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Shanghai Geoharbour Construction Group (605598) Fair Value & Analysis

Industrials · CN · Market cap 6.8B CNY

SG Shanghai Geoharbour Construction Group 605598 · SHG
Price¥28.59
Fair Value¥5.67
Upside-80.2%
Quality57/100
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Healthy Growth
Thin margins · 2.2% net margin
Low debt · generates free cash flow
0.29% dividend yield
Trails peers (3/14)
Narrow moat 29/100
Evidence: High Range ¥4.29 – ¥7.09 Share as image

Fair value as of: Aug 11, 2026

From 26 valuation models · updated today

Share price −23.6% over the past month.

A solid business, but screening 80% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥7.09). The favourable scenario is already priced in.
  • Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥75.64 ¥9.33 Fair Value ¥5.67 Sep 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 11, 2026.

How to read this chart

59‑month range ¥9.33 – ¥75.64 · fair‑value band ¥4.29 – ¥7.09 · the ¥28.59 price screens above the ¥5.67 fair value. Dashed = 300-day average. As of Aug 11, 2026.

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Analysis

Shanghai Geoharbour Construction Group (605598) currently trades at ¥28.59, while our model-based Fair Value estimate is ¥5.67, implying the stock looks roughly 80.2% overvalued today. The Quality Score stands at 57/100 (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, Shanghai Geoharbour Construction Group generated revenue of 1.6B CNY at a net margin of 2.2%. Revenue declined 4.5% year over year. It earns a return on equity of 1.5%. The balance sheet holds a net cash position of 545M CNY. Fundamentals as of Aug 11, 2026

Our scenario range runs from ¥4.29 (bear case) to ¥7.09 (bull case); at ¥28.59, 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 63% below its 52-week high and 44% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -45% fair-value upside, at -80%, 605598 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 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
Growth DCF ¥5.44 ¥8.36 ¥12.70 80
Residual Income ¥5.25 ¥5.17 ¥4.51 76
Rev-Margin DCF ¥5.75 ¥8.75 ¥12.87 74
All 26 models by family
DCF Models
FCF DCF ¥5.52 ¥8.30 ¥14.08 38
Owner Earnings ¥6.05 ¥9.60 ¥16.01 31
5Y Revenue Exit ¥5.75 ¥8.88 ¥13.33 39
5Y EBITDA Exit ¥8.26 ¥14.35 ¥22.44 41
5Y P/E Exit ¥6.02 ¥9.48 ¥13.64 38
10Y Revenue Exit ¥5.52 ¥8.50 ¥13.46 36
10Y EBITDA Exit ¥7.31 ¥12.55 ¥21.34 37
10Y P/E Exit ¥5.83 ¥8.94 ¥13.73 35
Earnings-Based
Graham-Dodd ¥1.84 ¥10.22 ¥14.19 54
Lynch FV ¥2.86 ¥4.08 ¥5.30 50
PEG = 1.0 ¥2.86 ¥4.08 ¥5.30 46
EPV ¥4.55 ¥4.91 ¥5.22 59
Dividend Discount
Gordon GGM ¥1.01 ¥2.00 ¥3.04 70
DDM Multi-Stage ¥1.01 ¥1.73 ¥2.12 61
Multiples
P/E Multiple ¥4.25 ¥5.67 ¥7.09 63
P/S Multiple ¥3.44 ¥4.59 ¥5.74 58
P/B Multiple ¥3.44 ¥4.59 ¥5.74 55
EV/EBIT ¥7.26 ¥8.92 ¥10.59 53
EV/EBITDA ¥9.99 ¥12.57 ¥15.14 54
EV/Revenue ¥5.83 ¥7.36 ¥8.88 43
Asset-Based
NCAV (Graham) ¥3.60 ¥4.82 ¥7.19 50
Growth DCF
Growth DCF ¥5.44 ¥8.36 ¥12.70 80
Rev-Margin DCF ¥5.75 ¥8.75 ¥12.87 74
Economic Profit
Residual Income ¥5.25 ¥5.17 ¥4.51 76
ROIC Compounder ¥4.55 ¥4.91 ¥5.22 72
Growth Earnings
Growth-Adj P/E ¥4.29 ¥6.14 ¥7.98 68

Widest divergence: DCF Models (¥8.94) versus Dividend Discount (¥1.73). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 1.6B CNY
Revenue growth (YoY) -4.5%
Net margin 2.2%
Return on equity 1.5%
Free cash flow 60.0M CNY FY2025
P/E ratio 261.1
More key figures
Operating margin 5.1%
EPS (TTM) ¥0.1400
Dividend yield 0.2%
EPS growth (YoY) -86.7%
Net cash 545M CNY FY2024

Figures from reported company fundamentals · as of Aug 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 59 · Market factors (momentum, volatility) 36

Profitability 32
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 45
Earnings quality: real cash, not paper profit
Fin. Strength 96
Balance sheet, leverage, solvency risk
Investment 74
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 28
Price trend over the last 3–12 months (market factor)
52W Momentum 34
Distance to the 52-week high (market factor)
Net Issuance 64
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

Shanghai Geoharbour Construction Group Co., Ltd. engages in the geotechnical engineering survey, design, construction, and monitoring services in China and internationally. The company's services include foundation treatment and pile foundation engineering.

Full company description

Shanghai Geoharbour Construction Group Co., Ltd. engages in the geotechnical engineering survey, design, construction, and monitoring services in China and internationally. The company's services include foundation treatment and pile foundation engineering. It undertakes airports, ports, highways, railways, power plants, municipal administration, petrochemicals, national defense, and land reclamation. The company was founded in 2000 and is based in Shanghai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shanghai Geoharbour Construction Group reported revenue of ¥1.6B in FY2025 versus ¥735M in FY2021, a compound +20.9%/yr. Reported net income was ¥65.6M in FY2025, compounding +1.7%/yr from FY2021.

Growth Quality 85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
1.6B CNY
Latest YoY
+21.0%
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.
+21.0%
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.
+14.7%
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.
+7.9%
Revenue +20.9%/yr
FY21 ¥735M
FY22 ¥885M
FY23 ¥1.3B
FY24 ¥1.3B
FY25 ¥1.6B
Net income +1.7%/yr
FY21 ¥61.3M
FY22 ¥157M
FY23 ¥174M
FY24 ¥92.5M
FY25 ¥65.6M

605598 screens 80% overvalued. Compare with Larsen & Toubro Limited →

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Cite: Fair Value Calculator (2026). "Shanghai Geoharbour Construction Group Fair Value". https://www.fairvalue-calculator.com/stock/605598

Peer Group

Engineering & Construction · 842 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 57 · Above median
Fair Value upside −80% · Bottom 25%
Return on equity (TTM) 2% · Below median
Return on assets 2% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 5% · Above median
Revenue growth -5% · Below median
Dividend yield (TTM) 0.3% · Below median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 200.7× · Pricier than 75% of peers
P/B 3.91× · Pricier than 75% of peers
P/S (TTM) 4.40× · Pricier than 75% of peers
P/FCF 16.9× · Pricier than 75% of peers
EV/EBITDA 40.0× · 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 0 · sector 16
FUTURE 0 · sector 17
PAST 6 · sector 26
HEALTH 100 · sector 94
DIVIDEND 6 · 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 Aug 11, 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 Shanghai Geoharbour Construction Group (605598) overvalued or undervalued?
As of Aug 11, 2026, our model estimates a fair value of ¥5.67 versus a price of ¥28.59, about −80% (overvalued).
What is the fair value of 605598?
Our model-based fair value for Shanghai Geoharbour Construction Group is ¥5.67 (as of Aug 11, 2026), built from audited fundamentals. The current price is ¥28.59.
What is the quality score of 605598?
Shanghai Geoharbour Construction Group has a Quality Score of 57/100. 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 Shanghai Geoharbour Construction Group (605598)?
Shanghai Geoharbour Construction Group reported trailing-twelve-month revenue of about 1.6B CNY (latest available figure, as of Aug 11, 2026).
What is the net profit margin of 605598?
The net profit margin of Shanghai Geoharbour Construction Group is about 2.2%, meaning it keeps roughly 2.2% of revenue as net income. Based on the latest reported figures.
Does Shanghai Geoharbour Construction Group pay a dividend?
Shanghai Geoharbour Construction Group currently shows a dividend yield of about 0.22% relative to its recent price (as of Aug 11, 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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