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Zhangjiagang Guangda Special Material Co (688186) Fair Value & Analysis

Basic Materials · CN · Market cap 4.8B CNY

ZG Zhangjiagang Guangda Special Material Co 688186 · SHG
Price¥14.66
Fair Value¥10.61
Upside-27.6%
Quality28/100
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Expensive Growth
Thin margins · 2.9% net margin
Moderate debt · negative free cash flow
Trails peers (4/12)
Narrow moat 27/100
Evidence: High Range ¥7.96 – ¥13.26 Share as image

Fair value as of: Jul 12, 2026

From 17 valuation models · updated 29 days ago

Share price +2.4% over the past month.

Below-average quality, and screening another 28% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥13.26). The favourable scenario is already priced in.
  • Weak quality (28/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

¥67.29 ¥8.55 Fair Value ¥10.61 Feb 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 ¥8.55 – ¥67.29 · fair‑value band ¥7.96 – ¥13.26 · the ¥14.66 price screens above the ¥10.61 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

Zhangjiagang Guangda Special Material Co (688186) currently trades at ¥14.66, while our model-based Fair Value estimate is ¥10.61, implying the stock looks roughly 27.6% overvalued today. The Quality Score stands at 28/100 (below-average quality), in the Basic Materials 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, Zhangjiagang Guangda Special Material Co generated revenue of 4.8B CNY at a net margin of 2.9%. Revenue declined 9.3% year over year. It earns a return on equity of 3.9%. Net debt stands at 3.0B CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥7.96 (bear case) to ¥13.26 (bull case); at ¥14.66, 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 55% below its 52-week high, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -7% fair-value upside, at -28%, 688186 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
Residual Income ¥12.62 ¥12.71 ¥11.70 76
ROIC Compounder ¥6.26 ¥8.36 ¥10.17 72
Gordon GGM ¥6.82 ¥13.60 ¥20.59 70
All 17 models by family
DCF Models
Owner Earnings ¥13.63 ¥38.80 ¥89.68 31
Earnings-Based
Graham-Dodd ¥4.99 ¥34.81 ¥48.85 54
Lynch FV ¥10.60 ¥15.14 ¥19.69 50
PEG = 1.0 ¥10.60 ¥15.14 ¥19.69 46
EPV ¥6.26 ¥8.36 ¥10.17 59
Dividend Discount
Gordon GGM ¥6.82 ¥13.60 ¥20.59 70
DDM Multi-Stage ¥6.82 ¥11.75 ¥14.35 61
Multiples
P/E Multiple ¥9.36 ¥12.48 ¥15.60 63
P/S Multiple ¥9.36 ¥12.48 ¥15.60 58
P/B Multiple ¥9.36 ¥12.48 ¥15.60 55
EV/EBIT ¥10.03 ¥15.72 ¥21.42 53
EV/EBITDA ¥15.24 ¥22.67 ¥30.11 54
EV/Revenue ¥7.75 ¥14.10 ¥20.44 43
Asset-Based
NCAV (Graham) ¥8.41 ¥11.27 ¥16.83 50
Economic Profit
Residual Income ¥12.62 ¥12.71 ¥11.70 76
ROIC Compounder ¥6.26 ¥8.36 ¥10.17 72
Growth Earnings
Growth-Adj P/E ¥13.20 ¥18.86 ¥24.52 68

Widest divergence: DCF Models (¥38.80) versus Economic Profit (¥8.36). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 4.8B CNY
Revenue growth (YoY) -9.3%
Net margin 2.9%
Return on equity 3.9%
Free cash flow −1.1B CNY FY2025
P/E ratio 30.7
More key figures
Operating margin 5.3%
EPS (TTM) ¥0.5600
EPS growth (YoY) -92.9%
Net debt 3.0B CNY FY2025

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

Quality Score breakdown

Overall quality 28/100

Of which business quality 27 · Market factors (momentum, volatility) 19

Profitability 23
Margins and returns on capital today
Quality Growth 61
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 32
Balance sheet, leverage, solvency risk
Investment 68
Disciplined investing over empire-building
Low Volatility 63
Calm price path (market factor)
Momentum 0
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 0
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

Zhangjiagang Guangda Special Material Co., Ltd. researches, develops, produces, and sells steel materials and new energy wind power components in China and internationally.

Full company description

Zhangjiagang Guangda Special Material Co., Ltd. researches, develops, produces, and sells steel materials and new energy wind power components in China and internationally. It offers wind power equipment parts, including wind turbine spindles; structural parts of gearbox, hub, and body frames; special stainless steel; high-temperature alloys, corrosion resistant alloys, and steel; die and tool steel products, such as plastic mold, and hot and cold work tool steels; gear steel products; and other precision mechanical parts used in wind power, chemical engineering, machinery, automobile, vessel, power station, metallurgy, mining, and petrochemical industries. The company was founded in 2006 and is headquartered in Zhangjiagang, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhangjiagang Guangda Special Material Co reported revenue of ¥4.9B in FY2025 versus ¥2.7B in FY2021, a compound +15.7%/yr. Reported net income was ¥206M in FY2025, compounding +4.0%/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)
4.9B CNY
Latest YoY
+22.6%
Avg. growth/yr (3Y)
+13.4%
Avg. growth/yr (5Y)
+22.1%
Avg. growth/yr (9Y)
+21.2%
Revenue +15.7%/yr
FY21 ¥2.7B
FY22 ¥3.4B
FY23 ¥3.8B
FY24 ¥4.0B
FY25 ¥4.9B
Net income +4.0%/yr
FY21 ¥176M
FY22 ¥103M
FY23 ¥109M
FY24 ¥115M
FY25 ¥206M

688186 screens 28% overvalued. Compare with Tata Steel Limited →

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Cite: Fair Value Calculator (2026). "Zhangjiagang Guangda Special Material Co Fair Value". https://www.fairvalue-calculator.com/stock/688186

Peer Group

Steel · 378 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 28 · Bottom 25%
Fair Value upside −28% · Below median
Return on equity (TTM) 4% · Above median
Return on assets 2% · Below median
Net margin (TTM) 3% · Above median
Operating margin (TTM) 5% · Above median
Revenue growth -9% · Below median
Debt / equity 0.59× · Higher than 75% of peers

Valuation Multiples vs Steel median · lower = cheaper

P/E (TTM) 30.7× · Pricier than median
P/B 1.02× · Cheaper than median
P/S (TTM) 1.00× · Pricier than median
EV/EBITDA 9.2× · 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 20
FUTURE 0 · sector 4
PAST 16 · sector 15
HEALTH 71 · sector 95
DIVIDEND 0 · sector 41

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

Stock Price Fair Value vs Fair Value
Tata Steel Limited TTST $0.2010 $0.2000 -0%
JSW Steel Limited JSWSTEEL ₹1,227 ₹1,140 -7%
Baoshan Iron & Steel Co 600019 ¥5.89 ¥8.07 +37%
China Steel Corporation 2002A 38.55 TWD 8.74 TWD -77%
POSCO Holdings 005490 313,500 KRW 155,270 KRW -50%
Companhia Siderúrgica Nacional, SID 13,670 ARS 15,940 ARS +17%
Jindal Steel Limited JINDALSTEL ₹1,028 ₹545.12 -47%
Lloyds Metals and Energy Limited LLOYDSME ₹1,844 ₹1,098 -40%
Gerdau S.A GGBN 83.50 MXN 42.64 MXN -49%
Ternium S.A TXR 17,780 ARS 27,210 ARS +53%

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Frequently asked questions

Is Zhangjiagang Guangda Special Material Co (688186) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥10.61 versus a price of ¥14.66, about −28% (overvalued).
What is the fair value of 688186?
Our model-based fair value for Zhangjiagang Guangda Special Material Co is ¥10.61 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥14.66.
What is the quality score of 688186?
Zhangjiagang Guangda Special Material Co has a Quality Score of 28/100. 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 Zhangjiagang Guangda Special Material Co (688186)?
Zhangjiagang Guangda Special Material Co reported trailing-twelve-month revenue of about 4.8B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 688186?
The net profit margin of Zhangjiagang Guangda Special Material Co is about 2.9%, meaning it keeps roughly 2.9% 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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