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China Railway High-Speed Electrification Equipment Corporation (688285) Fair Value & Analysis

Industrials · CN · Market cap 2.9B CNY

CR China Railway High-Speed Electrification Equipment Corporation 688285 · SHG
Price¥7.57
Fair Value¥2.87
Upside-62.1%
Quality53/100
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Weak Growth
Thin margins · 4.6% net margin
Low debt · negative free cash flow
0.28% dividend yield
Trails peers (2/13)
Narrow moat 32/100
Evidence: High Range ¥2.15 – ¥2.87 Share as image

Fair value as of: Jul 12, 2026

From 15 valuation models · updated 30 days ago

Fair value updated Jul 12, 2026, revised from ¥3.00 to ¥2.87 (−4.3%) since Jun 24, 2026. Share price +5.7% over the past month.

A solid business, but screening 62% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥2.87). The favourable scenario is already priced in.
  • Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥10.60 ¥5.90 Fair Value ¥2.87 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 ¥5.90 – ¥10.60 · fair‑value band ¥2.15 – ¥2.87 · the ¥7.57 price screens above the ¥2.87 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

China Railway High-Speed Electrification Equipment Corporation (688285) currently trades at ¥7.57, while our model-based Fair Value estimate is ¥2.87, implying the stock looks roughly 62.1% overvalued today. The Quality Score stands at 53/100 (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, China Railway High-Speed Electrification Equipment Corporation generated revenue of 1.3B CNY at a net margin of 4.6%. Revenue grew 50.4% year over year. It earns a return on equity of 3.9%. The balance sheet holds a net cash position of 268M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥2.15 (bear case) to ¥2.87 (bull case); at ¥7.57, 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 26% below its 52-week high and 2% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -44% fair-value upside, at -62%, 688285 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
Residual Income ¥3.19 ¥3.06 ¥2.52 76
ROIC Compounder ¥2.60 ¥2.80 ¥2.96 72
Gordon GGM ¥0.1800 ¥0.2200 ¥0.2700 70
All 15 models by family
DCF Models
Owner Earnings ¥2.74 ¥3.21 ¥4.04 31
Earnings-Based
Graham-Dodd ¥0.9300 ¥1.63 ¥2.00 54
EPV ¥2.60 ¥2.80 ¥2.96 59
Dividend Discount
Gordon GGM ¥0.1800 ¥0.2200 ¥0.2700 70
DDM Multi-Stage ¥0.1800 ¥0.2300 ¥0.3000 61
Multiples
P/E Multiple ¥2.15 ¥2.87 ¥3.59 63
P/S Multiple ¥1.74 ¥2.32 ¥2.91 58
P/B Multiple ¥1.74 ¥2.32 ¥2.91 55
EV/EBIT ¥3.80 ¥4.61 ¥5.42 53
EV/EBITDA ¥4.29 ¥5.26 ¥6.24 54
EV/Revenue ¥3.10 ¥3.85 ¥4.59 43
Asset-Based
NCAV (Graham) ¥2.25 ¥3.01 ¥4.49 50
Economic Profit
Residual Income ¥3.19 ¥3.06 ¥2.52 76
ROIC Compounder ¥2.60 ¥2.80 ¥2.96 72
Growth Earnings
Growth-Adj P/E ¥1.52 ¥2.17 ¥2.82 68

Widest divergence: DCF Models (¥3.21) versus Dividend Discount (¥0.2200). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 1.3B CNY
Revenue growth (YoY) +50.4%
Net margin 4.6%
Return on equity 3.9%
Free cash flow −6.8M CNY FY2025
P/E ratio 48.3
More key figures
Operating margin 7.9%
EPS (TTM) ¥0.1600
Dividend yield 0.3%
EPS growth (YoY) +151%
Net cash 268M CNY FY2025

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

Quality Score breakdown

Overall quality 53/100

Of which business quality 50 · Market factors (momentum, volatility) 39

Profitability 20
Margins and returns on capital today
Quality Growth 50
Are margins and returns improving?
Cashflow 11
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 94
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 24
Price trend over the last 3–12 months (market factor)
52W Momentum 15
Distance to the 52-week high (market factor)
Net Issuance 82
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

China Railway High-Speed Electrification Equipment Corporation Limited engages in the design, research and development, manufacturing, and sales of electrified railway contact network products, urban rail transit power supply equipment, and off-track products.

Full company description

China Railway High-Speed Electrification Equipment Corporation Limited engages in the design, research and development, manufacturing, and sales of electrified railway contact network products, urban rail transit power supply equipment, and off-track products. The company operates in power supply equipment industry for domestic electrified railways and urban rail transit. It offers cantilever bracket, termination anchor clamps, overhead crossing products, electrical connection clamps, weights, additive wire fittings, and section insulators; and cantilever support, limited and non-limited steady, pulley anchored, rachet wheel anchored, spring compensation anchored, headspan supporting and fixing devices, headspan connection and suspension, grounding wire clamp and connection, level suspension, tunnel support and positioning, pully tensioning, and rachet wheel tensioning devices. The company provides straddle type monorail steel aluminum composites; steel aluminum composite contact rail systems; three phase AC 600V contact rail power supply system; medium and low speed maglev steel aluminum composite contact rail power supply systems; straddle type monorail side contact p type bus bar systems; super capacitor charging rail systems; tramcar double insulation flexible suspension catenary systems for tram; and sliding elastic suspension device for contact wire of tramcar. In addition, it offers automobile casting parts, high-voltage electrical castings, high-speed rail castings, high-end military castings, and wind power castings; and eccentric locknuts, spring insert locknuts, stainless steel bolts and nuts, channel bolts, and stamping workpieces. The company was formerly known as China Railway Electrification Bureau Group Baoji Equipment Co., Ltd. The company was founded in 1958 and is based in Baoji, China. China Railway High-speed Electrification Equipment Corporation Limited operates as a subsidiary of China Railway Electric Industry Co., Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Railway High-Speed Electrification Equipment Corporation reported revenue of ¥1.2B in FY2025 versus ¥1.4B in FY2021, a compound −4.4%/yr. Reported net income was ¥51.5M in FY2025, compounding −22.3%/yr from FY2021.

Growth Quality 20/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
1.2B CNY
Latest YoY
+17.2%
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.
−7.4%
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.
−2.7%
Avg. growth/yr (9Y) 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.
+2.2%
Revenue −4.4%/yr
FY21 ¥1.4B
FY22 ¥1.5B
FY23 ¥1.2B
FY24 ¥1.0B
FY25 ¥1.2B
Net income −22.3%/yr
FY21 ¥141M
FY22 ¥142M
FY23 ¥55.1M
FY24 ¥45.1M
FY25 ¥51.5M

688285 screens 62% overvalued. Compare with Union Pacific Corporation →

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Cite: Fair Value Calculator (2026). "China Railway High-Speed Electrification Equipment Corporation Fair Value". https://www.fairvalue-calculator.com/stock/688285

Peer Group

Railroads · 112 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 53 · Below median
Fair Value upside −62% · Bottom 25%
Return on equity (TTM) 4% · Below median
Return on assets 2% · Below median
Net margin (TTM) 5% · Below median
Operating margin (TTM) 8% · Below median
Revenue growth 50% · Top 25%
Dividend yield (TTM) 0.3% · Bottom 25%
Debt / equity 0.04× · Lower than median

Valuation Multiples vs Railroads median · lower = cheaper

P/E (TTM) 48.3× · Pricier than 75% of peers
P/B 1.72× · Pricier than median
P/S (TTM) 2.28× · Pricier than median
EV/EBITDA 18.7× · 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 28
FUTURE 100 · sector 19
PAST 15 · sector 31
HEALTH 98 · sector 88
DIVIDEND 6 · 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 Railroads stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
Union Pacific Corporation UNP $301.75 $144.60 -52%
CSX Corporation CSX $49.41 $12.85 -74%
Canadian Pacific Kansas City Limited CP $92.91 $35.00 -62%
Canadian National Railway Company CNR C$180.94 C$92.68 -49%
Norfolk Southern Corporation NSC $327.47 $117.90 -64%
Westinghouse Air Brake Technologies Corporation WAB $259.71 $144.80 -44%
Beijing-Shanghai High-Speed Railway Co 601816 ¥4.82 ¥5.65 +17%
CRRC Corporation 601766 ¥5.65 ¥9.53 +69%
Daqin Railway Co 601006 ¥4.85 ¥6.24 +29%
Hyundai Rotem Company 064350 167,700 KRW 125,182 KRW -25%

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Frequently asked questions

Is China Railway High-Speed Electrification Equipment Corporation (688285) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥2.87 versus a price of ¥7.57, about −62% (overvalued).
What is the fair value of 688285?
Our model-based fair value for China Railway High-Speed Electrification Equipment Corporation is ¥2.87 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥7.57.
What is the quality score of 688285?
China Railway High-Speed Electrification Equipment Corporation has a Quality Score of 53/100. 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 China Railway High-Speed Electrification Equipment Corporation (688285)?
China Railway High-Speed Electrification Equipment Corporation reported trailing-twelve-month revenue of about 1.3B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 688285?
The net profit margin of China Railway High-Speed Electrification Equipment Corporation is about 4.6%, meaning it keeps roughly 4.6% of revenue as net income. Based on the latest reported figures.
Does China Railway High-Speed Electrification Equipment Corporation pay a dividend?
China Railway High-Speed Electrification Equipment Corporation currently shows a dividend yield of about 0.28% 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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