47 ¥4.93 ¥7.46 70
All 16 models by family
Earnings-Based
Graham-Dodd ¥2.29 ¥15.94 ¥22.37 54
Lynch FV ¥6.51 ¥9.30 ¥12.09 50
PEG = 1.0 ¥6.51 ¥9.30 ¥12.09 46
EPV ¥4.01 ¥4.40 ¥4.75 59
Dividend Discount
Gordon GGM ¥2.47 ¥4.93 ¥7.46 70
DDM Multi-Stage ¥2.47 ¥4.26 ¥5.20 61
Multiples
P/E Multiple ¥5.29 ¥7.06 ¥8.82 63
P/S Multiple ¥4.28 ¥5.71 ¥7.14 58
P/B Multiple ¥4.28 ¥5.71 ¥7.14 55
EV/EBIT ¥6.14 ¥7.68 ¥9.23 53
EV/EBITDA ¥7.99 ¥10.16 ¥12.32 54
EV/Revenue ¥4.81 ¥6.23 ¥7.65 43
Asset-Based
NCAV (Graham) ¥3.11 ¥4.16 ¥6.21 50
Economic Profit
Residual Income ¥4.80 ¥4.92 ¥4.81 76
ROIC Compounder ¥4.01 ¥4.40 ¥4.75 72
Growth Earnings
Growth-Adj P/E ¥8.15 ¥11.64 ¥15.13 68

Widest divergence: Growth Earnings (¥11.64) versus Asset-Based (¥4.16). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 4.5B CNY
Revenue growth (YoY) +2.7%
Net margin 2.1%
Return on equity 3.1%
Free cash flow −537M CNY FY2025
P/E ratio 77.7
More key figures
Operating margin 3.0%
EPS (TTM) ¥0.2000
Dividend yield 1.8%
EPS growth (YoY) -82.4%
Net cash 1.1B CNY FY2024

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

Quality Score breakdown

Overall quality 46/100

Of which business quality 47 · Market factors (momentum, volatility) 27

Profitability 33
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 4
Earnings quality: real cash, not paper profit
Fin. Strength 84
Balance sheet, leverage, solvency risk
Investment 49
Disciplined investing over empire-building
Low Volatility 68
Calm price path (market factor)
Momentum 14
Price trend over the last 3–12 months (market factor)
52W Momentum 3
Distance to the 52-week high (market factor)
Net Issuance 84
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

Ningbo Dechang Electrical Machinery Made Co., Ltd. produces and sells electric motors and household vacuum cleaners in China. The company offers horizontal dust bag, cyclone dust cup, and charging mode vacuum cleaner products. It also offers EPS brushless motors for automobiles. The company was founded in 2002 and is based in Yuyao, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Ningbo Dechang Electrical Machinery Made Co reported revenue of ¥4.5B in FY2025 versus ¥2.8B in FY2021, a compound +12.2%/yr. Reported net income was ¥163M in FY2025, compounding −14.2%/yr from FY2021.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
4.5B CNY
Latest YoY
+9.8%
Avg. growth/yr (3Y)
+32.4%
Avg. growth/yr (5Y)
+16.8%
Avg. growth/yr (8Y)
+20.2%
Revenue +12.2%/yr
FY21 ¥2.8B
FY22 ¥1.9B
FY23 ¥2.8B
FY24 ¥4.1B
FY25 ¥4.5B
Net income −14.2%/yr
FY21 ¥301M
FY22 ¥299M
FY23 ¥322M
FY24 ¥411M
FY25 ¥163M

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Cite: Fair Value Calculator (2026). "Ningbo Dechang Electrical Machinery Made Co Fair Value". https://www.fairvalue-calculator.com/stock/605555

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 46 · Below median
Fair Value upside +5% · Top 25%
Return on equity (TTM) 3% · Below median
Return on assets 1% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth 3% · Below median
Dividend yield (TTM) 1.8% · Above median
Debt / equity 0.01× · Lower than 75% of peers

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 77.7× · Pricier than 75% of peers
P/B 2.50× · Pricier than median
P/S (TTM) 1.66× · Cheaper than median
EV/EBITDA 30.0× · Pricier 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 40 · sector 0
FUTURE 14 · sector 23
PAST 12 · sector 28
HEALTH 100 · sector 96
DIVIDEND 36 · 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 Ningbo Dechang Electrical Machinery Made Co (605555) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥12.71 versus a price of ¥12.10, about +5% (fairly valued).
What is the fair value of 605555?
Our model-based fair value for Ningbo Dechang Electrical Machinery Made Co is ¥12.71 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥12.10.
What is the quality score of 605555?
Ningbo Dechang Electrical Machinery Made Co has a Quality Score of 46/100. 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 Ningbo Dechang Electrical Machinery Made Co (605555)?
Ningbo Dechang Electrical Machinery Made Co reported trailing-twelve-month revenue of about 4.5B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 605555?
The net profit margin of Ningbo Dechang Electrical Machinery Made Co is about 2.1%, meaning it keeps roughly 2.1% of revenue as net income. Based on the latest reported figures.
Does Ningbo Dechang Electrical Machinery Made Co pay a dividend?
Ningbo Dechang Electrical Machinery Made Co currently shows a dividend yield of about 1.82% 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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