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China Railway Construction Heavy Industry Corporation (688425) Fair Value & Analysis

Industrials · CN · Market cap 22.8B CNY

CR China Railway Construction Heavy Industry Corporation 688425 · SHG
Price¥4.16
Fair Value¥4.82
Upside+15.9%
Quality64/100
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Healthy Growth
Solidly profitable · 14.2% net margin
Low debt · generates free cash flow
2.01% dividend yield
Ranks above peers (12/14)
Moderate moat 48/100
Evidence: High Range ¥3.25 – ¥6.51 Share as image

Fair value as of: Jul 12, 2026

From 24 valuation models · updated 29 days ago

Share price +2.5% over the past month.

A solid business, screening 16% undervalued on our models.

What matters now

  • A fairly wide model range (¥3.25 to ¥6.51) leaves room in how you read the outcome.
  • Our model range runs from ¥3.25 (bear) to ¥6.51 (bull), base ¥4.82. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 64/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥7.61 ¥3.30 Fair Value ¥4.82 Jun 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 ¥3.30 – ¥7.61 · fair‑value band ¥3.25 – ¥6.51 · the ¥4.16 price screens below the ¥4.82 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

China Railway Construction Heavy Industry Corporation (688425) currently trades at ¥4.16, while our model-based Fair Value estimate is ¥4.82, implying the stock looks roughly 15.9% undervalued today. The Quality Score stands at 64/100 (solid 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, China Railway Construction Heavy Industry Corporation generated revenue of 9.9B CNY at a net margin of 14.2%. Revenue declined 7.1% year over year. It earns a return on equity of 7.6%. The balance sheet holds a net cash position of 1.1B CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥3.25 (bear case) to ¥6.51 (bull case); at ¥4.16, 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 49% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at 16%, 688425 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
Growth DCF ¥2.41 ¥3.15 ¥4.22 80
Residual Income ¥2.90 ¥3.11 ¥3.53 76
Rev-Margin DCF ¥2.48 ¥3.58 ¥4.79 74
All 24 models by family
DCF Models
FCF DCF ¥2.34 ¥3.11 ¥4.30 38
Owner Earnings ¥4.82 ¥6.57 ¥9.24 31
5Y Revenue Exit ¥2.48 ¥3.56 ¥4.94 39
5Y EBITDA Exit ¥3.66 ¥5.60 ¥7.85 41
5Y P/E Exit ¥3.49 ¥5.30 ¥7.18 38
10Y Revenue Exit ¥2.34 ¥3.28 ¥4.40 36
10Y EBITDA Exit ¥3.14 ¥4.64 ¥6.44 37
10Y P/E Exit ¥3.03 ¥4.45 ¥5.97 35
Earnings-Based
Graham-Dodd ¥1.89 ¥3.74 ¥4.68 54
EPV ¥3.01 ¥3.45 ¥3.84 59
Dividend Discount
Gordon GGM ¥0.8400 ¥1.18 ¥1.54 70
DDM Multi-Stage ¥0.8400 ¥1.17 ¥1.56 61
Multiples
P/E Multiple ¥4.38 ¥5.84 ¥7.30 63
P/S Multiple ¥2.83 ¥3.77 ¥4.71 58
P/B Multiple ¥3.55 ¥4.73 ¥5.91 55
EV/EBIT ¥4.35 ¥5.68 ¥7.00 53
EV/EBITDA ¥5.05 ¥6.62 ¥8.18 54
EV/Revenue ¥2.74 ¥3.75 ¥4.77 43
Asset-Based
NCAV (Graham) ¥1.74 ¥2.34 ¥3.49 50
Growth DCF
Growth DCF ¥2.41 ¥3.15 ¥4.22 80
Rev-Margin DCF ¥2.48 ¥3.58 ¥4.79 74
Economic Profit
Residual Income ¥2.90 ¥3.11 ¥3.53 76
ROIC Compounder ¥3.01 ¥3.45 ¥3.99 72
Growth Earnings
Growth-Adj P/E ¥3.16 ¥4.52 ¥5.88 68

Widest divergence: Multiples (¥4.73) versus Dividend Discount (¥1.17). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 9.9B CNY
Revenue growth (YoY) -7.1%
Net margin 14.2%
Return on equity 7.6%
Free cash flow 1.0B CNY FY2025
P/E ratio 15.9
More key figures
Operating margin 11.5%
EPS (TTM) ¥0.2700
Dividend yield 2.0%
EPS growth (YoY) -16.7%
Net cash 1.1B CNY FY2025

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

Quality Score breakdown

Overall quality 64/100

Of which business quality 62 · Market factors (momentum, volatility) 37

Profitability 37
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 52
Earnings quality: real cash, not paper profit
Fin. Strength 86
Balance sheet, leverage, solvency risk
Investment 82
Disciplined investing over empire-building
Low Volatility 66
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 22
Distance to the 52-week high (market factor)
Net Issuance 89
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 Construction Heavy Industry Corporation Limited engages in the research, design, development, manufacturing, leasing, sale, and servicing of tunnel boring machines, rail transit equipment, and specialized equipment in China and internationally.

Full company description

China Railway Construction Heavy Industry Corporation Limited engages in the research, design, development, manufacturing, leasing, sale, and servicing of tunnel boring machines, rail transit equipment, and specialized equipment in China and internationally. The company offers tunnel boring machines, drilling and blasting construction equipment, rail track and transit systems, agricultural machines, green building materials construction equipment, new construction materials, and mine construction equipment. China Railway Construction Heavy Industry Corporation Limited was founded in 2006 and is headquartered in Changsha, China. The company operates as a subsidiary of China Railway Construction Corporation Limited.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Railway Construction Heavy Industry Corporation reported revenue of ¥10.0B in FY2025 versus ¥9.5B in FY2021, a compound +1.4%/yr. Reported net income was ¥1.5B in FY2025, compounding −3.9%/yr from FY2021.

Growth Quality 75/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
10.0B CNY
Latest YoY
+0.0%
Avg. growth/yr (3Y)
−0.2%
Avg. growth/yr (5Y)
+5.7%
Avg. growth/yr (8Y)
+5.3%
Revenue +1.4%/yr
FY21 ¥9.5B
FY22 ¥10.1B
FY23 ¥10.0B
FY24 ¥10.0B
FY25 ¥10.0B
Net income −3.9%/yr
FY21 ¥1.7B
FY22 ¥1.8B
FY23 ¥1.6B
FY24 ¥1.5B
FY25 ¥1.5B

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Cite: Fair Value Calculator (2026). "China Railway Construction Heavy Industry Corporation Fair Value". https://www.fairvalue-calculator.com/stock/688425

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 64 · Top 25%
Fair Value upside +16% · Top 25%
Return on equity (TTM) 8% · Above median
Return on assets 3% · Above median
Net margin (TTM) 14% · Top 25%
Operating margin (TTM) 11% · Above median
Revenue growth -7% · Below median
Dividend yield (TTM) 2.0% · Above median
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 15.9× · Cheaper than 75% of peers
P/B 1.23× · Cheaper than median
P/S (TTM) 2.31× · Pricier than median
P/FCF 3.3× · Cheaper than median
EV/EBITDA 9.4× · Cheaper 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 55 · sector 0
FUTURE 0 · sector 23
PAST 30 · sector 28
HEALTH 99 · sector 96
DIVIDEND 40 · 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.

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Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
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Frequently asked questions

Is China Railway Construction Heavy Industry Corporation (688425) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥4.82 versus a price of ¥4.16, about +16% (undervalued).
What is the fair value of 688425?
Our model-based fair value for China Railway Construction Heavy Industry Corporation is ¥4.82 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥4.16.
What is the quality score of 688425?
China Railway Construction Heavy Industry Corporation has a Quality Score of 64/100. 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 Construction Heavy Industry Corporation (688425)?
China Railway Construction Heavy Industry Corporation reported trailing-twelve-month revenue of about 9.9B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 688425?
The net profit margin of China Railway Construction Heavy Industry Corporation is about 14.2%, meaning it keeps roughly 14.2% of revenue as net income. Based on the latest reported figures.
Does China Railway Construction Heavy Industry Corporation pay a dividend?
China Railway Construction Heavy Industry Corporation currently shows a dividend yield of about 2.01% 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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