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OKE Precision Cutting Tools Co (688308) Fair Value & Analysis

Industrials · CN · Market cap 16.5B CNY

OP OKE Precision Cutting Tools Co 688308 · SHG
Price¥100.87
Fair Value¥11.12
Upside-89.0%
Quality50/100
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Expensive Growth
Solidly profitable · 16.7% net margin
Low debt · negative free cash flow
0.24% dividend yield
Mixed vs. peers (6/13)
Wide moat 67/100
Evidence: High Range ¥8.34 – ¥13.89 Share as image

Fair value as of: Aug 11, 2026

From 17 valuation models · updated yesterday

Share price −24.0% over the past month.

A solid business, but screening 89% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥13.89). The favourable scenario is already priced in.
  • Solid but not exceptional quality (50/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥200.24 ¥13.99 Fair Value ¥11.12 Mar 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

60‑month range ¥13.99 – ¥200.24 · fair‑value band ¥8.34 – ¥13.89 · the ¥100.87 price screens above the ¥11.12 fair value. Dashed = 300-day average. As of Aug 11, 2026.

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Analysis

OKE Precision Cutting Tools Co (688308) currently trades at ¥100.87, while our model-based Fair Value estimate is ¥11.12, implying the stock looks roughly 89.0% overvalued today. The Quality Score stands at 50/100 (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, OKE Precision Cutting Tools Co generated revenue of 1.8B CNY at a net margin of 16.7%. Revenue grew 113.5% year over year. It earns a return on equity of 10.9%. Net debt stands at 379M CNY. Fundamentals as of Aug 11, 2026

Our scenario range runs from ¥8.34 (bear case) to ¥13.89 (bull case); at ¥100.87, 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 41% below its 52-week high, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -26% fair-value upside, at -89%, 688308 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 ¥12.34 ¥12.24 ¥11.02 76
ROIC Compounder ¥6.58 ¥7.48 ¥8.27 72
Gordon GGM ¥2.31 ¥4.80 ¥7.61 70
All 17 models by family
DCF Models
Owner Earnings ¥6.89 ¥12.04 ¥21.38 31
Earnings-Based
Graham-Dodd ¥4.45 ¥22.88 ¥31.62 54
Lynch FV ¥6.24 ¥8.92 ¥11.59 50
PEG = 1.0 ¥6.24 ¥8.92 ¥11.59 46
EPV ¥6.58 ¥7.48 ¥8.27 59
Dividend Discount
Gordon GGM ¥2.31 ¥4.80 ¥7.61 70
DDM Multi-Stage ¥2.31 ¥4.04 ¥5.03 61
Multiples
P/E Multiple ¥10.30 ¥13.73 ¥17.16 63
P/S Multiple ¥8.34 ¥11.12 ¥13.89 58
P/B Multiple ¥8.34 ¥11.12 ¥13.89 55
EV/EBIT ¥9.21 ¥11.88 ¥14.56 53
EV/EBITDA ¥17.05 ¥22.34 ¥27.62 54
EV/Revenue ¥6.91 ¥9.37 ¥11.82 43
Asset-Based
NCAV (Graham) ¥8.27 ¥11.09 ¥16.55 50
Economic Profit
Residual Income ¥12.34 ¥12.24 ¥11.02 76
ROIC Compounder ¥6.58 ¥7.48 ¥8.27 72
Growth Earnings
Growth-Adj P/E ¥9.39 ¥13.41 ¥17.44 68

Widest divergence: Growth Earnings (¥13.41) versus Dividend Discount (¥4.04). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 1.8B CNY
Revenue growth (YoY) +114%
Net margin 16.7%
Return on equity 10.9%
Free cash flow −244M CNY FY2025
P/E ratio 74.8
More key figures
Operating margin 35.1%
EPS (TTM) ¥1.88
Dividend yield 0.2%
EPS growth (YoY) +2,480%
Net debt 379M CNY FY2025

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

Quality Score breakdown

Overall quality 50/100

Of which business quality 44 · Market factors (momentum, volatility) 58

Profitability 24
Margins and returns on capital today
Quality Growth 58
Are margins and returns improving?
Cashflow 2
Earnings quality: real cash, not paper profit
Fin. Strength 69
Balance sheet, leverage, solvency risk
Investment 65
Disciplined investing over empire-building
Low Volatility 14
Calm price path (market factor)
Momentum 79
Price trend over the last 3–12 months (market factor)
52W Momentum 71
Distance to the 52-week high (market factor)
Net Issuance 69
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

OKE Precision Cutting Tools Co., Ltd. engages in the research, development, production, and sale of CNC tool and cemented carbide products. The company offers CNC blades, solid carbide tools, carbide saw blades, serrated blades, solid carbide tools, disc milling cutters, and other cemented carbide cutting tools.

Full company description

OKE Precision Cutting Tools Co., Ltd. engages in the research, development, production, and sale of CNC tool and cemented carbide products. The company offers CNC blades, solid carbide tools, carbide saw blades, serrated blades, solid carbide tools, disc milling cutters, and other cemented carbide cutting tools. The company was founded in 1996 and is headquartered in Zhuzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

OKE Precision Cutting Tools Co reported revenue of ¥1.5B in FY2025 versus ¥990M in FY2021, a compound +10.1%/yr. Reported net income was ¥104M in FY2025, compounding −17.3%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
1.5B CNY
Latest YoY
+29.3%
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.
+11.4%
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.
+15.7%
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.
+16.5%
Revenue +10.1%/yr
FY21 ¥990M
FY22 ¥1.1B
FY23 ¥1.0B
FY24 ¥1.1B
FY25 ¥1.5B
Net income −17.3%/yr
FY21 ¥222M
FY22 ¥242M
FY23 ¥166M
FY24 ¥57.3M
FY25 ¥104M

688308 screens 89% overvalued. Compare with Techtronic Industries Company →

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Cite: Fair Value Calculator (2026). "OKE Precision Cutting Tools Co Fair Value". https://www.fairvalue-calculator.com/stock/688308

Peer Group

Tools & Accessories · 121 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 50 · Below median
Fair Value upside −89% · Bottom 25%
Return on equity (TTM) 11% · Above median
Return on assets 4% · Above median
Net margin (TTM) 17% · Top 25%
Operating margin (TTM) 35% · Top 25%
Revenue growth 114% · Top 25%
Dividend yield (TTM) 0.2% · Bottom 25%
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Tools & Accessories median · lower = cheaper

P/E (TTM) 54.8× · Pricier than 75% of peers
P/B 6.26× · Pricier than 75% of peers
P/S (TTM) 9.14× · Pricier than 75% of peers
EV/EBITDA 34.7× · 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 4
FUTURE 100 · sector 14
PAST 44 · sector 29
HEALTH 99 · sector 96
DIVIDEND 5 · sector 36

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 Tools & Accessories stocks, each showing price versus our Fair Value estimate (as of Aug 11, 2026).

Stock Price Fair Value vs Fair Value
Techtronic Industries Company 0669 HK$129.60 HK$81.05 -37%
Snap-on Incorporated SNA $410.99 $350.46 -15%
RBC Bearings Incorporated RBC $595.49 $184.29 -69%
Lincoln Electric Holdings LECO $252.58 $154.80 -39%
Stanley Black & Decker, Inc SWK $88.22 $54.24 -39%
AB SKF (publ) SKFB kr 258.90 kr 192.57 -26%
The Timken Company TKR $139.47 $66.33 -52%
The Toro Company TTC $94.42 $69.71 -26%
SFS Group SFSN CHF 140.00 CHF 118.30 -16%
Hangzhou Greatstar Industrial Co 002444 ¥29.33 ¥35.72 +22%

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Frequently asked questions

Is OKE Precision Cutting Tools Co (688308) overvalued or undervalued?
As of Aug 11, 2026, our model estimates a fair value of ¥11.12 versus a price of ¥100.87, about −89% (overvalued).
What is the fair value of 688308?
Our model-based fair value for OKE Precision Cutting Tools Co is ¥11.12 (as of Aug 11, 2026), built from audited fundamentals. The current price is ¥100.87.
What is the quality score of 688308?
OKE Precision Cutting Tools Co has a Quality Score of 50/100. 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 OKE Precision Cutting Tools Co (688308)?
OKE Precision Cutting Tools Co reported trailing-twelve-month revenue of about 1.8B CNY (latest available figure, as of Aug 11, 2026).
What is the net profit margin of 688308?
The net profit margin of OKE Precision Cutting Tools Co is about 16.7%, meaning it keeps roughly 16.7% of revenue as net income. Based on the latest reported figures.
Does OKE Precision Cutting Tools Co pay a dividend?
OKE Precision Cutting Tools Co currently shows a dividend yield of about 0.18% 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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